MGT-10 Chapter I - Introduction to Management PDF

CHAPTER I: INTRODUCTION TO MANAGEMENT Lesson 1: Definition of Management Lesson 2: Branches of Management Lesson 3: Management Theories and Approaches Lesson 4: Nature of Management Lesson 5: Types of Management Lesson 6: Levels of Management...

CHAPTER I: INTRODUCTION TO MANAGEMENT Lesson 1: Definition of Management Lesson 2: Branches of Management Lesson 3: Management Theories and Approaches Lesson 4: Nature of Management Lesson 5: Types of Management Lesson 6: Levels of Management Learning Objectives: 1. Defined Management. 2. Identified and understood different Branches of Management. 3. Grasped key Management Theories and Approaches 4. Recognized the dynamic Nature of Management 5. Classified and appreciated various Types of Management. 6. Understood and differentiated hierarchical Levels of Management within organizations. 1 Lesson 1: Definition and functions of Management Learning Objectives: 1. Provided definitions of management from various authors. 2. Illustrated the different functions of Management. Management Management is a technique of enabling a workflow in an integrated and coordinated manner for realizing the precise objectives through the productive use of fabric resources. According to Peter F. Drucker, the father of modern management, management is a multi-purpose organ that manages business and manages managers and manages workers and work. Drucker also stated that "management is doing things right; leadership is doing the right things. There are also several definitions of management according to some authors. Henri Fayol, a pioneer in management theory, described management as "to forecast and plan, to organize, to command, to coordinate, and to control." Mary Parker Follett emphasized the human aspect of management and defined it as "the art of getting things done through people." Dr. F. W. Taylor, the father of scientific management, defined management as an art of “knowing what you want to do” and then seeing that it is done “in the best and cheapest way” James Landy defined management as principally a task of planning, coordinating, motivating and controlling the efforts of others towards specific objectives” George R. Terry defines management as a distinct process consisting of planning, organizing, actuating and controlling performance to determine and accomplish the objectives by the use of people and resources. The Functions of Management 2 1. Planning: Planning is the initial and fundamental function of management. It requires administration to assess where the company presently is and where it would be in the coming years. It involves setting organizational goals, determining the most effective course of action to achieve those goals, and developing a comprehensive strategy to guide the organization toward success. Planning encompasses both short-term and long-term objectives, and it involves forecasting, analyzing, and making decisions about resource allocation. Three different types of planning in management include: Strategic Planning: A long-term, high-level type of foundational planning that emphasizes the mission, values, and vision of the organization. Upper management drafts its strategic plans, and all managers should refer back to the strategic plans to guide their decisions. It is the process of deciding on the objectives of the organization, and on policies that are to govern the acquisition, use, and disposition of these resources. Strategic planning, management analyzes internal and external factors that may affect the company, its objectives and goals. One of the primary tools of strategic planning is the use of SWOT Analysis, a technique that helps organizations find their strengths and weaknesses, identify areas of opportunity and take preventive measures against threats arising from both internal and external environmental factors Tactical Planning: A short-term (one year or less), objective-focused type of planning, often carried out by middle management. Tactical planning is more targeted than strategic planning and is informed by the strategic plan, setting a general course of action that will be fleshed out further in operational planning. Tactical planning is focused on implementing the strategies outlined in the strategic plan. It involves determining how to execute the strategic goals through specific actions and initiatives. Operational Planning: A plan that describes the daily roadmap of the activities within the company. Low-level managers and supervisors devise operational strategies in most cases. It is the process of assuring that specific projects or activities are carried out effectively and efficiently. Operational planning is concerned with the day-to-day operations and activities required to achieve the tactical and strategic objectives. 3 2. Organizing: Once the plans are in place, the next function is organizing. Organizing involves structuring the organization's resources, both human and material, in a way that optimally supports the planned activities. It also refers to the way managers distribute resources, delegate tasks, structure departments, set staffing levels, etc. The structure of the organization is the framework within which effort is coordinated. