PM Unit 1

Contents
1. Levels of management
2. Nature of management
Levels of Management or Managerial Hierarchy
Top Management
Middle
Management
Lower Management
Workers
Top Management
Top Management is the supreme body entrusted with the task of making an organisation successful. It
derives its powers or authority directly from the owner of the enterprise.
The top level management consists of Board of Directors, Managing Director or General Manager, Chief
Executive, experts and executive committees.
Functions:
1. Setting the overall objectives.
2. Formulation of basic policies, plans, programmes, budgets, strategies, etc.
3. Designing organisational structure.
4. Providing efficient manpower at the middle and lower levels of management.
5. Issuing orders to get the work done.
6. Delegating authority and responsibility.
7. Decides, directs, co-ordinates and controls the overall working of the organisation.
Middle Management
The job of middle management is to put the plans into action. It consists of all the departmental and
assistant managers namely purchase, sales, production, finance and personnel etc.
Functions
1. Assisting top management in realising objectives.
2. Implementation of departmental policies.
3. Selecting the right man for right job for their departments.
4. Issuing clear orders to departmental subordinates.
5. Motivation of subordinates.
6. Maintaining harmonious relations with other departments.
7. Training and development of subordinates.
Lower Management
Lower level management is also known as supervisory management or as operative management because it
is concerned mainly with personal observation and direction of operative employees. It consists of factory
supervisors, foreman, sales supervisors, accounts officers,etc. They issue orders and instruction and guide day
to day activities. They also represent the grievances of the workers to the higher levels of management.
Functions
1. It does day to day operational planning.
2. Assigning duties to the individual workers.
3. Guiding and instructing of workers.
4. To make available the required materials, tools etc at the workplace.
5. It maintains a close personal contacts with workers to ensure discipline and team work.
6. It submits reports and statements to higher authorities.
Nature of Management
Management Management Management as

as a Science as an Art a Profession
1. Systematic body of 1. Practical knowledge 1. Specialised

knowledge 2. Personal skill body of
2. Universal principles 3. Result- oriented knowledge
3. Scientific enquiry approach 2. Restricted
and experiments 4. Creativity entry
4. Cause and effect 5. Improvement 3. Service motive
relationship through continuous 4. Representativ
5. Test of validity and practice. e association
predictibility 5. Code of
conduct
Multiple choice questions:
1. What is Management?
a. It is a process.
b. Is it an organization.
c. It is a business term.
Ans- a
It is a process to solve a problem or in order to achieve an ultimate goal.

2. Why is management required?
a. To achieve a personal goal.

b. To achieve a collective goal and develop.
c. To make money.
d. To have good stability.
Ans- b
Management is directed towards achieving a goal together as a group of

individuals. A goal is a collective one and not that of a person for his/her own
selfish means.
3. What is a prime key for a successful management process?
a. Coordination
b. Understanding
c. Good HR
d. More salary.
Ans- a
Coordination is the most important element unless there’s mo coordination it is

impossible to hold an organisation.
4. What kind of process is management?
a. Hierarchical
b. Organizational
c. Mental
d. Universal
Ans: d
The process of management is universal and practiced everywhere around the globe. It
is not a single entity.
5. Why does a management style has to be Flexible?
a. To make more room for opportunities.

b. Management shouldn’t be flexible at all.
c. To centralise the organisation.
d. To adapt the changes as the opportunities come up.
Ans- d
An organisation undergoes changes, new dimensions & faces new challenges

everyday so hence an organisation should be flexible.
6. Which of the following designation aren’t in the hierarchy of top level
management?
a. Chairman
b. Production manager
c. Director
d. President
Ans- b
The production manager is a post of middle level management & deals with the
activities of production & manages office of the lower level.
7.Which of the following is the prioritisation of the upper level management function?
a. To giving people their responsibilities & duties in order to provide work to the
employees.
b. Making sure that the safety measures are taken & create a healthy, safe & an
effective work environment.
c. Making sure the quality of products are right.
d. Giving salaries.
Ans- b
More than anything the priority of the upper management employees should be
making sure to create regulations for a safe & healthy work environment.
8. Which one of these statements is incorrect in reference to the term of
management ?
a. Management is dynamic in nature.

b. Management is a universally applied process.
c. Management is a rigid process.
d. Management process is committed to solve problems of an organisation.
Ans- c
Process of management can never be rigid. It has to be continuous and more capable
of accepting, adapting & growing.
9. Management is not ______.
a. A pure science.
b. An art.
c. Art and science both.
Ans- a
Management is not a pure science like Physics, Chemistry or Biology. It is regarded as

a social science, behavioural science or applied science.
10. Top management is concerned with the formulation of ______.
a. Long-term plans.
b. Short-term plans
c. Guidelines for only lower level management.
d. None of these.
Ans- a
Top management is concerned with the formulation of Long term goals which is
accomplished in the future.

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Contents

Management Management Management as

1. Systematic body of 1. Practical knowledge 1. Specialised

It is a process to solve a problem or in order to achieve an ultimate goal.

a. To achieve a personal goal.

Management is directed towards achieving a goal together as a group of

Coordination is the most important element unless there’s mo coordination it is

a. To make more room for opportunities.

An organisation undergoes changes, new dimensions & faces new challenges

a. Management is dynamic in nature.

Management is not a pure science like Physics, Chemistry or Biology. It is regarded as

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