Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following are Henri Fayol's five functions of management?

1. Planning, Organizing, Managing, Executing, Auditing

2. Planning, Organising, Commanding, Coordinating, Controlling

3. Planning, Leading, Organising, Coordinating, Evaluating

4. Setting Objectives, Organising, Implementing, Monitoring, Reviewing

The correct answer is: Planning, Organising, Commanding, Coordinating, Controlling

Henri Fayol's five functions of management are foundational principles that emphasize the essential activities for effective management. The correct answer highlights the functions as Planning, Organising, Commanding, Coordinating, and Controlling. 1. **Planning** involves defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities. This function sets the direction for the organization. 2. **Organising** refers to determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and whether the organization structure is appropriate. This function focuses on the optimal arrangement of resources. 3. **Commanding** (often interpreted as leading or directing) is about motivating and leading the staff to execute the plans effectively. It involves making decisions and ensuring that the workforce understands and carries out their responsibilities. 4. **Coordinating** means ensuring that different parts of the organization work together harmoniously. This function emphasizes collaboration within the organization to achieve unified goals. 5. **Controlling** involves monitoring and evaluating progress toward the organization’s goals, making adjustments as necessary to ensure that objectives are met. The other options do not correctly reflect Fayol's established functions. For example, items