Name three levels of management and the type of decision taken by each ?​

The management decisions are classified into three levels or categories:

1. Strategic Production Planning:

Strategic planning involves deciding and developing strategic plans to achieve strategic objectives (or goals). Top management typically develops the strategic plans. These decisions or plans are normally long term decisions, which are having implications for the next five years and above. Lot of risk and uncertainty is involved in long term or strategic level planning. Strategic planning needs a through scanning and analysis of external environment to seek information.

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The strategic operations planning decisions include:

1. Technology decisions: Choice of appropriate technology, equipment’s, process choice and degree of automation.

2. Capacity decisions: Amount, timing and type.

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3. Facilities decisions: Size, location and specialisations

4. Vertical integration: Direction, extent and balance

The strategic level production planning is concerned with decisions, which are having implications for the next five to ten years. These decisions are critical to the success and better performance of the organization. These decisions influence the competitive positions of the organisation and help to position the operations strategy of the organisation.



Characteristics of Strategic Production/Operational Planning:

1. Strategic level production planning helps to achieve the goals in the best possible way.

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2. It helps to achieve the competitive advantages and to develop core competence.

3. It helps to develop strengths and eliminate weaknesses to en-cash the available opportunities.

4. It gives direction to growth and development of business.

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5. Strategic level planning lays foundations for tactical goals and operational goals.

6. These planning decisions are critical to success or failure of the organisation.

7. Strategic decisions are to be taken with less information and also in the environment of uncertainty and risk.

8. All the strategic level planning is always associated with risk and it is used in some futuristic assumption.

2. Tactical Production Plan:

Tactical planning is done at middle management level, which mainly involves the resource acquisitions and utilisations to achieve the organisational goals. Tactical plans cover shorter time frames and are associated with less uncertainty and hence lower risk as compared to strategic planning.

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Tactical level production planning is a medium term planning. (A planning period ranging between 2 to 3 years). Tactical planning is mainly concerned with deciding specifically how the resources of the organisation will be utilised to achieve the organisational strategic goals. Tactical planning involves less uncertainty and hence lower risk compared to strategic planning. Mainly the planning requires internally generated data.

Tactical planning decisions include:

1. Establishing parameters for measuring operational efficiency and productivity.

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2. Making plans to improve utilisation of existing resources.

3. Prepare equipment and manpower planning.

4. Planning for modernization of the facilitates and automation.

5. Specific technology and tools to enhance production efficiency or productivity.

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6. Prepares work plans for process redesign, methods improvement and job design.

7. Make or buy decision.

8. Projections regarding skill requirements for future work assignment and prepare the skill development plans.

9. Planning for medium term maintenance (preventive and condition monitoring) to enhance the availability of production facilities.

Characteristics of Tactical Production Plan:

1. Planning for the medium term ranging between 2–3 years.

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2. Focus is on fixing performance parameters and generating data to compare actual and planned performance and taking steps to reduce gap between planned and actual.

3. Prepares plans for effective utilisation of existing resources.

4. Plans to enhance equipment availability and overall productivity of the production function.

3. Operational Level Production Planning:

The operational planning decisions are taken at the bottom level of management and these are routine decisions. These plans are prepared to establish actions necessary for achieving operational goals. These cover shorter time frame i.e. within a year. No or very less uncertainty in these plans and information needed is internal. They are stated in definite quantitative terms and can be spelt out in terms of time and targets. 

The lower level management develops operational plans and the planning horizon is (maximum) one year. These plans establish actions that are necessary to achieve operational goals. These plans are deterministic in the sense that uncertainty is very low. The plans are expressed in terms of actions, which can be quantified.

Hope it helps!!!

An organization can have many different managers, across a variety of titles, authority levels, and levels of the management hierarchy that we illustrated above. In order to properly assign roles and responsibilities to all managerial positions, it is important to recognize the key differences between low-level, middle-level, and top-level management.  

The key takeaways from this distinction are as follows:  

Top-level managers are responsible for controlling and overseeing the entire organization.  

Middle-level managers are responsible for executing organizational plans which comply with the company’s policies. They act as an intermediary between top-level and low-level management.  

Low-level managers focus on the execution of tasks and deliverables, serving as role models for the employees they supervise.  

All businesses are comprised of a vast array of different managerial tasks. When these are coordinated properly, and there is a strong hierarchal manager system in place, an organization can be extremely efficient in creating value through the production of their products, services and overall workflow.  

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