Administration and Levels of Management

Management refers to the process of working with and through others to effectively achieve the goals of an organisation. Administration refers to the process of implementing the basic principles of an organisation. Management aims to accomplish the objectives laid down by administration; hence, administration is a higher level activity whereas management is a lower level activity. Administration involves decision making and policy formulation, while management deals with directing, coordinating and controlling of activities.
Every organisation has a management hierarchy from top to bottom which in general is known as levels of management. Three different levels of management:
•    Top management which ensures welfare and survival of the enterprise,
•    Middle level management which reviews activities of the first line managers and
•    Operational level management which maintains safety standards.
Branches of management:
•    Production management aims at managing an enterprise’s production function so as to produce.
•    Marketing management aims at managing enterprise’s marketing function so as to facilitate transfer of goods and services from producers to consumers.
•    Financial management aims at managing an enterprise’s finance function to ensure availability of funds for business.
•    Personnel management aims at planning, organising and controlling human resources of an organisation for recruitment, selection, training, development, wage and salary, appraisal and compensation and allowance of employees.
•    Purchasing management aims at purchasing right quantity and quality of materials from the right source at right time.
•    Office management aims at planning, coordinating and controlling office activities . An office serves as the nerve centre of business activities.
Today modern organisations are called as global organisations, whose managers are required to have global perspective like diverse combination of technical skills, management and people skills and ability to imbibe and learn different cultural experiences.


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  • Q1

    The Director Finance and the Finance supervisor are linked through the


    Marketing Manager.


    Departmental Head comes under middle level management and acts as a link between Top level and Operational level of management. Hence, Finance manager is the link here.

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  • Q2

    Vivek handles a team of 5 workers who are engaged in manufacture of lamp shades in the factory. He is the




    Supervisor comes under the operational level of management. Supervisors directly oversee the efforts of the actual workforce. Vivek is a supervisor as he oversees the work efforts of his team.

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  • Q3

    Smriti is a first line manager in a BPO. Identify the functions to be performed by her at that level of management?


    Smriti is a First line manager, hence, she forms part of Lower level management (Operational Management).

    The functions to be performed by her at lower level management are:

    i. Provide good working conditions and create supportive work environment.

    ii. Guide and help the middle level managers when they select and appoint employees.

    iii. Ensure that quality standards are maintained by the workers.

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  • Q4

    Write down the functions of middle level management.


    Functions of middle level management :

    1. Interpreting and communicating the policies of the top level management.
    2. Determining organizational set up of their department.
    3. Issuing instructions to low level managers.
    4. Motivating subordinates for higher productivity and rewarding them for their outstanding performance.
    5. Compiling statistical reports for top-level management and preparing records of their departments.
    6. Recommending revised and amended policies of their departments.

      Middle level management is the link between top level and low level
      management and executory by nature.

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  • Q5

    Write down the difference between levels of management on the basis of their functions.


    Points of Difference

    Top Level Management

    Middle Level Management

    Supervisory Level Management

    Time Range

    It covers span of period

    It covers intermediate range

    It is concerned with short period


    It requires creative skills

    It needs persuasive skills

    It is concerned with operative skills


    It is difficult to evaluate its achievement

    It is less difficult to evaluate its performance

    It is easy to evaluate its performance


    It involves few persons

    It concerns moderate number of persons

    It is concerned with large number of persons

    Policy formulation

    It is concerned with the formulation of policies to a greater extent

    It is moderately concerned with policy formulation

    It is least concerned with policy formulation

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