Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What role does management play in the functioning of an organization according to Mullins?

1. To formulate high-level strategies only

2. To oversee the achievement of objectives

3. To manage the financial accounts

4. To handle day-to-day operational tasks exclusively

The correct answer is: To oversee the achievement of objectives

Management plays a crucial role in overseeing the achievement of objectives within an organization, as described by Mullins. This involves not only setting the strategic direction and goals of the organization but also ensuring that all resources—human, financial, and physical—are aligned and utilized effectively to meet these goals. By overseeing the achievement of objectives, management evaluates performance, makes necessary adjustments to processes, and guides the team toward outcomes that support the organization's vision. This role is dynamic and encompasses multiple functions, including planning, organizing, leading, and controlling, which are essential for fostering an environment where objectives are consistently met. The other options do not capture the full scope of management's responsibilities. For instance, formulating high-level strategies is just one aspect of management, and solely managing financial accounts or handling day-to-day tasks does not reflect the broader oversight and alignment necessary to achieve organizational objectives effectively. Thus, the comprehensive nature of management's role is best encapsulated by the responsibility of overseeing the achievement of organizational objectives.