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization. Decisions made about the structure of an organization are generally referred to as organizational design decisions. Organizing also involves the design of individual jobs within the organization. Decisions must be made about the duties and responsibilities of individual jobs, as well as the manner in which the duties should be carried out. Decisions made about the nature of jobs within the organization are generally called “job design” decisions. Job design is the process of establishing employees’ roles and responsibilities. Its main purpose is to optimize work processes to create value and maximize performance. But, it’s also a key element in creating good quality jobs which benefit both workers and employers. Organizing at the level of a particular job involves how best to design individual jobs to most effectively use human resources. Traditionally, job design was based on principles of division of labor and specialization, which assumed that the narrower the job content, the more proficient the individual performing the job could become. 3. Staffing. Staffing refers to the process of hiring and developing the required personnel to fill in various positions in the organization. It is that part of the management process, which is concerned with recruitment, selection, placement, allocation, conservation, and development of human resources. It is a very important aspect of management as it ensures that the organization has the right number and right kind of people, with the right qualification at the right places, at the right times and that they are performing the right thing. It is also known as the human resource function. 4. Leading (or Directing): Leadership, often referred to as directing, is the function of management that involves guiding and motivating employees to accomplish the organization's goals. It includes communication, delegation, supervision, and motivation. Effective leadership is crucial for maintaining a productive and motivated workforce. Leaders must inspire and guide their teams, provide feedback, resolve conflicts, and make decisions. Managers and business leaders provide both direction and inspiration to those who follow them. This can take all sorts of forms: Rallying Motivating Inspiring Instructing 4  Encouraging or praising Redirecting Pushing Demanding or commanding 5. Controlling: The final function of management is controlling, which involves monitoring and evaluating the organization's performance to ensure that it aligns with the established plans and goals. Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or profits but may also be stated in other terms, such as units produced, number of defective products, or levels of quality or customer service. The measurement of performance can be done in several ways, depending on the performance standards, including financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals. Managers at all levels engage in the managerial function of controlling to some degree. 5 Lesson 2: Branches of Management Learning Objective: Identified and understood different branches of management. Management is a multifaceted field that encompasses various branches, each addressing specific aspects of organizational functions and operations. These branches provide a framework for understanding and effectively handling different dimensions of managerial responsibilities. Here is an introduction to some key branches of management: 1. Financial management Financial management deals with finding a healthy balance between profit and risk so that even with a setback, the business is profitable in the long term. This type of business management involves budgeting, financial planning, risk management, and investment decisions to ensure financial stability and growth. The three key elements of financial management are financial planning, financial control and financial decision making. Short-term financial management is often referred to as “working capital management” and relates to cash management, inventory management and debtor management. Both the assessment and technique of financial decisions fall under this type of business management. 2. Marketing management Marketing management is the art and science of understanding customer needs and wants and creating, pricing, promoting, and distributing products or services that satisfy those needs. Marketing management focuses on the practical application of marketing techniques and the management of a company’s marketing resources and activities. The scope of a business’s marketing management depends on a business’s size and industry. Effective marketing management uses a company’s resources to increase its customer base, improve customer outlook and feedback, and increase the company’s perceived value. 3. Sales management Sales Management is the management of activities and processes relating to the effective planning, coordination, implementation, control, and evaluation of an organization's sales performance. Sales management is a core business process in most organizations. A role in sales management is typically a sales manager whose job plays a vital role in a company’s revenue generation and profits. Types of sales management 1. B2C sales management: Business-to-consumer (B2C) sales involve selling goods and services directly to consumers. B2C sales often drive leads from aggressive marketing strategies. 2. B2B sales management: Business-to-business (B2B) sales involve selling goods and services directly to other businesses. B2B sales tend to involve higher value products with longer sales cycles. 