Levels of Management
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Levels of Management
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Top Level Management
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Comprises of organization’s senior
executives
Establish goals of the Organization
E.g. Long Range planning, New market
and product development, mergers and
acquisitions and major policy decisions.
Interact with external environment
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Financial institutions
Political figures
Important Suppliers and Customers
2
Levels of Management
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Middle Level Management
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Middle-level managers (Research directors,
plant managers, directors of IS, etc..)
Allocate Resources so that the objectives of
top management are accomplished
Implement plans
contd..
3
Levels of Management
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Supervise lower-level managers
For example : A sales-manager organizes
resources sales people’s time,
 Day to day job scheduling
 training budgets-to achieve sales results
that are consistent with the growth
plans of management
4
Levels of Management
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Lower Level Management:
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Supervise day-to-day operations such as
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Order entry
Credit checking
Inventory control
Preventive maintenance
Use information such as
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Quality control reports
Inventory turnover reports
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Activities of the Organization
Support for
decisions
Special
Requests
Strategic Planning
Long-range Plans
Information
needs
Demand
Reports
Tactical Planning
Budgets tactical
plans
Operational
Transactions
Day-to-day transactions
Payroll
Inventory
Billing
Scheduled
Reports
Scheduling
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Classification of Information Systems
Characteristics Operational Tactical
Strategic
Frequency
Repetitive
Dependability of
results
Expected
Results
Time period
covered
The past
Level of detail
Very detailed Summaries of Summaries of
data
data
Source of Data
Internal
Mostly
Often Ad-hoc
Regular
Some
Results often
Surprises may contain
occur
surprises
Comparative
Internal and
External
Predictive of
the future
Mostly
External
Classification of Information Systems
Characteristics Operational Tactical
Strategic
Nature of Data
Highly
Structured
Highly
Unstructured
Accuracy
Highly
Accurate
Data
Some
Unstructured
Data
Some
Subjective
Data
Typical User
First-line
Supervisors
Middle
Managers
Top
Management
Oriented
towards
control and
resource
allocation
Goal Oriented
Level of Decision Task
Oriented
Highly
Subjective
Data
Examples of planning
and control in
different functional areas
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Functions
Production
Marketing
Finance
Personnel
Strategic
Planning
Location of a
new factory
Entering the
export market
Raising
capital with
issue of new
shares
Deciding
changes
required in
the org.
Structure
Management
Control
Determining
product mix
for a monthly
production
program
Media planning Determining
for advertising maximum
expenditures
levels of
credits for
customers
Determining
who will be
promoted to
fill a vacant
post
Operational
Control
Scheduling
specific jobs
on specific
machines
during a shift
Planning sales
contacts to be
made by a
salesman in
the immediate
future
Determine
which of the
workers will
be on each
shift
Levels
Decide what
action to be
taken against
default in
payment by a
specific
customer
Dellco Foods
Strategic Planning
Competitive
Industry Statistics
Tactical
Sales Analysis by customer
Reorder Analysis of new products
Sales analysis by product line
Production forecast
Operational
Bill of materials Order processing Accounts receivable
Manufacturing On-line order
General ledger
specifications
inquiry
Product
Finished goods
specifications
inventory
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