NATURE AND SIGNIFICANCE OF MANAGEMENT — OCM STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceOCMNATURE AND SIGNIFICANCE OF MANAGEMENT5 Marks
Question
Write a short note on top level management.
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Answer
top-level management:
The top level $($or higher level$)$ management is the supreme authority for managing the enterprise.
It consists of Board of Directors, Managing Directors $(MD),$ General Manager $(GM)$ and Chief Executive Officers $(CEO).$
The top management takes important policy decisions for the business unit.
Functions of the top management:
To lay down primary and subsidiary objectives of business.
The directors act as the trustees of the business enterprise.
To select Chief Executive Officer and higher officers and to assign them authority and responsibility.
To sanction the budget for different departments of the business unit.
To abide by law and to take care of interest of different stakeholders of the business.
To take strategic decisions by making long term plans.
To analyse and resolve complex problems of management as per legal provisions.
To draft plans for the enterprise, implement them and to supervise them.
To conduct functions like distribution of profit, dividend, reserve fund, re-investment of profit, etc.
To analyse reports of different activities and to instruct further activities accordingly.
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