6  3. Enterprise sales management: Enterprise sales involve selling complex goods or services directly to large companies. Companies that sell enterprise solutions may have multiple teams for different aspects of the sale, such as sales engineers and inside and outside sales teams. 4. SaaS sales management: Software as a service (SaaS) companies sell software or applications over the web, usually by subscription. SaaS products are often sold by an inside team who contacts potential customers by phone or email and close the deal remotely. 4. Human resource management Human resource management (HRM) is concerned with the management of an organization's human capital. It focuses on the recruitment and management of an organization’s employees. This includes compensation, hiring, safety and wellness, benefits and other aspects of employee administration. 5. Strategic Management Strategic management involves defining an organization's purpose, setting long-term goals and, creating plans and policies to achieve those goals. Strategic management is a comprehensive and ongoing process that involves the formulation, implementation, and continuous adaptation of an organization's strategies to achieve its objectives and gain a competitive advantage. It is a top-level managerial activity that requires a forward-thinking approach and involves making decisions that shape the overall direction of the organization. 6. Production management Production management, also known as operations management, is a branch of management that focuses on the planning, coordination, and control of manufacturing or service delivery processes within an organization. Its primary goal is to ensure the efficient conversion of inputs (such as raw materials, labor, and capital) into outputs (goods or services) while meeting quality standards and fulfilling customer requirements. 7 Lesson 3: Management Theories and Approaches Learning Objective: Grasped key Management Theories and Approaches Management Approach A management approach refers to the way in which an organization or manager addresses and handles various aspects of management, including planning, organizing, leading, and controlling resources to achieve organizational goals. Management approaches are frameworks or perspectives that guide decision-making, actions, and strategies within an organization. Different management approaches have evolved over time, each offering a unique perspective on how to effectively manage people, processes, and resources. The three major approaches to management are often categorized as classical, behavioral, and quantitative management. These approaches represent different perspectives on how organizations can be effectively managed, and they have evolved over time as management theories and practices have developed. Here's a brief overview of each approach: 1. Classical Management Approach: The classical management approach is a style of management that emphasizes hierarchy, specialized roles and single leadership for optimized efficiency in the workplace. It was distinguished by its emphasis on finding way to get the work of each employee done faster. It is primarily based upon the economic rationality of all employees. This evolved that people are motivated by economic incentives and that they will rationally consider opportunities that provide for them the greatest economic gain. The classical school can be broken down into three historical philosophies of management. There are three main branches within the classical management approach: a) Scientific Management: Developed by Frederick Taylor, scientific management focuses on the efficient organization of work and the optimization of individual tasks. It involves the systematic analysis of work processes to identify the most efficient ways of performing tasks and emphasizes the importance of time and motion studies. Principles of Scientific Management a.1 Replace the “rule of thumb” with science and standardization There should only be one method of working. It must be defined scientifically. According to Taylor, the best way to do a job must be determined beforehand in a scientific fashion. If workers have devised their own ways of working, it will not lead to productivity. The ‘ways of working’ here refer to the tools used. These tools must be standardized and that will remove the factor of bad working conditions. a.2 The Right Person for the Job For any job, the management should hire the right person for the right job. That worker should have the necessary skills to perform the tasks to fruition. 8  a.3 Proper Division of Work Between Workers and Managers By assigning the worker with the correct workload, there can be a better mutual understanding between two parties, and will further eliminate uncertainties in the future. a.4 Collaboration Between Workers and Managers Workers and managers should work in harmony, according to this principle. It is the responsibility of the management to create a healthy environment for the workers by eliminating distrust. b) Administrative Management: This theory of classical management is propounded by Henri Fayol, a French Industrialist. This theory focuses on improving organizational performance by synchronizing all the internal elements of organizations. This theory believes that improving managerial performance i.e. top-level managers is essential to drive efficiency in the whole organization which ultimately increases lower- level employees too. This classical theory has given universally accepted 14 management principles to manage and run organizations most effectively and efficiently. Henri Fayol has stated that understanding the depth of these principles and the appropriate implementation of these principles is the key to achieving all organizational goals. They are: 1. Division of Work Henri believed that segregating work in the workforce amongst the workers will enhance the quality of the product. Similarly, he also concluded that the division of work improves the productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a technical work level. 