Levels of Management: Functions and Responsibilities

Commerce

Levels of Management: Functions and Responsibilities

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Management is a broad term which includes all the operations that take place inside an organisation. The importance of management in an organisation cannot be overlooked, effective management ensures each task is divided into smaller subparts such that one person is not made responsible for the whole project.

Effective management guarantees the smooth functioning of every process and at the end, all the smaller subtasks can be integrated for the successful completion of the main task.

Management is, hence, dependent hugely upon hierarchy. The hierarchy, in turn, is arranged based on experience, seniority level and the competence of individuals. This hierarchy keeps the management working flawlessly and generates an authority-liability relationship among all the people working.

This hierarchy among individuals inside an organisation keeping different factors in mind is called levels of management. Each level of management is headed by different people and ensures they obey orders from levels above, if any, and communicates those orders for faster and efficient working to the levels below. There are mainly 3 levels of management which is widely followed across the world.

Top Level Management

The top-level management is usually the spearhead of an organisation. They are responsible for the proper working of the entire organisation and also are in charge of all the big decisions and changes which an organisation goes through. The top-level management generally comprises Chief Executive Officers, Chief Operating Officers and also all the major shareholders and board members.

Middle Level Management

The middle-level management is mainly responsible for implementing the ideas which have been invented by the top level management. They are the subsidiaries of top-level management, but they head the lower levels such that the ideas they borrow from the top level are broken down into tasks.

These tasks are then channeled proficiently into levels below. Department heads, plant executives and operations managers are some examples of titles which are present in mid-level management.

Operational Management

Among all management levels, operational management is usually believed to be the main workhorse of an organisation. They typically comprise of first-line managers, QA teams and all the grassroots employees who are in charge of day-to-day operations.

Operational management do not always foresee the bigger ideas which come from levels above, but act as the main people who are responsible for all the subdivided tasks to be completed in an efficient manner.

Now that all the management levels have been properly defined, let’s revise with some MCQs.

Knowledge Test :

Which level of management do CEOs and COOs belong to?

Top Level
Middle Level
Operational Level
All of the above.

Which level is also known as the ‘workhorse of the organisation’?

Top Level
Middle Level
Operational Level
All of the above

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FAQs on Levels of Management: Functions and Responsibilities

1. What are the Levels of Management?

Levels of management can be broadly divided into 3 parts – top level, middle level and operational level.

The top level management is responsible for chalking out future ideas. This level usually comprises CEOs, COOs, CTOs and other board members.

The middle level management is composed of all department heads and operation managers who are responsible for communicating the ideas to the lower levels.

The operational level management spans first-line managers, QA teams and all the other employees who execute the daily task and accumulate all efforts to finish the final product or shape the final idea.

2. What is the Level of Management that Overlooks the Welfare and Survival of an Organisation or Company?

The top-level management is responsible for the welfare and survival of an organisation.