Question

Republic Resorts owns numerous hotels on each of the Hawaiian Islands. The company's performance reporting system is structured around the firm's organizational structure, with information flowing from operating departments at a particular property and later respectively grouped by individual hotel, island operation (le, division, and the company as a whole. Which of the following best depicts the detail level of the information given to a department manager versus that reported to a company vice-president?
Department Manager Company Vice-President
A. Somewhat detailed Somewhat detailed
B. Somewhat detailed Somewhat summarized
C. Somewhat summarized Somewhat detailed
D. Somewhat summarized Somewhat summarized
E. None of the answers is correct.

Answer 1

Answer:

The best depiction of the information level given to a department manager versus that reported to a company vice-president is:

    Department Manager     Company Vice-President

B.  Somewhat detailed         Somewhat summarized

Explanation:

At the operational level of the organization, the information requirement is for detailed data to help the department manager act on operational decisions.  At the tactical level where the vice-president operates, the information requirement is for data that is somewhat summarized but not too detailed.  The highest level of the organizational hierarchy is the strategic level, where information requirement concentrates on detailed reports and not detailed data but highly summarized data.