2. Authority and Responsibility These are the two key aspects of management. Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership. 3. Discipline Without discipline, nothing can be accomplished. It is the core value for any project or any management. Good performance and sensible interrelation make the management job easy and comprehensive. Employees’ good behavior also helps them smoothly build and progress in their professional careers. 4. Unity of Command This means an employee should have only one boss and follow his command. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion. 5. Unity of Direction Whoever is engaged in the same activity should have a unified goal. This means all the people working in a company should have one 9  goal and motive which will make the work easier and achieve the set goal easily. 6. Subordination of Individual Interest This indicates a company should work unitedly towards the interest of a company rather than personal interest. Be subordinate to the purposes of an organization. This refers to the whole chain of command in a company. 7. Remuneration This plays an important role in motivating the workers of a company. Remuneration can be monetary or non-monetary. Ideally, it should be according to an individual’s efforts they have put forth. 8. Centralization In any company, the management or any authority responsible for the decision-making process should be neutral. However, this depends on the size of an organization. Henri Fayol stressed on the point that there should be a balance between the hierarchy and division of power. 9. Scalar Chain Fayol, on this principle, highlights that the hierarchy steps should be from the top to the lowest. This is necessary so that every employee knows their immediate senior also they should be able to contact any, if needed. 10. Order Company should maintain a well-defined work order to have a favorable work culture. The positive atmosphere in the workplace will boost more positive productivity. 11. Equity All employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination. 12. Stability An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job security to their employees. 13. Initiative The management should support and encourage the employees to take initiatives in an organization. It will help them to increase their motivation and morale. 14. Esprit de Corps It is the responsibility of the management to motivate their employees and be supportive of each other regularly. Developing trust and mutual understanding will lead to a positive outcome and work environment. c) Bureaucratic Management. Bureaucratic management focuses on the ideal form of organization. Max Weber was the major contributor to bureaucratic management. This management theory is based on the idea of creating a formalized structure that emphasizes clear roles, hierarchies, and established rules and procedures to achieve efficiency and effectiveness in organizations. 10 2. Behavioral Management Approach: Behavioral management is an approach to organizational management that focuses on understanding and influencing the behavior of individuals within an organization. This approach emerged as a reaction to the more mechanistic and prescriptive principles of classical management theories. Behavioral management focuses on the human side of organizations, recognizing that employees are not merely economic entities but are influenced by social, psychological, and emotional factors. 1. Human Relations Approach: Arising from the Hawthorne studies conducted by Elton Mayo and his colleagues, this approach emphasizes the social and psychological aspects of work. It suggests that employee satisfaction and productivity are influenced by factors such as social relationships, group dynamics, and workplace conditions. 2. Behavioral Science Approach: This approach integrates insights from psychology, sociology, and other behavioral sciences into management practices. It recognizes the impact of individual and group behavior on organizational performance and emphasizes the importance of understanding and addressing human needs and motivations. 3. Quantitative Management Approach: The quantitative management approach, also known as management science or operations research, involves the use of mathematical and statistical methods to solve complex managerial problems and aid in decision-making. This approach emerged during World War II when mathematicians and scientists were tasked with solving military logistics and strategic planning problems. It has since evolved into a field that applies quantitative techniques to various aspects of business and management. 