Level Of Management and Their Functions | Top, Middle, Lower Level

What is Management ?

Every company or organization requires efficient management to become successful. Efficient management includes different levels of managerial persons joining hands together to execute the functions, including Planning, Organizing, Directing, and controlling. Diversifying an organization into different levels of management is very important to have proper control and overlook the productivity and performance of the employees.

Levels of Management

Typically, in any organization, there are three levels of management.

They are:

1. Top Level Management 

2. Middle Level  Managementand 

3. Lower Level Management

Each level is entrusted with different roles and responsibilities. The work is decentralized among all the three levels for better management of an organization.

Top Level Management

The Top-level management comprises the Board of Directors, Managing Director, and General Manager. The Board of Directors is the ultimate master of the organization.

The managing director and General Manager are the chief executives appointed by the Board of Directors to execute the policies and decisions taken by the Board.

The Board does not participate in the day-to-day activities of the company. They usually entrust the management of daily affairs to the chief executives.

The top-level management is broadly responsible for framing the broad objectives and policies of an organization and the ways to execute them. They have the overall direction and control of an organization. They serve as the point of communication between the company and the outsiders.

They are accountable to the shareholders for the performance of the company.

Middle Level Management

The Middle-Level Management includes all the departmental heads and other executives appointed by the top management to execute the policies and procedures framed by them.

Middle level management is the heart of an organization which keeps an organization function effectively without any hindrance. The Middle-level management is also responsible for the direction and organization of the low-level management. In more influential organizations, the middle-level management is further segregated into Junior and senior middle-level management. They serve as an intermediary between the top-level and low-level management.

 

Low Level Management

Low-level management can be termed as ‘Operating Management.’ They are the supervisory and operational level managers who communicate directly with the workers of an organization.

They are accountable to middle-level management and serve as liaisons between the middle-level administration and the workers. The direct and supervise the functions of the workers.

The efficiency of the organization depends on the efficient functioning of the low-level management.

They are also responsible for ensuring harmony at work among the workers.

Also Read:

Departmental Stores | Advantages and Disadvantages of Departmental Stores

What is Purchase Consideration ? Types, Method, Formula of Purchase Consideration

Coordination in Management | Examples, Importance, Functions

Functions of Level of Management:-

The different levels of management are entrusted with respective duties and responsibilities.

Top Level Management

1. The first and foremost responsibility of the top-level management is to determine the objectives of the organization. The goals shall be set within the framework of the Memorandum of Association of the company and can be either general or specific.

2. They ascertain the policies and guidelines to assist the organization in achieving the objectives framed. The Board shall exercise appropriate judgment in deciding the policies and procedures.

3. They shall appropriately appoint the different managers at various divisions to carry out the guidelines and policies framed to execute the objectives.

The competent employees shall be assigned, and the top management will clearly define their roles and responsibilities to maintain the clarity of work done.

4. They take necessary steps to procure adequate resources, both physical and monetary, to carry on the company’s operations. E.g., Working capital, fixed assets, stock, etc.,

Middle level Management

1. To understand the objectives of the company laid down by the top-level management and the policies and guidelines to be followed to achieve them.

2. Execute the orders received from the top management and delegate the responsibilities appropriately to the low-level management for the company’s effective operation.

3. Choose the low-level management based on the qualifications and qualities of the applicants.

4. Explain the policies and objectives of the company clearly to the low-level management and avoid any communication gaps. Organize the work among the various departments and divisions, fixing the line of responsibility and accountability to each personnel.

5. Prepare the authority matrix based on the line of authority of an organization. The authority matrix is prepared keeping in mind the final objectives and policies to be achieved by the company.

6. Motivate the employees with words of motivation and appreciation to ensure higher productivity and efficiency.

7. Coordinating the work of the low-level management and communicating it appropriately with the top management.

8. Periodically analyze the performance of the low-level management and communicate it to the top management.

Low Level Management

1. Take guidelines and directions from the middle-level management and execute the work entrusted to them.

2. Actively participate in the hiring and training of the workers.

3. Plan the work to be distributed and allocated to different workers.

4. Ensure that the objectives and policies framed by the top management are clearly explained to the workers to enable them to perform better to achieve the objectives.

5. Have direct supervision on the quality and quantity of the production of the company.

6. Make sure that the standard of the product is not compromised at any time.

7. Maintain a friendly relation with the workers and ensure harmony at work.

8. Bring to the attention of the middle-level management about the worker’s grievances and complaints, if any.

9. Ensure completion of tasks on time and eliminating wastage of time and material.

10.  Ensure that the morale of the workers is maintained at all times.

11. Produce a periodic performance report of the workers to the middle-level management.

Summary

Every organization has different Managerial personnel at a diverse line of authority. It is vital to understand the group of personnel placed in each line and understand the difference between Top, Middle and Low-level management.The Major distinction and take away from the discussion is,

The top-level management is responsible for the overall control and direction of an organization;

The middle-level management is responsible for executing the directions given by the top management and serves as an intermediary between the top and low-level control.

Low-level management is the employees who take the necessary steps to achieve the goals and objectives framed by the top management.

All three levels of management are significant for the proper functioning of an organization. Each of them supports each other over the different circumstances arising on their road to achieving the ultimate objectives.