LEVELS OF MANAGEMENT

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.