Based on the picture I posted ealier, I believe that what you have there is the SHIFT lever.
I would say that you are missing the kickdown lever, which attaches to the inner shaft.
I have also read, and tend to believe that you won't HURT the trans by not having the kickdown hooked up.
That being said though, it's much more convenient to have it hooked up and operating as it was designed to. Let the throttle position decide the appropriate time to downshift instead of having to manually shift into 2nd when you want to get around somebody on the highway, or even pull up a steep grade. And then there is having to remember to shift back into 3rd.
It's an automatic, not a manually shifted automatic.