Levels of Management - Meaning, Types

Management involves a collective effort, wherein each organization comprises individuals positioned at various levels, entrusted with distinct roles corresponding to their qualifications and expertise. To ensure these organizational members effectively carry out their assigned duties, they are granted the necessary authority. Depending on the scope and magnitude of their responsibilities and authority, a hierarchical structure of superior-subordinate connections takes shape.

What are Levels of Management?

Levels of Management represent the distinctions in terms of authority and responsibilities within an organization. They play an important role in defining the roles of various managerial positions, specifying their superiors, and identifying their subordinates. Each levels of management is dedicated to distinct facets of a company's development, achievement, and the contentment of its employees. These conventional levels of management consist of:

• Top level management
• Middle level management
• Lower level management

Top Level Management

The highest-ranking executives within an organization are situated at the top levels of management. This level comprises the Board of Directors, Managing Director, Chairman, Chief Executive Officer, Chief Operating Officer, Vice-President, President, General Manager, and other senior executives. These top-level managers bear the responsibility for the organization's survival and well-being, performing demanding and intricate tasks that require dedication and long hours.

Top Level Management Functions

1. i) Establishing organizational objectives: Top-level managers formulate the objectives and strategies essential for the organization's success.
2. ii) Development of plans and policies: They are accountable for creating strategies, plans, and policies to realize the predetermined goals.

iii) Coordinating and overseeing performance: Top-level managers coordinate, and control various departmental activities based on the organization's overarching objectives.

1. iv) Analyzing the business environment: They meticulously assess the business environment's impact and make informed decisions.
2. v) Establishing the organizational structure: Top-level managers determine the framework necessary for successful policy execution.
3. vi) Resource allocation: They ensure the procurement of vital resources such as materials, personnel, and finances.

Middle-Level Management

The middle levels of management act as a bridge between top-level and lower-level management. It holds authority over operational management and reports to the top tier. Middle levels of management include functional department heads, e.g., Production, Purchase, Finance, Personnel, and Marketing Managers, as well as executive officers for various departments like plant superintendents. These managers are answerable to top-level management for their performance.

Middle-Level Management Functions

1. i) Interpretation of top-level policies: They translate top-level plans and policies for operational management.
2. ii) Recruitment and selection of personnel: Middle managers hire and select suitable personnel for departmental needs.

iii) Delegation of duties to lower-level management: They assign tasks to operational managers and coordinate with them.

1. iv) Motivating employees: Middle managers motivate employees to work toward organizational goals.
2. v) Coordinating with all departments: They foster collaboration between different units to ensure organizational efficiency.

Lower-Level Management

The lowest management tier, also known as Supervisory or Operational Management, plays a pivotal role in overseeing an organization's workforce. They directly interact with employees and relay instructions from middle management. Their authority and duties align with top-level plans and policies. This level encompasses foremen, supervisors, section officers, superintendents, and other managers with direct control over workers.

Lower-Level Management Functions

1. i) Issuing orders and instructions: They instruct workers, assign roles, and maintain control over their performance.
2. ii) Daily activity planning: Lower-level managers plan and assign daily tasks, offering guidance and corrections as necessary.

iii) Assistance with work: They guide employees, explaining procedures and resolving issues for improved performance.

1. iv) Representing worker grievances: Lower-level managers address worker complaints and relay them to middle management.
2. v) Ensuring a safe work environment: They maintain safety and discipline, fostering a conducive atmosphere.
3. vi) Supporting middle-level management: Operational managers aid in selecting, training, placing, and promoting workers.

vii) Encouraging employee initiative: By welcoming suggestions and rewarding good ideas, they motivate employees to take initiative and feel valued within the organization.

Objectives of Management

The primary objectives of management include:

• Management aims to attain maximum outputs with minimal effort and resources. It involves the efficient allocation of human, material, and financial resources, resulting in cost reduction.
• Properly utilizing production factors can significantly boost their efficiency by reducing waste and losses, leading to time and cost savings, crucial for enterprise growth.
• Effective management ensures harmonious operations, benefiting employees through favorable working conditions, fair wages, and incentives, while also delivering higher profits to employers.
• Management plays a role in uplifting society by increasing productivity and employment opportunities, ultimately improving living standards and upholding justice through consistent policies.

Need for Levels of Management

Numerous organizations implement various levels of management to distribute responsibilities across different departments and areas of expertise. Dividing tasks among management levels enables companies to expand their workforce, as there are ample managers to oversee various assignments.

This practice also streamlines approval procedures and guarantees that each management level can review one another's work before releasing a product to the public, ensuring quality and efficiency.