Final answer:
Senior management provides guidance in establishing project selection criteria and decides how to allocate resources among different projects.
Step-by-step explanation:
Senior management plays two important roles in project selection and resource allocation in organizations.
First, they provide guidance in establishing selection criteria that align with the organization's current strategies. This means that the criteria used to choose projects should be in line with the overall goals and direction of the organization.
Second, senior management decides how to balance organization resources, such as people and capital, among different types of projects on an annual basis. They need to determine how much resources should be allocated to each project based on their priorities and available resources.