Levels of Management
Most firms have three levels of management: top, middle and bottom.
The impetus for the division of management into upper, middle and lower levels has given industrial Revolution in Europe in the 18th century. First, the upper and lower levels of management were separated. The word “master” has become scary and hateful. Masters were more often selected based on physical characteristics than on their ability to deal with people. The middle link became isolated as the size and complexity of firms increased and a more meaningful approach to management took place.
Managers at each level perform the same functions: planning, organizing, directing, motivating, controlling. The only difference is the importance they attach to one or another function. A top-level manager devotes more time to planning and organization than lower-level managers. A mid-level manager devotes more time to leadership and control than a top-level manager. A lower-level manager spends most of his time motivating and controlling subordinates. However, most managers perform all five management functions.
So, you cannot study or master the management functions of the upper, middle or lower levels separately. When they talk about one of them, essentially, we're talking about about all three.
It should be emphasized that it is impossible to clearly and clearly define each of the three levels of management. Therefore, we give only working definitions, because Each company determines management levels in accordance with its own characteristics. Here it is probably worth recalling the influence of the following factors: complexity organizational structure, number of employees, the essence of the business itself, etc.
Top level managers medium and large firms focus on planning for the future, setting goals, determining courses of action, rules and procedures for their implementation. They are responsible for the prosperity of the company and therefore must plan, direct and control its activities.
The top level of management includes the president and vice presidents. It is clear that a company may have several vice presidents responsible for certain areas of its activity - production, sales, supply, finance, personnel or advertising.
Middle managers head departments or divisions. They must organize their work so that the company's goals are achieved and its policies are carried out, select and retain good workers. They are primarily responsible for managing the day-to-day activities of their units. The middle level of management includes managers of offices, workshops and warehouses, senior foremen, heads of technical control and product quality departments. In many large banks, their branches are run by vice presidents. They are responsible for the operation of bank branches and are considered top-level managers. The Branch Manager reports directly to the Vice President of Branch Operations and is a mid-level manager.
Lower level of management- this is the level of officials directly leading the work their subordinates. At this level, the functions of planning and organization are implemented in the actions of the manager, stimulating and directing the activities of workers. Typical titles of positions held by managers at this level: foreman, foreman, group leader, purchasing agent, forwarder. It is often said that such a lower-level manager is “in the middle”, since he is located between direct performers and managers at the top and middle levels. Lower level managers play a very important role in the company. But usually senior management does not pay enough attention to the serious problems of lower-level managers. These problems include low wage, overload, lack of authority, weak professional training ordinary workers, and also the fact that they may not meet the requirements placed on them.
A newcomer begins his career as a lower-level manager. If he holds this position for one to five years, he may be promoted to mid-level manager. In this position, he will be considered a novice manager (all managers consider themselves beginners during the first ten years of their activity). No matter how useful and important the training of managers in universities and courses is, it will never replace specific practical work. This is true even for those who have earned a master's degree from Harvard Business School. To become a good manager, you need to correctly combine the theoretical training received during your studies with practical experience.
Middle level managers are primarily responsible for performance And efficiency operations controlled by them. Efficiency means the ability to complete a job with minimal wastage of materials and time. Productivity is the ability to get a job done and do it well. It is the middle managers who must ensure that the work is done both economically and efficiently. As they say, the result is important. Managers are fired most often for their failure to achieve intended results.
What do middle managers typically do for most of their workday? First, they plan and distribute work for the next day or week. Secondly, they communicate between production staff and higher management. Third, they make day-to-day decisions that ensure profitability production and other operations. Fourth, and very important, they manage other people - either lower-level managers or (in small organizations) ordinary workers.
Middle or lower level managers may also be involved in purchasing ordered materials and components and checking their quality, working with personnel, holding meetings on safety precautions, product quality, work deficiencies, profit distribution, and preparing reports on financial and production activities , in solving large and small, but always numerous problems. Some problems, such as poor planning, are due to the manager's personal shortcomings, while others are due to the shortcomings of his subordinates, such as negligent work ethic. A number of problems arise due to the fault of management or other departments. Many problems are caused by government regulations or customer demands, and management requires lower-level management to resolve them. Under these conditions, they must view any problem as an opportunity to demonstrate their coping abilities.
N.I. offers a serious study of issues of management levels. Kabushkin.
Despite the fact that all managers of an organization perform managerial activities, it cannot be said that they are all engaged in the same type labor activity. Individual managers have to spend time coordinating the work of other managers, who, in turn, coordinate the work of lower-level managers, etc. to the level of a manager who coordinates the work of non-managerial personnel - people who physically produce products or provide services. This vertical deployment of the division of labor forms management levels (Figure 3).
Control
senior management
Control
middle management
Control
grassroots
link
Figure 3. Levels of control
The shape of the pyramid shows that at each subsequent level of management there are fewer people than at the previous one.
Highest level management of the organization may be represented by the Chairman of the Board of Directors ( supervisory board), president, vice president, board. This group of management employees ensures the interests and needs of shareholders, develops the organization's policy and contributes to its practical implementation. In this regard, two sublevels can be distinguished in senior management: authorized management And general leadership .
Middle level managers departments ensure the implementation of the organization's operating policy developed by top management and are responsible for communicating more detailed tasks to divisions and departments, as well as for their implementation. Specialists included in this group, as a rule, have a wide range of responsibilities and have great freedom to make decisions. These are heads of departments, directors of enterprises that are part of the organization, chiefs functional departments.
Lowest level of management represented by junior managers. These are managers who are directly above workers and other employees (not managers). These can be foremen, foremen, supervisors and other administrators responsible for bringing specific tasks to the immediate executors. The ratio of time spent on performing basic management functions differs by management level (Figure 4).
Figure 4. Correlation of time spent by levels and management functions
It should be noted that at all levels of management, managers perform not only purely managerial, but also executive functions. However, with increasing levels of leadership specific gravity executive functions decrease. Calculations show that at the highest level, execution takes up about 10% of the total time budget of managers, at the average – 50%, at the lowest – about 70% (Figure 5).
Figure 5. Classification of time spent by managers by type of activity and level of management
This distribution of the total time budget is due to the fact that managers of all three levels have two areas of assignments: management assignments And assignments in the specialty(Figure 6). This means that a manager at any level of management spends a certain percentage of his time on accepting management decisions and certain - for making decisions on the specialty.
