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Levels of Management

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Estimated time: 15 minutes
CBSE: Class 12
Maharashtra State Board: Class 11

Introduction

  • Organisations may be small, medium or large.
  • Classification of human resources into groups is essential.
  • Small organisations have simple classification.
  • Large organisations divide work into different parts.
  • These parts are called levels of management.
  • Usually, there are three levels of management.
CBSE: Class 12
Maharashtra State Board: Class 11

Levels of Management

  • Management functions are performed in a hierarchy.
  • Individuals have responsibility and authority.
  • Authority–responsibility relationships create superiors and subordinates.
  • These relationships give rise to different levels.
  • Generally, there are three levels of management.

CBSE: Class 12
Maharashtra State Board: Class 11

Top Management

  • Senior-most executives (Chairman, CEO, COO, President, Vice-President).
  • Includes heads of different functional areas.
  • Formulates organisational goals and strategies.
  • Coordinates activities of different departments.
  • Responsible for welfare, survival and overall performance of the organisation.
  • Analyses the business environment.
CBSE: Class 12
Maharashtra State Board: Class 11

Middle Management

  • Link between top and supervisory management.
  • Implements and controls plans of top management.
  • Interprets policies.
  • Ensures required personnel and assigns duties.
  • Motivates employees and coordinates with departments.
CBSE: Class 12
Maharashtra State Board: Class 11

Supervisory / Operational Management

  • Includes foremen and supervisors.
  • Directly supervises the workforce.
  • Passes instructions of middle management to workers.
  • Maintains quality, minimises wastage and ensures safety.
  • Authority is limited according to top management plans.
CBSE: Class 12
Maharashtra State Board: Class 11

Real-Life Application

  • School Example: Principal (Top), Teachers/HODs (Middle), Class Monitors (Lower)
  • Hospital Example: Director (Top), Senior Doctors (Middle), Nurses/Ward Staff (Lower)
  • Online Shopping: Founder/CEO (Top), Category Managers (Middle), Delivery Executives (Lower)
CBSE: Class 12
Maharashtra State Board: Class 11

Key Points: Levels of Management

  • Levels of management divide human resources into parts based on size and needs of the organisation.
  • Management functions operate within a hierarchy of authority‑responsibility relationships.
  • Three main levels: top, middle, and supervisory/operational.
  • Top management sets goals, strategies, and ensures survival and welfare.
  • Middle management connects top and lower levels and executes plans and policies.
  • Supervisory management directly controls workers and ensures quality, low wastage, and safety.

Test Yourself

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Introduction to Management [00:43:56]
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Related QuestionsVIEW ALL [10]

Answer the following question.
Pratap Singh is the Chief Executive Officer of Nissar Enterprises. It is an automobile parts manufacturing company. The enterprise has a functional structure, in which jobs of similar nature have been grouped together as Production, Finance, Marketing, and Human Resource. Nissar Enterprises has its manufacturing unit at Manesar. The factory has been plagued with many problems for a long time which was in the knowledge of the Production Manager, Varun Sharma. The workers had internal differences. Time and again, there were misunderstandings between the management and the workers. Keeping the problems in mind, Varun Sharma appointed Siyaram Singh who had 14 years of experience of working with the actual workforce and passing on instructions of the middle management to the workers.
              Siyaram Singh met Varun Sharma to understand what the management wanted? Thereafter he met the workers and conveyed the ideas of management to them. He also promised the workers to convey their problems to the management. In this way, he cleared the misunderstanding between the management and the workers. He also sorted out internal differences and was able to unite the workers within a  month of his joining. His work was acknowledged by management and he was given a certificate of good performance along with a 10% increase in salary.

(i) Siyaram Singh performed some of the functions which are required to be performed at the position he is working at. State any five other functions Siyaram Singh is expected to perform.
(ii) Name the incentives provided to Siyaram Singh.

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