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Three Levels of Management

There are three levels of management in most organizations: 1. Top-level management such as the board of directors and CEO determine objectives, policies, and long-term plans. They have maximum authority but require more conceptual skills. 2. Middle-level management like department heads execute plans and coordinate activities with short-term planning. They are intermediaries between top and lower management. 3. Lower-level management such as foremen and supervisors direct workers, develop morale, and ensure communication between workers and middle management with daily/weekly plans. They have limited authority but important responsibility for performance.

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1K views2 pages

Three Levels of Management

There are three levels of management in most organizations: 1. Top-level management such as the board of directors and CEO determine objectives, policies, and long-term plans. They have maximum authority but require more conceptual skills. 2. Middle-level management like department heads execute plans and coordinate activities with short-term planning. They are intermediaries between top and lower management. 3. Lower-level management such as foremen and supervisors direct workers, develop morale, and ensure communication between workers and middle management with daily/weekly plans. They have limited authority but important responsibility for performance.

Uploaded by

Nas Nicole
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Three Levels of Management

Generally, there are Three Levels of Management, 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.

Diagram of Levels of Management

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 is 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 organization. 1. The top level management determines the objectives, policies and plans of the organization. 2. They mobilizes (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 organization. 4. They spend more time in planning and organizing. 5. They prepare long-term plans of the organization 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 organization. They are directly responsible to the Shareholders,

Government and the General Public. The success or failure of the organization largely depends on their efficiency and decision making. 7. They require more conceptual skills and less technical Skills.

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. 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-ordination 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.

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. 1. 2. 3. 4. Lower level management directs the workers / employees. They develop morale in the workers. It maintains a link between workers and the middle level management. 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. They spend more time in directing and controlling. The lower level managers make daily, weekly and monthly plans. 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. Along with the experience and basic management skills, they also require more technical and communication skills.

5. 6. 7.

8.

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