Question

why is it important to understand the distinction between the different levels of management/manager?

Answer 1

Answer:

Importance of Management:

1. Management optimizes use of scarce resources.

2. Management ensures effective leadership and motivation.

3. Management promotes industrial relations and harmony.

4. Management facilitates the achievement of goals.

5. Management facilitates change and growth.

6. Management enhances the quality of life.

7. Management improves productivity.

Managerial Levels:

In any organization the number of managerial levels largely depends on its size. In small and medium enterprises (SMEs), management teams may consist of only the owner and his or her own people. But in large organizations, a three-tier hierarchy of managers is common..

The top, middle, and first-line managers are hierarchically arranged with a clear demarcation of their functional domains. The top level is also known as the corporate and strategic level and consists of those who work as presidents, vice presidents, chief executive officers, chief operations officers, directors, or general managers.

They handle the overall responsibility of managing the growth and prosperity of an organization. Some of their key areas of responsibility include planning and strategy framing, overall performance evaluation, selection of key personnel, and facilitating subordinate managers in achieving the results.

The middle-level managers are subordinate to the top level and they work as divisional or strategic business unit heads, functional heads, or as operations managers. Middle-level managers are also known as tactical and business-level managers.

They are mainly entrusted with implementing and controlling the plans and strategies framed by the top level. Within the ambit of overall plans and strategies framed by the top level, the middle-level managers prepare intermediate plans, frame tactical goals and objectives for the department, develop departmental policies, review reports on progress of sales and production, and also facilitate the first-line managers.