Figure 6. Distribution of working time by management and specialty
As can be seen in Figure 6, with an increase in the level of management, the share of tasks in the specialty decreases, and in management, accordingly, it increases.
The above classification of management levels has the most general form. Depending on the size and type of organization, its sectoral and territorial characteristics, and other factors, the characteristics of the composition and functions of managers at each of the three levels of management can vary significantly.
A. Hosking proposes a different differentiation: general management is all managers (regardless of whether they are directors or not) who are responsible for setting goals and forming policies, for issues related to planning and organizing, controlling and managing the company as a whole; management at the division level is managers who perform the same functions, but at the division level, in accordance with the general tasks and goals of the corporation.
With the help of division of labor, company employees can implement their own functions better, while putting in less effort. It also helps reduce company costs. The division of labor can be horizontal or vertical. Horizontal division of labor involves the creation in a company of structural divisions focused on different areas of activity. With vertical separation, the implementation of work is separated from the coordination of the activities of individual performers. In this case, different levels of enterprise management are provided. Levels of enterprise management in the structure of an organization What can be considered an enterprise management organization? This is the general ordering of the company, which sets the sequence of various actions and the framework within which activities should be conducted. The socio-economic environment of an enterprise is understood as the object of management organization. This includes workers, various objects of labor, financial and information resources. To organize the management of a company, a number of tasks must be solved: select goals; to form a community of citizens; determine what organizational structure and levels of enterprise management are necessary; create the necessary conditions. The main functions characteristic of the organization of company management: achievement by the company of selected goals; reducing company costs; division of labor, due to which workers exercise their own powers better. Levels of enterprise management are an expression of the division of labor in companies. Nowadays there is an increasingly clear tendency towards specialization in the field professional work, during which any employee (or any structural subdivision ) is called upon to perform the actions assigned to him and is not involved in performing other functions. The following types of division of labor can be noted: horizontal and vertical. With a vertical division of labor, any manager has an area of activity for which he has to be responsible (sphere of control), or has a certain number of employees reporting to him. In this situation, the distribution of all tasks is carried out not within one level, but “from top to bottom” - from employees occupying the highest positions to employees who find themselves at the bottom of such a hierarchy. At the same time, the higher the position held by the employee, the more general tasks he is engaged in; The lower the specialist’s position in the hierarchy, the more specific goals he receives. This is a natural process, because... The most significant decisions from the operational point of view are usually made at the very top, that is, the company's top managers. With horizontal division of labor, workers are divided between different functional areas and are assigned to perform tasks that are important from the perspective of this functional area. A typical example is the conveyor production of goods, the case when a certain operation is provided for an individual worker, and he finds himself at the same hierarchical level with other specialists taking part in the production of products. The internal levels of the enterprise management system should not be considered something stable and unchangeable in the future. Managers, primarily senior managers, should know that the organizational structure is formed in order to solve the problems assigned to the company. In the future, the company’s position in the market will change, and the conditions for its functioning will also change (competitors will be added, legislation, economic and political situations will change). In addition, there is a possibility of changes in the number of employees of the enterprise. Of course, all this can lead to the company’s objectives changing. At the same time, the internal levels of production management at the enterprise should also be changed, because the previous structure sometimes turns out to be (and most often is) unsuitable for achieving new goals. Management in a company is usually carried out according to a pyramidal structure: the lower level includes a larger number of managers, and as you move to a higher level, their number decreases. 3 models of personnel management that will help organize employees Levels of enterprise management As a rule, there are three levels of management. Technical level (is the lower level of management) - managers directly interact with performing specialists and deal with specific issues; Management level (middle) – managers in this case are responsible for the progress of each production process in structural divisions that include a number of structural units; managers of headquarters and functional services of the management structure, heads of auxiliary and service production, targeted programs and projects; Institutional level (highest) - the administration of the company, engaged in general strategic management; questions strategic management- management of financial resources, selection of sales markets, company development, only 3-7% of the total number of managers are involved at this level. The highest level of management is involved in developing long-term plans and formulating tasks for middle management. A significant place here is given to the company’s adaptation to market dynamics and to managing the company’s relations with the external environment. This link may include the president, CEO and other board members. Middle managers are called upon to coordinate and control the activities of lower-level managers. They identify problems in production, organizational and financial direction. They form creative ideas and the necessary data is collected for decision-making by senior managers. Middle levels of enterprise management include managers of structural divisions, departments and services of the company. The lower level of management reports to the middle level. Managers at the management level include production foremen, foremen, and group leaders. These are professional managers narrow specialization, performing clearly regulated responsibilities in the field of product release, implementation of marketing activities, material supply management, etc. They are responsible for the competent use of received resources and the rational use of equipment and workers. Such levels of enterprise management in structure allow for clear management and take advantage of the narrow, in-depth specialization of managers. At the same time, it complicates the determination of the share of contribution of an individual lower-level manager to the overall result commercial activities, his area of responsibility for the chosen management decisions. Management specialists have developed a different theory of company management. According to them, there are the following levels strategic management enterprise: Corporate strategy. It affects the overall goals of the company and its entire space. These management levels are designed to perform the functions of making key decisions in technical, economic and production areas. Most often, decision making is the function of the board of directors. This category includes senior managers. Business strategy. It is expressed in achieving success in the field of competition in the market of a particular business area. At this level they are engaged in solving the following problems: increasing competitiveness, responding to external factors, the choice of behavior strategy for the main separate units. The decision-making body at this level is the board of directors, department management, general directors. Functional strategy. Forms a chain of actions aimed at achieving the chosen goal in each area in which the organization operates; levels of enterprise management are designed to ensure analysis, revision, synthesis of various ideas expressed by local managers, and actions to implement the tasks of this unit and maintain the adopted company strategy. These levels include middle management. Decision making is within the competence of department heads. Operational strategy. Includes special strategies for separate structural units of the company, levels of enterprise management, including local managers. Here they solve problems specific to this particular unit. The choice of solution is within the competence of the heads of departments and functional services. What are the levels of management of a modern enterprise today? In international practice, specialists in complex automation production activity there are five levels of management modern company: At the level of ERP - Enterprise Resource Planning (forecasting company resources), various financial and economic indicators are calculated and analyzed, and solutions to strategic administrative and logistics problems