Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is one of the main categories of management functions proposed by Drucker?

1. Designing systems

2. Organizing the group

3. Developing marketing strategies

4. Enhancing competitive advantage

The correct answer is: Organizing the group

One of the main categories of management functions proposed by Peter Drucker is organizing the group. This concept revolves around the idea that effective management involves structuring an organization in a way that maximizes efficiency and productivity. Organizing encompasses various tasks such as assigning roles, coordinating activities, and establishing communication channels. It is crucial for ensuring that individual contributions align with overall organizational goals, thereby facilitating teamwork and collaboration. By focusing on organizing the group, managers can foster an environment where resources are utilized optimally, and employees understand their responsibilities and how they fit into the larger picture. This organizational structure supports strategic initiatives and helps in adapting to changes in the business environment. In this context, organizing serves as a foundational function that enables other management activities to be executed more effectively. While designing systems, developing marketing strategies, and enhancing competitive advantage are also important aspects of management, they typically fall under broader functions and don’t capture the systematic and structural focus of organizing in the same way that Drucker emphasizes.