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Levels Of Management And Their Functions

Level of management is to divide authority and responsibility of the
organization among the various managerial positions. Basically
management is divided into three levels in which different managerial
functions are to be performed by different managerial positions
holders who are named differently in different levels. Their authorities
and responsibilities are different, however, they all perform well,
effectively, efficiently and coordinately the corporate goals surely
These three levels of management can be studied as follows:

1. Top level management
Top level management is concerned with the broad policy framework
and is related to develop attitude. It consists of board of directors,
chairman, managing directors, strategists and alike. They are
responsible for the welfare, and survival of the organization. In this
level, the corporate goals, missions and objectives are determined and
a detailed action plan and strategies for the same are formulated.
Functions of top level management
- To formulate and determine the objectives and define the goals of the
- To establish policies and prepare plans to attain goals.
- To set up an organizational structure to conduct the operations as
per the plans.
- To provide overall direction in the organization.
- To assemble the resources necessary for the attainment of the policy
and execution of the plan.
- To control effectively the business operations.
- To judge and evaluate the results.

2. Middle level management
The middle level consists of departments, divisions and sections, in
which the respective chiefs, heads or managers are concerned with
the tasks of implementing the policies and plans prepared by the top
level management. They are the real subordinates to top managers.

It is clear that the actual operations are performed in this level of management. . take responsibilities of the implementation and control of the operational plans developed by the middle level managers.To report and make suitable recommendations to the top level management for the better execution of the plans and policies. .To motivate the workers and staffs for higher productivity. select and train the employees for better functioning of the departments. . .To run the organization effectively and efficiently.To direct and guide the workers about the work procedures.To interpret the policies framed by the top management. Functions of lower level management .To cooperate for the smooth functioning of the organization. Functions of middle level management .To plan the activities of the sections.Being in the middle. .To lead the department and build-up and organizational spirit.To provide on the job training to the workers. .To recruit.To arrange necessary tools. Lower level management Lower level management is also known as supervisory level of management in which the supervisors and foremen and others like sales officers. accounts officers etc. equipment.To issue the orders and instruction to the workers.To issue the instructions to the lower level management. . . . . . .To develop sense of co-operation and high group spirit among the workers.To implement the task set by top management. .To supervise and control the performance. . . . .To coordinate between different departments. the managers have to perform as a link between top level and lower level management.To advise the middle level about the work environment. 3.To solve the problems of workers. This level is concerned with actual implementation and control of operational plans. . materials for the workers and look after their proper maintenance.

This can be achieved by employing efficient persons and making better use of scarce resources.Management utilizes all the physical & human resources productively. Management is an activity concerned with guiding human and physical resources such that organizational goals can be achieved. Management is a Group Activity: Management is very much less concerned with individual’s efforts. 6. Management integrates Human. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out . 2. physical and financial resources. It involves the use of group effort to achieve predetermined goal of management of ABC & Co.To inform the unsolved problems of the workers to the middle level management. For this policies have to be again framed. Materials. For example. 3.g. Nature of management can be highlighted as: 1. hospitals. This leads to efficacy in management. It directs group efforts towards achievement of pre-determined goals. business firms all require management. cultural or business because it helps and directs various efforts towards a definite purpose. Optimum Utilization of Resources . Management converts disorganized resources of men. Thus clubs. It involves continuous handling of problems and issues. hospitals. colleges. assembles and organizes the resources. financial assets. For achieving this target various policies have to be framed but this is not the end. social. It is concerned with identifying the problem and taking appropriate steps to solve it. Marketing and Advertising is also to be done. buildings etc. These resources are coordinated. Management is all Pervasive: Management is required in all types of organizations whether it is political. is good refers to a group of persons managing the enterprise. Management is Goal-Oriented: The success of any management activity is assessed by its achievement of the predetermined goals or objective. It helps in Achieving Group Goals . political parties.It arranges the factors of production. machines. Whether it is a small business firm which may be engaged in trading or a large firm like Tata Iron & Steel. human beings work with non-human resources like machines. Management integrates human efforts to those resources. 7. Physical and Financial Resources: In an organization. 4. management is required everywhere irrespective of size or type of activity. It brings harmony among the human. E.. directed and controlled in such a manner that enterprise work towards attainment of goals. into useful enterprise. Management is Continuous: Management is an ongoing process. the target of a company is maximum production. the goal of an enterprise is maximum consumer satisfaction by producing quality goods and at reasonable prices. Management is a purposeful activity. money and effort. When ever more than one person is engaged in working for a common goal. 5. money etc. It is more concerned with groups. management is necessary. integrates the resources in effective manner to achieve goals. It is a tool which helps use of human & physical resources to fulfill the pre-determined goals. Hence this is an ongoing process. By defining objective of organization clearly there would be no wastage of time.