are searched for. At the level of MES - Manufacturing Execution Systems (production process management systems) problems are solved in the field of product quality management, forecasting and checking the sequence of operations technological process, production management and labor resources within the limits of the technological process being carried out, maintenance of production equipment. The indicated levels of management of a modern enterprise are classified as tasks of automated control system (automated enterprise management system) and technical means, due to which such tasks are performed - office personal computers (PCs) and workstations in the services of the company's leading employees. The next levels of enterprise management solve problems that fall into the category of automated process control systems (automated process control systems). SCADA – Supervisory Control and Data Acquisition (system for collecting information and dispatch control) is the level of tactical current management, within which they solve problems of choosing the optimal solution, conducting diagnostics, implementing adaptation, etc. Control-level – local control level, implemented on the following TSA: software – operator panels, PLC – programmable logic controllers, USO – communication devices with the object. HMI–Human-Machine Interface (human-machine communication) – performs visualization (graphical representation of information) of the progress of the technological process. Input/Output – Inputs/Outputs of the control object, which are various sensors and actuators (D/AM) of individual technological installations and working machines. Production management: what is the secret? successful leadership How the levels of enterprise management are formed. The formation of enterprise management levels is carried out within the framework of the production-territorial principle, the essence of which is expressed in the fact that the entire management apparatus is divided vertically into separate levels, and horizontally at all levels their own management units are formed. The levels of enterprise management determine the immediate sequence of subordination of management bodies from lower to upper echelons. All levels of enterprise management are headed by employees involved in general management in this area. Based on the principle of unity of command, he is subordinate to a higher-level manager and receives orders and tasks from him to carry out. Top managers form an institutional level, considered the highest level of management, where forecasting takes place over a long period of time, decisions are selected that have important consequences for the enterprise, responses are made to changes that have begun and are expected in the near future, etc. The highest levels of enterprise management have another characteristic feature - it is here that issues in the field of interaction of the enterprise with its external environment, which includes competitors, the state, public associations and so on. At this level, decisions are made by top-level managers (top managers: rectors of universities, presidents and vice-presidents of companies, directors). Top-level management solves the problem of making decisions that are vital for the organization or its large structural unit. Typically, such decisions are of a strategic nature: compared to solving tactical problems, they are aimed not at choosing ways to achieve set goals, but at defining the company’s goals themselves. The highest levels of enterprise management are distinguished by the fact that the managers at them have little contact with by different people: They communicate within the company with other top-level managers, as well as with some of their subordinates. However, this situation does not indicate that their work turns out to be simpler and easier than the work of managers at other levels. They have a huge responsibility. The middle and lower levels of enterprise management differ in that the erroneous decisions of their managers affect certain aspects of the company’s work, i.e. lead to local problems, then mistakes by top-level management can cause the company to go bankrupt. In this regard, one of the most important skills, needed for top-level management, is considered the ability to take risks. Not all people are willing to take risks. Middle managers form the management level considered next level, where the work of different employees and structural divisions is coordinated to achieve the goals set for the company. At this level, decisions are made by middle managers (these include directors of separate divisions, heads of departments, deans at universities). The middle levels of enterprise management include managers who coordinate and control the work of lower-level managers and help top-level managers in making key decisions. Therefore, they are intermediaries between senior and lower management. Let's examine their functions in more detail: Middle-level management is often involved in the decision-making of top-level managers. They express their ideas related to certain innovations, collect information needed to solve the problem, and evaluate the decision made. Top management has only the most general information about the company's work, they often do not understand the problems that exist in the company or appear as a result of making the wrong decision. Of course, middle-level managers have more information about the company's activities. They are well aware of how the structural unit they manage works. The difference between top and middle level managers is that the former deal with the affairs of the company as a whole, while the latter have more complete information about a certain area of the company's work. And lower-level managers have very private information about the enterprise. Another task set for middle-level managers is mediation - with their help, the highest and lowest levels of enterprise management are connected. Most often, a competent interpretation of the decision made by top managers is entrusted to middle management. They manage to give instructions from above a form that is optimal for the lower level of management. In this situation, middle-level managers are responsible for distributing certain tasks and choosing deadlines for their completion. The goals set for them represent the details of the decisions of top managers. Middle-level managers are forced to communicate very often, which is primarily due to the fact that they perform the functions of mediation between other parts of the management system. For this reason, they need to be able to highlight relevant information and separate it from what is not important. If companies employ a large number of employees, the average levels of enterprise management often include additional levels. For example, there are often situations where some middle-level managers coordinate the work of lower-level managers, and others coordinate the activities of middle-level management. The latter are often considered top-level managers: their position is higher than that of standard middle-level managers, but they do not belong to the highest level of management, because are subordinate to him. It should be noted that improvements in technology and other reasons have led to a gradual reduction in the number of middle-level managers. However, they remain necessary. The only thing is that their powers are undergoing the most significant changes. At the same time, lower-level managers form the technical level of enterprise management: at this level the usual labor actions; this level can be correlated with the daily activities of each company. decisions at this level are made by managers of the lower management level (foremen in workshops, heads of subdepartments, in universities - heads of departments, etc.), and their work is considered at the level of current management. The main feature of the work of lower-level managers is that they are called upon to: deal with problems related to the expenditure of resources in certain situations; check the quality level and timing of various production operations. The main difficulty that arises for a lower-level manager is that he is forced to very quickly move from one activity to another. In this regard, he needs to quickly resolve issues, because... Most often there is no time to think and search for the optimal solution. The lower levels of enterprise management involve the formation of special relationships between managers and their subordinates. Managers of this level are forced to solve assigned tasks and check the work of employees, as well as be mentors and leaders. And it is precisely these managers who, consciously or unconsciously, are entrusted with the task of training young specialists and new employees. Middle and senior managers do this much less often. All levels of enterprise management include functional structures that perform specific functions in the field of management. the main task of such units is expressed in preparatory work on the formation of management decisions for a manager at this level. In the case of using a single-level structure, managers directly manage the activities of performers. When using a two-level structure, the highest levels of enterprise management are formed - the work of performers is added. Managing business opportunities: how to protect a company from ruin Analysis of levels of enterprise management Analysis of the management level determines the operation of the management system, its compliance with the object of management, and the ability to choose fairly informed decisions. The specified characteristics of the management system are considered a key condition for the intensification of