Association of Chartered Certified Accountants (ACCA) Certification Practice Test

According to Drucker, which of the following is NOT one of the three functions of management?

1. Manage a business

2. Manage external stakeholders

3. Manage other managers

4. Manage the workers and the work

The correct answer is: Manage external stakeholders

The correct answer is that managing external stakeholders is not one of the three primary functions of management as defined by Peter Drucker. Drucker emphasized that management primarily focuses on three key functions: managing a business, managing other managers, and managing the workers and the work. Managing a business involves strategic planning, decision-making, and resource allocation to achieve organizational goals. This includes understanding market conditions and ensuring that the organization operates efficiently and effectively. Managing other managers is critical for creating a robust leadership structure and ensuring that managers are equipped to lead their teams effectively. This also involves developing managerial talent and facilitating collaboration across different levels of management. Managing the workers and the work focuses on the operational side of management. It includes organizing tasks, optimizing workflows, and ensuring that employees are engaged and productive. In contrast, while external stakeholders such as customers, suppliers, and investors are important to an organization's success, Drucker's model does not classify this as a core management function. Instead, managing external stakeholder relationships is often seen as part of broader stakeholder management or organizational strategy, which, while necessary, falls outside the core functions Drucker outlined for effective management.