11 Lesson 4: Nature of Management Learning Objectives: 1. Recognized the dynamic Nature of Management 2. Understood the objectives of management According to F.W. Taylor, ‘Management is an art of knowing what to do when to do and see that it is done in the best and cheapest way ‘. Management is the art of getting things done by others. At every level in the organization a manager has to get things done through its subordinates. At the top level, the subordinates themselves are managers I.e., a top executive manager manages other managers. At the middle level, managers get things done through supervisors. At the supervisory level, supervisors get things done through clerks and workers. The nature of management is briefly discussed through the following points: 1. Management is a Universal Process The 14 basic principles of management given by henry Fayol are universal in nature. Most of the principles and techniques of management are universal in nature. They can be applied to government organization, military, educational institutes, religious institutes etc. They provide working guidelines which can be adopted according to situations. 2. Management is a Continuous Process Management is an on-going process. The cycle of management continues to operate as long as the organization exists. The main objective of this continuous process is to make small, progressive changes that will provide greater value in the long run. Continuous management is done for the effective and efficient achievement of goals. 3. Management is Intangible Intangible means anything which cannot be seen and touched, it can be felt only. Management is an unseen and invisible force. It cannot be seen but its presence can be felt everywhere in the form of results. The effect of management can be noticed in an organization when targets are met according to plans, employees are happy and satisfied. 4. Management is a Social Process Management is done by people, through people and for the people. Management is a social process because it deals with people. It is concerned with making the best use of human efforts. managers have to create co-operation among employees in an organization. they have to look after the interests of employees, customers, investors, shareholders, community and stakeholders. 5. Management is an art as well as a Science Management involves a systematic body of theoretical knowledge as well as the practical experience of such knowledge. Management is the “art of arts” 12  because it organizes and uses human talent. It is science also because Management follows a systematic method to find a possible solution for a problem. 6. Management is Goal-Oriented Management is concern with achievement of specific goals. It is always directed towards achievement of objectives. The success of management is measured by the extent to which objectives are achieved. 7. Management is a Group Activity Management requires group efforts in order to achieve the common objectives of the organization. It is an activity which is concerned with getting the things done rather than doing itself. People generally join groups to achieve what they cannot achieve individually. Group activity is required in all areas of human activity. 8. Management is Being Creative The proper management means attaining the organizational objectives with the highest efficiency at the minimum possible cost. The job of managers is to make a productive enterprise out of available human and material resources. The basic aim of management is the optimum utilization of the available resources. Effectiveness and efficiency are the two pillars on which the managerial performance is based. Objectives of Management 1. Optimize resources Management teams work to use resources effectively to provide the most output possible. This objective creates the ability to increase profits by reducing the ratio of resource costs to profits. Management teams implement logistic strategies and procedures to identify and reduce processes that create waste and require extra resources. 2. Increase efficiency Increasing the efficiency of operations, production and services allows for greater production, sales and profits. Management systems track the processes, duration and flow of the workplace to determine methods that provide more efficient outcomes. Managers may work with other employees and department leaders to create and implement new processes and requirements. 3. Maximize profits Management teams aim to find the balance between maximizing profits and promoting a beneficial workplace for employees. Maximizing profits includes working with various departments and leaders such as accountants, supervisors and executives to determine areas that require improvements and changes. Managers can achieve maximum profit objectives by identifying unnecessary expenses and waste and creating new procedures for more efficient operations. 13 4. Promote personal development An effective management team prioritizes the growth and development of its employees. Providing opportunities such as seminars, mentorship programs, training resources and internal promotions allows employees to develop new skills and advance their careers. The personal development and growth of employees can also contribute to the growth, quality and efficiency of work produced and can help management achieve multiple objectives simultaneously. 