People and tasks are organized to implement the organization’s strategy. The organization’s formal structure includes its systems of financial and operating control systems. The number of levels between the operator at the lowest rung and the chief executive at the highest rung in the hierarchy has increased from 5 to 15 in the last fifteen years or so. We have more people at the middle level to supervise and get work done than those who do the work. Mangers by themselves do not produce. Promotion policies designed to make individual aspirations are causing more problems in achieving organizational purposes.
Organizations need three levels: operating, managerial and strategic. At the operational level, the day-to-day management of the organization is carried out. The managerial level focuses on the processes by which the organization obtains and allocates the resources needed to carry out its strategy and objectives. The strategic level deals with policy formulation and overall goal setting; its objective is to position the organization in the best possible way to deal effectively with its environment. The three levels do not operate in a top-down system, but provide feedback loops for upward communication.
As mentioned above, in most Indian organizations the levels of managerial activity have been increased largely to accommodate the aspirations for promotions that individual employees have. In the process, employees are promoted, jobs are downgraded and responsibility is blurred.
