LEVELS OF MANAGEMENT

The term “Levels of Management‟ refers to a line of demarcation between various

managerial positions in an organization. The number of levels in management increases
when the size of the business and work force increases and vice versa. The level of
management determines a chain of command, the amount of authority, responsibility and
status enjoyed by any managerial position. The levels of management can be classified
in three broad categories:

1. Top level / Administrative level

2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of managers at all the
three levels is discussed below:
The top level management includes Board of Directors and the Chief Executive. The
chief executive may have the designation of Chairman, Managing Director, President,
Executive Director or General Manager. This level determines the objectives of the
business as a whole and lays down policies to achieve these objectives (making of policy
means providing guidelines for actions and decision). The top management also
exercises an overall control over the organization.

The middle-level management includes heads of various departments, e.g.,

production, sales, etc., and other departmental managers. Sometimes senior
departmental heads are included in the top management team. The objectives of the
business as a whole are translated into departmental objectives for the middle level
management. The heads of the departments then work out their own strategies so as to
achieve these objectives. Middle-level managers are particularly concerned with the
activities of their respective departments.

The lower-level management consists of foremen and supervisors who look after
the operative workers, and ensure that the work is carried out properly and on time.
Thus, they have the primary responsibility for the actual production of goods and services
in the organization.

These three levels of management taken together form the ‘hierarchy of

management’. It indicates the ranks and positions of managers in the hierarchy. It shows
that the middle-level management is subordinate to the top-level and that the lower-level
is subordinate to the middle-level management.
The number of people at each level increases as one moves from top to bottom. Workers
including crafts persons, manual laborers, engineers, scientists, etc. form the bulk of
the organization membership. Within the managerial ranks, the number of managers
at each level decreases as one moves from lower-level to top-level management. At the
top of the organization, there is usually one person.

MANAGEMENT PRINCIPLES:

1. Division of Labor

Figure out what your employees are good at, and assign them tasks that play to their
strengths.

Allowing your employees to specialize in one or two related skills everyday gives them
more repetitions and time to master their craft. They’ll improve a lot faster compared to
learning a broad range of skills. And the better they are at their jobs, the better your team
will perform.

2. Party of Authority and Responsibility

You should take on more responsibility for your team's output as you gain more power.

Power comes a lot of responsibility. Since you’re the one calling the shots, the
consequences of your actions fall directly on your shoulders.

Holding yourself accountable for the consequences of your actions, especially when
they’re bad, proves to your employees that you have strong integrity: you work to serve
and protect your people, and you won’t throw people under the bus for your own personal
gain.

3. Discipline
You should demand as much discipline in your team as you do with yourself.

Every successful leader knows discipline goes both ways. You need to earn your
employees’ respect, so they feel compelled and genuinely interested in following you.
This way, you can streamline your team’s processes and help your employees produce
quicker and better results.

4. Unity of Command

Each of your employees should only have one manager.

Having two managers isn’t ideal for anyone. It can spread employees thin, lead to
conflicting directives, and even divide loyalty. Unless it's absolutely necessary, each of
your employees should only have one manager.
5. Unity of Direction

Each of your teams should only have one plan of action.

Each group of employees who have similar responsibilities and goals should pursue one
plan to achieve those goals. As a manager, you should set clear goals for your team,
document your plan of action, and monitor progress. You also need to effectively
communicate the purpose and benefits of your vision, so your team will buy in and do
whatever they can to achieve your goals.

6. Subordination of Individual Interest

Your employees should prioritize the company’s interest over their own personal
interests.

Everyone has their own unique interests that they should pursue. But in terms of work,
your employees should prioritize the company’s interest over their own’ personal
interests.

7. Remuneration

You should reward your employees.

One of the best ways to motivate your employees is to regularly recognize their
accomplishments and milestones and ensure their compensation reflects their
performance. Ample recognition and fair compensation helps your employees meet the
majority of needs in the most influential model of motivation: Maslow’s Hierarchy of
Needs.
8. Degree of Centralization

There should be a balance of authority between upper, middle, and lower management
in your organization.

When a company is centralized, it means that upper level management has all the
decision-making power. On the other side of the spectrum, when a company is
decentralized, middle and lower level managers wield more power in the company’s
decision-making process, just like a democracy.

The best organizations strike a balance between the two. Absolute centralization and
decentralization isn’t sustainable -- no one wants to follow the order of a small, powerful
group. But you also need a central power to instill order and guidance in employees so
they can’t just do whatever they want.

9. Scalar Chain

There should be a clear chain of communication in your organization.

For example, low-level managers who want to pass a message along to upper
management should contact the mid-level managers about it first, who can then convey
their message to upper management.

If it’s an emergency, they should be able to take a big shortcut and quickly convey their
message to an executive.

10. Material and Social Order.

You need to make sure your employees can succeed

To help your employees do their jobs well, you need to make sure your teams have
enough resources and know what resources they have at their disposal. You should also
ensure their work environment is safe and clean -- a place where they look forward to
going to work everyday.

As a manager, you also need to confirm that your employees are a good fit for their roles.
Can they handle the stress? Can they manage their time and workload? Can they
perform? These are things that every successful manager should know about all of her
employees.

11. Equity

You should treat your employees fairly.

In exchange for your employees hard work and dedication, you need to treat them fairly
in return. This is crucial for healthy employee-manager relations because if one of your
employees feels like other team members are getting preferential treatment over her,
she’ll feel discriminated against, making her less happy and motivated at work.

12. Stability of Tenure

You should strive for a low turnover rate on your team.

Your new employees need time to get used to their work, improve, and, ultimately,
succeed. Of course, you should expect your employees to master their jobs eventually,
but if you don’t give them enough time to get acclimated, you’ll have to let them go -- they
won’t be able to hit their lofty goals immediately. Constantly recruiting new hires, training
them, and then recruiting their replacements is a waste of your time and resources.

On the other side of the coin, when your employees know their job is stable, they'll feel
safe at work and enjoy their role more. This can lower your team’s employee turnover
even more because employees will be less likely to move on from your team. You can
also retain your employees longer by investing in their growth and wellbeing. Try offering
them new learning opportunities, healthy snacks, and an inclusive environment.
13. Initiative

You should let every employee make an impact on your team.

Your employees shouldn’t be scared to express their ideas. Instead, you should
encourage them to take initiative and always be striving to improve your team’s efforts.

There are also more employees than managers at a company, so diversifying your
ideation process with your employees’ different perspectives can generate more creative
and effective ideas than the same, few minds can.

14. Esprit de Corps

You should know how to boost your team’s morale.

Managers are leaders. You need to know how to get your team to passionately support
a mission, even during the rockiest of times. And there’s three things you need to
consistently do to make sure this happens.

First, you need to convince your employees to buy into the “why” behind your mission.
This gives your employees a purpose and drives them to work as hard as possible.

Second, you should foster a team bond and a sense of unity. By encouraging the
development of personal relationships with each other through team outings or daily chit-
chat, you can create an atmosphere of trust, understanding, and inclusivity. You team will
have harmony when each of your members feels like they belong, and this inspires them
to work harder because they’re not just working together -- they’re working for each other.

Lastly, you need to make your employees feel significant by rewarding high-performers
and giving underachievers a chance to improve. If your employees know how important
their work is to your team, they’ll feel valued, trusted, and motivated to help you succeed.