Upper management

Definition

Upper management involves the highest-level executives in an organization who are responsible for strategic decision-making and overall company direction. They typically include positions like CEOs, CFOs, and COOs.

5 Must Know Facts For Your Next Test

1. Upper management sets the strategic goals and long-term plans of the organization.
2. They play a crucial role in creating organizational policies and ensuring their implementation.
3. Upper management is responsible for major financial decisions and resource allocation.
4. They often interact with key stakeholders, including shareholders, board members, and external entities.
5. In a decentralized organization, upper management delegates more decision-making authority to lower levels.

Review Questions

• What are the primary responsibilities of upper management in an organization?
• How does upper management influence strategic decision-making?
• In what ways does decentralization affect the role of upper management?

Related terms

Centralized Management: Decision-making is concentrated at the top levels of the organizational hierarchy.

Decentralized Management: Decision-making authority is distributed throughout various levels of the organization.

Responsibility Accounting:

A system that measures results by individual areas of responsibility within an organization.