Chapter: Principles of Management
Levels of Management
DEFINITION
According
to Harold Koontz, “Management is an art of getting things done through and with
the people in formally organized groups. It is an art of creating an
environment in which people can perform and individuals and can co-operate
towards attainment of group goals”.
LEVELS OF MANAGEMENT
The three
levels of management are as follows
The Top Management
It consists of board of directors, chief
executive or managing director. 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 coordinating functions.
The role
of the top management can be summarized as follows –
Top management lays down the objectives and
broad policies of the enterprise.
It issues necessary instructions for preparation
of department budgets, 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.
It provides guidance and direction.
The top management is also responsible towards
the shareholders for the performance of the enterprise.
Middle Level Management
The branch managers and departmental managers
constitute middle level. They are responsible to the top management for the
functioning of their department. They devote more time to organizational and
directional functions. 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. Their role can be emphasized as –
They
execute the plans of the organization in accordance 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.
They
interpret and explain policies from top level management to lower level.
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.
They are
also responsible for inspiring lower level managers towards better performance.
Lower Level Management
Lower level is also known as supervisory /
operative level of management. It consists of supervisors, foreman, section
officers, superintendent etc. According to R.C. Davis, “Supervisory management
refers to those executives 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. Their activities include
They guide and instruct workers for day to day activities.
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.
They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and 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.
They prepare periodical reports about the performance of the workers.
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.
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