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CMA Foundation · Fundamentals of Business Economics and Management · Organisation Structure, Responsibility, Accountability and Delegation of Authority

Which of the following is the best way for an organisation to make accountability effective for a manager?

Accountability works best when performance standards are clearly defined, authority matches the assigned duties, and results are reported regularly. This lets superiors evaluate performance fairly, because the manager has both the power to act and a clear measure of what he must answer for.

  1. ADefine clear performance standards and give matching authority, with regular reporting of resultsCorrect
  2. BAssign tasks verbally without stating expected results
  3. CGive wide authority but no obligation to report
  4. DKeep decision rights with the top and hold managers answerable for results

Explanation

Effective accountability needs clear standards to measure against, authority matching the duties, and a reporting mechanism. The option with wide authority but no reporting removes answerability. Keeping decisions at the top while blaming managers breaks the match between authority and accountability.

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