Business Studies Part I
Business Studies Part II

Levels of Management

The hierarchy of management from top to bottom is called levels of management. There are three kinds of levels of management:

  • TOP LEVEL Management: They consists of the senior-most executives of the organisation by whatever name they are called. They are usually referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president. Top management is a team consisting of managers from different functional levels, Like Board of directors etc they are responsible for the welfare and survival of the organisation.

Functions of top level management :

1) They  formulate the overall organsational  goals and starategy.

2) They are responsible  for the success and failure of the organisation.

3) They are responsible  for all the business activities and its impact on society.

4) Maintain contact with outside world.

  • MIDDLE LEVEL Management : It is the link between top and lower level managers. they are subordinate to top managers and superior to the first line mangers they are usually known as division heads. , operation manager or plant superintendent. 

Functions of middle level management:

  1. Interpretation of the policies framed by top management to the lower level management.
  2. Hiring necessary personnel with the required qualities and qualifications.
  3. Assigning responsibility as per capability and establishing the supervisor-subordinate relationship.
  4. Co-operating with the team members as well as first line supervisors.
  5. Taking the feedback and arranging the follow up meeting.
  • LOWER LEVEL Management : Foreman and supervisors comprise the lower level in the hierarchy of the organisation who directly oversee the efforts of the workforce.

Functions of LOWER level Management:

  1. Interpretation of planned targets to the actual work force and labourers.
  2. Helping and directing the workers regarding how to carry out the work.
  3. Maintaining standards, quality control and frequent checks.
  4. Minimisation of wastage and motivation the workers so that they can deliver up to their maximum potential.
  5. Communicating the grievances and feedback to the middle management and bringing in the changes if required.

Geetika is working at the top level of management in the private sector bank. The three other functions that she has to perform at this level are outlined below:

  1. She is responsible for the success and failure of the organisation.
  2. She is responsible for all the business activities and its impact on society.

She has to coordinate the activities of different departments in pursuit of common goals.

Henceforth, Arundhati will be working at middle level of management.
The four functions that she will have to perform at this level are stated below:

  1. She has to ensure that her department has the necessary staff.
  2. She has to assign duties and responsibilities to the people in her department.
  3. She has to motivate the people in her department to achieve the desired objectives.

She has to co-operate with the other departments for ensuring smooth functioning of the organization.