5. Maintain quality Management teams handle the regulations, procedures and parameters for the production and distribution of products and services. A primary objective of management includes maintaining the quality standards necessary for the organization. The team collaborates with other departments, supervisors and employees to create, implement and maintain quality. 6. Uphold workplace morale The environment, attitudes and morale of an organization can affect the overall production and profits. Positive morale among employees creates intrinsic motivation for employees to complete tasks and contribute greater effort. Management teams work to uphold morale by implementing effective authority structures, creating incentive programs and responding to employee feedback. Valuing employees and ensuring positive relations increases morale and motivates individuals to continue to grow. 7. Reduce risk Many management positions focus on forecasting and projecting results and changes. One main objective for managers includes using planning and predictions to reduce opportunities for risks and losses. Reducing risk factors such as safety issues, wasted resources and extra expenses can help increase profits and eliminate loss. 8. Generate business strategies Management teams often use higher-level critical thinking and abstract strategy to improve operations and profits. The team collaborates with executives, leaders and stakeholders to generate, pitch and implement overall business strategies or frameworks. Creating an effective and consistent business strategy can help identify and narrow objectives for all employees to reach a common goal. 14 Lesson 5: Types of Management Learning Objective: Enumerated and differentiated the types of management. Types of Management Management styles describe the distinct approaches that different managers take to support and guide a team at work. All managers have the same responsibilities, but management styles describe how different types of managers specifically use their managerial toolkit to motivate team members. There are a wide variety of management styles, with more being defined every day. Anything that defines how you can guide your team, plan work, and connect the dots can be considered a management style. Some of these styles are top-down, while others are more hands- off. Here are the types of management: 1. Autocratic management This type of management follows a top-down approach, with one-way communication from bosses to employees. This is the most controlling of the different management styles, with the management making all workplace decisions and holding all of the power. With this management type, employees are treated as drones, to be monitored closely as they perform within clearly defined perimeters. Employees are not encouraged to ask questions, submit ideas, or share their thoughts on improving processes, and are in some cases actively discouraged from doing so. The subtypes of autocratic management style are authoritative, persuasive, and paternalistic. a) Authoritative management In this style, managers dictate exactly what they require their subordinates to do and punish those who do not comply. Employees are expected to follow orders, not question the authority of management, and perform their tasks the same way each time. b) Persuasive management style In this style, managers use their persuasive skills to convince employees that the unilateral decisions that the manager implements are for the good of the team, department, or organization. c) Paternalistic management style In this style, the manager acts with the best interests of their subordinates at heart. Usually, the organization will refer to staff as ‘family’ and ask for loyalty and trust from employees. 2. Democratic management In this style, managers encourage employees to give input during the decision-making process, but are ultimately responsible for the final decision. Communication goes both ways, top-down and bottom-up, and team cohesiveness is increased. 15  a. Consultative management In this style, managers ask for the opinions and thoughts of their team, consulting the viewpoints of every member of their team. The manager will make the final decision, but they will consider all of the information given by team members before they do so. This style is often used in specialized fields, where staff are experts and their input is needed for the management to make informed decisions. b. Participative management In this style, managers and staff are all active members of the decision process. Staff are given access to more information about the company and its goals, and are encouraged to innovate solutions. Management seeks the thoughts, ideas and opinions of staff, works together with staff to make decisions and then the company acts on them. c. Collaborative management In this style, management creates an open forum for ideas to be discussed extensively before making decisions based on majority rule. Staff is empowered to take ownership of outcomes, which can lead to increased engagement, innovation and creativity. d. Transformational management This style of management is agile and growth-focused. Managers focus their efforts on pushing their staff to ever greater accomplishments through encouragement, pushing them past their comfort zones regularly, and consistently motivating their teams to raise their bar for achievements. Managers work alongside with their employees, inspiring their team to ever greater efforts by demonstrating their own work ethic. e. Coaching management In this style, managers see themselves as the coach and their employees as the valued members of their team. The manager’s job is to develop and guide their team, putting their team’s professional development at the forefront of their priorities. Long-term development is valued above short-term failures in this style, and the manager wants to promote learning, upskilling and growing in the workplace. 