Levels of 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 Management

Top-Level Management is also referred to as the administrative level. They coordinate services and are keen on planning. The top-level management is made up of the Board of Directors, the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the Chief Operating Officer (COO) or the President and the Vice President.

The Top-level management controls the management of goals and policies and the ultimate source of authority of the organization. They apply control and coordination of all the activities of the firm as they organize the several departments of the enterprise which would include their budget, techniques, and agendas.

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

Middle-level Management is also referred to as the executory level, they are subordinates of the top-level management and are responsible for the organization and direction of the low-level management. They account for the top-level management for the activities of their departments.

The middle-level managers are semi- executives and are made up of the departmental managers and branch managers. They could be divided into senior and junior middle-level management if the organization is big. They coordinate the responsibilities of the sub-unit of the firm and access the efficiency of lower-level managers.

The middle-level managers are in charge of the employment and training of the lower levels. They are also the communicators between the top level and the lower level as they transfer information, reports, and other data of the enterprise to the top-level. Apart from these, there are three primary functions of the middle-level management in the organization briefed below:

• 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

The lower level of Management is also referred to as the supervisory or the operative level of managers. They oversee and direct the operative employees. They spend most of their time addressing the functions of the firm, as instructed by the managers above them.

The lower-level managers are the first line of managers as they feature at the base of operations, so they are essential personnel that communicates the fundamental problems of the firm to the higher levels. This management level is made up of the foreman, the line boss, the shift boss, the section chief, the head nurse, superintendents, and sergeants.

They are the intermediary; they solve issues amidst the workers and are responsible for the maintenance of appropriate relationships within the organization. They are also responsible for training, supervising, and directing the operative employees.

The lower level managers represent the management to the operative workers as they ensure discipline and efficiency in the organization. The duty of inspiration and encouragement falls to them, as they strengthened the workforce. They also organize the essential machines, tools, and other materials required by the employees to get their job done.

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.