Levels of Management

Meaning of Management:

Management is required for an established life and essential to managing all types of management. Sound management is the fortitude of thriving companies. Managing life implies getting everything done to accomplish life’s aspirations and maintaining an establishment means getting things done with and by other people to deliver its objectives.

To put it in other words, the organization 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.

Top Management:

They comprise of the senior-most executives of the company by the name they are called. They are normally regarded to as the chairman, the chief executive officer (CEO), the chief operating officer (COO), president and vice-president (VP). Top management is a team comprising of managers from various operational levels, managing marketing, finance, etc., For instance, chief finance officer (CFO), vice president (marketing). Their primary task is to combine various components and regulate the actions of different units according to the overall intentions 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 overall organisational aims and approaches for their accomplishment. They are held responsible for all the pursuits of the company and for its influence on 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 2019-20

Middle Management:

It is the connection between top and lower level managers. They are lower to 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 maneuverings generated by top management. At the same time, they are liable for all the actions of 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 top management
  • Guarantee that their staff has the required workers
  • Designate certain tasks and duties to them, drive them to accomplish 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 first-line managers

Supervisory or Operational Management:

Managers and supervisors include the lower level in the bureaucracy 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 on directions of the middle management to the employees. Through their efforts worth of output is reported, wastage of substances is reduced and security measures are affirmed.

5-6 MARKS QUESTIONS
Q.1 DEFINE LEVELS OF MANAGEMENT AND ENUMERATE THEM AND WRITE FUNCTIONS TO BE PERFORMED AT THOSE LEVELS.
ANSWER:

  • Levels of management refer to the hierarchy of job positions of organizations representing authority and responsibility relationship.
  • 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 organization.
  • Their chief task is to lay down overall goals, policies and strategies for the organization 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 of the organisation.
  • Taking decisions regarding activities to be performed.
  • Framing policies for the organization.
  • 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 implementation of 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 MIDDLE LEVEL OF MANAGEMENT are :

  • Interpret the policies to lower management.
  • Taking decisions regarding a 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 lower and 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 LOWER LEVEL OF MANAGEMENT are :

  • Provide on the job training to the workers.
  • Ensure the 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 the 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 strategies formulation.
  • Organising, controlling and monitoring the activities
  • Resources allocation
  • Approval of budgets
  • 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.

The above mentioned is the concept, that is elucidated in detail about the Levels of Management for the class 12 Commerce students. To know more, stay tuned to BYJU’S.

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