Interrelationship Between Management Functions

 LEVELS OF MANAGEMENT

Management level signify the hierarchy of management in any organisation. As shown in figure, the managers can be divided into a number of levels depending upon their activities. The number of levels will depend upon the size of business, number of workers, and effective span of control.

The hierarchy of management positions from top to bottom is called levels of management.

The level of a manager in the hierarchy determines the amount of authority and status enjoyed by him. The supervisory level managers have less authority than middle level managers who have in turn less authority than the top level managers.

Classification of Management Levels

The levels of management may be classified into three groups:

(1) Top Management, (2) Middle Management, and (3) Lower or Supervisory Management. 

The various positions which are included in each level of management are illustrated below:

Top Management. Top management lays down policies and objectives of the enterprise. It performs the higher level of management functions and takes the policy decisions. Top management includes board of Directors and chief executive of the company. In some cases, departmental heads are also taken as a part of top management.

Top management coordinates the affairs of the business and reviews the performance of the middle and lower levels of management. The Board of directors is merely a decision-making body, and the decisions are implemented through the chief executive of the company. Top management controls the affairs of the enterprise also.

The functions performed by the top management are given below:

1. Laying down board objectives and policies of the organisation.
2. Taking decisions for the accomplishment of the goals of the enterprise.
3. Coordination of various departments and divisions.
4. Laying down guidelines for the departmental and divisional heads.
5. Making appointment to middle level positions in the company organisation, such as Divisional Managers, Secretary, Department heads, etc.
6. Reviewing the work of executives at different levels to ensure that their performance is in accordance with the objectives laid down.

Middle management. Middle management consist of heads of various departments. The job of middle level managers is to organise their departments to implement the top management’s policies. They are responsible for the result in their areas. They also perform the management functions of planning, organising, staffing, directing and controlling. They issue the instructions to the first level management. They serve as the channel of communication between the top and lower management.

The functions of middle level managers are given below.

1. Planning for the execution of policies and programmes of top management.
2. Analysing the achievements of lower levels in the light of various plans and programmes.
3. Discussing the solutions of current problems and proceeding further with their results.
4. Appraising the performance of subunits.
5. Guidance and motivation of supervisory personnel.
6. Achieving coordination between different sections or units.

Lower or Supervisory Management. Lower or operative management consists of foremen, supervisors, office superintendents, etc., who are engaged with the direction of the operative employees. The managers at this level are in direct contact with the operative employees. They are more concerned with direction and control functions as compared to planning and organisation functions of management.

First line supervisors serve as an important link between the management and the workers. They implement the top management policies and provide feedback to the higher levels of management. The lower level managers plan the day-to-day activities and assign tasks to their subordinates, guide them and take corrective steps whenever necessary.

The function of first line management or supervisors are given below.

1. To supervise and guide the operative workforce.
2. To plan and organise the activities of the group.
3. To arrange for necessary materials, machine tools, etc., for workers and to provide them the necessary working environment.
4. To provide training to the workers.
5. To solve problems of the workers.
6. To communicate worker's problems to the higher level management.