Anthony’s hierarchy
Anthony’s hierarchy distinguishes strategic planning, management control and operational control. Strategic planning concerns broad objectives and direction; management control connects resources and activities to those objectives; operational control concerns effective and efficient execution of particular tasks. These are related categories of managerial activity rather than a requirement for exactly three job grades. Transaction processing supports information and operations but is not a fourth level of the classic hierarchy.
Worked example
A board selects a new market, a division manager prepares resources and budgets to deliver that strategy, and a supervisor monitors daily fulfilment. The decisions illustrate the three categories, although one person may perform activities at more than one level.
Common mistake
Do not replace the classic model with four levels or confuse these control categories with a complete hierarchy of every performance measure and objective.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |