Main functions of top-management may be summarized as below:
Determine Objectives: The general objectives which top management should aim at are survival, profit, business growth, prestige and social acceptance. Specific objectives may relate to types of activities, speciality in workmanship, competitive pricing, marketing method, widening the area of sales, relations with the workers, customers, public, Government etc.
Frame the policies: Another function of top management is to frame the policies and chalk out plans to carry out the objectives and policies. Policies may relate to different aspects of the organization. For instance, production policy indicates the schedules of production to meet the market demand. Marketing policy describes the channel of selling product (e.g. direct sale or dealership, agency etc.) advertising and sales promotion techniques etc. Personnel policy deals with recruitment, placement, training, remuneration, promotion etc. of the personnel. Financial policy relates to the procurement of funds, sources of finance, management of earnings, etc. Top management has to devise plans and schemes for the execution of policies within a given time.
Set up the organization framework. Top management also determines the organization structure for the execution of the plans. All operations are carried on within the functional structure of the organization and authority is delegated from the top officers to the subordinates.
Assemble the Resources: Prior to the execution of the plans, the resources of men, machines, materials and money have to be assembled. This again is the task of top-management.
Control the operations through the organization: controls are administered by the top management through budget, cost, statistical quality control and accounting devices.
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