Levels of Management Functional Areas of Management and Function of Management

1. Understanding
the Different
Parts of
Management

2. Levels of Management

3. 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

4. Levels of
Management
Managers at all these levels perform
different functions.

5. Roles of the Different Levels of
Management
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 -
a. Top management lays down the objectives and broad policies of the enterprise.
b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the performance of the
enterprise.

6. Roles of the Different Levels of
Management
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 -
a. They execute the plans of the organization in accordance with the policies and directives of the top
management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level management.
d. They interpret and explain policies from top level management to lower level.
e. They are responsible for coordinating the activities within the division or department.
f. It also sends important reports and other important data to top level management.
g. They evaluate performance of junior managers.
They are also responsible for inspiring lower level managers towards better performance

7. Roles of the Different Levels of
Management
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 -
a. Assigning of jobs and tasks to various workers.
b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of production.
d. They are also entrusted with the responsibility of maintaining good relation in the organization.
e. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher
level and higher level goals and objectives to the workers.
f. They help to solve the grievances of the workers.

8. Roles of the Different Levels of
Management
Lower Level of Management activities include -
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things done.
j. They prepare periodical reports about the performance of the workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they are in direct contact with the
workers.

9. Functions of
Management

10. Functions of Managing and
Leading
Effective management and leadership involve creative problem solving,
motivating employees and making sure the organization accomplishes
objectives and goals. There are five functions of management and
leadership: planning, organizing, staffing, coordinating and controlling.
These functions separate the management process from other business
functions such as marketing, accounting and finance.

11. Functions of Management and
Leading
Planning
The planning function of management controls all the planning that allows
the organization to run smoothly.
Planning involves defining a goal and determining the most effective course
of action needed to reach that goal.
Typically, planning involves flexibility, as the planner must coordinate with all
levels of management and leadership in the organization. Planning also
involves knowledge of the company’s resources and the future objectives of
the business.

12. Functions of Management and
Leading
Organizing
The organizing function of leadership controls the overall structure of the
company. The organizational structure is the foundation of a company; without this
structure, the day-to-day operation of the business becomes difficult and
unsuccessful.
Organizing involves designating tasks and responsibilities to employees with the
specific skill sets needed to complete the tasks. Organizing also involves developing
the organizational structure and chain of command within the company.

13. Functions of Management and
Leading
Staffing
The staffing function of management controls all recruitment and personnel needs of
the organization. The main purpose of staffing is to hire the right people for the right
jobs to achieve the objectives of the organization.
Staffing involves more than just recruitment; staffing also encompasses training and
development, performance appraisals, promotions and transfers. Without the staffing
function, the business would fail because the business would not be properly staffed to
meet its goals.

14. Functions of Management and
Leading
Coordinating
The coordinating function of leadership controls all the organizing, planning and
staffing activities of the company and ensures all activities function together for
the good of the organization.
Coordinating typically takes place in meetings and other planning sessions with the
department heads of the company to ensure all departments are on the same
page in terms of objectives and goals. Coordinating involves communication,
supervision and direction by management.

15. Functions of Management and
Leading
Controlling
The controlling function of management is useful for ensuring all other functions of
the organization are in place and are operating successfully. Controlling involves
establishing performance standards and monitoring the output of employees to
ensure each employee’s performance meets those standards.
The controlling process often leads to the identification of situations and problems
that need to be addressed by creating new performance standards. The level of
performance affects the success of all aspects of the organization.

16. 5 Functional Levels of
Management

17. 5 Functional Areas of
Management
Also called Operational Management or Functional Areas
of Management.
As being management, a social and universal process, its
area is very wider. Inter disciplinary approach of
management widens the functional areas.

18. 5 Functional Areas of
Management
Human Resource Management:
Human resource development or personnel management or manpower
management is concerned with obtaining and maintaining of a satisfactory and
satisfied work force i.e., employees. It is a specialized branch of management
concerned with ‘man management’.
The recruitment, placement, induction, orientation, training, promotion,
motivation, performance appraisal, wage and salary, retirement, transfer, merit-
rating, industrial relations, working conditions, trade unions, safety and welfare
schemes of employees are included in personnel management. The object of
personnel management is to create and promote team spirit among workers and
managers.

19. 5 Functional Areas of
Management
Production management:
Production management refers to planning, organization, direction, coordination and
control of the production function in such a way that desired goods and services could
be produced at the right time, in right quantity, and at the right cost. Some authors
treat material, purchase and inventory management as part of production
management. Production management involves the following functions:
(a) Product planning and development,
(b) Plant location, layout and maintenance,
(c) Production systems and machines,
(d) Management of purchase and storage of materials,
(e) Ensuring effective production control.

20. 5 Functional Areas of
Management
Office management:
Office management can be defined as, “the organization of an office in order to
achieve a specified purpose and to make the best use of the personnel by using the
most appropriate machines and equipment, the best possible methods of work
and by providing the most suitable environment.”
The main topics of office management are: office accommodation, layout and
environment, communication, handling correspondence and mail, typing and
duplicating, record management and filing, indexing, forms and stationary,
machines and equipment, Operations & Maintenance, office reporting, work
measurement and office supervision.

21. 5 Functional Areas of
Management
Financial management:
Financial management can be looked upon as the study of
relationship between the raising of funds and the deployment of
funds. The subject matter of financial management is: capital
budgeting cost of capital, portfolio management, dividend policy,
short and long term sources of finance.

22. 5 Functional Areas of
Management
Financial management:
Financial management involves mainly three decisions pertaining to:
1. Investment policies:
It dictates the process associated with capital budgeting and expenditures. All proposals to spend
money are ranked and investment decisions are taken whether to sanction money for these
proposed ventures or not.
2. Methods of financing:
A proper mix of short and long term financing is ensured in order to provide necessary funds for
proposed ventures at a minimum risk to the enterprise.
3. Dividend decisions:
This decision affects the amount paid to shareholders and distribution of additional shares of
stock.

23. 5 Functional Areas of
Management
Marketing Management:
Philip Kotler views marketing as a social and managerial process by which individuals
and group obtain what they need and want through creating and exchanging products
and values with others.
American Marketing Association defines marketing management as the “process of
planning and executing the conception, pricing, promotion and distribution of ideas,
goods and services to create exchange that satisfy individual and organizational
objectives.”
The course content of marketing management generally includes: marketing concept,
consumer behavior, marketing mix, market segmentation, product and price decisions,
promotion and physical distribution, marketing research and information, international
marketing etc.

24. 5 Functional Areas of
Management
Marketing Management
Modern marketing management is bridging the gap of demand and supply through
de-marketing, remarketing, over-marketing and meta- marketing. Modern
marketing, from societal point of view, is the force that harnesses a nation’s
industrial capacity to meet the society needs and wants.
The main function of modern management is to organize human and physical
resources and direct them toward efficient performance and higher productivity at
the minimum costs. The same line of thinking can be applied in various functional
areas viz., personnel, production, office finance and marketing. Modern managers
are the harbinger of cooperation, fellow feeling, mutual understanding and growth.