Understanding Management Levels and Decision-Making

Management Levels

First-Line Management

Supervisors or first-line managers monitor the performance of operators.

Middle Management

Middle managers supervise first-line managers and ensure efficient resource utilization. They are typically responsible for a department.

Senior Management

Senior management oversees all departments, sets corporate objectives, and supervises middle managers. The head is the CEO (Chief Executive Officer).

Fundamental Principles of Fayol

Hierarchy, Unity of Command, Control, and Breadth of Expertise.

Management Skills

Conceptual Skills

The mental ability to coordinate and integrate diverse interests and activities within the organization. This includes analyzing situations, distinguishing between causes and effects, acquiring and interpreting information, and finding solutions to problems.

Technical Skills

The ability to perform specific activities in a specialized field. This involves possessing the knowledge and skills necessary to carry out a business activity and understanding the workings of the area of operation.

Interpersonal Skills

The ability to work effectively with others, including understanding, motivating, and leading peers and subordinates. Effective communication, both written and verbal, is crucial.

Decision-Making

Scheduled Decisions

Well-structured, repetitive, and procedural decisions that are easier to solve due to their predictable outcomes. These are often handled by the first line of management.

Unscheduled Decisions

Unstructured, novel decisions that present more challenges and uncertainty. These are typically addressed by higher hierarchical levels.

Stages of Decision-Making Process

1. Recognize the need to make a decision.
2. Generate options.
3. Evaluate options (legality, morality, economic viability, practicality).
4. Choose from the options.
5. Implement the chosen option.
6. Learn from feedback.