Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which elements are essential components of management as defined in the context provided?

1. Power, Resources, Authority

2. Power, Responsibility, Authority

3. Control, Responsibility, Accountability

4. Power, Knowledge, Authority

The correct answer is: Power, Responsibility, Authority

The selection of power, responsibility, and authority as essential components of management is grounded in the fundamental roles and relationships that define effective management practices. Power within this context refers to the ability to influence and direct the actions of others. It is a crucial element because it enables managers to implement decisions and motivate employees toward achieving organizational goals. Without power, a manager may struggle to enact plans or inspire team members effectively. Responsibility is integral as it encompasses the duties and obligations that come with managerial roles. Managers must not only be empowered to make decisions but also be held accountable for the outcomes of those decisions. This sense of responsibility ensures that managers prioritize organizational objectives and strive to meet them. Authority complements power and responsibility by defining the legitimate right to make decisions and command resources. Authority gives managers the formal ability to enforce decisions, allocate resources, and direct team activities. It supports the exercise of power and outlines the framework within which managers operate. The combination of these three components—power, responsibility, and authority—creates a balanced and effective management environment. It ensures that managers are not only able to influence their team and make decisions but are also accountable for their actions within the organizational structure.