LEVELS OF MANAGEMENT
An
organization is a group activity with few common objectives, The various people
working together cannot be placed on the same status. Because, the organization
needs to be managed. In order to manage, there should be directing, authority
and responsibility.
Hence, there is a creation of levels or
positions among the organizational Personnel. This hierarchy is called levels
of management, Management believes in getting things done through others. So,
there is a need to create positions with superior- subordinate relationship.
The authority flows from superior to subordinate and responsibility in reverse
way.
There are three levels of management namely,
- Top level management
- Middle level management
- Low level management
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| CHART - 1 LEVELS OF MANAGEMENT |
The following chart explains the three structure of the levels of management.
The
structure creates different positions for all the people working in an organization.
Each position is assigned with functions, authority and responsibility. The
basic reason for such a demarcation is to fix the span of activities at each
level. The following explanation is about the.
Functional areas of three
levels
Top Management
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Board of Directors
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Chairman
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Chief Executives
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Middle Management
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Departmental Heads
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Divisional Head
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Sectional Heads
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Production
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Sales
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Purchase
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Finance
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Personnel
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Lower OR Operative Management
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Senior Supervisors
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Foreman
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Intermediate Supervisors
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Front Line Supervisors
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Work Force
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1. Top Management
The term Top
indicates the 'apex' position in the arrangement. It is at the higher end of
the pyramid structure. Top management consists of owners of company / organization.
Board of Directors, Managing Directors, Chief Executive Officer and General
Manager. The owners of the company are shareholders who contribute share
capital. They are huge in number and cannot directly take part in management
and day today activities.
Hence, they elect
their representatives to manage the affairs of an organization called
directors. They are collectively known as Board of Directors. They are
responsible for planning, determining objectives, framing policies, decision
making etc.
The Board of
Directors elect one of them as Chairman. In order to regulate the day to day
activities, the managing director and manager are appointed.
Carl Hayal
says that, "the top management is the policy
making group. responsible for the overall direction and success of company 's
all activities.
Functions of Top Management
The following are the chief
functions performed by top Level management;
a. Determining the Goals or Objectives:
The basic purpose of establishing an organization is defined through its
objectives.
They
explain what an organization wishes to achieve. Usually the objectives are
stated in the Memorandum of Association of Company. They include main and
subordinating objectives. Objectives are to be specific and clear. The ultimate
objective of business organization is wealth maximization.
The
whole structure struggles for the attainment of pre-determined objectives. The objectives
speak of the height of top management.
b. Framing the Policies: The ways and
means to attain the objectives are stated through policies. They are the
outcome of management decision relating to various functional areas.
For
example: If the company needs a machinery, the financial policy of company
spells whether to purchase it, lease it or go for installment purchase.
Similarly the production, pricing, distribution, product policies are framed by
management.
c. Setting up an Organizational Framework:
The top management plans for a suitable organization to execute the plans. An organization
means the group of men and material with design at roles. The duties,
responsibilities, authority are allocated among various personnel. The total
function of establishing relations is called organizing. It lays down the
boundaries within which everyone has to perform.
d. Assembling Resources: The management
pools the resources such as men, material, land, labour and capital through the
use of resources. The management raises the money through issue of shares,
debentures, banks, financial intermediaries. The physical resources are
purchased according to the requirement of department.
e. Controlling: Finally, the top
management is responsible to assess the performance of organization. The
control over the activities is exercised through supervising staff. The actual
performance of personnel is evaluated by comparing with the standards
established.
Any
variation between actual and standard is evaluated.
The reasons
are traced and improvements are suggested. The supervisors act as a source of
inspiration to the subordinates.
Conclusion:-
Control
over organization is indirectly exercised by top management. The techniques
used by it include budgeting, standard costing, accounting policies and statistical
quality control.
2. Middle Management
It is in - between
Top and Lower management. It includes all departmental heads, divisional and
sectional officers, deputy and branch managers.
As linking officer,
these are responsible for implementation of top management policies and plans.
The management expert M.C.Niles
states that "Middle management is always functioning under pressure from
three corners i.e., - from above by his chief in the top management with those
ideas, policies and attitudes he must agree- from below by the supervisors who
press for counsel, guidelines, decisions etc., and sideways by colleagues whose
department or functions or activities are interrelated with his own”.
Among the various activities performed, the following are important One-
a. Execution of top management's plans,
policies and objectives.
b. Keep ready the organizational setup to
implement the policies.
c. Identification of suitable personnel to
undertake and execute the responsibilities.
d. Co-ordination of various departments and
sections of the organization.
e. To develop personnel to bear the
responsibilities.
f. To motivate, build team spirit, to
achieve higher productivity within the time and cost.
g. Collection of information, opinions from
lower management and pass the same to top management.
h. Recommending to the top management on
the referred issues based on their experiences.
Conclusion:-
The middle level
management usually comprises of the active departments such as production,
engineering, personnel, stores, accounts, finance, general administration,
costing, sales etc. The goals are achieved by establishing harmony among
departments.
3.Lower Management
At the lower end of
pyramid is lower management. It is the level at which the goals are actively
reached. It undertakes all basic activities It is broader in structure with
number of work force. Lower management comprises foremen. Supervisor,
sub-departmental executives, workers, clerks etc. The performance of
organization depends upon the quality of work force as they actuate the plans
and policies.
The following are the functions performed at the lower management.
a. Supervisors issue
orders to workers to undertake the work.
b. Plan suitable policies,
course of action, pathways to perform easily.
c. Responsible to organize
the staff, guide, supervise and control.
d. Receive complaints and
pass on to the middle management.
e. Maintaining discipline,
harmonious relations, cool temperaments, group morale among the work force.
The organization of
lower level is comparatively less complex than top management. The term lower
level does not mean that it is less important. With a large span of people, it
is the operational level of activities. It is important to note that the lower
management implements all functions of management such as planning, organising,
directing staffing, controlling.
Conclusion:-
In
the success story of an organization. all the levels have an important role to
play. Management is an organised force with different levels. There is a need
of harmonious effort from the persons placed at all levels. Hence, the levels
of management indicate the gradation of functions, authorities and
responsibilities in the organization.
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