Notes On Levels Of Management:

            The term levels of Management? refers to a line of demarcations between various managerial positions in a organization. The number of levels of Management increases when the size of the business and work force increases.

            The number of levels of Management cannot be increased to an unlimited extent to avoid complications in co- ordination and control. It is therefore desirable to restrict the number of levels of Management.

Number of levels of Management:

            There is no fixed number of levels of management, however in most of the organization there are three levels- Top Middle and Lower.

I. Top Level:

            The top level comprises of the Board of Directors, Chairman and chief Executive. It is responsible for the overall Management of the organization and performs the following functions:

  1. It establishes the goals and policies of the organization.
  2. It does the planning and coordinating functions.
  3. It is accountable to the owners or shareholders.
  4. It approves the decisions of the middle Management.
  5. It issues compulsory orders and instructions that have to be followed.
II. Middle Level:

            The Middle level of Management may be upper middle level and lower middle level. In small organization there is only upper middle level but Multinational organization has both It consists of various functional heads such as production manager, Finance Manager, Marketing Managers with their respective functions.

            The middle Management does the following functions:

  1. It executes the various functions of the organization and gives enough time to the top level for integrating the overall functions.
  2. To cooperate with the top level and with the suppliers.
  3. To integrate various parts of the organization.
  4. To develop and train employees of the organization for filling future vacancies.
  5. To develop a team spirit where all ore working to provide a product or service.
III. Lower Level:

      Lower Lever of Management consists of the supervisors, Foremen, Finance and Accounts officer, sales officers etc;

      The functions of lower level of Management are:-

  1. They represent a link between the Management and the workers.
  2. They plan day-to-day production schedule within the goal.
  3. They assign task to the operative employees, guides them and takes corrective action on the spot.
  4. They set goals only for a short term.
  5. They represent the company to the worker and worker to the company.
Need For Identifying the Levels:

            There is a great need for identifying the different levels of Management. The need increases among with the increase in the size of the business and the number of employees. Different levels of Management are identified so as to achieve affective supervision.

  1. To provide job opportunities to the people.
  2. To ensure supply of goods at the right place, at the right time and at right price.
  3. To abide by the rules and regulations of the govt.;
  4. To utilize the natural resources to the optimum;
  5. To keep the environment of industrial and commercial sector mat and claim;
  6. To give reasonable amount of profits to the shareholders.
  7. To enrich the central tradition of the society by encouraging the artists poets musicians and scholars in different walks of life.

            The socio- human obligation of every business is to develop human values such as-

            "Moral, Co- operation and Motivation in work"; and it falls into the social objectives of management.

            If these three main objectives me fulfilled it becomes the importance of management in business establishments.