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Principles of Manag semen
eee f sul erior-subordinate telationshj
cst oes nk, Tas chin i made wr gh the vertical chain. This chan®®
authority 19 ggers are finked with one another WTA sitions called ‘levels of
Various oo ement consists of a series ots "he authority and status of manages
hierarchy of Mine level of management determin 2 line of demarcation between variou.
management sjevel of management’ refers t0 no fixed number of management levee
a aoa positions in an organisation. ere wize and complexity of the organisatio,
The number of managerial levels depends ar there is a natural tendency for the chair
“As a company becomes larger and Ee or a makes no effort to limit span of contro}
of command to lengthen. Even though tht Sorta there comes a time when command -
ven number, if there is an extensive growth there Pole a
viions loves have to be split up and another layer of uP sry into’ specif levels bec,
In practice, it is often difficult to slice management Be the’ “different ee
various layers of authority constitute an integrated pyramid. Sr of
management may be classified into four categories as shown i 2
Top
Management
Departmental
Divisional
Heads
Plant Superintendent Middle
Branch Managers ‘Management
Foremen Supervisors Operating
Management
Fig. 1.3. Levels of Management
Upper Middle
Management
@® Top Management;
(i) Intermediate or upper middle management;
ii) Middle management; and
Gv) Supervisory or operating management,
1. Top Management: Top
chief executives, Chief
different names,
environmental forces:
1 Emest Dale, Organisation, p.142, forces,Nature and Process of Management Le
«ayo establish overall long-term goals strajegy and policit ‘ncludi
the master budget to allocate roe areas con a oc aa
(ii) to create an organisational framework consisting of authori —
relationships; 1 of authority responsibility
(jv) to appoint departmental and other key executives;
(v) to provide overall leadership to the company;
(vi) to represent the company to the outside world, eg. trade associations, government,
trade unions, etc.; °
(ii) to exercise overall review and control on the company’s operations; and
(vii) to coordinate the activities and efforts of different departments.
‘Thus, top management of a company is the policy-making group responsible for the
overall direction and success of all company activifies’ It stands at the head of the
organisation. It gives purpose and direction to the activities of an organisation.
Intermediate Management: Intermediate or upper middle management comprises of
departmental or divisional heads, e.g., works manager, marketing manager, personnel manager,
finance manager, etc. Each one of these functional managers is responsible for the efficient
functioning of his own department or functional area in accordance with the basic objectives
and policies laid down by the top management. Intermediate management is largely concemed
with the day-to-day administration of respective departments. Its job is to implement plans and
execute policies in a coordinated manner so that enterprise objectives may be achieved.
Intermediate managers are concerned with priorities and specific results. At upper middle
management, departmental operational plans are established and targets of achievement are
laid down. Departmental heads exercise the usual functions of management in respect of their
own departments. They plan operations, issue instructions, assemble the required resources,
design operating policies and operating routines, evaluate results of their respective departments,
programme efforts and control the work of people in the departments. They interpret the
policies framed by top management, prépare departmental organisational setup, select suitable *~
supervising personnel, motivate the personnel and collect informatio). They are responsible
for the efficient utilisation of resources placed at their disposal) They translate the objectives
and strategies of the organisation into specific decisions and actions. They are more concemed
with the internal management rather than the extemal environment of the enterprise. Thus, this
group is responsible for departmental performance.
Middle Management: This level of management consists of deputy heads of departments and
sectional officers such as plant manager, area sales manager or branch manager, office manager,
chief accountant, purchase officer, etc. These executives serve as a means of coordination
between top management and operating managementpAccording to Marry C. Niles, “they
often share in the difficulties of their superiors in arriving at decisions and they necessarily
take part in the efforts of their subordinates to carry out policigs- They transmit orders,
decisions and guidance downwards; they also take problems, difficutjes, and suggestions
upward) The lines of mr wr meet in them”. They are invoived less in physical
activity and more in paper work)and meetings than the operating managers. While topPrinciples of Managemen,
” sth conceptual thinking middle management deals iq,
I management is concerned with
; ing functions:
eer ly performs the following func
; Seaton nagement.
mr Penal and explain the policies framed by top mai e ne
i i i ‘ions.
ea aie and issue detailed instructions regarding opera see a
a aa close contacts with operating results so as‘to evaluate p rm,
3. To maini
ici in ting decisions. p
. To participate in operating : ; ?
ci be aes among themselves so as to integrate or coordinate various parts of a
. To
division or a department. , asi
5
6. To motivate supervisory personnel to work for organisational goals)
7. To develop and train supervisory and operative personnel.)
Supervisory or Operating Management: Supervisory management is the eee
of management. It consists of plant superintendent, senior foremen an pt line
supervisors, sales officer, accounts officer, etc. They are concerned with technical
routine and day-to-day problems. They maintain personal contacts with operatives. It
involves management of rank and file and is directly concerned with the mechanics of 7
jobs. Operating managers are expected to get work done from the staff under their,
control. ‘They lead an active, hectic, often interrupted work life, spending most of thei? _
time communicating and caring for problems of the momer\ They are the only managets
who do not manage other managers. They are caught between labour and management.
According to Davis, supervisory management “refers to grades of executive leadership
who work has to do largely with personal oversight and direction of operative employees”.!
The operating managers plan, implement policy, organise, instruct and guide’ personnel
and control Performance. They serve as the link between management and workers.
Their authority and responsibility is limited but the quality of workmanship and the
quantity of output depends on their efficiency and effectiveness, They are/responsible for”
irectly managing operatives and resources. /
‘The functions of supervisory management are as follows:
+ To plan day-to-day production within the goals laid down by higher Sree
2. To assign jobs to workers and t i
soe lo make arrangements for their training at
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Is and to maintain =
ng work procedures, solving their Problems,
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. To maintain discipline,
- To report feedback i
the supervisory level
» morale and good human relations a
: mong workers,
information and workers? problems whi
ich cannot be solved at
x
RC. Davis: The Fundamentals of Top Management, p.145