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Levels of Management: Learning Objectives

There are three levels of management in organizations: top-level management, middle-level management, and lower-level management. Top-level management includes the board of directors and CEO, and they are responsible for strategic planning, policymaking, and coordinating departments. Middle-level management consists of department managers, and their role is to execute top-level plans, coordinate activities within their department, and send reports upstairs. Lower-level management includes supervisors, and they oversee workers by assigning tasks, guiding work, ensuring quality/quantity, and communicating between workers and higher levels.

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352 views

Levels of Management: Learning Objectives

There are three levels of management in organizations: top-level management, middle-level management, and lower-level management. Top-level management includes the board of directors and CEO, and they are responsible for strategic planning, policymaking, and coordinating departments. Middle-level management consists of department managers, and their role is to execute top-level plans, coordinate activities within their department, and send reports upstairs. Lower-level management includes supervisors, and they oversee workers by assigning tasks, guiding work, ensuring quality/quantity, and communicating between workers and higher levels.

Uploaded by

Nekxy nekx
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Levels of Management

LEARNING OBJECTIVES
● Recognize the difference between low-level, middle-level and top-level management

The term “Levels of Management’ refers to a line of demarcation between various


managerial positions in an organization. The number of levels in management increases when
the size of the business and work force increases and vice versa. The level of management
determines a chain of command, the amount of authority & status enjoyed by any managerial
position. The levels of management can be classified in three broad categories:

● Top level / Administrative level


● Middle level / Executory
● Low level / Supervisory / Operative / First-line managers
Managers at all these levels perform different functions. The role of managers at all the three
levels is discussed below:

Top Level of Management


It consists of board of directors, chief executive or managing director. The top management is
the ultimate source of authority and it manages goals and policies for an enterprise. It devotes
more time on planning and coordinating functions.

The role of the top management can be summarized as follows -

● Top management lays down the objectives and broad policies of the enterprise.
● It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
● It prepares strategic plans & policies for the enterprise.
● It appoints the executive for middle level i.e. departmental managers.
● It controls & coordinates the activities of all the departments.
● It is also responsible for maintaining a contact with the outside world.
● It provides guidance and direction.
● The top management is also responsible towards the shareholders for the performance of
the enterprise.

Middle Level of Management


The branch managers and departmental managers constitute middle level. They are
responsible to the top management for the functioning of their department. They devote more
time to organizational and directional functions. In small organization, there is only one layer
of middle level of management but in big enterprises, there may be senior and junior middle
level management. Their role can be emphasized as -

● They execute the plans of the organization in accordance with the policies and directives
of the top management.
● They make plans for the sub-units of the organization.They participate in employment &
● training of lower level management.
● They interpret and explain policies from top level management to lower level.
● They are responsible for coordinating the activities within the division or department.
● It also sends important reports and other important data to top level management.
● They evaluate performance of junior managers.
● They are also responsible for inspiring lower level managers towards better performance.

Lower Level of Management


Lower level is also known as 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 of jobs and tasks to various workers.


● They guide and instruct workers for day to day activities.
● They are responsible for the quality as well as quantity of production.
● They are also entrusted with the responsibility of maintaining good relation in the
organization.
● They communicate workers problems, suggestions, and recommendatory appeals etc to
the higher level and higher level goals and objectives to the workers.
● They help to solve the grievances of the workers.
● They supervise & guide the sub-ordinates.
● They are responsible for providing training to the workers.
● They arrange necessary materials, machines, tools etc for getting the things done.
● They prepare periodical reports about the performance of the workers.
● They ensure discipline in the enterprise.
● They motivate workers.
● They are the image builders of the enterprise because they are in direct contact with the
workers.

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