A.
Meaning
of Levels of Management
Many
managers work in an organization. However, these managers do not work at the
same level. They work and operate at different positions. Hierarchy of these managerial
positions is called Levels of Management.
B. Diagram of Levels of Management
C.
Three
Levels of Management
Generally,
there are Three Levels of Management. Such as:
1. Administrative
or Top Level of Management.
2. Executive
or Middle Level of Management.
3. Supervisory
or Lower Level of Management.
At
each level, individual manager has to carry out different roles and functions.
a.
Top
Level of Management
The
Top Level Management consists of the Board of Directors (BOD) and the Chief
Executive Officer (CEO). The Chief Executive Officer is also called General
Manager (GM) or Managing Director (MD) or President. The Board of Directors are
the representatives of the Shareholders, i.e. they are selected by the
Shareholders of the company. Similarly, the Chief Executive Officer is selected
by the Board of Directors of an organisation.
The
main role of the top level management is summarized as follows :
1. The
top level management determines the objectives, policies and plans of the
organisation.
2. They
mobilises (assemble and bring together) available resources.
3. The
top level management does mostly the work of thinking, planning and deciding.
Therefore, they are also called as the Administrators and the Brain of the
organisation.
4. They
spend more time in planning and organising.
5. They
prepare long-term plans of the organisation which are generally made for 5 to
20 years.
6. The
top level management has maximum authority and responsibility. They are the top
or final authority in the organisation. They are directly responsible to the
Shareholders, Government and the General Public. The success or failure of the
organisation largely depends on their efficiency and decision making.
7. They
require more conceptual skills and less technical Skills.
b.
Middle
Level of Management
The
Middle Level Management consists of the Departmental Heads (HOD), Branch
Managers, and the Junior Executives. The Departmental heads are Finance
Managers, Purchase Managers, etc. The Branch Managers are the head of a branch
or local unit. The Junior Executives are Assistant Finance Managers, Assistant
Purchase Managers, etc. The Middle level Management is selected by the Top
Level Management.
The
middle level management emphasize more on following tasks :
1. Middle
level management gives recommendations (advice) to the top level management.
2. It
executes (implements) the policies and plans which are made by the top level
management.
3. It
co-ordinate the activities of all the departments.
4. They
also have to communicate with the top level Management and the lower level
management.
5. They
spend more time in co-ordinating and communicating.
6. They
prepare short-term plans of their departments which are generally made for 1 to
5 years.
7. The
middle Level Management has limited authority and responsibility. They are intermediary
between top and lower management. They are directly responsible to the chief
executive officer and board of directors.
8. Require
more managerial and technical skills and less conceptual skills.
c.
Lower
Level of Management
The
lower level management consists of the Foremen and the Supervisors. They are
selected by the middle level management. It is also called Operative /
Supervisory level or First Line of Management.
The
lower level management performs following activities :
1. Lower
level management directs the workers / employees.
2. They
develops morale in the workers.
3. It
maintains a link between workers and the middle level management.
4. The
lower level management informs the workers about the decisions which are taken
by the management. They also inform the management about the performance,
difficulties, feelings, demands, etc., of the workers.
5. They
spend more time in directing and controlling.
6. The
lower level managers make daily, weekly and monthly plans.
7. They
have limited authority but important responsibility of getting the work done
from the workers. They regularly report and are directly responsible to the
middle level management.
8. Along
with the experience and basic management skills, they also require more
technical and communication skills.
D.
Managerial
Skills
Management
is a challenging job. It requires certain skills to accomplish such a
challenge. Thus, essential skills which every manager needs for doing a better
management are called as Managerial Skills.
According
to Professor Daniel Katz, there are three managerial skills:
·
Conceptual Skills,
·
Human Relations Skills,
and
·
Technical Skills.
all managers require above three managerial skills. However, the degree (amount) of these skills required varies (changes) from levels of management and from an organisation to organisation.
The
above picture or diagram shows the managerial skills which are required by
managers working at different levels of management. The top-level managers
require more conceptual skills and less technical skills. The lower-level
managers require more technical skills and fewer conceptual skills. Human
relations skills are required equally by all three levels of management.
1. Conceptual
Skills
Conceptual
skill is the ability to visualise (see) the organisation as a whole. It
includes Analytical, Creative and Initiative skills. It helps the manager to
identify the causes of the problems and not the symptoms. It helps him to solve
the problems for the benefit of the entire organisation. It helps the manager
to fix goals for the whole organisation and to plan for every situation.
According to Prof. Daniel Katz, conceptual
skills are mostly required by the top-level management because they spend
more time in planning, organising and problem solving.
2. Human
Relations Skills
Human
relations skills are also called Interpersonal skills. It is an ability to work
with people. It helps the managers to understand, communicate and work with
others. It also helps the managers to lead, motivate and develop team spirit. Human relations skills are required by all
managers at all levels of management. This is so, since all managers have
to interact and work with people.
3. Technical
Skills
A
technical skill is the ability to perform the given job. Technical skills help
the managers to use different machines and tools. It also helps them to use
various procedures and techniques. The
low-level managers require more technical skills. This is because they are
incharge of the actual operations.
4. Communication
Skills
Communication skills
are required equally at all three levels of management.
A manager must be able to communicate the plans and policies to the workers.
Similarly, he must listen and solve the problems of the workers. He must
encourage a free-flow of communication in the organisation.
5. Administrative
Skills
Administrative skills
are required at the top-level management.
The top-level managers should know how to make plans and policies. They should
also know how to get the work done. They should be able to co-ordinate
different activities of the organisation. They should also be able to control
the full organisation.
6. Leadership
Skills
Leadership
skill is the ability to influence human behaviour. A manager requires
leadership skills to motivate the workers. These skills help the Manager to get
the work done through the workers.
7. Problem
Solving Skills
Problem
solving skills are also called as Design skills. A manager should know how to
identify a problem. He should also possess an ability to find a best solution
for solving any specific problem. This requires intelligence, experience and
up-to-date knowledge of the latest developments.
8. Decision
Making Skills
Decision-making skills are required at all levels of
management. However, it is required more at the
top-level of management. A manager must be able to take quick and correct
decisions. He must also be able to implement his decision wisely. The success
or failure of a manager depends upon the correctness of his decisions.