production activities and the success of its current and future development. During the analysis of the management level, the work of the management system in general and the activities of its components are considered, such as the organizational structure of management, levels of enterprise management, the composition of management personnel, their level of qualifications and labor organization, technical equipment for the activities of managers, etc. The purpose of the analysis is to substantiate the rational structure of management bodies, compliance of management staff with the characteristics and content of management functions, rational measures for centralization management functions, reducing the time for data processing and the time for making a choice of management decisions. An important assessment of the level of enterprise management includes conducting an analysis of the organizational structure, starting with a description of the company. The parameters of the company and its production structure are designed to determine the structure of management bodies and the number of managers. Analytical indicators that determine the current state of management bodies are: the ratio of the supply of management personnel in general for the company and for each functional group; the share of management employees in the total number of personnel of the company; their average number and specific gravity in workshops and in individual areas; controllability coefficient. Controllability factor in separate divisions determines, for example, the number of workers per foreman, shift manager, workshop, etc. At the same time, the analysis of the levels of management of an enterprise includes such a special section as assessing the level of centralization of management functions. This indicator is calculated generally for the company and separately for existing functional groups. Analysis of technical equipment and management methods It determines the breadth of involvement in management work of advanced achievements of scientific and technical thought (the best equipment), new management techniques, etc. The analysis begins with an assessment of the quantitative and qualitative aspects of the technology used in management and the possibilities for its improvement. Using the level of technical equipment, an indicator of the degree of mechanization and automation of management work is determined. Its characteristic is the level of comprehensive (or partial) mechanization of the data processing process, the level of automation of data processing and preparation of solutions. It is with the help of automation of the work of managers that the basis is formed for exploring alternative development options and choosing rational solutions. Analysis of the composition and organization of labor of management employees It is carried out by assessing the level of qualifications of management staff and its compliance current requirements production activities and science. The needs to increase the level of qualifications of management employees for individual functional groups (accountants, planners, etc.) are determined, and a set of measures is developed to increase the level of qualifications. An analysis of the organization of work activities of management personnel is carried out, based on a description of the management process, management functions performed by each employee, documentation and document flow diagrams. During the analysis, reserves for improving technology are found management process by organizing the list and flow of documents, their unification, and timely processing. They also find reserves to improve the organization of work of managers. Analysis of management effectiveness Based on a comparison of management costs with the final results of the company. The efficiency indicator of the management techniques used in the company is calculated as the ratio of the volume of sales of goods to the amount of management costs. The higher the value of this indicator, the more successful the management techniques used in the company. Successful levels of enterprise management are considered to be those that ensure: increased labor productivity; growth in capital productivity of fixed assets production assets; acceleration of turnover working capital; profit growth.
Effective management in modern conditions and its importance.
Management is:
A) Best Use Process organization resources to achieve its specific goals through the tools of planning, organizing, leadership (motivation) and control.
B) The transformation process is most effective way organization resources into products that have a market value value .
Manager's tasks:
l Sets goals
l Organizes
l Motivates people and builds relationships
l Evaluates
l Develops people and yourself
l Responsible for….
Effective management (I don’t claim 100% compliance this concept course) – includes concept A, with a small caveat: any investment in the organization, thanks to management, should give the maximum result (efficiency). Specifics of effective management for modern organization is also to ensure, with the help of a relevant organizational structure, a system of rewards and motivation, as well as the correct selection of personnel, set goals and assigned tasks, to ensure the most effective use of the organization’s resources, using the principles of resulting synergy in the context of the organization’s changing external environment. And all this, taking into account various anthropogenic variables at various stages of both the life of the organization and the production process in particular.
The main stages of development of professional management.
In the world:
1850s– The phenomenon of management is still unknown; at this time, enterprise management inseparably follows ownership. There are individual cases, individual geniuses of management, but as such a science or sphere does not yet exist.
1880-1910 – Development of the ideas of “scientific management” by Frederick Taylor, the emergence of the first business schools. The origin of such a science as management. The beginning of the application of management theory to industrial practice.
1920-1930 – Penetration into all areas of production. Development of new ideas in management, such as Budgeting and Logistics. Creation of the classical Administrative School of Management, the school of human relations. Classic examples of the triumph of management in the West (GM, Ford, GE).
Mid-20th century – present day. – Understanding the overall usefulness of management as a key factor in the successful, efficient and effective performance of an organization. Opening MBA schools, the emergence of an intersectoral personnel market (in management). Highlighting not mental differences, but managerial ones, in determining the success of a particular enterprise. Opening of GSOM SPbSU =)
In Russia:
Initial formation(late 80s – early 90s). Chaotic and primitive forms of business, lack of vocational education at the managers.
coming of age(1995-1999). Growth of entrepreneurial firms. Regular management and the growth of the Russian Association of Business Education.
Accelerated professionalization, (2000 – present day), conducting offensive strategies, creating business periodicals, creating strong Russian brands.
Levels of management in an organization
Top level, Highest (strategic)
Medium, tactical
Lowest, operational
Now about each separately:
Highest level:
Independence in decision making, their significance. They report only to the owner or board of directors. Typical representatives are general directors, business directors, functional directors, and university rectors.
According to Pepper, the highest level is:
l Select the right people and determine their development program
l Choose the right one strategic goals
l Correctly define the dynamic values of the organization
l Finding your business models
Average level:
Responsible to the highest level in the performance of duties within the departments headed. Manages current activities through the lower-level management system. Typical representatives: shop manager, dean of the faculty.
Grassroots level:
Directly supervise operational staff, reporting to and accountable to middle management.
Representatives: head of department, head of department.
Key division factors: size of the organization, nature of its activities, structure, delegation.
5. Vertical gradation by knowledge/skills.
Skill types:
Conceptual– analytics, foresight, filtering information, generating ideas, developing methods for their implementation, etc.
People skills– communications, psychology.
Technical– knowledge of the technological process, methods of distribution of responsibilities within the division of labor. Awareness of the technology used and the ability to use it yourself.
| Levels of Management | Required Skills | Main areas of responsibility |
| Strategic (top managers) | Conceptual skills | Interaction with the external environment of the organization Development of organizational vision Acceptance strategic decisions |
| Tactical (middle managers) | People skills | Coordination and integration of activities |
| Operations (low-level managers) | Technical skills | Monitoring of operating personnel and production processes |
Efficiency.
Narrow meaning – efficiency (as such): The relationship between inputs and outputs. The answer to the question: “how to achieve maximum results with minimal resources?” "Do things right!" That is, less wastefulness, greater efficiency, greater impact. Synergy. The desire for multiplicativeness of total investments and their predominance over the simple sum of individual investments, in combination with the return on action in relation to the expected effect.
