1.5 Levels of Management and Managerial Skills

1.5.1    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 & 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:

Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.

The role of the top management can be summarized as follows –

1. Top management lays down the objectives and broad policies of the enterprise.
2. It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
3. It prepares strategic plans & policies for the enterprise.
4. It appoints the executive for middle level i.e. departmental managers.
5. It controls & coordinates the activities of all the departments.
6. It is also responsible for maintaining a contact with the outside world.
7. It provides guidance and direction.
8. The top management is also responsible towards the shareholders for the performance of the enterprise.

Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as –

1. 1. They execute the plans of the organization in accordance with the policies and directives of the top management.
   2. They make plans for the sub-units of the organization.
   3. They participate in employment & training of lower level management.
   4. They interpret and explain policies from top level management to lower level.
   5. They are responsible for coordinating the activities within the division or department.
   6. It also sends important reports and other important data to top level management.
   7. They evaluate performance of junior managers.
   8. They are also responsible for inspiring lower level managers towards better performance.

Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include:

1. 1. Assigning of jobs and tasks to various workers.
   2. They guide and instruct workers for day to day activities.
   3. They are responsible for the quality as well as quantity of production.
   4. They are also entrusted with the responsibility of maintaining good relation in the organization.
   5. They communicate workers’ problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers.
   6. They help to solve the grievances of the workers.
   7. They supervise & guide the sub-ordinates.
   8. They are responsible for providing training to the workers.
   9. They arrange necessary materials, machines, tools etc for getting the things done.
   10. They prepare periodical reports about the performance of the workers.
   11. They ensure discipline in the enterprise.
   12. They motivate workers.
   13. They are the image builders of the enterprise because they are in direct contact with the workers.

1.5.2    Managerial Skills

Managerial skills are what separates good managers from others. There are four types of skills that are necessary for effective performance of managerial roles.

1. Technical Skills: It is the knowledge of and proficiency in activities involving methods, process and procedures. Thus, it involves working with tools and specific work. E.g. supervisor should have the ability to teach, how to use the tools for mechanical work.
2. Human skills: It is the ability to work with the people. It is the creation of an environment in which person feels secure and free to express their opinion.
3. Conceptual Skills: Ability to recognize the element in a situation and to understand the relationship among the elements.
4. Design Skills: It is the ability to solve the problem in such a way that it will benefit the organization.

The importance and application of these skills differ with the level of the manager in the organizational hierarchy.

• Lower level management: For lower level managers, technical skills are of greatest importance, human skills are also helpful in interaction with subordinate but conceptual skills are normally not critical for them.
• Middle management: For middle management, the need for technical skills decreases, human skills are still essential and the conceptual skills gain in importance.
• Top management: For top management, conceptual and human skills are very valuable but there is very less need for technical abilities.This is true for large companies but in small organization technical skills may still be quite important.