Question

Informational needs of different levels of management.

Answer 1

Answer:

for strategy formation

Answer 2

Answer:

A more functional classification of information is on the basis of types of decisions.

Information, as required at different levels of manage­ment can be classified as operational, tactical and strategic.

1. Operational information:

Operational information relates to the day-to-day operations of the organisation and thus, is useful in ex­ercising control over the operations that are repetitive in nature. Since such activities are controlled at lower levels of management, operational information is needed by the lower management.

For example, the information regarding the cash position on day-to-day basis is monitored and controlled at the lower levels of manage­ment.

2. Tactical information:

Tactical information helps middle level man­agers allocating resources and establishing controls to implement the top level plans of the organisation. For example, information regarding the alternative sources of funds and their uses in the short run, opportunities for deployment of surplus funds in short- term securities, etc. may be required at the middle levels of man­agement.

3. Strategic information:

While the operational information is needed to find out how the given activity can be performed better, strategic information is needed for making choices among the busi­ness options.

I hope this helps you.