of various uses. leadership & control of the efforts of the groups towards some common goals”. Whereas. setting of major objectives.e. actuating. the identification of general purposes and laying down of broad programmes and projects”. the initial co-ordination of organization must be changed. and proper utilization and avoids wastage. training and qualification. 8. coordinating. Establishes Equilibrium . management involves conceiving. Essentials for Prosperity of Society . Usage / Applicability On the Basis of Functions: - . Functions 2. According to Newman. With the change is external environment. who is accountable to whom. 9. It improves standard of living. It lays down basic principles of the enterprise. To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this. This helps in cost reduction. knowledge. The difference between Management and Administration can be summarized under 2 categories: 1. In other words. So it adapts organization to changing demand of market / changing needs of societies. who can give instructions to whom. who are superiors & who are subordinates. Management uses physical.It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Good management makes a difficult task easier by avoiding wastage of scarce resource. human and financial resources in such a manner which results in best combination. having right skills. It is responsible for growth and survival of organization. If employees and machines are producing its maximum there is no under employment of any resources. Reduces Costs . It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. “Administration means guidance. integrating the diverse organizational components while sustaining the viability of the organization towards some pre-determined goals.It enables the organization to survive in changing environment.Efficient management leads to better economical production which helps in turn to increase the welfare of people. it establishes effective authority & responsibility relationship i. “Administration means overall determination of policies. it is an art of getting things done through & with the people in formally organized groups. Organization comes with new products and researches beneficial for society. initiating and bringing together the various elements. 11. All jobs should be cleared to everyone. According to Theo Haimann. Establishes Sound Organization .No overlapping of efforts (smooth and coordinated functions). It keeps in touch with the changing environment. It makes use of experts. It refers to the activities of higher level. professional and these services leads to use of their skills. Management fills up various positions with right persons. 10.

profit-making organization. Skills Technical and Human skills Conceptual and Human skills Level Middle & lower level function Top level function On the Basis of Usage: Basis Management Administration Applicabilit y It is applicable to business concerns i. opinions. policies. Administration is a decisionmaking function. It is applicable to non-business concerns i. Influence The management decisions are influenced by the values. religious organizations. schools.e. It is concerned with formulation of broad objectives. Status Management constitutes the employees of the organization who Administration represents owners of the enterprise who earn return on their . govt.e. The administration is influenced by public opinion. Proces s Management decides who should as it & how should he dot it. Administration is a thinking function because plans & policies are determined under it. customs etc. clubs. Nature Management is an executing function.Basis Management Administration Meanin g Management is an art of getting things done through others by directing their efforts towards achievement of pre-determined goals. Functio n Management is a doing function because managers get work done under their supervision. plans & policies. Administration decides what is to be done & when it is to be done. hospitals etc. beliefs & decisions of the managers.

Every manager is concerned with both . d.are paid remuneration (in the form of salaries & wages). The top management is the ultimate source of authority and it manages goals and policies for an enterprise. Low level / Supervisory / Operative / First-line managers Managers at all these levels perform different functions. . Middle level / Executory 3. The level of management determines a chain of command. The term “Levels of Management’ refers to a line of demarcation between various managerial positions in an organization. It controls & coordinates the activities of all the departments. Top management lays down the objectives and broad policies of the enterprise. b. The number of levels in management increases when the size of the business and work force increases and vice versa. procedures. It appoints the executive for middle level i. capital invested & profits in the form of dividend. It prepares strategic plans & policies for the enterprise. c. It devotes more time on planning and coordinating functions. chief executive or managing director. the managers who are higher up in the hierarchy denote more time on administrative function & the lower level denote more time on directing and controlling worker’s performance i. The levels of management can be classified in three broad categories: 1. schedules etc. management. However. The role of managers at all the three levels is discussed below: LEVELS OF MANAGEMENT 1. departmental managers. Practically. there is no difference between management & administration. the amount of authority & status enjoyed by any managerial position.administrative management function and operative management function as shown in the figure.e. Top Level of Management It consists of board of directors. Top level / Administrative level 2. The role of the top management can be summarized as follows a. e. It issues necessary instructions for preparation of department budgets.e.

f. g. section officers. They guide and instruct workers for day to day activities. g. foreman. h. 2. They execute the plans of the organization in accordance with the policies and directives of the top management. It consists of supervisors. It provides guidance and direction. there may be senior and junior middle level management. They interpret and explain policies from top level management to lower level. They are responsible to the top management for the functioning of their department. It is also responsible for maintaining a contact with the outside world. They are responsible for coordinating the activities within the division or department. They make plans for the sub-units of the organization. Their activities include a. They participate in employment & training of lower level management. The top management is also responsible towards the shareholders for the performance of the enterprise. They are also responsible for inspiring lower level managers towards better performance. 3. “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”.C. h. b. Davis. they are concerned with direction and controlling function of management. They evaluate performance of junior managers. . It also sends important reports and other important data to top level management. c. b. Assigning of jobs and tasks to various workers. In small organization. They devote more time to organizational and directional functions. there is only one layer of middle level of management but in big enterprises. Middle Level of Management The branch managers and departmental managers constitute middle level. superintendent etc. According to R. f. Their role can be emphasized as a. d. e. In other words. Lower Level of Management Lower level is also known as supervisory / operative level of management.

They ensure discipline in the enterprise. l. machines. They motivate workers. m. They are also entrusted with the responsibility of maintaining good relation in the organization. They are responsible for providing training to the workers. suggestions. . g. They arrange necessary materials. They help to solve the grievances of the workers. i.c. h. and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers. They communicate workers problems. f. They prepare periodical reports about the performance of the workers. k. d. They supervise & guide the sub-ordinates. tools etc for getting the things done. They are the image builders of the enterprise because they are in direct contact with the workers. e. They are responsible for the quality as well as quantity of production. j.