Management Study Organisation Study

Different Levels of Management and Significance of Management

Written by punit

Every organization has a chain of command which determines the powers and the rank held by the managerial personnel. Levels of management can be divided into the following categories:

1) Top Management: Top-level management consists of people that are at the highest managerial positions. This position is held by the senior-most authorities in an organization including the Board of Directors, Chief Executive Officer (CEO), sectional heads, etc. They are involved in long-term planning, laying down policies and strategies for organizational development and selection of methods to be adopted for achieving the objectives. They act as a medium of communication for maintaining relations with external suppliers and agencies. Being the leaders of the organization, they are accountable for the good or poor performance of the organization.

Levels of management

2) Middle Management: Departmental heads form the middle-level management. They are responsible for monitoring departmental activities, giving instructions and maintaining coordination I various activities carried out in the several units and divisions. They act as a mediator between the top level management and lower level management. They convey the decisions taken by the seniors and explain the importance of the same to the lower level management. They also transmit the feedback and suggestions given by the supervisory level to the seniors. Their role is to motivate, inspire and encourage the operational level managers to increase their performance levels.

3) Supervisory or Operative Management: First line supervisors like — section officer, superintendent, supervisor, foreman, etc., are a part of the operative management level. They follow the instructions and guidelines provided by the middle level of management. They are responsible for getting things done by the workers. Production activities, assignment of jobs amongst workers, the arrangement of required machinery and tools, etc., are the activities performed by these managers. It is the responsibility of these managers to get the work done of the desired quality in a specific period of time. They provide technical assistance to the workers; ensure availability of necessary facilities; report problems and feedback to the higher level authorities, etc. It is also a part of their job description to prepare the daily plan of action as per the guidelines specified by senior level managers.

Significance of Management

Management plays an important role in the growth and welfare of an organization. The following points describe the significance of Different Levels of  management:

1) Motivates to Take Initiative:

To do an activity without being influenced or motivated by someone is termed as initiative. Management always encourages the employees to take initiatives to perform activities that are new yet beneficial for the organization. Management encourages the employees to formulate new plans, strategies and implement them for the benefit of the organization without being influenced by the higher authorities. Self-induced activities give a sense of contentment to the employees, and thus, encourage them to continue doing such work and bring success to the organization.

2) Encourages Innovation:

Innovation is a necessity in today’s competitive environment. Management facilitates the introduction of new ideas and concepts; use of new and productive methodologies; installation of advanced technologies; the launch of innovative products and services; etc. Hence, it can be said that management has an important role in maintaining the competitive posit’ n of the organization.

3) Helps in Expansion and Growth:

By exercising proper managerial skills, a manager can ensure the effective and efficient use of resources. Since each activity is performed as per the predetermined norms and standards, there is a reduction in the wastage and spoilage of the resources. Management motivates the employees to give better performance and reduces absenteeism and employee turnover. All these activities, in turn, enhance the growth and expansion prospects of the business.

4) Increases the Standard of Living of the employees:

Management ensures that the profits earned by the organization are also shared with the employees. Management encourages the employees by improving the working environment and conditions which in turn ensures their productivity. It also offers financial and non-financial incentives to satisfy their monetary and non-monetary needs. Thus, satisfying the monetary needs of the employees, alongwith offering them psychological and emotional satisfaction improves standard of living of the employees.

5) Improves Corporate Image:

Efficient management helps in providing superior products and services to consumers. Offering the best products and services at reasonable and economical prices creates a good image of the organization in the industry. This results in improving the brand image and goodwill of the company. The good corporate image creates many opportunities for the organization and creates a dominant position in the market.

6) Empowers the Employees:

Employees can be encouraged by providing both financial and non-financial incentives to increase work efficiency. Financial incentives (like a bonus, profit sharing, allowances, etc.,) and non-financial incentives (like including promotion, career advancement opportunity, job security, and stability). both contribute positively towards improving the performance and efficiency of the employees. incentives give a feeling of empowerment to the employees regarding their presence in the organization. This results in increased productivity and profits.

7) Reduces Wastage of Resources:

They are three main types of resources used in every organization, viz., physical, human and financial resources. The planning and controlling function of management should be efficient so that the resources are utilized in an efficient manner. Each management activity if conducted as per the predetermined standards and norms will reduce wastage and spoilage of resources and increase organizational productivity. This will enable the organization to offer quality products at competitive rates to the customers.

8) Improves Efficiency:

The cost involved in an activity and returns expected is directly proportional to the efficiency with which the activity is conducted. Higher efficiency helps in achieving increased returns ai minimum cost. Managers are able to increase organizational efficiency by using different managerial tools and techniques. Thus, managerial activities bring prosperity to the organization and provide benefits to the employees.

Also Read:- Meaning, Definition and Features of Monopoly

9) Enhances Employee Relations:

Management helps in establishing proper coordination between the various divisions, sections, and departments of the organization. Cordial relations between the top level middle level and lower level management results in a team spirit amongst employees. Each department an: employee is governed by the standards laid down by management that are designed to coordinate with no another. Effective coordination and cooperation between employees at different levels result in the overall productivity of the organization.

10) Decreases Employee Turnover and Absenteeism:

Management is always practicing different ways to reduce absenteeism and employee turnover. Absenteeism means remaining absent from the service wither taking prior permission from the senior management. Labor turnover means the rate with which the workers or employees leave the organization. The main reason for turnover is a lack of motivation. I managers identify, motivational needs of employees and provide suitable incentives, employees will not think of leaving the organization. If turnover is reduced, it minimizes the cost of new recruitment Management provides good working conditions which help in reducing absenteeism.

11) Fosters Teamwork:

Management motivates its employees to work in a team, likewise the coordination. between team members increases productivity. Unity among the team members is essential for the common objectives of the organization.

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