Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is a key aspect of good management practices?

1. Emphasizing short-term profitability

2. Setting best practice guidelines

3. Encouraging employee autonomy

4. Reducing operational costs

The correct answer is: Setting best practice guidelines

A key aspect of good management practices is setting best practice guidelines. This involves establishing established standards and procedures that serve as benchmarks for performance and quality within an organization. By doing so, management provides a clear framework for employees to follow, which can enhance productivity, reduce errors, and promote consistency across operations. Additionally, guidelines help to align the team's efforts with the organization's strategic objectives, ensuring that everyone is working towards the same goals. This approach not only fosters efficiency but also supports a culture of continuous improvement, as the organization can regularly revisit and update these guidelines based on new information, technological advancements, or changes in the market. While other choices could be relevant to management practices, they do not encapsulate the foundational role that best practice guidelines play in establishing and nurturing effective organizational procedures and employee engagement.