Broad meaning – effectiveness: Achieving the set goal, “breaking” the company’s own “records” in terms of indicators that are critical for determining the success of the company’s activities. "Do the right thing!"
Ineffective management: low effectiveness and low efficiency or effectiveness but low efficiency.
Management decisions.
This is the main tool for a manager to perform work in an organization. Each problem can in one way or another indirectly affect almost all areas of the company’s activities or several groups of people (I do not claim 100% accuracy of this definition) . Each problem has its own criterion for determining its complexity. The key ones are:
I. Complexity
II. Interconnectedness of aspects
III. Multiple purposes
The problem itself is the discrepancy between what is desired and what is actual. The decision-making process is the identification of a problem and the choice of one of the alternatives:
1. Problem identification
2. Determining the criteria influencing the decision and assessing their importance
3. Identification of existing alternatives
4. Analysis of available alternatives
5. Selecting one of the alternatives
Problems are divided into two types: structured and unstructured.
For structured ones we use programmed solutions, for unstructured ones we improvise.
Characteristics of structured problems:
l Simplicity
l Easy to define
l Familiarity
l Availability of clear and sufficient information
Characteristics of unstructured problems:
l Novelty of the problem
l Incomplete and/or ambiguous information
l Uniqueness, originality
l Possible precedent
Programmed decisions, procedures:
l Repeatability
l Easy to adopt (low cost)
l There may be no option evaluation stage
l Ability to use procedures, rules or policies
Non-programmed solutions:
l Lack of ready-made solutions
l The need for a non-standard approach
Important picture:
8. Management decision making and its styles. The decision-making algorithm is in the previous question.
Factors that influence decision making:
l Awareness (certainty\uncertainty)
l Time factor (urgency or perspective-oriented)
l Personal characteristics(risk tolerance, experience, intuition)
l Bounded rationality of the decision maker
l Factors related to information
l Time factor
l Personal characteristics
l Organizational context
Decision Making Styles:
l Directive
l Analytical
l Conceptual (conceptual)
l Behavior-oriented (behavioral)
Directive style - everything is done according to instructions. Accounting for a small amount of information, high speed decision making, the number of alternatives is minimal, the active use of power and hierarchical connections, the tendency to use regulations and elements of general, already working internal systems.
Analytical style – We do everything carefully, with an eye on the consequences. Taking into account a large amount of information, a large number of alternatives, trying to minimize risks by developing alternatives, the possibility of using a non-standard solution.
Conceptual style – everything is within the framework of a certain concept. The desire to obtain the maximum amount of information, consideration of many alternatives, openness to new ideas, orientation towards the future.
Behavioral style – we think through, agree, figure out, act. Receptivity to other people's ideas, the importance of approval from others, organizing the exchange of opinions.
In most cases, styles are mixed.
There are also two decision-making models:
Rational and boundedly rational.
Rational: Maximum choice profitable option of all available.
Relatively simple problem
Limited number of alternatives
Minimum time limits
Low costs for searching and evaluating alternatives
Bounded rational: Instead of an optimal (rational) decision, one is made that satisfies the decision maker .
Information regarding alternatives and the consequences of their choices is often significantly limited and unreliable
Human capabilities for processing available information are limited
Temporary restrictions
l Overconfidence
l Relying on immediate gratification
l Anchor effect (choosing one course and all subsequent actions belonging only to it)
l The desire to confirm that one is right
l Availability
l Giving weight to sunk costs
Criteria for evaluation decision taken:
l Quality
l Timeliness
l Acceptance by others
l Compliance ethical standards
Food for thought:
Clear problem definition ® The solution cannot be predetermined by the very formulation of the problem.
Understanding that solutions may vary (including breakthrough ones)\
Management as a science.
As a scientific direction, it began to exist since the time of Taylor. When did the first concepts of applying knowledge of this kind in practice appear?
It is still experiencing rapid development. It started in the middle of the 20th century. The impetus for this was given by such luminaries of science as P. Drucker, I. Adizes (still alive today). The specificity of management as a science is that it also takes into account the practical research of managers, finding new things in concepts when applied to certain situations -> management is constantly updated. Also, given the existence of other fundamental sciences, by the time management was created, it had absorbed a lot:
l Economic theory → industry competition
l Psychology → behavior of people and groups of people in an organization
l Sociology → power and influence, networks
l Mathematics → quantitative methods of decision making...
Also includes related sciences, such as:
l Management theory and organizational theory
l Theory of management and organizational behavior
Why should you study management?:
Know the logic of decision making and the use of concepts
A source of knowledge, to be informed about where the “legs grow” from this whole business =)
Relying on existing works– to continue work in this direction for a possible “breakthrough” in science.
You need to pass the exam in the subject!!!
Related information.
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Levels of management.
Most firms have three levels of management: top, middle and bottom.
The impetus for the division of management into upper, middle and lower levels was given by the industrial revolution in Europe in the 18th century. First, the upper and lower levels of management were separated. The word “master” has become scary and hateful. Masters were more often selected based on physical characteristics than on their ability to deal with people. The middle link became isolated as the size and complexity of firms increased and a more meaningful approach to management took place.
Managers at each level perform the same functions: planning, organizing, directing, motivating, controlling. The only difference is the importance they attach to one or another function. A top-level manager devotes more time to planning and organization than lower-level managers. A middle-level manager devotes more time to management and control than a top-level manager. A lower-level manager spends most of his time motivating and controlling subordinates. However, most managers perform all five management functions.
So, you cannot study or master the management functions of the upper, middle or lower levels separately. When we talk about one of them, we are essentially talking about all three.
It should be emphasized that it is impossible to clearly and clearly define each of the three levels of management. Therefore, we give only working definitions, because Each company determines management levels in accordance with its own characteristics. Here, it is probably worth recalling the influence of the following factors: the complexity of the organizational structure, the number of employees, the essence of the business itself, etc.
Top level managers medium and large firms focus on planning for the future, setting goals, determining courses of action, rules and procedures for their implementation. They are responsible for the prosperity of the company and therefore must plan, direct and control its activities.
The top level of management includes the president and vice presidents. It is clear that a company may have several vice presidents responsible for certain areas of its activity - production, sales, supply, finance, personnel or advertising.
