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Levels of Management
ORGANIZATION
Two or more people who work together in a structured way to
achieve a specific goal or set of goals.

The characteristics of an organization

• Has a Distinct Purpose

 Is Composed of People

 Has a Deliberate Structure

deliberate is doing something on purpose and with

careful thought
 Levels of Management
• The term “Levels of Management’ refers to a line of
demarcation between various managerial positions in an
Top
organization.
Managers
• 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.
 Levels of Management
The levels of management can be classified in three broad
categories:
Top
1. TopManagers
level / Administrative level

2. Middle level / Executory

3. Low level / Supervisory / Operative / First-line managers

 Levels of Management
Management Pyramid

Top
Managers
 Skills that Managers need

Top
Managers
Top
Managers

Middle
Managers

First-line
Managers
 Levels of Management
Top Level Managers • Top Managers include:
• CEOs, Some or all of the owners.
• Members of board of directors

Top • Managing director

Managers • General manager

• The top management is the ultimate source of authority and it

manages goals and policies for an enterprise. It devotes more
time on planning and organizing functions.
• Responsible for the broad aspects of the operation of business.
• Interact with government to develop long-term plans
 Levels of Management
Role of Top Level Managers
• Top management lays down the objectives and broad policies of the
enterprise.
• It issuesTopnecessary instructions for preparation of department budgets,
Managers
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.
• The top management is also responsible towards the shareholders for the
performance of the enterprise.
 Levels of Management
Middle Level Managers
• Mid-Level Managers have a specialized understanding of certain
managerial tasks. They are responsible for carrying out the decisions made
by top-Level
Top Management.
• The branch
Managersmanagers and departmental managers, HODs constitute
middle level such as Finance manager, Marketing manager, Manufacturing
manager etc
• They are responsible to the top management for the functioning of their
department/section.
• Develop detailed plans and procedures for general plans.
• In small organization, there is only one layer of middle level of
management but in big enterprises, there may be senior and junior middle
level management.
 Levels of Management
Role of Middle Managers
• They execute the plans of the organization in
Top
accordance
Managers 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.
 Levels of Management
Role of Middle Managers
• They interpret and explain policies from top level management
Top
to lower level.
Managers
• 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.
 Levels of Management

First Line Managers

• LowerToplevel is also known as supervisory / operative level of
Managers
management.
• It consists of supervisors, foreman, section officers,
superintendent etc.
• Directly responsible for details of assigning workers to specific
jobs..
 Levels of Management
First Line Managers
• According to R.C. Davis, “Supervisory management refers to
Top
those executives
Managers whose work has to be largely with personal
oversight and direction of operative employees”.
• In other words, they are concerned with direction and
controlling function of management.
• They perform production duties in addition to the management
duties.
 Levels of Management
Role of First Line Managers
• Assigning of jobs and tasks to various workers.
• TheyTop
guide and instruct workers for day to day activities.
Managers
• 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.
 Levels of Management
Role of First Line Managers
• They communicate workers problems, suggestions, and
recommendatory
Top appeals etc to the higher level and higher level goals
andManagers
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.
 Levels of Management
• Role of First Line Managers
• They prepare periodical reports about the performance of the
Top
workers.
Managers
• 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.
 Four Managerial functions
First-level managers

Leading Organizing Planning Controlling

51% 24% 15% 10%
Top
Managers Middle-level managers

Leading Organizing Planning Controlling

36% 33% 18% 13%

Top-level managers

Leading Organizing Planning Controlling

22% 36% 28% 14%
Thank you !!