Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is Fayol particularly known for in management theory?

1. The Human Relations approach

2. The 5 Functions of management

3. Scientific management

4. Contingency management

The correct answer is: The 5 Functions of management

Fayol is particularly known for the development of the Five Functions of Management, which include planning, organizing, commanding, coordinating, and controlling. This framework is foundational in management theory because it provides a holistic view of the management process and identifies key activities that managers must engage in to achieve organizational goals. Fayol's perspective emphasized the importance of management as a distinct body of knowledge separate from other business functions, which can be studied and taught. His work laid the groundwork for understanding management practices and principles, influencing both contemporary management theory and practice. The focus on these five functions distinguishes Fayol's contributions from other management theories. While the Human Relations approach emphasizes interpersonal relationships and worker satisfaction, and Scientific Management, associated with Taylor, focuses on optimizing work processes and productivity, Fayol's framework is comprehensive and provides a managerial roadmap. Additionally, Contingency Management emphasizes that the best managerial practices depend on the specifics of each situation. While useful, this theory differs from Fayol's more prescriptive approach, which identifies a set of functions that every manager should perform regardless of the context. By articulating these functions, Fayol has significantly shaped the understanding of managerial roles and responsibilities.