Video Transcript: Levels of Management

Hello everybody. Welcome back in this video, we're going to be discussing the  levels of management in the previous videos. In this unit, we discussed why  management was important, what they did and how they did it, we also briefly  touched on the hierarchy of management. So in this video, we're going to be  discussing exactly what that hierarchy is and how it flows down and why it's  important. So levels of management is the hierarchy of management,  management positions from the top to the bottom right. So this is called the  levels of management. So you have the top management, middle management,  lower management, right? So we're going to continue to dive into this to see  how they all correlate and how they all interconnect. So top level management,  they're responsible for introducing the long term goals, what products are they  going to sell, what markets are they going to sell to? And what is the  organization of the business in its total in its entirety? How is it going to be  structured? How is it going to be organized? What are the plans that are going  to be implemented? The top level managers, they're the ones with the vision,  they're the ones with the idea, so they're going to implement the strategy that  they want to see undertaken, so that they can have their vision come to fruition  and that they're able to dominate and take market share from competitors. So in  the overall, long run, grand scheme, any organization that participates in the  market wants to take market share, they want to be the number one in their  industry. So the top level management puts themselves, or positions themselves in a position to do so. So they want to make sure they put out plans that they  help organize to where operations can flow effectively and efficiently. So the top  level managers then are going to communicate these ideas, communicate this  vision, communicate these processes to the middle managers. So the middle  managers are going to take the strategy, they're going to take the plans of the  organization, and they're going to uniquely find a way to have them interpreted  and then implemented into the lower level operational facility. So the middle  manager takes the plans from the upper management, from the top  management, they interpret and set the actions right, and then they delegate out those responsibilities so that they will be able to have the most effective,  efficient, long term outcome that meets the goals and objectives that is set forth  by the top level management. So the operational or lower level staff or  management, they are the ones that implement the strategy and the plans on  the ground level. So many up top, upper management, top management, they  have the idea, the focus, the drive, they see, where they want the company to  go. They relay that communication to the middle managers, the minimum the  middle managers then interpret those plans. They implement those plans to the  lower level managers and the lower level managers, they will make sure that  those plans are followed through with on the ground level so that we can move  forward in effective, efficient manner, running the operations to maximize output, so that we can have the top level management, so that their goals and 

objectives can be satisfied and they can continue to move forward in the growth  pattern that they choose. So the top level of management consists of Board of  Directors, Chief Executive Officer, Managing Director, etc. All are in this level of  management. So upper management, they're the ones that are truly putting  together the vision, the structure and how they want it implemented so that they  can continue to move forward and meet their objectives. The top management is the ultimate source of authority. Obviously, you have the CEO CFO board of  directors. They are the true decision makers inside the company long term. So  the top level management, it manages the goals and policies for the entire  enterprise. So like I said, they have got the vision, they've got the structural  outlook, they've got the growth pattern that they want to make sure that the  organization stays under and that those growth objectives and those overall  goals are met through the. Structure of management, it devotes more time and  planning and coordinating functions. So they are the ones that are  conceptualizing everything, and then they flow it down to the middle managers.  So top level management, they lay down the objectives and broad policies of the enterprise. So again, the overarching vision, it issues necessary instructions for  preparation of Department Budgets, procedures and schedules. So a lot of  times the CFO, they'll get the information, the data, and then based on the data  they get. Let's say there's 50 different facilities that are operating inside this  organizational umbrella, and some facilities are doing better than others. And  the CFO says, well, let's from these facilities that are performing very strong.  Let's take some of these resources and allocate them over to this facility that is  not performing as strongly, so that way we can optimize those operations and  that we can continue to run smoothly. So through the budgetary process, the  procedures, schedules, all of these resources are taking into account the  allocation of them, from the budgets, procedures and schedules, all of those  tools are used to make sure that resources are allocated efficiently. So it  prepares strategic plans and policies for the enterprises. They said, Look, this is  what we do as a whole in our industry, and this is how we're going to do it,  because we believe that this is the best process of creating X, Y and Z. So they  prepare the plans and the policies for the enterprise. So they want to make sure  that their plans, their vision, their structure, is implemented on an organizational  level. So it appoints executives and middle management, okay? So through the  top level management, they are the ones that are going to give promotions to  middle managers or give promotions to frontline managers and have them move move up accordingly. So as a middle manager or a frontline manager, it's  important to always want to make sure that we are really maximizing the output,  maximizing the efficiency, maximizing the effectiveness of our operations, so  that we have an opportunity to better ourselves through organizational growth. It also controls and coordinates the activities of all departments. Again, they have  their hand in everything, overseeing the operation, overseeing the organization. 

