---
title: "Levels of management and managerial skills"
subject: "Organization and Management"
chapter: 2
key: "semester_7/organization_and_management:management-levels-skills"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/management-levels-skills
site: BCT Engineering
---

# Levels of management and managerial skills

Organization and Management · Chapter 2: Management

- Asked in: 2074 Chaitra, 4+4 marks; 2073 Chaitra, 4+4 marks; 2072 Chaitra, 4+4 marks; year not given (asked 3 times)
- Video: [Levels of Management, Managerial Skills](https://www.youtube.com/watch?v=aqExHSlV3wE) — Electrical Educator
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/management-levels-skills
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-2

## Question

State and explain the different levels of management. What are the managerial skills required of a manager?

## Short answer

Three levels: top (strategic, sets policies), middle (tactical, departmental plans), lower (operational, supervises workers). Managerial skills include technical (most at lower), human (interpersonal, needed at all levels), conceptual (most at top), design (problem-solving), plus communication and decision-making.

## Answer

#### Levels of management
Management is generally divided into three levels:
1. **Top level (strategic):** Board of Directors, Chairman, CEO, Managing Director. They set objectives, policies and long-term strategy, and are responsible for the overall organization. Example: the Managing Director of Nepal Telecom.
2. **Middle level (tactical):** Department or division heads such as production manager, marketing manager, branch manager. They convert top-level plans into departmental plans, coordinate and guide first-line managers.
3. **Lower/first-line level (operational):** Supervisors, foremen, section officers. They directly supervise workers, assign daily tasks, ensure quality and report to middle managers.

```text
      /\   Top: policy, strategy
     /  \
    /----\ Middle: coordination
   /------\
  /--------\ Lower: supervision
```

#### Managerial skills
Robert Katz identified three basic skills (technical, human and conceptual); Koontz and Weihrich later added design skill.
1. **Technical skill:** Knowledge and ability to use methods, tools and techniques of a specific field (an engineer's design skill). Most needed at the lower level.
2. **Human (interpersonal) skill:** Ability to work with, understand and motivate people, communicate and lead teams. Needed at all levels.
3. **Conceptual skill:** Ability to see the organization as a whole, analyse complex situations and plan strategy. Most needed at the top level.
4. **Design (problem-solving) skill:** Ability to solve problems and design workable solutions.
5. **Communication, decision-making and political skills** are also often added.

| Skill | Top | Middle | Lower |
|---|---|---|---|
| Conceptual | High | Medium | Low |
| Human | High | High | High |
| Technical | Low | Medium | High |

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which level sets objectives, policies and long-term strategy?
   A. Middle level (tactical)
   B. Lower level (operational)
   C. First-line supervisors
   D. Top level (strategic)
   Answer: D. Top managers set policy and strategy. (Key point: Top level)

2. What do middle managers mainly do?
   A. Convert top-level plans into departmental plans and coordinate first-line managers
   B. Directly supervise workers daily
   C. Set the long-term strategy of the whole firm
   D. Perform only technical tasks
   Answer: A. Middle managers are tactical, linking top and lower levels. (Key point: Middle level)

3. Which skill is most needed at the top level?
   A. Technical skill
   B. Conceptual skill
   C. Human skill only
   D. Manual skill
   Answer: B. Top managers must see the organization as a whole. (Key point: Conceptual skill)

4. Technical skill is most needed at which level?
   A. Top level
   B. Middle level only
   C. Lower level
   D. Board of directors
   Answer: C. First-line managers supervise technical work. (Key point: Technical skill)

## Related in Organization and Management

- [Managerial skills; importance of management](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amanagerial-skills-importance) — Organization and Management, chapter 2

## Related in other subjects

- [Essential interpersonal and managerial skills](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Ainterpersonal-managerial-skills) — ICT Project Management, chapter 2
- [General management skills and project management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Ageneral-management-skill) — ICT Project Management, chapter 2