Module 1-Session-5-24.11.2022.pptxbavavsvsvs

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1. MODULE 1: Levels of Management and Managerial Functions Dr. L.P.Padhy , Adjunct Professor Biju Patnaik Institute of Information Technology and Management Studies, Bhubaneswar

2. Chapter Outline Introduction Meaning of levels of Management Top Level Management Middle Level Management Lower level Management

3. 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 separate. The business is managed by those who are not its owners. In management set up of an organization, we find different levels.

4. Introduction- Contd 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.

5. 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.

6. 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.

7. In organizations which are small in size, scale and scope, the owner manages all the activities and needs no support from others. For example, a small store or a small consultancy is handled by the founder with minimal support. However, with the growth and increase in the size of the organization, it becomes difficult for a single individual to run the business. A need for a formal organization and the establishment of formal authority structures becomes a necessity.

8. Management activities are categorized into three levels Top, Middle and Lower Level . The three levels are organized along hierarchical lines so that each level could be supervised by the immediate level over and above it. The functions of each level depend on the size, scale, technology, Culture prevailing in the organization. Further, the number of managerial positions at each level differ from organization to organization.

9. LLEVEL & TYPES OF MANAGERS Biju Patnaik Institute of Information Technology and Management Studies, Bhubaneswar

10. TOP LEVEL MANAGEMENT Top level management is concerned with the organization as a whole and has interaction with the external environment. This interaction mandates that the manager works with the individuals and outside organization. They are appointed by the governing body of the organization and are usually referred to as the Chief Executive Officer, President, Chairman etc. in large organizations. They are empowered to take decisions pertaining to the organization.

11. Besides the CEO, the board also appoints the Senior Vice-President, Vice President, Executive Director, all of whom form part of the top level management and involve in taking decisions which affect the entire organization. They work with the middle level managers in the implementation of organizational strategy and maintain overall control over organizational performance.

12. The role of top level management is to formulate organizational strategy and controlling resources. They are also considered the strategy architects and organizational leaders. In their leadership role, they have to create and articulate a broader corporate purpose in which people can identify and to which people enthusiastically commit.

13. 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.

14. The role of top management functions or activities It lays down the objectives of the enterprise. It prepares strategic plans and policies for the enterprise. It issues necessary instruction for the preparation of departmental budgets, schedules, procedures, etc. It appoints the executives for the middle level. It controls the activities of all departments with the help of reports, memoranda etc. It builds and maintains relations with the outside public.

15. The middle level management This level is responsible for the implementation of plans and strategy developed by the top managers for the accomplishment of the organizational objectives. 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.

16. Most times they decide, but they also look for guidance and direction from the top management for strategy related issues. They act as a linking pin between the higher level management and the lower level management.

17. The role played by the middle level executives They execute the plans of the organization in accordance with policies and directives of the top management. They make plans for the sub-units of the organization. They participate in the employment and training of the lower-level management. They attempt to achieve coordination between different departments.

18. They evaluate the performance of junior managers. They send the progress reports and other important data to the top management.

19. LOWER LEVEL MANAGEMENT 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.

20. Termed as tactical management or frontline executives, these are the people who are responsible for the performance of employees involved in the actual day-to-day operations/ tactical activity in the organization. They are designated as supervisors in a service setting or Foreman in a manufacturing setting and are responsible to direct the employees in achieving the targets.

21. They implement the operational plans developed by the middle managers and are responsible for taking corrective/ remedial action whenever needed. They take care of output variables like the number of units produced, labour cost, the inventory levels, quality control etc. They are directly involved in the daily operations/ activities of the organization and the role is critical in the organization.

22. They not only take part in creating and sustaining quality concerns, innovate new methods, but with the proximity to the actual work, they are expected to initiate new activities, new methods, new processes , and new ways of getting things done.

23. Important functions of Lower level of Management To plan and organize the activities of the group. To arrange for necessary materials, machines, tools etc. for the workers and to provide them necessary working environment. To provide training to the workers. To supervise and guide subordinates.

24. To solve problems of workers. To communicate workers problems to the higher level management. To maintain good human relations in the organization. To send periodical reports about performance.

25. CHARACTERISTICS OF A GOOD MANAGER When it comes to what are those traits that distinguish the good with not so good managers, literature and also experience does not provide a straight jacketed, all-encompassing answer. A number of factors like the type, size, goals, strategy, team, location, along with a host of external factors like theCOVID-19 in the current context play a significant role in the organizational success, which impacts the managerial functioning.

26. Successful managers, are characterized with the following traits. Understand the vision and communicating it Independent thinking and assuming responsibility Knowledge Taking the right decisions at the right time Demonstrating leadership and motivating the team Empathy

27. Conflict resolution : Conflict resolution demands a calm, cool, objective approach from the manager to provide a solution and manage the stresses and strains of team, as well. Emotional balance : Research in psychology, however, put forth the importance of the emotional balance of the manger as extremely important in handling the team and the ever changing, uncertain, volatile business environment.

28. THANK YOU ALL 28