3. Laissez-faire management In this style, management takes a hands-off approach to leadership. Staff is trusted to do their work without supervision, and they are left to control their decision making and problem-solving. Management is present at the delegation and delivery stages of work, but otherwise steps back and gives staff the freedom to control their workflow and outcomes. a) Delegative management In this style, the manager is only present to assign tasks, although they still are responsible for tasks being completed successfully. Once 16  the task is assigned, then the employees are empowered to do their work as they see fit. After the task is complete, the manager steps back in to review the work and give advice about how to improve future projects. b) Visionary management style In this style, managers lead through inspiring their staff. Leaders explain their goals and the reasons behind them, convincing their team to work towards executing their vision. Team members are motivated by their manager, then allowed the freedom to achieve their tasks with minimal interference. Managers will check in from time to time, but they trust that their shared vision will keep employees on track and produce good results. Managers offer a lot of constructive feedback during and after the process to assist their employees, and make sure to give praise liberally. Types of Filipino Management 1. Pakiramdam focuses on a passive style of leadership, with subordinates doing work that is not too little or too much to play safe. This is because this style does not provide workers with guidance required to give them sense of initiative. Instead the leader motivates through being friendly or “Feeling the other” with the staff. This is done by inferring the manager’s absolute expectations, regardless of the relevance to organizational objectives. 2. Takutan is a style of leadership that puts the responsibility on the manager who relies on oppression, conceit, and hostility. This leadership is easily explained as a matter of professionalism. This requires social distance between leaders and subordinates. In other words workers and individuals with the “ranks” such as supervisors. The manager persuades subordinates to obey without complaints to steer clear from threats and punishments. As to secure one’s acceptance within the work group, it was preferred to avoid dispute with higher-ranks. 3. Kulit which refers to a superior closely observes and controls the work of their subordinates by checking every detail of the assignment. This results in a lack of freedom within the workplace. 4. Patsamba-tsamba is a style of management that has no goals, objectives, and direct instructions. It relies on trial and error leaving success or failure to fate. Rather than making rational decisions, the manager often prefers buoyant actions that creates disaster and disorder. This leads to confusion among subordinates resulting to inefficient organization on its operation 17 Lesson 6: Levels of management Learning Objective: Understood and differentiated hierarchical Levels of Management within organizations. The term Levels of Management refers to the line of division that exists between various managerial positions in an organization. As the size of the company and workforce increases, the number of levels in management increases along with it, and vice versa. The different Levels of Management can determine the chain of command within an organization, as well as the amount of authority and typically decision-making influence accrued by all managerial positions. 1. Top-level Management Top-level Management consists of the senior-most executives and decision- makers in an organization. Every member of the top Management is responsible for the direction and growth of the company. Sound top-level management in a company basically defines the success and future of a company. All the C-level executives and some other designations fall under this category. To name a few, some of the top-level designations are: Chief Executive Officer Chief Marketing Officer Chief Sales Officer Chief Technology Officer President Managing Director Vice-president Chief Operating Officer And a few other designations The right set of people in the top-management can make or break an organization. We would also like to enlighten you about the functions that these executives perform within an organization. Top-level Management is responsible for strategizing and making plans for the business. They form the company’s vision and mission, which helps every employee and the customers understand the fundamentals of every business. They design the functions and responsibilities of middle-level Management. They will assign tasks and goals for the employees to follow. 18  Top-level Management drafts the policy of the company They manage the finance and all obligations of the company. In total, they are solely responsible for the survival and growth of the Organization as a whole. 