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ACCA Applied Knowledge · Business and Technology · Leadership, management and supervision

The directors of Tavira Co set a five-year plan, then find that two divisions are pursuing different, conflicting objectives under separate plans, although both serve the same market. Which Fayol management function is MOST directly lacking, and which principle is breached?

Coordinating is lacking and unity of direction is breached. Fayol required one head and one plan for activities with the same objective, and coordination to harmonise efforts. Two divisions pursuing conflicting plans in the same market shows these have failed, not discipline or remuneration problems.

  1. AControlling, and the principle of discipline
  2. BCoordinating, and the principle of unity of directionCorrect
  3. CCommanding, and the principle of remuneration

Explanation

Coordinating is harmonising activities so they work toward common goals. Divisions with conflicting plans for the same market breach unity of direction: one head and one plan for activities with the same objective. Discipline and remuneration are not the issue described.

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