- 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.
> Levels of Management **Top Level of 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 of 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 of 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 -` - Assigning of jobs and tasks to various workers. - 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.
Three Levels of Management Generally, there are Three Levels of Management, viz., Administrative or Top Level of Management. Executive or Middle Level of Management. Supervisory or Lower Level of Management. At each level, individual manager has to carry out different roles and functions. 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 are 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 organisation. The main role of the top level management is summarized as follows :- The top level management determines the objectives, policies and plans of the organisation. They mobilises (assemble and bring together) available resources. 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 organisation. They spend more time in planning and organising. They prepare long-term plans of the organisation which are generally made for 5 to 20 years. The top level management has maximum authority and responsibility. They are the top or final authority in the organisation. They are directly responsible to the Shareholders, Government and the General Public. The success or failure of the organisation largely depends on their efficiency and decision making. They require more conceptual skills and less technical Skills. 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. The middle level management emphasize more on following tasks :- Middle level management gives recommendations (advice) to the top level management. It executes (implements) the policies and plans which are made by the top level management. It co-ordinate the activities of all the departments. They also have to communicate with the top level Management and the lower level management. They spend more time in co-ordinating and communicating. They prepare short-term plans of their departments which are generally made for 1 to 5 years. 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. Require more managerial and technical skills and less conceptual skills. 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. The lower level management performs following activities :- Lower level management directs the workers / employees. They develops 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.
Hie Uma, - Top-level management is focused on market positioning through long-range strategic planning. - Middle-level managers deal with decision-making within their area of responsibility and implement projects that will meet the strategic objectives of the organization. - Low-level managers directly manage the workers and take responsibility for the day-to-day operations of the business. They prioritize the tasks necessary to implement the projects determined by middle managers, which are in turn part of a long-range strategic plan.
Three classical levels of management include 1. Top Management or Strategic Management 2. Middle Management or tactical management 3. Low Level Management or Operational Management Strategic Management includes directors/owner that make decisions which affect the entire organization, or large parts of it, and leave an impact in the long run. The decision making at this level is highly unstructured. By this we mean, there may not be a proper format for decision making. It requires lot of inputs in terms of information, but there is no fixed way of mixing those inputs. Middle, or tactical, management receive strategic decisions from strategic management as general directives. Using those directives as guidelines, they develop tactics to meet those strategic directives. The decision making at this level is semi structured. Some pieces of information can be mixed to get some conclusion but some amount of ambiguity is always there. Operational managers are responsible for daily operations. They make decisions concerning a narrow time span about the deployment of small groups of clerical and/or shop floor workers. Generally the decisions at this level are structured in nature. People in different management levels have different information needs. Most of the information that managers require is used to make decisions. The decision making process of middle managers and above is less structured than that of operational managers; In general, strategic decisions have no proven methods for selecting a course of action that guarantees a predicted outcome. Thanks