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

Managers at all these levels perform different functions. The role of managers at all the three levels is discussed
below:

LEVELS OF MANAGEMENT

1. 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.

2. 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.

h.

They are also responsible for inspiring lower level managers towards better performance.

3. 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.

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.

Managerial Skills - Conceptual, Human Relations and Technical

Managerial Skills

Management is a challenging job. It requires certain skills to accomplish such a

challenge. Thus, essential skills which every manager needs for doing a better
management are called as Managerial Skills.
According to Professor Robert Katz, there are three managerial skills, viz.,
1. Conceptual Skills,
2. Human Relations Skills, and
3. Technical Skills.
According to Prof. Robert Katz, all managers require above three managerial skills.
However, the degree (amount) of these skills required varies (changes) from levels
of management and from an organisation to organisation.

The above picture or diagram shows the managerial skills which are required by
managers working at different levels of management. The top-level managers
require more conceptual skills and less technical skills. The lower-level managers
require more technical skills and fewer conceptual skills. Human relations skills
are required equally by all three levels of management.

1. Conceptual Skills

Conceptual skill is the ability to visualise (see) the organisation as a whole. It

includes Analytical, Creative and Initiative skills. It helps the manager to identify
the causes of the problems and not the symptoms. It helps him to solve the
problems for the benefit of the entire organisation. It helps the manager to fix goals
for the whole organisation and to plan for every situation. According to Prof.
Robert Katz, conceptual skills are mostly required by the top-level management
because they spend more time in planning, organising and problem solving.

2. Human Relations Skills

Human relations skills are also called Interpersonal skills. It is an ability to work
with people. It helps the managers to understand, communicate and work with
others. It also helps the managers to lead, motivate and develop team spirit. Human

relations skills are required by all managers at all levels of management. This is so,
since all managers have to interact and work with people.

3. Technical Skills

A technical skill is the ability to perform the given job. Technical skills help the
managers to use different machines and tools. It also helps them to use various
procedures and techniques. The low-level managers require more technical skills.
This is because they are incharge of the actual operations.
Apart from Prof. Robert Katz's three managerial skills, a manager also needs
(requires) following additional managerial skills.

4. Communication Skills

Communication skills are required equally at all three levels of management. A

manager must be able to communicate the plans and policies to the workers.
Similarly, he must listen and solve the problems of the workers. He must
encourage a free-flow of communication in the organisation.

5. Administrative Skills

Administrative skills are required at the top-level management. The top-level

managers should know how to make plans and policies. They should also know
how to get the work done. They should be able to co-ordinate different activities of
the organisation. They should also be able to control the full organisation.

6. Leadership Skills

Leadership skill is the ability to influence human behaviour. A manager requires

leadership skills to motivate the workers. These skills help the Manager to get the
work done through the workers.

7. Problem Solving Skills

Problem solving skills are also called as Design skills. A manager should know
how to identify a problem. He should also possess an ability to find a best solution
for solving any specific problem. This requires intelligence, experience and up-todate knowledge of the latest developments.

8. Decision Making Skills

Decision-making skills are required at all levels of management. However, it is

required more at the top-level of management. A manager must be able to take
quick and correct decisions. He must also be able to implement his decision wisely.
The success or failure of a manager depends upon the correctness of his decisions.

Mintzberg's Management Roles

Identifying the Roles Managers Play

Which roles do you play most often?

iStockphoto/mstay

As a manager, you probably fulfill many different roles every day.

For instance, as well as leading your team, you might find yourself resolving a conflict, negotiating new contracts,
representing your department at a board meeting, or approving a request for a new computer system.
Put simply, you're constantly switching roles as tasks, situations, and expectations change. Management expert
and professor Henry Mintzberg recognized this, and he argued that there are ten primary roles or behaviors that
can be used to categorize a manager's different functions.
In this article, we'll examine these roles and see how you can use your understanding of them to improve your
management skills.

The Roles
Mintzberg published his Ten Management Roles in his book, "Mintzberg on Management: Inside our Strange
World of Organizations," in 1990.
The ten roles are:
1.

Figurehead.

2.

Leader.

3.

Liaison.

4.

Monitor.

5.

Disseminator.

6.

Spokesperson.

7.

Entrepreneur.

8.

Disturbance Handler.

9.

Resource Allocator.

10.

Negotiator.

From MINTZBERG ON MANAGEMENT by Henry Mintzberg. Copyright 1989 by Henry Mintzberg. Reprinted by permission of Free Press, a
division of Simon & Schuster, Inc.

The 10 roles are then divided up into three categories, as follows:

Category

Roles

Interpersonal

Figurehead
Leader
Liaison

Category

Roles

Informational

Monitor
Disseminator
Spokesperson

Decisional

Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator

Let's look at each of the ten roles in greater detail.

