The more management levels through which a message passes, the

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Options

A) more important the message is.
B) higher the chance the message will become external.
C) more informal the organization.
D) more disorganized the organization.
E) more distorted the message may become.

Answer Explanation

The Correct answer for the given question is Option E) more distorted the message may become.

The more management levels through which a message passes, the more distorted the message may become.‘Levels of Management’ refers to a line of demarcation between various managerial positions within an organization. Management levels increase as the business and workforce grow, and vice versa. Any managerial position is determined by the level of management, the authority granted to it, and the status it enjoys.

Organizational structure of a business with multiple levels of management is bureaucratic and centralized. Decentralized organizational structures, on the other hand, have fewer levels of management within the organization. An organization with multiple layers of management faces several disadvantages, especially in the current business climate where many organizations work towards decentralization.

There are various manageent levels in an organization that leads to several disadvantages alon with its advantages.

a) Decision Making Is Difficult

The high level of bureaucracy in a business structure makes decision-making more complicated and slow. It goes against modern business practice of having an open door policy to some extent to have this type of organizational structure. Different levels of management lead to ineffective and out-of-place communication between employees and upper management. There can be some disconnection between different levels in an organization and between different departments, which can become a limiting factor for success.

b) Communication can be a problem.

An organization with multiple management layers faces a multifaceted communication problem. Although multiple layers are essential to any functioning organization, they can create a host of disadvantages as well. In this organizational structure, information cannot flow freely within the organization, which negatively affects communication. Employees can become discouraged when there are multiple channels and walls to spread information effectively and efficiently when multiple channels and walls are present. When information is transmitted but is miscommunicated, we encounter an offshoot of this problem.

c) Instituting change is difficult

The business structure of this type also has an additional disadvantage resulting from changes that take place outside the organization. The many layers of management inside the organization can make it difficult for outside information to penetrate. The disadvantage of this is that it makes it more difficult for the company to keep up with market developments and innovations. Decisions are also taken at a slower pace as a result. The company is at a disadvantage as any change must be approved by management.

d) That’s an expensive process.

The maintenance of vertical organizational structures is also more costly than maintaining horizontal organizational structures. There are more levels of management when there are more layers. Multiplying management layers costs businesses a considerable amount of money because managers typically earn more than other employees. This means that an organization with a lot of managers incurs more expenses. It can increase an organization’s costs without enhancing its output from a business perspective.

Management Levels

A separation between the managerial positions of an organization is provided by the three levels of management. According to the administrative rank of an organization worker, the extent of authority, status, and chain of command a worker enjoys are determined. Management can be divided into three levels within an organization, where the managers at each level perform different duties to assure the smooth functioning of the organization. The three levels are:

Top Level of Management

The company is led by a board of directors and managed by a chief executive or managing director. An enterprise’s top management sets goals and establishes policies. It is the ultimate authority. They spend a lot of time planning and coordinating functions. The role of the top management can be summarized as follows –

Top management lays down the objectives and broad policies of the enterprise.
The department issues instructions for the preparation of department budgets, procedures, schedules, etc.
It prepares strategic plans & policies for the enterprise.
Executives for middle level positions, i.e. departmental managers, are appointed by this body.
All departmental activities are controlled & coordinated by it.
As well as maintaining a connection with the outside world, it also maintains a relationship with the government. This document provides direction and guidance.
A company’s top management is also accountable to the shareholders for its performance.

Middle Level of Management

Middle-level managers are branch managers and departmental managers. They are responsible for the functioning of their respective departments under the direction of the top management. They devote more time to organizational and directional functions. Small organizations have a single layer of middle management, whereas large organizations may have a senior and junior middle management layer. Their responsibilities include:

According to the policies and directives of the top management, they implement the organization’s plans.
The sub-units of the organization are responsible for making plans.
Lower level management is employed and trained by middle level.
Top level management interprets and explains policies to lower level management.
The division or department head coordinates activities within the division or department.
Top management also receives important reports and data from middle level.
A junior manager’s performance is evaluated by middle level.
It is the responsibility of middle level to inspire lower level managers to improve their performance.

Lower Level of Management

In management, lower levels are also known as supervisory or operational levels. This group is made up of supervisors, foremen, section officers, superintendents, etc. Supervisory management involves overseeing and directing employees primarily on a personal level. Managers are therefore responsible for directing and controlling employees. Some of their responsibilities include:

Various workers are assigned jobs and tasks.
They provide guidance and instruction to workers on a day-to-day basis.
Production quality and quantity are their responsibilities.
The responsibility of maintaining good relations within the organization also falls to them.
Employees communicate workers’ problems, suggestions, and recommendation to the higher level, as well as higher level goals and objectives to the workers.
Employees turn to them for help when they have grievances.
Subordinates are supervised and guided by them.
They are responsible for providing workers with training.
For things to be completed, they arrange the necessary materials, machines, tools, and so on.
Periodic reports about the workers’ performance are prepared by them.
Discipline is maintained in the enterprise by them.
Workers are motivated by them.
Due to their direct contact with workers, they are the image builders of the enterprise.

Economics is best defined as the study of

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I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.

I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,

Management Notes

The more management levels through which a message passes, the