Information granularity by management level: Summarized (aggregated) information is used more frequently than detailed transaction data at which management level?

Difficulty: Easy

Correct Answer: top management level

Explanation:


Introduction / Context:
Different levels of management require different levels of data granularity. Executives focus on enterprise-wide performance, strategy, and risk; they need concise, aggregated metrics. Supervisors, by contrast, need highly detailed data for scheduling and quality control. This question checks alignment between information detail and managerial level.


Given Data / Assumptions:

  • Top management decisions are strategic and cross-functional.
  • Middle management needs a mix of summary and select detail for control.
  • Lower management relies on detailed, operational data for execution.


Concept / Approach:
Information pyramids show an inverse relationship between level and detail: the higher the level, the more summary is appropriate. Executive dashboards distill KPIs (e.g., revenue growth, margin, NPS, safety indices) rather than line-item transactions. Therefore, summarized information is used most at the top management level.


Step-by-Step Solution:

Identify the level focused on strategic, long-term decisions.Associate this level with aggregated KPIs rather than raw transactions.Select “top management level.”


Verification / Alternative check:
Standard MIS frameworks and dashboard design best practices confirm executives require summarized, exception-oriented views.


Why Other Options Are Wrong:

  • Middle/lower management increasingly require detail for planning and real-time control.
  • “All of the above” overstates aggregation needs at operational levels.


Common Pitfalls:
Assuming one-size-fits-all reports; granularity must match decision scope and time horizon.


Final Answer:
top management level

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