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To send periodical reports about performance.

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"Many of our satisfaction and frustrations grow out of our participation in groups and our strivings, with others towards group goals". James C. Coleman

CHAPTER OUTLINE

Introduction

Meaning of Levels of Management 

Top Level Management

Middle Level Management

Lower Level Management

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INTRODUCTION

Today, it is the time of big organization scale production. In this age of large scale production and throat cut competition, the ownership and management of organization are divorced. The business is managed by those who are not its owners. In management set up of an organization, we find different levels. Levels of management refer to a line of separation between different positions held by different persons in an organization. In this context, managerial hierarchy is studied. Managerial hierarchy means the study of different positions held by the employees and officers of an organization. It is the structure which makes clear position of all officers of the organization.

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MEANING OF LEVELS OF MANAGEMENT

The term ‘levels of management refers to a line of separation between different positions held by different persons in an organization.

Level of management depends upon the nature, size and functions of an organization. Levels of management also expand with the expansion of organization. There is a limit to the number of subordinates a person can supervise. Levels of management are increased so as to achieve effective supervision. The levels of management of an organization may be broadly be divided in to three parts namely, top management, middle management and lower level or first line management.

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TOP LEVEL MANAGEMENT

Top level management of a company consists of the board of directors and the chief executive or the managing director. Top management is the ultimate source of authority and it establishes goals and policies for the enterprise. It devotes more time for planning and co-ordination functions.

The role of top management will be further clear by studying its functions or activities:

It lays down the objectives of the enterprise.

It prepares strategic plans and policies for the enterprise.

It issues necessary instruction for the preparation of departmental budgets, schedules, procedures, etc.

It appoints the executives for the middle level.

It controls the activities of all departments with the help of reports, memoranda etc.

It builds and maintains relations with the outside public.

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MIDDLE LEVEL MANAGEMENT

Middle level management generally consists of heads of functional departments they are responsible to the top management for the functioning of their departments. They devote more time to the organization and direction function of management.

The role played by the middle level executives is stated below:

They execute the plans of the organization in accordance with policies and directives of the top management.

They make plans for the sub-units of the organization.

They participate in the employment and training of the lower-level management.

They attempt to achieve coordination between different departments.

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They evaluate the performance of junior managers.They send the progress reports and other important data to the top management.

LOWER LEVEL MANAGEMENT (SUPERVISORY LEVEL)

Lower level management is also known as supervisory management because it is directly concerned with the control of performance of the operative employees. This level includes supervisors, foremen, accounts officers, sales officers, and so on. They devote more time on the supervision of workers.

The important functions of a supervisor or lower level executive are listed below:

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To plan and organize the activities of the group.

To arrange for necessary materials, machines, tools etc. for the workers and to provide them necessary working environment.

To provide training to the workers.

To supervise and guide subordinates.

To solve problems of workers.

To communicate workers problems to the higher level management.

To maintain good human relations in the organization.

To send periodical reports about performance.

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