Levels of Management

Meaning of Management

Management is the process of coordination and administration of tasks that is required to achieve the goals of the organisation. It is also referred to as the art of making things happen with the help of resources.

Management is required for an established life and is essential for managing all types of organisations. A sound management system is the fortitude of thriving companies. Managing life implies getting everything done to accomplish the aspirations of life and maintaining an establishment. This means getting things done with and by other people to fulfill its objectives.

To put it in other words, the organisation and coordination of the pursuits of an industry for the idea of accomplishing determined objectives efficiently and thoroughly are marked as management.

This authoritatively obligatory association connects individuals as subordinates and superiors and gives rise to distinct degrees in an establishment. There are 3 levels in the ranking order of an establishment and they are:

  1. Top-level management
  2. Middle-level management
  3. Lower-level management

Let us discuss these management levels in detail in the following lines.

Top Level Management

They comprise of the senior-most executives of the company. They are normally regarded as the Chairman, the Chief Executive Officer (CEO), the Chief Operating Officer (COO), President and Vice-president (VP). Top management is a team consisting of managers from various operational levels, managing marketing, finance, etc., For instance, Chief Finance Officer (CFO), Vice President (marketing) whose primary task is to combine various components and regulate the actions of different units according to the overall objectives of the company.

These top-level managers are accountable for the progress and continuation of the establishment. They investigate the trading atmosphere and its connections for the survival of the company. They form the overall organisational aims and approaches for their accomplishment. They are held responsible for all the pursuits of the company and for its influence on the society. The job of the top manager is difficult and stressful, necessitating long hours and dedication to the company.

Must Read: Class 12 Business Studies Syllabus 2020-21

Middle Level Management

It is the connection between top and lower level managers. They are lower to the top managers and above to the first line managers. They are normally called as division heads, for instance, Production Manager. Middle management is accountable for executing and regulating systems and manoeuvrings generated by the top management.

At the same time, they are liable for all the actions of the first-line managers. Their principal task is to bring out the plans formed by the top managers. For this purpose, they have to:

  • Understand the procedures outlined by the top management
  • Guarantee that their staff has the required workers
  • Designate certain tasks and duties to them, and drive them to accomplish the aspired objectives.
  • Interact with other departments for the stable operation of the company. At the same time, they are subject to all the actions of the first-line managers.

Lower Level Management

Managers and supervisors make up the lower level of the management in the hierarchy of the business. Supervisors immediately manage the efforts of the workforce. Their power and ability are defined according to the maps drawn by the top management.

Supervisory management performs a significant task in the system since they coordinate with the genuine workforce and move in directions of the middle management to the employees. Through their efforts the worth of the output is reported, wastage of substances is reduced, and security measures are affirmed.

 

5-6 marks questions
Q.1 Define levels of management, enumerate them and write the functions to be performed at those levels.
Answer:

  • Levels of management refer to the hierarchy of job positions of organisations representing authority,  responsibility and for maintaining relationships.
  • Generally, there are three levels of management which are:
(a) Top level management
  • This level of management consists of the senior most executive level of an organisation.
  • Their chief task is to lay down overall goals, policies, and strategies for the organisation and to communicate with the middle level of management.

Following are the main designations assigned to individuals working at this level:

  • Managing Director
  • Board of Directors
  • Chairperson
  • Chief executive Officers
  • Chief product Officers
  • Chief technology Officers

Functions performed at top level of management are :

  • Making strategies and goals for the organisation.
  • Taking decisions regarding activities to be performed.
  • Framing policies for the organisation.
  • Responsible for welfare and survival of the organisation.
(b) Middle level management
  • This level of management consists of executives working between top-level and supervisory level.
  • They interpret and implement the policies, coordinate all activities, ensure availability of resources and execute the policies framed by top-level management.

They consist of:

  • Divisional heads and sub-divisional heads.
  • Departmental heads like purchase manager, sales manager, finance manager, personnel manager etc.
  • Plant superintendent.

Functions performed at the middle level of management are :

  • Interpret the policies to lower management.
  • Taking decisions regarding the number of personnel in the department.
  • Assigning duties and responsibilities to employees in their department.
  • Convey suggestions and grievances of the supervisory level to the top level for the overall smooth functioning of the organisation.
  • Liable for the ultimate production of respective departments.
  • To act as a link between the lower level and the management.
(c) Lower level management Supervisory/Lower/Operational level management

  • This level of management operates between middle-level management and operative workforce.

This level consists of:

  • Supervisors
  • Foremen
  • Inspectors

Functions performed at the lower level of management are:

  • Providing on the job training to the workers
  • Ensuring the good performance of the workers
  • Giving feedback to the workers
  • Influence others to work more by setting an example
  • Responsible for group unity
  • Act as a link between the management and the workers

 

3-4 marks questions
1. Q.1 State the meaning of middle level of management. Give two examples of persons working at this level.
Answer:
(a) Middle-level management
  • This level of management consists of executives working between top level and supervisory level.
  • They interpret and implement policies, ensure coordination of all activities, ensure availability of resources and implementation of policies framed by top management.
  • They also convey suggestions and grievances of the supervisory level to the top level for the overall smooth functioning of the organisation.

They consist of:

  • Divisional heads and sub-divisional heads.
  • Departmental heads like purchase manager, sales manager, finance manager, personnel manager etc.
  • Plant superintendent.

 

Q.2 Your grandfather has retired as the director of a manufacturing company. At what level of management was he working? Different types of functions are performed at this level. State one function performed at this level of management.
Answer:

Top level

(a) Functions of top level management
  • To lay down organisational goals, policies and strategy formulation.
  • Organising, controlling and monitoring the activities
  • Resource allocation
  • Approval of budget
  • Overall control of work performance

 

1 mark questions
Q.1 Name the level of management that is responsible for the welfare and survival of the organisation. (outside Delhi comptt. 2014)
Answer: Top level.
Q.2 At which level of management directing takes place? (delhi 2013)
Answer: All levels.
Q.3 Name the level of management at which the managers are responsible for implementing and controlling the plan and strategies of the organisation.
Answer: Middle level.
Q.4 Lists any two functions of top level management.
Answer:

(1)To lay down organisational goals and objectives

(2)Approval of budgets.

Q.5 Lists any two functions of middle level management.
Answer:

(1)To interpret and implement the policies.

(2)To ensure coordination, ensure availability of resources and ensure implementation.

This concludes our article on the topic of Levels of Management, which is an important topic in Business Studies for Commerce students. For more such interesting articles, stay tuned to BYJU’S.

1 Comment

  1. FATHIMA ABDUL MAJEED

    ITS VERY HELPFUL