"Many of our satisfaction and frustrations grow out of our

participation in groups and our strivings, with others

towards group
goals".
James C. Coleman

CHAPTER OUTLINE
• Introduction • Lower Level Management
• Meaning of Levels of
Management 
• Top Level Management
• Middle Level Management
 INTRODUCTION
Today, it is the time of big organization scale production. In
this age of large scale production and throat cut
competition, the ownership and management of
organization are divorced. The business is managed by
those who are not its owners. In management set up of an
organization, we find different levels. Levels of
management refer to a line of separation between different
positions held by different persons in an organization. In
this context, managerial hierarchy is studied. Managerial
hierarchy means the study of different positions held by
the employees and officers of an organization. It is the
structure which makes clear position of all officers of the
organization.
 MEANING OF LEVELS OF MANAGEMENT

The term ‘levels of management refers to a line of separation

between different positions held by different persons in an
organization.
Level of management depends upon the nature, size and
functions of an organization. Levels of management also
expand with the expansion of organization. There is a limit to
the number of subordinates a person can supervise. Levels
of management are increased so as to achieve effective
supervision. The levels of management of an organization
may be broadly be divided in to three parts namely, top
management, middle management and lower level or first line
management.
 1. TOP LEVEL MANAGEMENT
Top level management of a company consists of the board of directors
and the chief executive or the managing director. Top
management is the ultimate source of authority and it establishes
goals and policies for the enterprise. It devotes more time for
planning and co-ordination functions.
The role of top management will be further clear by studying its
functions or activities:
1. It lays down the objectives of the enterprise.
2. It prepares strategic plans and policies for the enterprise.
3. It issues necessary instruction for the preparation of
departmental budgets, schedules, procedures, etc.
4. It appoints the executives for the middle level.
5. It controls the activities of all departments with the help of
reports, memoranda etc.
6. It builds and maintains relations with the outside public.
 MIDDLE LEVEL MANAGEMENT
Middle level management generally consists of heads of
functional departments they are responsible to the top
management for the functioning of their departments. They
devote more time to the organization and direction function
of management.
The role played by the middle level executives is stated below:
1. They execute the plans of the organization in accordance
with policies and directives of the top management.
2. They make plans for the sub-units of the organization.
3. They participate in the employment and training of the
lower-level management.
4. They attempt to achieve coordination between different
departments.
 5. They evaluate the performance of junior managers.
6. They send the progress reports and other important data
to the top management.

LOWER LEVEL MANAGEMENT (SUPERVISORY LEVEL)

Lower level management is also known as supervisory
management because it is directly concerned with the
control of performance of the operative employees. This
level includes supervisors, foremen, accounts officers,
sales officers, and so on. They devote more time on the
supervision of workers.
The important functions of a supervisor or lower level
executive are listed below:
1. To plan and organize the activities of the group.
2. To arrange for necessary materials, machines, tools
etc. for the workers and to provide them necessary
working environment.
3. To provide training to the workers.
4. To supervise and guide subordinates.
5. To solve problems of workers.
6. To communicate workers problems to the higher level
management.
7. To maintain good human relations in the
organization.
8. To send periodical reports about performance.