Senior management includes the highest management positions in an organization. Senior managers are responsible primarily for strategic decisions that deal with the overall goals and objectives of an organization. Middle management is responsible for implementing the strategic decisions of senior management. Middle managers make tactical decisions that implement specific programs and plans necessary to accomplish the stated objectives. Operational management supervises the production, clerical, and nonmanagement staff of an organization.
Operational managers make operational decisions that usually involve an intermediate action.
Today, the trend is toward giving lower level nonmanagement employees the information they need to make decisions previously made by managers. Functional Areas M ost organizations are divided into four functional areas with related types of activities. Operations carries out the primary activity of an organization. Sales and marketing sell an organization's product or service. Finance includes all activities related to recording the monetary transactions of an organization.