That is the mode switch. In my case I have S-E-M
S=sports = shifts to next higher gear at higher RPM
E= economy (automatically goes back to that when engine is restarted)
M=manual= does not shift into last gear
Also good for winter drive.
There are various options depending on the engine and the year the car is built.
I your case I would assume that A = automatic and M= manual.
Maybe someone can explain it better in detail for this A/M switch.
Here is a online manual which you can download and read about this function too
http://luuk.xs4all.nl/bmwboeken/bmwe34manual/