2. Middle-level Management Middle-level Management consists of the heads of various departments in an organization. These executives are responsible for communication between top-level Management and the lower level of Management. They handle most of the executions and micro-management within an organization. Some of the standard designation titles of mid-level management executives are – Marketing Manager Purchase Head Sales Manager Operations Manager Branch Manager Finance Manager And similar other designations There is a basic set of functions and responsibilities which are handled by middle-level executives. Primary of these are – Communicate the policies and the mission set by top-level Management. They are responsible for handling all the communications and maintaining a healthy business environment in the office. Micro-manage the tasks performed by every member of the lower-level Management. They are responsible for all the coordination between teams. They are responsible for the performance of lower-level executives. Motivating and encouraging employees to work efficiently is a crucial responsibility. Middle-level Management handles all the recruitments and allocations within a team. They hire the employees and manage company resources for optimum use. 3. Operational/Lower-level Management Operational level management is responsible for managing the coordination between the operative workforce and middle-level Management. They micromanage specific tasks to operative workers and manage teams. Operational level management has very few decision-making powers and generally execute orders of the middle-level management. Some of the standard designations of operational level management executives are: Supervisor Foreman Clerk Junior Managers Inspectors 19  Sub-department executives Just like all other levels of Management, their role is critical in the success of an organization. The difference lies in the fact that they do not make critical decisions, and their efficiency and performance depend on middle-level Management. Some of the essential roles played by operational level management are – The most critical responsibility of operational level management is to communicate the challenges and grievances of operative workers. They are responsible for training the workers and micro-managing their progress. They are responsible for maintaining healthy working conditions for workers and improving the efficiency of tasks. Operational level workers make sure that all guidelines of operations are followed in the company. These executives manage company resources and also work towards the optimum utilization of these resources. They help the middle-level Management in assessing employee performance and all other roles of the human resources department in the company. 20  References Admin. (2023, May 10). Henri Fayol’s 14 Principles of Management: Meaning, Definition and more. BYJUS. https://byjus.com/commerce/henri-fayol-14- principles-of-management/ Branches of Business Management | Open Road review. (n.d.). https://openroadreview.in/branches-of-business-management/ CIPD | Job Design | Factsheets. (n.d.). CIPD. https://www.cipd.org/en/knowledge/factsheets/job-design- factsheet/#:~:text=Job%20design%20is%20the%20process,benefit%20both%20 workers%20and%20employers. Fredrick, E. K. (n.d.). Approaches to management. Scribd. https://www.scribd.com/document/58613802/Approaches-to-Management Great Learning Team. (2022, December 20). What is management - definition, principles, levels | Great learning. Great Learning Blog: Free Resources What Matters to Shape Your Career! https://www.mygreatlearning.com/blog/what-is- management-definitions-and-functions/ K, S. (2019, September 23). Definition of Management: As Propounded by Authors, Scholars, Thinkers. Economics Discussion. https://www.economicsdiscussion.net/management/definition-of- management/31854 Ki. (2019, September 18). Filipino Leadership - What Are The Distinct Filipino Leadership Styles? PhilNews. https://philnews.ph/2019/09/18/filipino- leadership-styles-what-are-the-four-distinctive-filipino-leadership-styles Martins, J. (2023, January 30). 9 Different management styles and when to use them Asana. Asana. https://asana.com/resources/management-styles Prep, B. E. (2023, November 14). Explain any Five Points of Importance of Management. BYJU’S Exam Prep. https://byjusexamprep.com/upsc- exam/explain-any-five-points-of-importance-of- management#:~:text=The%20five%20points%20of%20importance,achieving% 20personal%20and%20organizational%20goals. Publisher, A. R. a. R. O. O. (2015, October 27). Publisher information. Pressbooks. https://open.lib.umn.edu/principlesmanagement/front- matter/publisher-information/ Rahman, S. a. U. (2023, December 14). Scientific Management Theory – Principles and Limitations - Shiksha Online. Shiksha.com. https://www.shiksha.com/online-courses/articles/scientific-management-theory/ Roulette S. Reyes. Workbook in MGT 10: Philippine Industries and Management 21 Staff, C. (2023, November 29). What is sales Management: definition, scope, objectives, careers. Coursera. https://www.coursera.org/articles/sales- management The four functions of management: Overview + examples. (n.d.). https://www.teamwork.com/blog/the-four-functions-of-management- overview-examples/ Valamis. (2023, November 1). Management styles. https://www.valamis.com/hub/management-styles#autocratic 22