Three Levels of Management

Thursday, April 14, 2011

The usual way of classifying the set up of any undertaking is: 1 Top Management, 2.Middle Management, and 3.Lower Management, We shall now the different levels of management. Since majority of the large scale undertakings are organized as joint stock companies, the top level management is made up of Board of Directors. However, in practice the Directors do not take part in the day- today affairs of the enterprise, but the task is generally entrusted to the Managing Directors or General Managers

They are called as Chief Executives and they are responsible to carry out the broad Policies formulated by the Board. However, the ultimate control rests with Directors. This top level management is the policy making body responsible for the overall direction and success of all the activities of the company.