Levels of Management

All business organizations irrespective of their size have many managerial positions in their structure. These positions are created through the process of delegation of authority from top to lower levels. Each position is marked with authority and responsibility to perform specific role and task. These managerial positions lying in the chain of command may be classified into various level of management. They are:

Top Level Management

It is the highest level in the managerial hierarchy and the ultimate source of authority in the organization is associated with it. Top level managers are accountable to owners and all stakeholders of the organization and responsible for overall management of the organization. Top managers are responsible for developing employees’ commitment to and ownership of the company’s performance. are responsible for creating a positive organizational culture through language and action. Top managers impart company values, strategies, and lessons through what they do and say to others, both inside and outside the company. They are responsible for monitoring their business environments. This means that top managers must closely monitor customer needs, competitors’ moves, and long-term business, economic, and social trends.

Major functions of the top level management are:

  1. To make corporate plans for the entire organization
  2. To decide upon matters which are vital for survival like profitability and growth of the organization
  3. To allocate resources for various projects and departments
  4. To set goals
  5. To design structure of the organization
  6. To frame policies
  7. To provide leadership
  8. To exercise control
  9. To direct middle and lower levels of management

Middle Level Management

Some of the managerial positions are created at the middle level of management in order to fill the gap which exists between functional and operational level. They are also a link between the top and the lower level managers. They are responsible for achieving departmental goals. They are responsible for setting objectives consistent with top management’s goals and for planning and implementing subunit strategies for achieving those objectives.

The important functions of middle level managers are:

  1. To prepare departmental plans within framework of corporate plans given by the top level management
  2. To establish departmental goals
  3. To decide about means of achieving these goals
  4. To monitor level managers by coordinating their activities

Lower Level Management

The lowest point in the hierarchy is represented by lower level management. They are in touch with core group of workers such as operators. They issue orders and instructions to them, educate and train them and supervise their activities. Supervisors are known as the backbone of the organization as they are responsible for getting work accomplished at operational level. The important functions of lower level management are:

  1. To get things done by core group of workers at operational level
  2. To prepare plans for their activities
  3. To issue orders and instructions
  4. To guide and assist workers
  5. To motivate workers

Level and Roles

Team leaders

A fourth kind and a relatively new kind of management job developed as companies shifted to self-managing teams, which by definition, have no formal supervisor. Team leaders play a very different role because in this new structure, teams now perform nearly all of the functions performed by Lower level manager under traditional hierarchies. Instead of directing individuals’ work, team leaders facilitate team activities toward goal accomplishment.

Team leaders fulfill the following responsibilities:

  1. Responsible for facilitating team performance
  2. Responsible for managing external relationships
  3. Responsible for internal team relationship
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