Middle managers head departments or divisions. They must organize their work so that the company's goals are achieved, its policies are implemented, and they must select and retain good employees. They are primarily responsible for managing the day-to-day activities of their units. The middle level of management includes managers of offices, workshops and warehouses, senior foremen, heads of technical control and product quality departments. In many large banks, their branches are run by vice presidents. They are responsible for the operation of bank branches and are considered top-level managers. The Branch Manager reports directly to the Vice President of Branch Operations and is a mid-level manager.
Lower level of management- This is the level of officials who directly supervise the work of their subordinates. At this level, the functions of planning and organization are implemented in the actions of the manager, stimulating and directing the activities of workers. Typical titles of positions held by managers at this level: foreman, foreman, group leader, purchasing agent, forwarder. It is often said that such a lower-level manager is “in the middle”, since he is located between direct performers and managers at the top and middle levels. Lower level managers play a very important role in the company. But usually senior management does not pay enough attention to the serious problems of lower-level managers. Such problems include low wages, overwork, lack of authority, poor professional training of ordinary workers, and the fact that they may not meet the requirements placed on them.
A newcomer begins his career as a lower-level manager. If he holds this position for one to five years, he may be promoted to mid-level manager. In this position, he will be considered a novice manager (all managers consider themselves beginners during the first ten years of their activity). No matter how useful and important the training of managers in universities and courses is, it will never replace specific practical work. This is true even for those who have earned a master's degree from Harvard Business School. To become a good manager, you need to properly combine the theoretical training acquired during your studies with practical experience.
Middle level managers are primarily responsible for productivity And efficiency operations controlled by them. Efficiency means the ability to complete a job with minimal wastage of materials and time. Productivity is the ability to get a job done and do it well. It is the middle managers who must ensure that the work is done both economically and efficiently. As they say, the result is important. Managers are fired most often for their failure to achieve intended results.
What do middle managers typically do for most of their workday? First, they plan and distribute work for the next day or week. Secondly, they act as a liaison between production staff and higher management. Third, they make day-to-day decisions that ensure profitability production and other operations. Fourth, and very important, they manage other people - either lower-level managers or (in small organizations) ordinary employees.
Middle or lower level managers may also be involved in purchasing ordered materials and components and checking their quality, working with personnel, holding meetings on safety precautions, product quality, work deficiencies, profit distribution, and preparing reports on financial and production activities , in solving large and small, but always numerous problems. Some problems, such as poor planning, are due to the personal shortcomings of the manager, others are due to the shortcomings of his subordinates, such as negligent work ethic. A number of problems arise due to the fault of management or other departments. Many problems are caused by government regulations or customer demands, and management requires lower-level management to resolve them. Under these conditions, they must view any problem as an opportunity to demonstrate their coping abilities.
N.I. Kabushkin offers a serious study of issues of management levels.
Despite the fact that all managers of an organization perform managerial activities, it cannot be said that they are all engaged in the same type of work activity. Individual managers have to spend time coordinating the work of other managers, who, in turn, coordinate the work of lower-level managers, etc. to the level of a manager who coordinates the work of non-managerial personnel - people who physically produce products or provide services. This vertical deployment of the division of labor forms management levels (Fig. 3).
The shape of the pyramid shows that at each subsequent level of management there are fewer people than at the previous one.
Highest level management of the organization can be represented by the chairman of the Board of Directors (supervisory board), president, vice president, board. This group of management employees ensures the interests and needs of shareholders, develops the organization's policy and contributes to its practical implementation. In this regard, two sublevels can be distinguished in senior management: authorized management And general leadership.
Rice. 3. Levels of control
Middle level managers management ensures the implementation of the organization’s operating policy developed by top management and is responsible for communicating more detailed tasks to divisions and departments, as well as for their implementation. Specialists included in this group, as a rule, have a wide range of responsibilities and have great freedom to make decisions. These are heads of departments, directors of enterprises that are part of the organization, heads of functional departments.
Lowest level of management represented by junior managers. These are managers who are directly above workers and other employees (not managers). These can be foremen, foremen, supervisors and other administrators responsible for bringing specific tasks to the immediate executors. The ratio of time spent on performing basic management functions differs by management level (Fig. 4).
It should be noted that at all levels of management, managers perform not only purely managerial, but also executive functions. However, as the level of management increases, the share of executive functions decreases. Calculations show that at the highest level, execution takes up about 10% of the total budget managers’ time, at the average – 50%, at the lowest – about 70% (Fig. 5).
Rice. 4. Ratio of time spent by levels and functions of management
Rice. 5. Classification of time spent by managers by type of activity and levels of management
This distribution of the total time budget is due to the fact that managers of all three levels have two areas of assignments: management assignments And assignments in the specialty(Fig. 6). This means that a manager at any level of management spends a certain percentage of his time on making management decisions and a certain percentage on making decisions in his specialty.
As can be seen in Fig. . 6, with an increase in the level of management, the proportion of tasks in the specialty decreases, and in management, accordingly, increases.
Rice. 6. Distribution of working time by management and specialty
The above classification of management levels has the most general form. Depending on the size and type of organization, its sectoral and territorial characteristics, and other factors, the characteristics of the composition and functions of managers at each of the three levels of management can vary significantly.
A. Hosking proposes a different differentiation: general management is all managers (regardless of whether they are directors or not) who are responsible for setting goals and forming policies, for issues related to planning and organizing, controlling and managing the company as a whole; management at the division level is managers who perform the same functions, but at the division level, in accordance with the general tasks and goals of the corporation.
Although all managers play certain roles and perform certain functions, this does not mean that a large number of managers in large company busy doing the same job. Organizations large enough to provide clear divisions between the work of managers and non-managers usually have such a large volume of management work that this too must be separated. One of the forms of division of managerial labor is horizontal: the placement of specific managers at the head of individual departments. For example, many enterprises have bosses finance department, production department and marketing services. As in the case of horizontal division of labor to perform production work, horizontally divided management work must be coordinated so that the organization can achieve success in its activities. Some managers have to spend time coordinating the work of other managers, who in turn also coordinate the work of managers, until finally we descend to the level of the manager who coordinates the work of non-managerial personnel - the people who physically produce products or provide services. This vertical deployment of the division of labor results in LEVELS OF MANAGEMENT.
