CITM-001 practice question 9 of 15

The requirements for managerial control decisions fall between Operational and Strategic planning.

Full set: 80 questions
Answer options
A: True Correct answer
B: False
Correct Answer:
A. True
Explanation

The statement is correct. In management theory, decision-making and control are typically structured in a three-level hierarchy. At the top is Strategic Planning, which involves long-range, high-level decisions about the organization's objectives. At the bottom is Operational Control, which concerns the efficient and effective execution of specific, day-to-day tasks. Managerial Control (also known as Tactical Control) occupies the middle level. Its primary function is to ensure that resources are obtained and used effectively and efficiently to accomplish the organization's strategic objectives. It translates broad strategic goals into specific plans and policies for operational units, thus falling squarely between strategic and operational activities.

Why Incorrect

B. False: This is incorrect. The hierarchical model of management control, famously articulated by Robert N. Anthony, explicitly positions managerial control as the intermediate layer between strategic planning and operational control.

References

1. Anthony, R. N. (1965). Planning and Control Systems: A Framework for Analysis. Harvard University, Graduate School of Business Administration. (This foundational text establishes the three-level framework: strategic planning, management control, and operational control, with managerial control as the intermediate level).

2. Laudon, K. C., & Laudon, J. P. (2016). Management Information Systems: Managing the Digital Firm. Pearson. In Chapter 2, "Global E-Business and Collaboration," the text discusses the different levels in a firm (senior, middle, and operational) and the types of decisions made at each level, aligning with the concept of strategic, managerial, and operational control.

3. MIT OpenCourseWare. (2004). 15.561J Information Technology I, Lecture 2: Organizational Context. Massachusetts Institute of Technology. The lecture notes discuss Anthony's Triangle (or the Management Pyramid), which visually represents strategic decisions at the top, tactical (managerial) in the middle, and operational at the base. This confirms the hierarchical relationship described in the question.

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