Final answer:
Top-level managers are responsible for the strategic development and guidance of their organization's mission and vision. Their role evolves as a company grows, shifting from personal relationships with investors to broader information dissemination to attract investment from bondholders and shareholders.
Step-by-step explanation:
Top management or executive-level managers are responsible for developing an organization's strategy and acting as stewards for the mission and vision of the organization. As a company grows and its strategy begins to generate profits, the need for intimate knowledge of individual managers and their business plans diminishes since more information about the company's products, revenues, costs, and profits is readily available.
Investors such as bondholders and shareholders, who may not know the managers personally, become more inclined to provide financial capital to the firm. This shift in funding source aligns with the assertion of management theories such as McGregor's Theory X and Theory Y, where different assumptions about employee motivation and behavior shape management practices.
Success in management also requires building participatory approaches and involving a wide range of stakeholders in strategy development. In this way, managers become less gatekeepers of information and more facilitators of a broader organizational strategy.