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CMA Foundation · Fundamentals of Business Economics and Management · Introduction to Management

A company's board in Chennai decides to enter the export market and lays down the broad policy. The general manager then converts it into departmental plans, and section supervisors ensure daily shipments are packed on schedule. Which pairing correctly matches the activity to the level under the traditional management-versus-administration view?

The board's policy decision is administration, while the general manager's departmental planning and the supervisors' day-to-day execution are management. Administration determines objectives and policy at the top level, whereas management executes them through lower levels, which is exactly how the case divides.

  1. ABoard decision: management; supervisors' work: administration
  2. BBoard decision: administration; general manager's plans and supervisors' work: managementCorrect
  3. CBoard decision: administration; supervisors' work: administration
  4. DBoard decision: management; general manager's plans: administration

Explanation

Policy formulation by the board is administration, a determinative top-level activity. Turning policy into departmental plans and ensuring daily execution are executive activities, so they fall under management. The other options reverse the roles or treat execution as administration.

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