Consider the following statements about top level management:
(A) Top level managers formulate overall organisational goals and strategies for their achievement.
(B) Top level managers are responsible for implementing and controlling the plans and strategies of the organisation.
(C) Top level managers are responsible for all the activities of the business and for its impact on society.
(D) The job of the top manager is complex and stressful, demanding long hours and commitment to the organisation.
(E) Top management is a team consisting of managers from the same functional level, heading finance, marketing etc.
Which of the statements given above are correct?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (C) and (D) only
(A) Top level managers formulate overall organisational goals and strategies for their achievement. — Correct. Top managers decide the overall goals of the firm and plan the strategies to reach them.
(B) Top level managers are responsible for implementing and controlling the plans and strategies of the organisation. — Incorrect. This is the job of middle management. Middle managers carry out and control the plans and strategies made by top management.
(C) Top level managers are responsible for all the activities of the business and for its impact on society. — Correct. Top managers answer for every activity of the business and for its effect on society.
(D) The job of the top manager is complex and stressful, demanding long hours and commitment to the organisation. — Correct. They look after the welfare and survival of the whole firm, so the job is complex and stressful.
(E) Top management is a team consisting of managers from the same functional level, heading finance, marketing etc. — Incorrect. Top management is a team of managers from different functional levels, such as the chief finance officer and the vice president (marketing).
NCERT (2026-27 Edition): “(i) Top Management: They consist of the senior-most executives of the organisation by whatever name they are called. They are usually referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president. Top management is a team consisting of managers from different functional levels, heading finance, marketing etc. For example chief finance officer, vice president (marketing). Their basic task is to integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation. These top level managers are responsible for the welfare and survival of the organisation. They analyse the business environment and its implications for the survival of the firm. They formulate overall organisational goals and strategies for their achievement. They are responsible for all the activities of the business and for its impact on society. The job of the top manager is complex and stressful, demanding long hours and commitment to the organisation.” “(ii) Middle Management: is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers. They are usually known as division heads, for example production manager. Middle management is responsible for implementing and controlling plans and strategies developed by top management. …” |