Levels of Management

Many managers and personnel work in an organization. However, they do not work in the same level, but work at different levels and positions. Hierarchy of these managerial positions are known as levels of management. Generally there are three levels of management

1.              Administrative or Top Level Management
2.                           Executive or Middle Level Management
3.                             Supervisory or Lower Level Management

The levels of management in an organization is always represented by a pyramid.

Top Level Management

The top level management consists of the Board of Directors (BOD) and the Chief Executive Officer (CEO). The CEO is also known as the Managing Director (MD) or General Manager (GM). The BOD are the representative of the shareholders, ie they are selected by the shareholders of the company. Similarly the CEO is selected by the BOD. The top level management has maximum authority and responsibility. They are directly responsible for the shareholders, government and the general public. So the success or failure of an organization largely depends on the planning and decision making of the top level management.

The main roles of the Top Level Management are

1.       Determine the objectives, policies and plans of the organization.

2.       Prepare long term plans and budget for the organization

3.       Mobilize the available resources (financial, physical)

4.       Spending much of the time in planning, organizing and decision making.

The top level management requires more conceptual skills and less technical skills.

Middle Level Management

The middle level management consists of the departmental heads (HOD), Branch Managers (BM) and the Junior Executives. The departmental heads are the Finance Managers, Purchase Managers, etc. The Branch Managers are the head of the branch or the local unit. The junior executives are the assistants to the departmental heads.

The middle level management emphasizes on the following tasks.

1.       Give recommendations to the top level management

2.       Implement plans and policies made by the top level management

3.       Coordinate the activities of all departments

4.       Communicate with the top level and the low level management

5.       Prepare short term plans

The middle level management requires more managerial and technical skills and less conceptual skills.

Low Level Management

The low level management consists of the foremen, supervisors and the operators. They are usually selected by the middle level management. They are also known as the Operative Level, Supervisory Level or the first line of management.

The low level management performs the following activities

1.       Direct and mobilize the workers and the employees

2.       Develop morale and motivate the employees

3.       Maintain a link between the workers and the middle level management

4.       Inform the workers about the decisions made by the middle and top level management

5.       Report the higher management about the performance, difficulties, demands of the workers

6.       Make daily, weekly and monthly plans

The low level management requires working experience, some management skills, and more technical and communication skills.