Levels of Management

‘ Levels of management ‘ refers to a hierarchical order that is being followed in most organisations to segregate various managerial positions. The number of levels in management differs from organisation to organisation; it increases when there is growth in the business because the workforce also increases at that time. The level of management determines a chain of command, and how much control and authority any person (according to his/her managerial position) has in the company. These levels are broadly divided into three categories: Top-level management, middle-level management, and lower-level management. The managers perform different functions at all these levels.

What is management?

Management includes a whole lot of people who come together to utilise the resources of any organisation. Their work is to make sure that the resources are being used in the most optimum way and the short term goals of the organisation are being met accordingly.

Some key points of management are as follows:

1. Overall, 4 steps come under management and these are- Planning, organising, directing, and controlling.

2. The allocation of finite resources is the most important function of management.

3. Resources can be of 4 types: human, financial, technological, or natural.

4. The way an organisation is managed may not be the same everywhere. It may vary depending upon the type of organisation. The three main management styles are- traditional, team, and servant. 

The 3 Levels of Management:

Any organisation is divided into various levels of management to determine the chain of command as well as the amount of authority any managerial position holds. The three principal categories into which the levels of management are divided are: top-level management, middle-level management, and low-level management.

In this article, we will explore all the major specifications of these levels, as well as the managerial roles and responsibilities that fall into these categories.

Top, Administrative, or Managerial Level of Management:

The main authorities that fall under this level of management are the board of directors and the chief executive or managing director. This level is considered to be the ultimate level of any organisation since it manages the overall goals, policies, and procedures of a company. Strategic planning and overall business success is the main priority of the Administrative Level of Management.

The roles and responsibilities of the Administrative Level of Management are summarised as follows:

1. The main policies and objectives of any business are laid down by the top-level management.

2. Preparing the department-specific budgets, schedules, procedures, etc.

3. Departmental managers i.e, the executives for middle-level management are appointed by the top-level managers. 

4. The controls of all organisational departments are established by the top-level management.

5. The main channel of any organisation that communicates with the outside world is the top-level management since it consists of the Board of Directors.

6. This level of management is held accountable to an organisation’s shareholders for the performance of the business.

7. Top level management acts as a parent to the middle and lower level of management. It provides the overall guidance, direction and encouragement needed for the enterprise’s harmony as a whole.

Middle or Executive Level of Management:

The authorities that fall under middle-level management are the branch and departmental managers. Their main work includes devoting more and more time to organisational and directional functions. They make sure that the company’s actions are in the right direction. Middle-level management may also be further divided into the senior and junior levels if the enterprise is large and has consisted of a comparatively more complex structure. But for small enterprises, there is often only one layer of middle-level management.

The roles and responsibilities of the Executive Level of Management are summarised as follows:

1. Their main role is to execute the plans of the organisation according to the objectives and policies laid out by the top-level management.

2. Formulating directions and plans for the lower-level management.

3. They hire and train the executives of lower-level management.

4. Make sure that the company data and reports are sent to the top-level management well before time.

5. Observing and evaluating the performance of lower-level management.

6. Helping and guiding lower-level managers to improve their performance.

Low, Supervisory, or Operative Level of Management:

The authorities that fall under lower-level management are supervisors, section officers, and all other executives who have to deal with the  HR operations. To put it simply, we can say that the managers at the lower level make sure that the day-to-day activities of the organisation take place without any delay. They make sure that project deadlines are met and ensure proper execution and coordination on a daily basis. 

The roles and responsibilities of the Operative Level of Management are summarised as follows:

• Assigning tasks to workers daily.

• Guiding and instructing them in doing the same and helping them resolve any query that they might face.

• Maintaining good relations within lower levels of organisations.

• Act as a channel between the workers and higher levels of management by communicating their concerns and providing solutions for the same. 

• Train and hire workers.

• Preparing periodical reports regarding the performance of the workers. 

Help in improving the image of the enterprise as a whole, due to their direct contact with the workers.

Conclusion

An organisation or enterprise may have a wide number of managers, across a variety of titles, authorities, etc. depending upon the structure of the organisation. It is important for businesses to properly recognize the differences between all three levels of management and then only assign the managerial roles accordingly. The main points of difference from this distinction are as follows:

• • Top-level managers are the main controlling body of any organisation. They hold the supreme power among all managerial positions.
  • Middle-level managers are for executing organisational plans according to the company’s policies.
  • Lower-level managers focus on the execution of daily tasks and deliverables.