Planning responsibilities by management level: top-level managers are primarily accountable for which class of plans and decisions?

Difficulty: Easy

Correct Answer: strategic

Explanation:


Introduction / Context:
Organizations differentiate decisions by scope and horizon: operational (short-term execution), tactical (mid-range resource allocation), and strategic (long-term direction and positioning). Understanding who owns which layer is essential for aligning information systems and performance metrics with decision rights.


Given Data / Assumptions:

  • Top management includes the CEO, executive vice presidents, and corporate officers.
  • Strategic decisions set direction, scope, and long-term goals.
  • Tactical decisions translate strategy into departmental programs and budgets.


Concept / Approach:
Top-level managers evaluate the external environment, set mission and vision, choose competitive positioning, and approve enterprise-wide initiatives and capital allocations with multi-year implications. Consequently, their plans are strategic. Tactical planning is led primarily by middle management; operational planning is led by supervisors and front-line managers focusing on the near term and daily control.


Step-by-Step Solution:

Identify the level: top management. Map level to horizon and scope: long-term, enterprise-wide. Choose the plan type matching that scope: strategic.


Verification / Alternative check:
Management theory and corporate governance practices consistently assign strategy formulation and long-range planning to top management.


Why Other Options Are Wrong:

  • Structured: describes problem type, not a planning layer.
  • Simulation: a technique, not a plan category.
  • Tactical: typically the remit of middle management.
  • None: incorrect because “strategic” is clearly applicable.


Common Pitfalls:
Confusing decision structure (structured vs. unstructured) with organizational level; these are orthogonal concepts.


Final Answer:
strategic

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