Meaning of Levels of Management
Many managers work in an organisation. However, these managers do not work at the same level. They work and operate at different positions. Hierarchy of these managerial positions is called Levels of Management.
Three Levels of Management
Generally, there are Three Levels of Management, viz.,
- Administrative or Top Level of Management.
- Executive or Middle Level of Management.
- Supervisory or Lower Level of Management.
Diagram of Levels of Management
Top Level of Management
The Top Level Management consists of the Board of Directors (BOD) and the Chief Executive Officer (CEO). The Chief Executive Officer is also called General Manager (GM) or Managing Director (MD) or President. The Board of Directors are the representatives of the Shareholders, i.e. they are selected by the Shareholders of the company. Similarly, the Chief Executive Officer is selected by the Board of Directors of an organisation.
The main role of the top level management is summarized as follows :-
- The top level management determines the objectives, policies and plans of the organisation.
- They mobilises (assemble and bring together) available resources.
- The top level management does mostly the work of thinking, planning and deciding. Therefore, they are also called as the Administrators and the Brain of the organisation.
- They spend more time in planning and organising.
- They prepare long-term plans of the organisation which are generally made for 5 to 20 years.
- The top level management has maximum authority and responsibility. They are the top or final authority in the organisation. They are directly responsible to the Shareholders, Government and the General Public. The success or failure of the organisation largely depends on their efficiency and decision making.
- They require more conceptual skills and less technical Skills.
Middle Level of Management
The Middle Level Management consists of the Departmental Heads (HOD), Branch Managers, and the Junior Executives. The Departmental heads are Finance Managers, Purchase Managers, etc. The Branch Managers are the head of a branch or local unit. The Junior Executives are Assistant Finance Managers, Assistant Purchase Managers, etc. The Middle level Management is selected by the Top Level Management.
The middle level management emphasize more on following tasks :-
- Middle level management gives recommendations (advice) to the top level management.
- It executes (implements) the policies and plans which are made by the top level management.
- It co-ordinate the activities of all the departments.
- They also have to communicate with the top level Management and the lower level management.
- They spend more time in co-ordinating and communicating.
- They prepare short-term plans of their departments which are generally made for 1 to 5 years.
- The middle Level Management has limited authority and responsibility. They are intermediary between top and lower management. They are directly responsible to the chief executive officer and board of directors.
- Require more managerial and technical skills and less conceptual skills.
Lower Level of Management
The lower level management consists of the Foremen and the Supervisors. They are selected by the middle level management. It is also called Operative / Supervisory level or First Line of Management.
The lower level management performs following activities :-
- Lower level management directs the workers / employees.
- They develops morale in the workers.
- It maintains a link between workers and the middle level management.
- The lower level management informs the workers about the decisions which are taken by the management. They also inform the management about the performance, difficulties, feelings, demands, etc., of the workers.
- They spend more time in directing and controlling.
- The lower level managers make daily, weekly and monthly plans.
- They have limited authority but important responsibility of getting the work done from the workers. They regularly report and are directly responsible to the middle level management.
- Along with the experience and basic management skills, they also require more technical and communication skills.