Levels of Management

All managers in an organization do not belong to the same class or level, just as all students of a college do not belong to the same class. Some managers belong to the higher level, whereas, others belong to the lower level, and some others belong to the middle level. Normally, management positions are graded into three broad levels, i.e.,
(a) Top Level,
(b) Middle Level, and
(c) Lower Level.
Management positions in each of the three levels differ in six major areas, namely:
• The titles allotted to their positions.
• The nature of their work.
• The time frame they consider to plan
• The way they allot time among functions.
• The responsibility for which they are accountable.
• The skills required to perform their jobs.
1. Titles allotted to managerial positions:
At the top level, there are fewer managerial personnel. The titles allotted are Chief Executive Officer, General Manager, President, Vice-Presidents, and so on.
At the middle level, the managers are referred to as Divisional Heads, Departmental Managers, and so on.
At the Lower Level, there are more number of management personnel as compared to the other levels. They are often referred to as Assistant Managers, Supervisors, Foremen, and so on.

2. Nature of managerial work:
Management levels also differ in the nature of their work. The top management is concerned with - (a) determination of company goals, (b) framing of corporate policy, (c) mobilization of resources, and so on.
The middle level managers are concerned with - (a) providing recom­ mendations to top management, (b) interpretation of policies framed by the top management, etc.
The lower level managers are concerned with - (a) guiding and directing employees, (b) developing morale, (c) acting as a link between the management and employees.
3. Time frame of planning :
The top level executives plan and view the company business from a distant future perspective, say 10 years from now.
The middle level executives may plan and view the company from medium term angle. For instance, the departmental managers may plan for 2 years from now.
The lower level executives may plan for daily production or for a week or for a month. In other words they plan on short term basis.
4. Time allotted to managerial functions:
Managers at all levels carry on the functions of planning, organizing, directing, and controlling. However, the time allotted to each of these functions varies at different levels. The top level managers spend more time in planning and organizing, whereas, the lower level managers spend much of their time in directing and controlling.
5. Organizational responsibility:
The levels of management also vary in terms of organizational respon­ sibilities. The top level managers are responsible to the shareholders, to the government and to the general public, whereas, the lower level managers are more responsible for getting the work done from a section of employees, perhaps from just one department.
6. Managerial skills required:
The levels also differ in terms of the requirement of managerial skills. The top level management requires more of conceptual skills, whereas, the lower level management requires more of technical skills.