Why there is a need for different levels in Management

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.

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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