Levels and Functions of Management

Levels and Functions of Management

• Management is defined as being in charge of a project or people to guide them toward goals.
• There are three levels of management: top, middle, and lower.
• Top management positions are held by fewer people than lower-level positions.

Top Level Managers

• Define the overall vision and long-term objectives of the business.
• Ensure the business achieves its set objectives over the next few years (e.g., opening a new branch).
• Examples include CEOs and Board of Directors.

Middle Level Managers

• Run branches or departments within a business.
• Report to top-level management.
• Make decisions affecting their department's future (e.g., over the next 12 months).

Lower Level Managers

• Work directly with employees.
• Handle administrative tasks (e.g., performance appraisals, disciplinary hearings).
• Make decisions for day-to-day activities (e.g., supervisors ensuring employees perform their duties).
• Examples include supervisors, floor managers, and foremen.

Management Tasks/Functions

• Planning: Deciding what needs to be done and creating a course of action to reach goals.
• Organizing: Putting plans into action to achieve goals on schedule.
• Leading: Guiding, motivating, and influencing workers to achieve goals; delegating tasks; resolving conflicts.
• Controlling: Measuring performance against targets/goals, correcting discrepancies, and preparing for future issues.

Management vs. Leadership

• Leaders inspire and motivate people, have followers who choose to follow their lead.
• Managers tell people what to do, have subordinates who are paid to do tasks set for them.
• Not all leaders are managers, but better managers often have leadership skills.

Management Styles

• Autocratic: Managers dictate tasks without input. Effective in crises.
• Democratic/Participatory: Managers involve employees in decision-making process.
• Laissez-faire/Free Reign: Managers give employees freedom to decide how to complete tasks; minimal interference.