Final answer:
Middle-tier managers play a crucial role in a business's tactical planning, focusing on short-term goals. As a firm becomes established, investor reliance on understanding individual managers decreases due to widely available company information. These managers are essential for division of labor in the workforce to ensure efficiency.
Step-by-step explanation:
The concept in question refers to the role of middle-tier managers and their responsibility in engaging in tactical planning with an aim to achieve direct, short-term results within a business or organization. These managers are often tasked with overseeing specific processes or outcomes and are held accountable for meeting the expected results set by their superiors. They must be goal-oriented and focused on accomplishing tasks efficiently to ensure successful operations on a day-to-day basis.
In a business context, once a company becomes somewhat established and its strategy begins yielding profits, the need to understand individual managers and their plans on a personal level decreases. This is because information about the company's financial health and products becomes more accessible, making external investors more comfortable in providing capital without intimate knowledge of the managerial team.
At this stage, the role of these managers becomes even more critical, as they steer the company towards maintaining and maximizing these profits in the short term through effective tactical planning.
Furthermore, similar to how different roles are allocated within a restaurant, from top chef to business manager, modern businesses also divide tasks among their workforce to ensure productivity and efficiency. Middle-tier managers are important cogs in this division of labor, where their leadership and planning skills are crucial for the smooth functioning and success of their respective divisions