If, for example, a company wants to increase sales by 20 percent over the next 10
years, then an appropriate standard might be an increase of about 2 percent a year.
Managers then measure actual performance against standards. If the two amounts
agree, the organization continues along its present course. If they vary significantly,
however, one or the other needs adjustment.
Levels of Management
Top managers – the small number of executives that guide the fortunes of companies
Top managers are responsible to the board of directors and shareholders of the firm
for its overall performance and effectiveness.
They set general policies, formulate strategies, oversee significant decisions, and
represent the company in its dealings with other businesses and government
Middle managers – occupy positions between top and first-line managers. Titles such as
plant manager, operations manager, and division manager are typical of middle-
Responsible for implementing the strategies, policies, and decisions of the top
First-line managers – spend most of their time working with and supervising the employees
who report to them.
Areas of Management
Human resource managers – provide assistance to other managers when they are hiring
employees, training them, evaluating their performance, and determining their
Operations managers – are responsible for the production systems that create goods and
Production control, inventory control, and quality control, among others
Information managers – are responsible for designing and implementing systems that
gather, process, and disseminate information.
Dramatic increases in both the amount of information available to managers and the
ability to manage it have led to the emergence of this important function.