1.

2 LEVELS AND TYPES OF

MANAGEMENT
 LEVELS OF MANGEMENT

Three Main Levels of Management:

1.Top Level Management
2.Middle Level Management
3.Lower or Operating Level Management
1. Top Level Management
• Consists of Board of Directors, Managing Directors or
President.
• Focuses on overall policy formulation of the organization by
doing SWOT analysis of the organization.
• Consultation and Discussion with middle level management .
• Top Management frames policies on different functional
areas.
2. Middle Level Management
• Consists of Vice President of the concerned functional
area or departmental heads-
Marketing/Finance/Production.
• Works on implementing policies and plans formulated
by the top level.
• Managers at this level are responsible for leading all
functions within each department.
3. Lower Level of Management
• Comprises of Floor Managers/Supervisors.
• The supervisors are supported by number of employees who
carry out the activities as per schedule or demand.
• The supervisors have the responsibility of handling
numerous work assigned by the top and middle level
management .
• They are also responsible for maintaining the discipline
among themselves and increase the spirit of work among the
workers .
NEED FOR LEVELS OF
MANGEMENT
• Organization need the three different levels of
management especially for the following main
reason:
• An organization to function effectively and
efficiently.
 Class Work

Using your theoretical knowledge, illustrate

the levels of management in hierarchical
order or in the form of flow chart.
 TYPES OF MANGEMENT
Major Classification of Management Approaches
are as follows:
I. CLASSICAL/TRADITIONAL
APPROACH
i. Scientific Management
ii. Administrative Management
iii. Bureaucratic Management
II.BEHAVIOURIAL/NEO-CLASSICAL APPROACH

The main behavioural approaches are:

i. Focusing on Group Influences
ii. Focusing on Human Relations
iii. Focusing on Human Needs
III. QUANTITATIVE APPROACH
i. Management Science
ii. Operation Management
IV. MODERN APPROACH
i. The Systems Theory
ii.Contingency Theory
I. CLASSICAL APPROACH
i. Scientific Management
Frederick Winslow Taylor(1856-1915) was one of the
founders of the scientific management
He was considered as the “Father of Scientific Management
Was popular in the early 19th Century
Scientific Management
Was defined as “that kind of management which
conducts a business or affairs by standards established,
by facts or truths gained through systematic
observation, experiment, or reasoning.”
Or it is a classical management approach that
emphasizes the scientific study of work methods to
improve the efficiency of the workers.
Help workers perform their tasks more efficiently
 Scientific Management
In essence, scientific management as propounded by Taylor
emphasizes:
i. Need for developing a scientific way of performing each job.
ii. Training and preparing workers to perform that particular
job.
iii. Establishing harmonious relations between management
and workers so that the job is performed in the desired way.
ii. Administrative Management
Henry Fayol(1841-1925) developed the theory.
Focused on principles that could be used by
managers to coordinate the internal activities of
organizations.
According to Henry Fayol, the business
operations of an organization could be divided
into six activities.
Business Operations of an organization
1. Technical Activities( Producing and Manufacturing products)
2. Commercial Activities(Buying,selling,exchange of goods and
services)
3. Financial Activities( Search for and optimal use of capital)
4. Security Activities( Protecting employees and property)
5. Accounting Activities(Maintaining balance sheets, compiling
statistics)
6. Managerial Activities(Planning, organizing, commanding,
coordinating & controlling)
Functions and Principles of Management
Fayol focused on the last activity; managerial
activity
Managerial activity which emphasized on the
major five functions
Further Henry outlined 14 principles of
management in the theory.
 iii.Bureaucratic Management
Developed by Max Weber(1864-1920)
Focused on the need for organizations to
function on a rational basis
According to Weber,” a bureaucracy is a highly
structured,formalized,and impersonal
organization”.
iii.Bureaucratic Management
In other words it means it is a formal organization
structure with set of rules and regulations.
Therefore, he identified the features of ideal
bureaucracy; work specialization and division of
labour, abstract rules and regulations,
impersonality of managers & hierarchy of
organization structure.
II. Behavioural Approach
Behavioural theorists viewed it from the
individual’s point of view.
Emphasized on individual attitudes and
behaviours.
Recognized the significance of behavioural
processes in the workplace.
i. Focusing on Group Influences
Mary Parker Follet gave importance to the
functioning of groups in the work place.
She suggested that organizations function
on the principle of Power with/Power
sharing rather than Power over.
i. Focusing on Group Influences
Power to her, is the ability to influence and bring
about a change.
The concept of integration, which involves finding
a solution acceptable to all group members.
Managers are responsible for keeping a group
together and ensuring that organizational objectives
are achieved through group interaction.
ii.Focusing on Human Relations
Elton Mayo(1880-1949),the “Father of the
Human Relations Approach", led the team
and conducted a study.
A study was conducted to evaluate the
attitudes and psychological reactions of
workers in on-the-Job situations.
ii.Focusing on Human Relations
Human relations theory believes that each
individual is unique and the attitude and
behaviour of an employee determines the
way he or she works.
It emphasizes more on interpersonal
relations and the informal group.
 ii. Focusing on Human Relations
Consequently, this approach assumes that a
worker’s attitudes, behaviour and effectiveness is
predominantly determined by his relation with his
fellow-workers and not by the kind of work he
does.
States the importance of attitudes and behaviours
in managing the workforce effectively.
iii.Focusing on Human Needs
Abraham Maslow(1908-1970),psychologist stated
that people were motivated by a hierarchy of needs.
His theory rested on three assumptions:
a. All of have needs which are never completely
fulfilled
b. Through our needs, we will try to fulfil our
unsatisfied needs.
iii.Focusing on Human Needs
c. Human needs occur in the following hierarchical
manner:
(i)Physiological needs;
(ii)Safety or security needs;
(iii) Belongingness or social needs;
(iv) Esteem or status needs;
(v) Self-actualization, or self-fulfillment needs.
Maslow’s Hierarchy Needs
 Maslow’s Hierarchy of Needs
According to Maslow, once needs at specific level
have been statisfied,they no longer act as motivators of
behaviours.
Then the individual strives to fulfil needs at the next
level.
Managers who accepted Maslow’s hierarchy of needs
attempted to change their management practices so
that employees’ needs could be satisfied.
III Quantitative/Mathematical Approach
The quantitative management perspective emerged
during World War II
This approach focuses on achieving organizational
effectiveness through the application of mathematical
and statistical concepts.
This approach includes the application of statistics,
optimization models, information models and
computer simulations.
i. Management Science/Operation
Research
Management Science uses mathematical and
statistical devices for finding optimal solutions to
complex business problems.
Or in other words, this approach stresses the use
of mathematical models and statistical methods
for decision-making.
Management Science/Operation Research
Recent advances in computers have made it possible
to use complex mathematical and statistical models in
the management of organizations.
Various mathematical tools like linear programming,
probability theory,sampling,time series analysis etc.
have increased the effectiveness of managerial
decision-making.
ii.Operations Management
Operation Management is an applied form
of management science.
It deals with the effective management of
the production process and the timely
delivery of an organization’s products and
services.
ii.Operations Management