It is usually possible to determine in an organization where one manager stands relative to others. This is done through the job title. However, the job title is not a reliable indicator of the true level of a given manager in the system. This remark is especially true when we compare the position of managers in different organizations. A simple example: a captain in the army is a junior officer, and in the navy he is a senior officer. In some companies, salespeople are called regional or territorial sales managers, although they do not manage anyone but themselves.
For reasons we'll go into more detail later, organizational size is only one of several factors that determine how many layers of management a company must have to achieve optimal results. There are many examples of highly successful organizations with far fewer layers of management than in much smaller organizations.
Regardless of how many levels of management there are, managers are traditionally divided into three categories. Sociologist Talcott Parsons views these three categories in terms of the function performed by a leader in an organization. According to Parsons' definition, individuals at the technical level are primarily concerned with the day-to-day operations and activities necessary to provide efficient work without disruptions in the production of products or provision of services. Persons at the management level are mainly engaged in management and coordination within the organization; they coordinate the various forms of activity and efforts of various divisions of the organization. Managers at the institutional level are primarily engaged in developing long-term (long-term) plans, formulating goals, adapting the organization to various kinds of changes, managing the relationship between the organization and the external environment, as well as the society in which this organization exists and operates.
A more commonly used way to describe levels of management is to distinguish between lower-level managers (managers), or operational managers, middle-level managers (managers), and senior managers (managers).
LOW-LEVEL LEADERS. Junior supervisors, also called first-line managers or operations managers, are the organizational level directly above workers and other non-managerial employees. JUNIOR MANAGERS mainly monitor the implementation of production tasks to continuously provide direct information on the correctness of these tasks. Managers at this level are often responsible for the direct use of resources allocated to them, such as raw materials and equipment. Typical job titles at this level are foreman, shift foreman, sergeant, department head, head nurse, and head of the management department at a business school. Most of the managers in general are lower-level managers. Most people begin their management careers in this capacity.
Research shows that the job of a line manager is stressful and action-packed. It is characterized by frequent breaks and transitions from one task to another. The tasks themselves are potentially brief: one study found that the average time it took a craftsman to complete one task was 48 seconds. The time period for implementing the decisions made by the master is also short. They are almost always completed in less than two weeks. It was found that craftsmen spend about half of their working time communicating. They communicate a lot with their subordinates, a little with other masters, and very little with their superiors.
MIDDLE MANAGERS. The work of junior managers is coordinated and controlled by middle managers. Over the past decades, middle management has grown significantly both in size and in importance. In a large organization there may be so many middle managers that it becomes necessary to separate this group. And if such a division occurs, then two levels arise, the first of which is called the upper level of middle management, the second - the lower. Thus, four main levels of management are formed: highest, upper middle, lower middle and grassroots. Typical middle management positions include department head (in business), dean (in college), regional or national sales manager, and branch manager. Army officers from lieutenant to colonel and priests with the rank of bishop are considered middle-level leaders in their organizations.
It is difficult to make generalizations about the nature of a line manager's job as it varies significantly from organization to organization and even within the same organization. Some organizations give their line managers more responsibility, making their work somewhat similar to that of senior managers. A study of 190 executives in 8 companies found that middle managers were an integral part of the decision-making process. They identified problems, initiated discussions, recommended actions, and developed innovative, creative proposals.
A middle manager often heads a large division or department in an organization. The nature of his work to a greater extent determined by the content of the work of the unit than the organization as a whole. For example, the work of a production manager for an industrial firm primarily involves coordinating and directing the work of lower-level managers, analyzing productivity data, and interacting with development engineers. new products. The head of the external relations department at the same company spends the bulk of his time preparing papers, reading, talking and talking, and also at meetings of various committees.
In general, however, middle managers act as a buffer between senior and lower-level managers. They prepare information for decisions made by senior managers and transfer these decisions, usually after transforming them in a technologically convenient form, in the form of specifications and specific tasks to lower-level line managers. Although there are variations, most communication among middle managers takes place in the form of conversations with other middle and lower managers. One study of middle managers in a manufacturing plant found that they spent about 89% of their time in verbal interactions. Another study indicates that mid-level managers spend only 34% of their time alone, and it also highlights that most of these managers' time is spent communicating verbally.
Middle managers as social group experienced especially strong influence various changes economic and technological nature in production during the 80s. Personal computers have eliminated some of their functions and changed others, allowing senior executives to get information directly from the source at their desks, rather than having to filter it through middle management. The wave of corporate mergers and general pressure to improve operational efficiency have also caused drastic cuts in the number of middle management in some organizations.
SENIOR MANAGERS. The highest organizational level - senior management - is much less numerous than others. Even in the largest organizations, there are only a few senior executives. Typical senior executive positions in business are chairman of the board, president, corporate vice president, and corporate treasurer. In the army they can be compared with generals, among statesmen - with ministers, and in a university - with chancellors (rectors) of colleges.
But the hardships of such a post are also great: a person in this position, as a rule, is very lonely. After carefully studying the performance of five senior executives, Mintzberg concluded: “The job of leading a large organization can thus be described as extremely draining. The amount of work that a manager has to do or finds necessary to do during the day is enormous, and the pace at which it must be done is very stressful. And after long hours of work, the main leader (as well as other leaders), is unable to leave his environment either physically (since the environment recognizes the authority and status of his position), or in his thoughts, which are aimed at continuous search new information.
The main reason for the intense pace and enormous volume of work is the fact that the work of a senior manager does not have a clear end. Unlike a sales agent who must make a certain number of phone calls, or a factory worker who must meet a production quota, there is no point in the enterprise as a whole, short of a complete shutdown, when the job can be considered complete. Therefore, a senior manager cannot be sure that he (or she) has successfully completed his activities. As long as the organization continues to operate and external environment continues to change, there is always a risk of failure. A surgeon may finish an operation and consider his task completed, but a senior manager always feels that he needs to do something more, more, further.
Levels of management and types of managers
Completed by a third year student
Faculty Business and Management
Checked by the teacher
· MANAGEMENT LEVELS.
· Management as a concept
· Horizontal and vertical principle of division of labor
· Levels of management
· MANAGER AND LEADER. COMMON AND DISTINGUISHING FEATURES.
· Management and manager functions
· Leader and leader functions
· Leaders and managers. General and distinctive features.
· TYPES OF LEADERS. QUALITIES REQUIRED BY A MANAGER.
· Main types of leaders
· Qualities required for a modern leader
Conclusions and Conclusions
· LEVELS OF MANAGEMENT
· Management as a concept
Control is the process of planning, organization, motivation and control necessary in order to formulate and achieve the goals of the organization (Meskon M. Kh.).
