Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is one key aspect of operational management within the Anthony hierarchy?

1. Strategic decision-making

2. Implementation of tactical plans

3. Handling daily operations

4. Corporate strategy formulation

The correct answer is: Handling daily operations

In the context of the Anthony hierarchy, operational management primarily focuses on handling daily operations. This aspect entails overseeing the routine activities that keep an organization running smoothly and efficiently. Operational management is essential for ensuring that the day-to-day functions align with the broader objectives set by tactical and strategic management. Operational managers are responsible for managing the workforce, resources, and processes that contribute to the organization's outputs. Their role is critical for maintaining productivity and quality standards, addressing operational challenges in real time, and ensuring that the tactical plans developed by higher levels of management are effectively executed on the ground. The other choices focus on different levels of management. Strategic decision-making is more aligned with top-level management, which deals with long-term goals and directions. Implementing tactical plans is a function associated with middle management, ensuring that strategies are translated into actionable plans. Corporate strategy formulation is also a high-level activity that involves long-term planning and direction-setting for the entire organization. Thus, handling daily operations is indeed the core responsibility of operational management within the Anthony hierarchy.