• Management is a universal concept .It is needed in every organisation
,whether it is a business organisation or non-business organisation
(like school, hospital ,bank and etc.).The success of an organisation
depends on the successful functioning 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.
MODERN DEFINITIONS OF
Management is the creation of an interval environment where individuals
working in a group can perform effectively and efficiently for the
achievement of organisational goal.
- Koontz and Donnell.
MODERN CONCEPT OF MANAGEMENT
Management is the process of designing and maintaining an environment in
which individuals work together with the aim of achieving goals effectively
The modern concept of management insists on three essential elements:
1.Management is a ‘Process’: Management is a process as it involves a
series of inter-related functions, such as planning, organising, staffing,
directing and controlling.
2.Management requires ‘Effective’ performance: Effectiveness in
management is concerned with achieving the goals on time. It aims at end
result. For example, if a firm achieves its target production within time, then
the firm is said to be effective.
3.Management needs ‘Efficiency’: Efficiency means doing the task correctly and
with minimum cost. It is not enough to just complete the tasks. Management aims
at efficient use of resources as it reduces cost and ultimately leads to higher
EFFECTIVENESS VS EFFICIENCY
The two terms ‘Effectiveness’ and ‘Efficiency’ mean different but they are related
to each other.
‘Effectiveness’ aims to achieve the goals within time.
‘Efficiency’ focuses on optimum use of resources to achieve the
Management is concerned not only with achieving goals effectively but
also attaining them as efficiently as possible.
OBJECTIVES OF MANAGEMENT
Objectives are the ends towards which all activities of an organisation are directed. The
objectives of an organisation can be classified into three categories:
3.Personal or Individual Objectives.
Organisational objectives are the main objectives, which are needed to achieve the
economic goals of the organisation. The main objective of any organisation is to utilise human
and non-human resources in the most efficient and effective manner. Every organisation aims
to achieve following three organisational objectives:
1.Survival: The basic objective of any organisation is to ensure that it continues to survive
and exist in the future. Survival is possible only when organisation is able to earn enough
revenue to cover its costs.
2.Profit:Profit is the lifeblood of business, without which no business can survive. So, an
organisation aims to earn adequate profits in order to survive and grow.
3.Growth:A Business needs to add to its prospects in the long run. For this, the organisation
must grow and expand to survive in the long run. Growth of an organisation indicates how well it
is able to exploit its potential opportunities. Growth is measured in terms of sales volume,
increase in number of employees, markets share, numbers of products & etc.
Social Objectives :
Social objectives refers to the objectives, which are desired to be achieved for the benefit of
the society. Business makes use of scare resources of the society. So, society expects something
in return for its welfare. Social objectives deals with fulfilling obligations towards the society.
Some of the major social objectives include:
1.Supply of quality products at fair prices.
2.Generation of employment opportunities for weaker sections of society.
3.Conducting business in lawful manner.
4.Avoidance of anti-social and unfair trade practices.
5.Protection of environment by using environmental friendly methods of production
6.Providing basic amenities like crèche's to employees & etc.
Personal Or Individual Objectives:
Personal objectives refer to the objectives related to the individual needs of the employees of
an organisation. In organisation , needs of the individuals differ due to their different family
background, education, experiences, habits, preferences, attitude and aptitude. As employees are
one of the most valuable resources for an organisation, satisfaction of their objectives is very
Individual objectives include satisfying the following needs:
1.Financial needs like competitive salaries and perks.
2.Social needs like peer recognition (self respect and respect for colleague).
3.Higher level needs such as policies for personal growth and development.
4.Good and Healthy working conditions.
CHARACTERISTICS OF MANAGEMENT
• Management is a goal oriented process: Management always aims to
achieve certain organisational goals. These should be simple and clearly
stated. Management integrates the efforts of all members towards achieving
• Management is all pervasive: Management is a universal concept. It is
essential to all organisations, whether big or small, business or non-business.
Moreover, activities involved in managing an enterprise are common to all
organisations whether economic, social or political. So, management is an
essential element of every organisation in the whole world.
• Management is an intangible force: Management is an invisible force that
cannot be seen. However, its presence can be felt when targets are met,
employees are happy and there is orderliness and coordination in the work
• Management is a dynamic Function: An organisation interacts with its
external environment, which consists of various social, economic and political
factors. In order to survive and grow ,an organisation must change itself and its
goal as per the environment. So, management is a dynamic function, which has
to adopt itself to the changing environment.
• Management is a Continuous Process: Management is an ongoing
process. It is concerned with constantly identifying the problems and solving
them by taking appropriate action. All the functions of management (Planning,
Staffing, Directing and Controlling) are performed by the managers on
• Management is a Group Activity: An organisation consists of diverse
individuals with different needs. Each member joins the organisation for different
purpose. But, as members of the organisation, they work together to achieve
organisational goal. It requires team work and coordination. Management helps
people to realise their individual as well as organisational goals through group
LEVELS OF MANAGEMENT
Management is a group activity. So, every organisation consists of
number of persons, who are placed at different positions to perform
different responsibilities. In order to discharge this responsibility, they
are also given necessary authority. On the basis of extent and amount
of authority and responsibility, a chain of superior-subordinate
relationship is created. This chain is known as Hierarchy or levels of
management. The hierarchy of management positions from top to
bottom is called Levels of Management.
