D E F I N I T I On: 1. The Top Management

DEFINITIoN
According to Harold Koontz, Management is an art of getting things done through and with the
people in formally organized groups. It is an art of creating an environment in which people can
perform and individuals and can co-operate towards attainment of group goals.
LEVELS OF MANAGEMENT
The three levels of management are as follows
1. The Top 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.
2. Middle Level 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.

h. They are also responsible for inspiring lower level managers towards better
performance.
3. Lower Level 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.
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.
FUNCTIONS OF MANAGEMENT
Management has been described as a social process involving responsibility for economical
and effective planning & regulation of operation of an enterprise in the fulfillment of given
purposes. It is a dynamic process consisting of various elements and activities. These activities
are different from operative functions like marketing, finance, purchase etc. Rather these
activities are common to each and every manger irrespective of his level or status.
Different experts have classified functions of management. According to George & Jerry, There
are four fundamental functions of management i.e. planning, organizing, actuating and
controlling. According to Henry Fayol, To manage is to forecast and plan, to organize, to
command, & to control. Whereas Luther Gullick has given a keyword POSDCORB where P
stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for
reporting & B for Budgeting. But the most widely accepted are functions of management given
by KOONTZ and ODONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.
For theoretical purposes, it may be convenient to separate the function of management but
practically these functions are overlapping in nature i.e. they are highly inseparable. Each
function blends into the other & each affects the performance of others.
1. Planning
It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement of
pre-determined goals. According to KOONTZ, Planning is deciding in advance what to
do, when to do & how to do. It bridges the gap from where we are & where we want to
be. A plan is a future course of actions. It is an exercise in problem solving & decision
making. Planning is determination of courses of action to achieve desired goals. Thus,
planning is a systematic thinking about ways & means for accomplishment of predetermined goals. Planning is necessary to ensure proper utilization of human & nonhuman resources. It is all pervasive, it is an intellectual activity and it also helps in
avoiding confusion, uncertainties, risks, wastages etc.
2. Organizing
It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational
goals. According to Henry Fayol, To organize a business is to provide it with everything
useful or its functioning i.e. raw material, tools, capital and personnels. To organize a
business involves determining & providing human and non-human resources to the
organizational structure. Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
3. Staffing
It is the function of manning the organization structure and keeping it manned. Staffing
has assumed greater importance in the recent years due to advancement of technology,
increase in size of business, complexity of human behavior etc. The main purpose o
staffing is to put right man on right job i.e. square pegs in square holes and round pegs
in round holes. According to Kootz & ODonell, Managerial function of staffing involves
manning the organization structure through proper and effective selection, appraisal &
development of personnel to fill the roles designed un the structure. Staffing involves:
Manpower Planning (estimating man power in terms of searching, choose the

person and giving the right place).
Recruitment, selection & placement.
Training & development.
Remuneration.
Performance appraisal.
Promotions & transfer.
4. Directing
It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and
staffing are the mere preparations for doing the work. Direction is that inert-personnel
aspect of management which deals directly with influencing, guiding, supervising,
motivating sub-ordinate for the achievement of organizational goals. Direction has
following elements:
Supervision
Motivation
Leadership
Communication
(i) Supervision- implies overseeing the work of subordinates by their superiors. It is the
act of watching & directing work & workers.
(ii) Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal
to work. Positive, negative, monetary, non-monetary incentives may be used for this
purpose.
(iii) Leadership- may be defined as a process by which manager guides and influences
the work of subordinates in desired direction.
(iv) Communications- is the process of passing information, experience, opinion etc
from one person to another. It is a bridge of understanding.
5. Controlling
It implies measurement of accomplishment against the standards and correction of
deviation if any to ensure achievement of organizational goals. The purpose of
controlling is to ensure that everything occurs in conformities with the standards. An
efficient system of control helps to predict deviations before they actually occur.
According to Theo Haimann, Controlling is the process of checking whether or not
proper progress is being made towards the objectives and goals and acting if necessary,
to correct any deviation. According to Koontz & ODonell Controlling is the
measurement & correction of performance activities of subordinates in order to make
sure that the enterprise objectives and plans desired to obtain them as
being accomplished. Therefore controlling has following steps:
(i) Establishment of standard
performance. (ii) Measurement of actual
performance.
(iii) Comparison of actual performance with the standards and finding out deviation
if any.
(iv) Corrective action.

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DEFINITIoN

1. The Top Management

a. Top management lays down the objectives and broad

It is also responsible for maintaining a contact with the outside world.

g. It provides guidance and direction.

g. They evaluate performance of junior managers.

They help to solve the grievances of the workers.

g. They supervise & guide the sub-ordinates.

They prepare periodical reports about the performance of the workers.

k. They ensure discipline in the enterprise.

They motivate workers.

Classification of grouping of activities.

Delegation of authority and creation of responsibility.

Coordinating authority and responsibility relationships.

Manpower Planning (estimating man power in terms of searching, choose the

Recruitment, selection & placement.

Training & development.

Promotions & transfer.

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