1. LEVELS MANAGEMENT - ORGANISATIONAL STRUCTURES

Levels management: DEFINE

the various division between the degree of authority and responsibility between management within an organisation

Levels management: DESCRIBE

- known as a hierarchy

- often illustrated within an organisation structure

- outline of how activities are directed in order to achieve goals of an organisation

- businesses usually organised in the form of a hierarchy, work is divided logically between number of individuals/departments

- organisation chart: the way the business is organised (set up in diagram)

--> shows level of responsibility, line of communication and divisions of work

- small to medium size organisations (SME’s typically have 3-5 layers consisting of upper, middle and frontline management

- considered flat or tall depending on number of levels of management

Levels management: EXPLAIN

- number + types of management within organisation will change depending on:

--> number of employees

--> sales turnover of business

--> market it operates in

--> industry it operates in

TOP (EXECUTIVE LEVEL): DEFINE

executive management of a business who are accountable for the strategic direction and sucess of business

TOP (EXECUTIVE LEVEL): DESCRIBE

top layer within organisation consist of:

- business owner

- board of director

Responsible to setting the overall strategic direction, values and goals of the busienss

- roles of upper executive team include:

--> developing strategic plan for business growth into future

--> ensuring broad business policies comply with legal requirements (EEO, WHD)

--> financial health

TOP (EXECUTIVE LEVEL): EXPLAIN

consists of people that have a vested interest in business and a high level of knowledge, skills and expertise

--> therefore salaries and level of responsibility are very high

- being in charge of an organisation and its people within means these people need to have a strong sense of accountability and integrity, conceptual skills and be future thinkers, also be comfortable with risk.

TOP (EXECUTIVE LEVEL): DISCUSS

they oversea the whole organisation and are legally responsible for the operations of the business

- this means if business commits a crime such as fraud, it is the Upper level of management that can be held responsible and even imprisoned.

- top level should have fewest people

- if not, it is considered top heavy and salary costs within organisation may be unsustainable

MIDDLE: DEFINE

people in business who are in charge of departments or groups and responsible for controlling its resources and carrying out executive level directions

MIDDLE: DESCRIBE

consist of heads of functional or product areas of the business

--> for example. Marketing manager, production manager, fresh produce manager

- middle management is responsible for leading the frontline employees

- can be expanded to include more than 1 layer depending on the size of organisation

MIDDLE: EXPLAIN

intermediate leadership level of a hierarchical oganisation, being subordinate to the senior management, but above the lowest levels of operational staff

-> for example, an organisation may have senior managers ane managers

- they are accountable to the top level management, and they devote moire time to organisational and directional functions than upper management

- a middle managers role may emphasise:

--> implementing organisational strategic plans in conformance with the policies and the objectives of the top management

--> communication info and policies from top to lower management

--> design and implement systems that will assist in achieving overall strategic plan of business set by upper

--> inspiring and providing guidance to lower level managers to assist them in performance improvement and accomplishment of business objectives

- in a participative leadership models, middle managers may also communicate upward by offering suggestions + feedback to top managers

- because middle managers are more involved in the day-to-day workings of a business, they can provide valuable info to top managers that will help them improve the organisations performance using broader, more strategic view

-  because middle managers work with both top-level and first level managers, middle managers tend to have excellent interpersonal skills relating to communication, motivation and mentoring

- leadership skills also important in conveying tasks to first-level or frontline managers

MIDDLE: DISCUSS

may be reduced in organisations as a result of re-organisation

- such changes include downsizing, ‘delayering’ or flattening (reducing number of management levels), + outsourcing

- changes may occur in an effort to reduce costs (as middle management is commonly paid more than junior staff) or make organisation flatter, which empowers employees, leaving organisation more innovative + flexible

FRONTLINE: DESCRIBE

A role that is directly responsible for daily activities

FRONTLINE: DESCRIBE

Consists of supervisors of employees or team leaders, which focus on short term goals and daily tasks

• these people usually have high experience + technical knowledge in their area

• Best positioned to direct + control specific set of employees

FRONTLINE: EXPLAIN

About ensuring the day to day process are implemented as per the direction of middle management

• focused on their area of business and have limited knowledge of what is occurring in other operational areas

• Required to report results to middle management

• Required to communicate their observations to middle management + direct employees

• On managerial side, frontline managers are often tasked with hiring, assessing performance, providing feedback, etc

• As primary point of contact for most employees, frontline managers must be careful listeners capable of understanding employee needs, removing blockers and optimising performance

FLATTENING VS HIERARCHAL STRUCTURE: DISCUSS

• small businesses start out as “flat” organisations, with most employees reporting directly to the owners

• However, as small businesses start grow, they tend to add management layers and become hierarchical organisations with a chief executive officer at the top, followers by senior vice presidents, directors, managers, project leaders and finally employees

• Flattening these hierarchies involve removing or combining some of these layers

• Typically a level of middle management layer will be removed or combined, which will reduce salary expenses for a business

• Advantage of this is quicker communication, which leads to organisations that can respond rapidly to competition + other changed in business environment

• If organisation has many levels in hierarchy, work flow may be slow, which can lead to missed opportunities and miss communication