Management is an
important aspect of economic life, which deals with those personnel
who are concerned with managing of business enterprise. Management is
essential wherever human efforts are to be undertaken collectively to
satisfy the wants. It regulates the man’s activities through coordinated
use of the material resources.
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The business characteristics of management remain the same whether the
enterprise is to be managed as a family, a club, business enterprise
or trade union. Higher-level authorities such as chief executives, heads
of department who has some power in decision-making formulate the objectives
of the enterprise. In fact the objectives are formulated and presented
to the working personnel in the enterprise, which varies according to
their level and their position in the enterprise. The enterprise will
be having workers from low level to high-level members. The knowledge
and experience play a key role in formulating those policies of the
enterprise.
The number of levels
of management in a particular enterprise depends on the size of the
enterprise, market value and nature of production based on quality as
well as quantity. A large enterprise needs different levels of management
which has the responsibility to make all the workers get motivated,
get organized in order to get the job done within the certain time period
and bring a mutual understanding among the workers in different levels
of the enterprise. In order to accomplish, this understanding among
the workers proper planning should be done for various levels in the
enterprise, the plan should have the capability to project the nature
of their work and the objectives of the enterprise. For example, if
an enterprise manufactures different kinds of products in large volume,
there is need for several layers of management in the enterprise, which
would be helpful in bringing better inter-relationship between the members
within the organization.
The management should
provide a clear view about the nature of the work in that particular
level, what are all the objectives to be accomplished, goals to be achieved.
But in order to achieve greater efficiency and maximum productivity
the levels present in the enterprise should be kept at minimum. If there
are many levels in the enterprise the cost spend for planning, resources
needed for that level will be increased this might have a great impact
on the profit margin of the enterprise. It might also create problems
in communication channels between different personnel’s of different
levels, which would be very difficult to control and coordinate.
Lack communication
brings dissatisfaction, bitterness and demoralization among workers
on the enterprise. Therefore better coordination among the workers can
be achieved by synchronizing their efforts from the standpoint of time
and sequence of execution. It is the force that binds all the levels
within the enterprise. Coordination is processes of ensuring that each
stages of an enterprise followed by others are in a pre-arranged order,
according to the rule for that particular level. It should be done in
a systematic sequence according to the planned schedules, avoidance
of interruption of operation due to wrong allocation of jobs, unavailability
of required resources, eliminating the undesirable factors that influence
the productivity and it should maximize the profit margins of the enterprise.
According to
the experts there are three different levels of management:
1. Top level management,
consists of Board of directors, managing directors or executive committee
members.
2. Middle level management, consists of managers such as personnel,
production, sales, marketing, resource, finance etc.
3. Lower or operating level management, consists of foreman, supervisors,
daily labourers etc.
Top level managements refers to those who occupy functional positions
in an enterprise such as Board of directors, general managers and other
key officers who are responsible for smooth and systematic operations
of the enterprise. Top management does not directly execute work.
Experts say, it is a concept of functions concerning the manner in which
the enterprise should be should. Generally for a large enterprise key
functions and duties cannot be carried out by individuals, hence a compact
group of members are formed. Top level management should focus more
on capability of workers both in general and technical qualities. It
involves creative imagination, initiative, and sense of judgments. It
is also described as policymaking group responsible for overall direction
and activities of the enterprise.
Main objective
in Top level management are:
Ø Setting key objectives, policies and identifying factors essential
for the development of the enterprise.
Ø Efficient accomplishment of goals in the enterprise and maintaining
strategic balance in all actions taken by the authorities in higher
level.
Ø Making appointments to the top position in the enterprise such
as managers, department heads etc.
Ø Reviewing the work of different personnel’s in all levels.
The function of
the top level management is providing a detailed description of the
nature of their activities in the objects clause of their memorandum
of association. Objectives may also be specific such as specialty in
workmanship, competitive pricing, marketing, and relationship with the
customers, workers, and public. Framing up policy such as production
policy indicates schedule of productions to be completed. Product policy
lays down size, color, material, design etc. Marketing policy focuses
on various channels of selling. A personnel policy deals with recruitment
and placement .It includes organizing which deals with allocation of
duties to the personnel. Controlling plays a key role in the top level
management, which makes comparisons with the actual results and planned
targets.
Middle level
management:
Middle level management deals with task of implementing the policies
and plans formulated by the top level. It comprises of departmental
heads and other executive officers who will lead the group of workers
to the planned targets and provide them with necessary resources in
order to get the job done. This group is responsible for the execution
and interpretation of policies throughout the organization and for the
successful operations assigned to the division or departments. In this
level the managers have to plan the operations, issue instructions laid
by the top management, collect the resources required and control the
work of the men. Managers are responsible for leading all the function
within each department; they provide the guidance and structure for
a purposeful enterprise. Functions to be performed in the middle level
management are.
Ø Follow the rules and policies formulated by the top management.
Ø Motivating personnel for higher productivity.
Ø Collecting detailed analysis report of the department and the
personnel’s.
Ø Mutual understanding with other departments in the enterprise.
Ø Recommendations to top management.
Operative management
or Low level management:
It is the lowest level in the business enterprise Foreman, supervisor
executives assisted by number of workers carry out the process to be
done as per schedule. Their authority and responsibility in the enterprise
will be very much less compared to other workers. They have to follow
the rules and guidelines made out by the higher authorities of the enterprise.
The importance of the functions in this level cannot be overlooked.
The plan developed by the top level management will fail if the workers
in the lower level do not fully realize the work allotted to them and
the nature of their work.
The quality and quantity of the work done will depend upon the performances
of the workers in this level how hard they work to attain their goals.
The supervisors in this level have to maintain standards of the quality
of the manufactured product assign duties to the workers as per plan
and schedules given by the top and middle level management. They are
also responsible for maintaining respect, discipline among themselves
and increase the spirit of work among the workers.
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