They want to be able to implement these plans in an effective manner. It also is  responsible for maintaining a contract, a con. It also, it is also responsible for  maintaining a contact with the outside world so, so they want to make sure that  they're checking up with clients. They want to make sure they're calling their  customers and making sure that they're having a good customer experience,  right? They want to make sure that they're in contact with them, maybe sending  them emails, maybe providing a survey for the for the business that they do for  whatever it is that they're offering in the market, right? They want feedback from  the consumer to know, okay, how do we need to change our strategy? The  consumers like this? Are they like this? How are we going to move forward? So  they're the ones that are receiving all that data and then implementing it  provides guidance and direction, sure. So as time progresses, markets  inevitably are going to change, so they need to be able to provide guidance and  direction through the changes of social order, economics, any kind of headwinds that could potentially impact their industry. Also, the top level management is  also responsible, responsible towards the shareholders and the performance of  the enterprise. So you know, top managers, they top level managers. They want  to make sure that shareholder value is maximized, right. They want to make  sure that the people that are investing into their organization, maybe they're  buying common stock on the stock market, right, and somebody holds 50,000  shares, and now they have voting rights. Now the CEO, they are obligated to  those investors that have voting rights, and now they need to make sure that  they are providing a return for those investors. So that is what the top managers  are responsible for. That's a role they play. This kind of the what they're you  know, this is what they're geared toward. This is what they do. So the middle  level management. So middle level management, they're going to be overseeing the lower level managers, right, the operational managers. So the middle  managers, they are. Responsible for the communication from the top level  management. They're going to take that communication, they're going to simplify it, put it into a strategy that it can be implemented easily on the lower level by  operational managers. So the middle level manager is a very critical support  manager for the entire operation of the organization. So they have to give them  the idea, the vision, have it implemented strategically, efficiently and effectively?  So branch managers and department managers constitute middle manager. You may even have a district manager, somebody that's over several facilities, right,  or several plans of organization, of operation. They're responsible the top level  management for the operations of their department. They may oversee 10,  12,15, facilities or operational plans. And if they're overseeing those, they are  directly responsible for those 10, 12,15, facilities or operational organizational  plans. And they are responsible for those operations and how well they  maximize the output they devote more time to organizational and directional  functions, so they really need to make sure that the plan is implemented 

effectively, that the strategy from the top managers down is implemented in an  effective, efficient fashion, so that we can optimize, again, the output from  production so that we can ultimately maximize shareholder value. So top  managers are looking at the bottom line numbers. Are we running in budget? Do our constraints need to change right? So make sure, as a manager, particularly  a middle manager, that you are helping and putting your operational managers  into a position to where they can be the most productive. In small organizations,  there are only one layer of middle management and larger enterprises, there  may be senior and junior levels of management, so we need to make sure that  we know the role that we're in, right. So a lot of times, when you're a junior  partner, you have to answer to the senior partner and the senior partner, even  though you're both middle managers, he is the one kind of guiding you. He or  she is the one kind of guiding you into creating the best environment for your  employees. So we'll briefly run through these. I think that we spoke about a lot of these already, but just to run through them again, just to make sure that we can  kind of hammer these down, they execute so the role and responsibilities of  middle managers, they execute the plans of the organization in accordance with  the policies and directives from the top level management. They make plans for  the sub units of the organization. So the sub units, as we talked about before a  middle manager, may be over 10, 12, 15, facilities or operational plants, and  they are the ones that makes the plants for those subunits of the organization,  because they are going to know those subunits of the organization much more  intimately than the senior top level managers are, because they are There,  communicating, directly, involved hands on with those subunits. Every day they  participate in employment and training of lower level management, training and  learning and education continuing that is definitely critical to making sure that  you are the best in your market, that you have the opportunity to take market  share, that you have an opportunity to be the most efficient, the most effective,  the most productive, and maximize those variants of output the best. They are  responsible for coordinating the activities within the division or department.  Again, they are intimately involved in their subunits. It also sends important  reports and other important data to top level managers. There's the information  stream right. A lot of times, upper level managers want to know what's going on  day to day at certain facilities, particularly if they're struggling. Now, facility is  struggling, they're going to want that middle manager to be at that facility, or  spending more time and attention at that facility to make sure that they're  achieving the effectiveness and the efficiency levels and maximizing the output  as it needs to be. So if a plant or a facility. Is struggling expect to be a middle  manager there more often, more frequently, until we get whatever issues worked out. They evaluate the performance of junior managers. Always evaluating,  always evaluating. I know my rule of thumb as a manager, especially a middle  manager, was quarterly evaluations of my lower level operational managers, I 

