Question

Which of the following is the function of Top level management ?

• A. They ensure that their department has the necessary personnel.
• B. They interact with the actual work force and pass on instructions of the middle management to the workers.
• C. They co-operate with other departments for smooth functioning of the organisation.
• D. They analyse the business environment and its implications for the survival of the firm.

Hint:

Top management questions test strategic thinking. Operational questions focus on task completion.

Answer 1

The Correct Option is D

Top management's strategic role includes:
1. Key Functions: - Environmental scanning (PESTEL analysis) - Corporate strategy formulation - Major investment decisions
2. Hierarchy Comparison: \begin{tabular}{|l|l|} \hline Level & Focus
\hline Top & Survival/growth (5-10 year horizon)
\hline Middle & Departmental coordination
\hline Operational & Daily task execution
\hline \end{tabular}
3. Case Analysis: - (A): Middle management (HR department) - (B): Supervisory level - (C): Interdepartmental = Middle management - (D): Strategic = Top management
Final Answer: (D) They analyse the business environment and its implications for the survival of the firm.