Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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In Handy's best fit theory, which of the following variables is NOT included?

The market conditions
The leader
The task
The environment

The correct answer is: The market conditions

In Handy's best fit theory, the focus is on aligning different leadership styles with specific organizational contexts, considering elements such as the leader, the task, and the environment. The environment encompasses the overall circumstances and conditions under which the organization operates, while the leader relates to the individual's style and effectiveness in guiding the team towards achieving objectives. The task pertains to the specific goals and activities that need to be accomplished. Market conditions, while an important aspect in broader business strategy and organizational behavior, are not specifically addressed as a standalone variable within Handy's best fit theory framework. The theory emphasizes a more direct interaction among leadership styles, the nature of the work to be completed, and the contextual factors surrounding an organization rather than the external market dynamics. Hence, it is accurate to conclude that market conditions are not included within the core elements of Handy's best fit theory.