wanted to know not only if they were doing a good job, I wanted to know how  they felt. Do they feel like they were being heard? Do they feel like that they had the tools they needed? Am I creating an environment for them that they are able to do their best? They are also responsible for inspiring lower level managers  towards better performance. Everybody that's in an organization that is  competing in the market, they want an opportunity to advance themselves inside the organization. We want to give them incentives. We want to give them a  reason to work hard, come to work every day. Give it their all. Be productive, be  efficient, be effective, so that we can give them an inspiration to lift them up so  that we can let them know, hey, look, you work hard. We're going to give you a  chance to be promoted, and you can continue to grow inside the organization,  because we value your skills. Lower Level Management. Lower level  management is also known as supervisory operations. Level of management.  This is where the nitty gritty of the functions of our organization really dig in, right at the lower level management. We are hands on every day with our employees, helping them to grow in their training, their education, their effectiveness, their  efficiency and their output. So as we continue to develop our lower level  employees, right? We will continue to grow as lower level managers, and will  continue to grow our management abilities and our skill set as we spend more  time with our employees, getting to know them, getting to know the entire  strategy, how plans are implemented, once we harness those abilities and can  nail down our skills as a lower level management, as a lower level manager,  that'll give you greater opportunity for advancement inside your organization. So  this usually consists of supervisors, foreman, Section officers, Superintendent,  etc, anybody that is down ground level, on the floor, with their with their  employees helping in production daily. Lower level managers work closely with  personal personnel, oversight and direct business operations on the ground  level. Again, on the ground level, getting their hands dirty, working with their  staff, making sure that you are a strong representative for the organization.  Lower level managers concerned with direction and controlling functions of  management, you have got to have as a lower level operational manager, more  than a middle manager. You have got to have your finger on the pulse inside  your workspace, inside your facility, inside your plant, whatever the organization  is, you are the one that is making sure that it is turning effectively and efficiently.  So what are some of the roles and responsibilities associated with being an  operational manager? Well you assign the jobs and the tasks, you are the one  that you are the one that knows your employees best. You know each  employee's strength and weakness. Therefore you can apply that strength and  weakness into the assigning of jobs and tasks. So obviously, for the more  difficult, complex duties, you put your top one. You put your top person right for  somebody that's new, that has had minimal training, that is just getting adjusted  to the culture, you put them at a more menial position and let them work their 

way up, so they guide and instruct employees day to day, right? So we're there,  helping them grow every day get better, harnessing their education, harnessing  their skills, achieving better quality. They are also entrusted with the  responsibility of maintaining good relations in the organization. You're the face,  you're the ground level face. You're the one that people turn to. You are the one  that is going to make a difference, and how our customers view us, how our  expansion to the market is and how many employees we retain. So you are  really, truly the face of the organization on a day to day basis. So they  communicate employee problems, make suggestions and recommend appeals  to upper level management. So anytime there's disciplinary issues, which, of  course, we're working in humanity, right? We're working with people, there are  going to be disciplinary actions or things that arise all the time. So we've got to  make sure that we are able to communicate those disruptions to. The middle to  upper management, and that we have the tools and resources necessary to  handle whatever comes up. We also need to make sure that we communicate  when our employees are doing well, when they've accomplished their goals,  when they've met their objectives. Also help solve employee grievances you're  dealing with the frontline employees every single day, they're going to have  grievances. They're going to feel like, maybe I hey I feel taking advantage of the  situation, or I felt like this was unfair, or I feel like I need a pay raise, or hey, I  need to go on FMLA, whatever it is, you're the one that is there helping them  solve those issues so that they can continue to feel a part of the team taken  care of, treated well, that we ultimately want to retain employees. We don't want  a high turnover rate at all. We want to make sure that we have skilled, trained,  educated people to come in, fulfill the tasks, fulfill the duties that we need, and  that we all are integrated, connected and flowing together, positively organized  operational materials, allocation of resources, effectively and efficiently, little  waste. Manage to do more with less. Ensure discipline in the organization.  You're the front line disciplinarian. You're the front line. Measure of authority, you need to make sure that you show that you don't have to be an authority,  authoritarian with an iron fist. But there has to be a balance of, hey, we're  working together for a cause, but at the same time, I'm your boss, right? So  there's got to be that distinction, motivate employees. One of the best ways to  motivate employees is recognize them. Employee the month that little things like that, give a gift card $50 a month to their favorite restaurant, or here's money for food and gas at Walmart, whatever it is, motivate your employees to want to  come to work, to strap up their boots to do a good job, to make sure that they  are maximizing their output. They're the image builders of the enterprise. There  are the lower level operational employees. They have got to be able to motivate  the operational staff to do a good job, be effective, be efficient, maximize output  every day. If we can do that, we can build the image in the marketplace as a  positive image, and we want to do that with happy employees, happy 

customers. Therefore, when we go to find new clients, they're going to know that we are a strong player in our organization, in our market. So these are the levels of management, and as you will find that we move forward throughout this  course, you will see how the levels of management are integrated to make an  effective, efficient organization.