Answer: Levels of Management refer to the segregation between the different managerial positions in an organization. Depending on the size of the business and the size of work force the number of levels of management increases or decreases. Levels of management decide the chain of command, the amount of authority & responsibility assigned. There are three broadcategories:
1. Top level / Administrative level
2. Middle level / Executive
3. Low level / Supervisory / Operative / First-line managers
We will refer to low level management as junior management.
Fig. Levels of Management
1 Top Management
The top management would consist of the board of directors, CEO (Chief Executive Officer) and or the MD (Managing Director). The top management is the highest authority of the organization. The top level management sets goals and policies. As a thinking body, it devotes more time on planning and coordinating functions. Top management is responsible for:
· Decides the vision, mission, goals and objectives apart from policies
· Provides guidelines and schedules for department budget preparation.
· Facilitates strategic plan & policy development.
· Appoints leadership team members.
· Ensures all departments work well with each other.
· Continuously keeps a check through teams on the external environment and its impact on the business. Ensures necessary corrective and preventive action is taken in time.
· Provides guidance and direction.
· Top management is responsible to all shareholders for the performance of the organization.
2 Middle Management
Branch managers and departmental managers form the middle management. They report to the top management. They spend more time on organizational and directional functions. Depending on the organization size, the existence and the no. of layers of middle management are decided. Middle management is responsible for:
· Executing organizational plans as per the policies and directives of the top management
· Planning for the sub-units of the organization
· Employing & training of junior management
· Interpreting and explaining policies
· Coordinating the activities within the division or department.
· Reporting to top management
· Performance evaluation of junior managers
· Inspiring junior managers to perform better.
3 Lower Management or Junior Management
Lower level is also known as junior management, supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees. In other words, they are concerned with direction and controlling function of management. Their activities include:
· Assigning tasks
· Guiding and instructing workers for day-to-day activities
· Ensuring quality and quantity of production as per targets
· Maintaining good relations with colleagues
· Communicating worker issues, suggestions and recommendations to top management
· Communicating goals and objectives set by middle and top management
· Solve employee grievances, supervising & guiding team members
· Training colleagues and team members, motivating employees
· Arranging necessary resources (materials, machines, tools etc.) for getting the job done.
· Preparing reports about employee performance
· Ensuring discipline amongst team and colleagues