Interpersonal Category
The roles in this category involve providing information and ideas.
1.
Figurehead As a manager, you have social, ceremonial and legal responsibilities.
You're expected to be a source of inspiration. People look up to you as a person with
authority, and as a figurehead.
2.
Leader This is where you provide leadership for your team, your department or
perhaps your entire organization; and it's where you manage the performance and
responsibilities of everyone in the group.
3.
Liaison Managers must communicate with internal and external contacts. You need to
be able to network effectively on behalf of your organization.

Informational Category
The roles in this category involve processing information.
1 Monitor In this role, you regularly seek out information related to your organization and
industry, looking for relevant changes in the environment. You also monitor your team, in
terms of both their productivity, and their well-being.
2 Disseminator This is where you communicate potentially useful information to your
colleagues and your team.
3 Spokesperson Managers represent and speak for their organization. In this role you're
responsible for transmitting information about your organization and its goals to the people
outside it.

Decisional Category
The roles in this category involve using information.
1 Entrepreneur As a manager, you create and control change within the organization. This
means solving problems, generating new ideas, and implementing them.
2 Disturbance Handler When an organization or team hits an unexpected roadblock, it's
the manager who must take charge. You also need to help mediate disputes within it.
3 Resource Allocator You'll also need to determine where organizational resources are best
applied. This involves allocating funding, as well as assigning staff and other organizational
resources.
4 Negotiator You may be needed to take part in, and direct, important negotiations within
your team, department, or organization.

Applying the Model

You can use Mintzberg's 10 Management Roles model as a frame of reference when you're thinking about
developing your own skills and knowledge. (This includes developing yourself in areas that you consciously or
unconsciously shy away from.)
First, examine how much time you currently spend on each role. Do you spend most of your day leading?
Managing conflict? Disseminating information? This will help you decide which areas to work on first.
Next, get a piece of paper and write out all ten roles. Score yourself from 1-5 on each one, with 1 being "Very
skilled" to 5 being "Not skilled at all."
Once you've identified your weak areas, use the following resources to start improving your abilities in each role.

Figurehead
Figureheads represent their teams. If you need to improve or build confidence in this area, start with your image,
behavior, and reputation . Cultivate humility andempathy , learn how to set a good example at
work , and think about how to be a good role model .

Leader
This is the role you probably spend most of your time fulfilling. To improve here, start by taking our quiz, How
Good Are Your Leadership Skills? This will give you a thorough understanding of your current abilities.
Next, learn how to be an authentic leader , so your team will respect you. Also, focus on improving
your emotional intelligence this is an important skill for being an effective leader.

Liaison
To improve your liaison skills, work on your professional networking techniques. You may also like to
take our Bite-Sized Training course on Networking Skills.

Monitor
To improve here, learn how to gather information effectively and overcome information
overload . Also, use effective reading strategies , so that you can process material quickly and
thoroughly, and learn how to keep up-to-date with industry news .

Disseminator
To be a good disseminator you need to know how to share information and outside views effectively, which
means that good communication skills are vital.
Learn how to share organizational information with Team Briefings . Next, focus on improving your writing
skills . You might also want to take our communication skills quiz , to find out where else you can
improve.

Spokesperson
To be effective in this role, make sure that you know how to represent your organization at a
conference . You may also want to read our articles ondelivering great
presentations and working with the media (if applicable to your role).

Entrepreneur
To improve here, build on your change management skills, and learn what not to do when
implementing change in your organization. You'll also need to work on your problem
solving and creativity skills , so that you can come up with new ideas, and implement them successfully.

Disturbance Handler
In this role, you need to excel at conflict resolution and know how to handle team conflict . It's
also helpful to be able to manage emotion in your team .

Resource Allocator
To improve as a resource allocator, learn how to manage a budget , cut costs , and prioritize , so that
you can make the best use of your resources. You can also use VRIO Analysis to learn how to get the best
results from the resources available to you.

Negotiator
Improve your negotiation skills by learning about Win-Win Negotiation andDistributive Bargaining .
You might also want to read our article on role-playing this technique can help you prepare for difficult
negotiations.

Key Points
Mintzberg's 10 Management Roles model sets out the essential roles that managers play. These
are:
1.
Figurehead.
2.

Leader.

3.

Liaison.

4.

Monitor.

5.

Disseminator.

6.

Spokesperson.

7.

Entrepreneur.

8.

Disturbance Handler.

9.

Resource Allocator.

10.

Negotiator.

You can apply Mintzberg's 10 Management Roles model by using it as a frame of reference when
you want to develop your management skills. Work on the roles that you fulfill most often as a
priority, but remember that you won't necessarily fulfill every role as part of your job.