In an organisation, three levels of management are usually identified:
1.Top Level Management.
2.Middle Level Management.
3.Operational or Supervisory or Lower level Management.
Levels of management determines the amount of authority and status
enjoyed by him. The various positions included in each level are shown
TOP LEVEL MANAGEMENT
Top level consists of the senior most executive of the organisation. Top level includes Board of
Directors, Chairman, Managing Director, Chief Executive Officer, Chief Operating Officer,
President, Vice-President, General Manager and other senior executives. These top levels
managers are responsible for the welfare and survival of the organisation.
Main Features of Top level Management
1.Determine the objectives for the organisation: They formulate overall organisational
goals and strategies for their achievement.
2.Framing of Plans and Policies: The objectives are realised through plans and policies.
Top management lays down plans and policies to achieve the objectives.
3.Coordinate and Control the Performance: Top management integrates diverse
elements and coordinate the activities of different departments according to the overall
objectives of the organisation.
4.Analyse the Business Environment: They analyse the business environment and its
implications for the survival of the firm.
5.Setting up an organisational framework: Top level determines the organisational
structure to execute plans & policies.
6.Assemble the Resources: Top management also arranges resources of men, machines,
materials and money to achieve the desired goals.
MIDDLE LEVEL MANAGEMENT
Middle level management acts as a link between top and lower level management. This level is
subordinate to top management and superior to operational management. Middle level consists
of heads of different functional departments, like Departmental Managers (Purchase, Production,
Finance, Marketing and Personnel Managers) and other executive officers attached to different
departments (like operations manager, plant superintendent & etc.).
Main Functions of Middle Level Management
1.Interpret the policies framed by top management: Middle level managers
explain and interpret policy decisions of the top level to lower level managers.
2.Selecting suitable operative & supervisory personnel: Middle level needs to
ensure that their department has the necessary personnel. For this, they recruit and select
suitable employees for their departments.
3.Assign duties and responsibilities to lower level management: Middle managers
issue detailed orders and instructions to lower level managers and coordinate the activities of
various work units.
4.Motivate personnel to achieve desired objectives: They motivate personnel to improve
their performance in order to achieve desired objectives.
5.Cooperate with entire organisation: Middle level cooperates with other departments,
top level and lower level management, so that organisation functions smoothly.
OPERATIONAL OR SUPERVISORY OR
LOWER LEVEL MANAGEMENT
It is the lowest level in the Hierarchy of management. The authority and responsibility of this
level is limited according to plans drawn by the top management. They play a very important role
as they interact with the actual work force and pass on instructions of the middle management
to the workers. Operational management consists of supervisors, foreman, superintendent,
section officers and other members directly concerned with control of operative employees.
MAIN FUNCTIONS OF OPERATIONAL MANAGEMENT
1.Issue to orders and instructions: Operational managers issue orders and instructions to
workers and supervise and control their functioning.
2.Prepare plan for activities: They plan day-to-day activities and assign tasks to
subordinates, guide them and take corrective steps, whenever necessary.
3.Assign and Assist in works: They assign work to the workers and also assist them by
explaining work procedures and solving their problems.
4.Represent worker’s Grievances: Operational managers report worker’s grievances to
middle level management as they are in direct contact with them.
5.Safe and Proper working environment: They are responsible to provide safe an secure
work environment to workers. They are required to maintain proper discipline and congenial
atmosphere in the factory.
6.Helping Middle level Management: They help middle level management in selection,
training, placement & promotion of workers.
7.Encourage initiative of employees: They encourage workers to take initiative and
welcome their suggestions and reward them for good suggestions.
FUNCTIONS OF MANAGEMENT
Management is a dynamic process, in which every manager has to perform various
functions. These functions may be broadly classified into five categories:
1.Planning: Planning is the first function performed by every manager. It involves setting
goals in advance and developing a way of achieving them efficiently and effectively. Planning
helps to decide in advance what to do, when to do, how to do & who is going to do it. Planning
cannot prevent problems, but it can predict them and prepare contingency plans to deal with
them if & when they occur.
2.Organising: After planning, the next function is to organise different activities in the
organisation and to bring together human and non-human resources for achieving organisational
goals. Organising involves determining the total work to be done, grouping activities into jobs,
assigning activities to individuals and creating a structure of authority and responsibility
relationships. It decides who will do a particular task , where it will be done, and when it will be
3.Staffing: Staffing is a managerial function of hiring & developing the required employees to
fill in various positions created by the organising process. This function is concerned with finding
the right person for the right position at the right time. This is also know as Human Resource
Function & it involves activities such as recruitment, selection, placement and training of
4.Directing: After preparing the plans, designing the structure and arranging necessary
human force, the next function involves giving directions to the efforts of employees. Directing is
the process of supervising, motivating, leading & communicating with the subordinates to achieve
the organisational objectives. This function is basically concerned with influencing the behaviour
of human resources. A good manager directs through praise and criticism in such a way that it
brings out the best in the employees.
5.Controlling: Controlling is the management function of monitoring organisational
performance towards the attainment of organisational goals. It involves comparison of actual
results with the planned targets and taking corrective actions, if there is any significant deviation
between actual and planned performance. It aims to ensure whether everything is done according
to predetermined goals.