Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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Which of the following is NOT one of the four variables in Handy's best fit theory?

  1. The team dynamics

  2. The leader

  3. The task

  4. The environment

The correct answer is: The team dynamics

In Handy's best fit theory, three primary variables are identified as key components influencing organizational effectiveness: the leader, the task, and the environment. These elements interact to determine the most appropriate leadership style or organizational approach for a given situation. The leader refers to the qualities, behaviors, and influence strategies of individuals in leadership positions. The task pertains to the specific goals, challenges, and requirements of the work being performed. The environment encompasses the external factors affecting the organization, such as market conditions, regulations, and the broader economic context. The team dynamics, while important in understanding how a group functions, are not explicitly categorized as one of Handy’s core variables within this framework. Instead, team dynamics can be considered a consequence of how the other three variables play out in practice, rather than a variable itself in the theory. This distinction clarifies why team dynamics is not one of the established variables in Handy's model.