Chapter 12: Levels of Management

Question 1

3 Different Level of Management

Answer 1

• Top: Strategic management: Forecasting,
  Planning, Policies
• Middle: Managerial control: Middle Management
• Bottom: Operational Management: Day to day activities
• All of which use Management Information Systems (MIS)
• Backed by Transactions (data)

Question 2

Strategic Management uses … system

Answer 2

Executive Support Systems (ESS)

Question 3

Managerial control uses… system

Answer 3

Decision Support Systems (DSS)

Question 4

Operational Management uses … system

Answer 4

Transaction Processing Systems (TPS)

Question 5

Strategic Management (3 tasks)

Answer 5

1. What markets
2. What products
3. Capital Expenditures/investments

Question 6

Managerial control (6 tasks)

Answer 6

1. Financial Planning
2. Market Analysis
3. Cash planning
4. MRP (Materials Requirements Planning)
5. Inventory Control
6. Exception Reports

Question 7

Operational Management (6 tasks)

Answer 7

1. Order entry
2. Inventory
3. Payroll
4. General Ledger
5. Billing
6. Accounts Receivable/Accounts Payable

Question 8

Characteristics of information at strategic management level

Answer 8

Very Summarized
Few Details
Historical
External
Not very accurate

Question 9

Characteristics of information at managerial control level

Answer 9

Summarized
Exception Reports
Internal
Financial
Current
Accurate

Question 10

Characteristics of information at operational management level

Answer 10

Very detailed
Very accurate
Very current
Operational Information