Reading: Levels of Management

Business Management for Every Enterprise

Unit 1

Levels of Management

Levels of Management

The hierarchy of management positions from top to bottom is called Levels of Management. In an organization three levels are usually identified.

Top Level
- Long Term Goals, Products, Markets, Business Organization
- Job Titles: CEO, CFO, COO

Middle Level
- Interpret Plans & Set Actions
- Job Titles: Managers

Operational or Low Level
- Implement Plans
- Job Titles: Team Leaders 

Top Level of Management

Board of directors, chief executive officer, managing director, etc. are in this level of management.

The top management is the ultimate source of authority.

It manages goals and policies for an enterprise.

It devotes more time planning and coordinating functions 

Top Level Management
Roles & Responsibilities

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 management. i.e. Department managers

It controls and coordinates the activities of all departments

It is also responsible for maintaining a contact with the outside world. 

It provides guidance and direction.

The top level management is also responsible towards the shareholders for the performance of the enterprise 

Middle Level Management

The branch managers and department managers constitute middle management.

They are responsible to top level management for the operations of their department.

They devote more time to organizational and directional functions.

In small organizations, there only one layer of middle management. In larger enterprises, there may be senior and junior middle level managers.

Middle Level Management
Roles and Responsibilities

They execute the plans of the organization in accordance with the policies and directives of top level 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 managers.

They evaluate performance of junior managers.

They are also responsible for inspiring lower level managers towards better performance.  

Lower Level Management

Lower level is also known as supervisory/operations level of management

It consists of supervisors, foreman, section officers, superintendent, etc.

Lower level managers work closely with personal oversight and direct business operations on the ground level. 

Lower level managers are concerned with direction and controlling functions of management.

Lower Level Management
Roles and Responsibilities

Assigning jobs and tasks 

They guide and instruct employees on day to day operations.

They are responsible for the quality as well as quantity of production.

They are also entrusted with the responsibility of maintaining good relations in the organization.

They communicate employee problems, suggestions, and recommend appeals to upper level management, also communicate goals and objectives to employees.

Help solve employee grievances.

Organize operational materials.

Ensure discipline in the organization.

Motivate employees.

Image builders of the enterprise.