Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is the fundamental concept that Drucker is known for in management?

1. The Classical Theory of Management

2. The 3 Functions of a Manager

3. The Art of Leadership

4. The Role of Technology in Management

The correct answer is: The 3 Functions of a Manager

Peter Drucker is best known for identifying the three primary functions of a manager: planning, organizing, and controlling. This framework emphasizes that effective management involves not just overseeing tasks, but also strategic foresight and the ability to allocate resources in a manner that aligns with organizational objectives. Drucker's insights helped to shape modern management practices by highlighting the importance of clear communication and the integration of various functions within an organization. This approach aids in enhancing efficiency and effectiveness, positioning managers as vital players in influencing an organization's success. The other concepts mentioned, while significant in their own right, do not encapsulate the core of Drucker's contributions as succinctly as the identification of the three functions of management. For instance, while the classical theory provided foundational ideas, it does not specifically highlight the dynamics of managerial roles as Drucker's framework does. Similarly, while the art of leadership reflects another critical aspect of management, it does not align directly with Drucker’s central focus on functional management. The role of technology is also an important topic that has evolved, but it is not the fundamental concept Drucker is primarily associated with in management theory.