Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What does "subordination of individual interest to the organization" mean in management principles?

1. Prioritizing personal goals over work goals

2. Aligning employees' interests with organizational goals

3. Encouraging individualism in the workplace

4. Providing autonomy for decision making

The correct answer is: Aligning employees' interests with organizational goals

The phrase "subordination of individual interest to the organization" refers to the concept of aligning employees' personal goals and interests with the broader goals of the organization. This principle emphasizes that for an organization to function effectively and achieve its objectives, individuals need to prioritize the success of the organization over their own personal ambitions. When employees understand how their contributions fit into the larger picture, they are more likely to work cooperatively, share resources, and support team goals, ultimately enhancing overall organizational performance. This alignment fosters a unified direction and helps ensure that everyone is working towards common objectives, rather than each person pursuing their individual agendas. In contrast, the other options mentioned do not align with this principle. Prioritizing personal goals over work goals would create a conflict between individual and organization interests, encouraging individualism would also detract from a team's collective focus, and providing autonomy for decision-making without alignment could lead to actions that do not contribute to organizational goals. Thus, the notion that individual interests should be subordinated to the organization is crucial for achieving efficiency and unity within a management context.