Peter F. Drucker, considered by many to be the world's leading management and organization theorist, offers a different definition. "Management - This special kind activities that transform a disorganized crowd into an effective, focused and productive group."
Management (as a process) is the influence of the subject of management on the object in order to achieve certain goals. The subjects of management can be an investor, manager, state, corporate or entrepreneurial governing body. The objects of management can be objects of a lower level of management in relation to the subject (a corporation enterprise, a department of an enterprise, a subject of the Federation, etc.), a manager of a lower management level in relation to the subject, a specialist, a worker, objects and means of labor for the worker and etc.
Management is the implementation of several interrelated functions: planning, organization, employee motivation and control. The interaction of these functions with each other forms single process, or, in other words a continuous chain of interrelated actions .
Management as such is also a stimulating element social change, and an example of significant social change. And finally, it is management, more than anything else, that explains the most significant phenomenon of our century: the explosion of education. The more highly educated people there are, the more dependent they are on the organization. Almost all people with education above secondary school, in all developed countries of the world in the United States, this figure is more than 90% - will spend their entire lives as employees of controlled organizations and will not be able to live and earn a living outside the organizations.
· Horizontal and vertical principle of division of labor
Large organizations need to perform very large volumes of management work. It requires division of managerial labor into horizontal and vertical.
The horizontal principle of division of labor is the placement of managers at the head of individual divisions and departments.
The vertical division of labor principle is the creation of a hierarchy of management levels to coordinate horizontally divided management work to achieve organizational goals.
Also in this chapter we will look at 3 levels of management, or, in other words, three categories of managers.
· Levels of Management
· Lower level managers(operational managers). The most numerous category. They monitor the implementation of production tasks and the use of resources (raw materials, equipment, personnel). Junior superiors include the foreman, the head of the laboratory, etc. The work of a lower-level manager is very diverse, characterized by frequent transitions from one type of activity to another. The level of responsibility of lower-level managers is not very high; sometimes the work involves a significant proportion of physical labor.
A typical job title at this level is foreman, shift foreman, sergeant, department head, head nurse. Most of the managers in general are lower-level managers. Most people begin their management careers in this capacity.
Research has shown that the job of a line manager is stressful and action-packed. It is characterized by frequent breaks and transitions from one task to another. The tasks themselves are potentially short. One study found that the average time it took a craftsman to complete one task was 48 seconds. The time period for implementing the decisions made by the master is also short. They are almost always implemented in less than 2 weeks. It was found that craftsmen spend about half of their working time communicating. They communicate a lot with their subordinates, not much with other masters, and very little with their superiors.
· Middle managers. They monitor the work of lower-level managers and transmit processed information to senior managers. This level includes: heads of department, dean, etc. Middle managers bear a significantly greater share of responsibility.
In a large organization there may be so many middle managers that it may be necessary to separate the group. And if such a division occurs, then two levels arise, the first of which is called upper level of middle management, second - lower level of middle management.
It is difficult to generalize about the character of a middle manager, as it varies significantly from organization to organization and even within the same organization.
A middle manager often heads a large division or department in an organization. The nature of his work is determined to a greater extent by the content of the work of the unit than of the organization as a whole. For example, the work of a production manager in an industrial firm primarily involves coordinating and directing the work of lower-level managers, analyzing productivity data, and interacting with an engineer to develop new products. The head of the external relations department at the same company spends the bulk of his time preparing papers, reading, talking and talking, as well as at meetings of various committees.
In general, however, middle managers act as a buffer between senior and lower management. They prepare information for decisions made by senior managers and transmit these decisions, usually after transforming them into a technologically convenient form, in the form of specifications and specific tasks, to lower-level line managers.
Middle managers, as a social group, experienced a particularly strong impact of various economic and technological changes in production during the 80s. Personal computers have eliminated some of their functions and changed others, allowing senior managers to get information directly from the source at their desks, rather than having to filter it through middle management. A wave of corporate mergers and general pressure to improve operational efficiency have also caused a drastic reduction in the number of middle managers in some organizations.
· Senior managers. The smallest category. They are responsible for the development and implementation of the organization's strategy and for making decisions that are especially important for it. Senior managers include: company president, minister, rector, etc. The work of a senior manager is very responsible, since the scope of work is large and the pace of activity is intense. Their work mainly involves mental activity. They must constantly make management decisions.
Usually there is a hierarchy (pyramid) of management with differentiation according to the rank of command power, decision-making competence, authority, and position.
The management hierarchy is a tool for realizing the company’s goals and guaranteeing the preservation of the system. The higher the hierarchical level, the greater the volume and complexity of the functions performed, the responsibility, the share of strategic decisions and access to information. At the same time, qualification requirements and personal freedom in management are increasing. The lower the level, the greater the simplicity of solutions, the share operational types activities.
The pyramid shape is used to show that each successive level of management has fewer people than the previous one.
· MANAGER AND LEADER. COMMON AND DISTINGUISHING FEATURES
· Management and manager functions
Management- this is a system of management methods in a market or market economy, which involve the company’s orientation towards the demand and needs of the market, a constant desire to increase production efficiency at the lowest cost, in order to obtain optimal results.
Management is also a field of human knowledge that helps to carry out the function of management. Finally, management as a collective term for managers is a certain category of people, a social stratum of those who carry out management work. The importance of management was especially clearly recognized in the 1930s. Even then it became obvious that this activity had turned into a profession, a field of knowledge into an independent discipline, and a social stratum into a very influential social force. The growing role of this social force led to talk of a “revolution of managers,” when it turned out that there were giant corporations with enormous economic, production, scientific and technical potential, comparable in power to entire states. The largest corporations and banks form the core of the economic and political strength of great nations. Governments depend on them, many of them are transnational in nature, extending their production, distribution, service, information networks Worldwide. This means that the decisions of managers, like the decisions of statesmen, can determine the fate of millions of people, states and entire regions. However, the role of managers is not limited to their presence only in huge multi-level and branched corporate management structures. In a mature market economy, small business is no less important. In terms of quantity, this is more than 95% of all companies; in terms of value, this is the closest proximity to the everyday needs of consumers and at the same time a testing ground technical progress and other innovations. For the majority of the population, this is also work. Managing a small business skillfully means surviving, standing, and growing. How to do this is also a question of effective management.
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