Operation Management is concerned with:

i. Inventory Management
ii. Work Scheduling
iii. Production Planning
iv. Facilities location and Design
v. Quality Assurance
ii.Operations Management

The tools used by operation managers are:

forecasting, inventory analysis, materials
requirement planning systems, networking
models, statistical quality control methods,
and project planning and control techniques.
IV. Modern Approach
The two types of modern approach of
management are :
i. The Systems Theory
ii. Contingency Theory
i. The Systems Theory
The systems approach view :
a. Organizations cannot exist in isolation
b. Management cannot function effectively without
considering external environmental factors.
The systems approach gives managers a new way of
looking at an organization as a whole and as a part of the
larger, external environment.
i. The Systems Theory
According to the theory, an organizational system has
four major components: inputs, transformation processes,
output and feedback.
Inputs- money, materials, men,machines and
informational sources- are required to produce goods and
services.
Transformation processes or throughputs-managerial and
technical abilities- are used to convert inputs into outputs.
 i. The Systems Theory
Outputs-are the products, services, profits and other results
produced by the organization.
Feedback- refers to information about the outcomes and the
position of the organization relative to the environment it
operates in.
The organizations must consider the role and influence of
environmental factors whether it’s new product decision or a
decision related to the employees of the organization.
 A Systems View of Organizations
TRANSFORMATION
INPUTS OUTPUTS
PROCESS

Goods
Resources Managerial and Services
Technological abilities Profits and losses
Labour Employee
Materials satisfaction
Planning
Capital
Organizing
Machinery
Staffing
Information
Leading
Controlling
Technology

FEEDBACK
ii. Contingency/Situational Theory
This theory was developed by managers,consultants,and
researchers who tried to apply the concepts of the major
schools of management thought to real-life situations.
According to this theory, “The task of managers is to identify
which technique will, in a particular situation, under
particular circumstances ,and at a particular time, best
contribute to the attainment of management goals”.
This approach states that there is no best way to manage all
situations.
The Contingency Managerial Viewpoint

Contingency View:
Appropriate managerial action depends on the
situation

Universal View:
Same managerial principles Situation 1 Situation 3
apply to every situation Situation 2
Thank You