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corporate values
,
 
ethics and operating principles. 
(d) 
Somebody has to look after the interests of the 
organisation's owners 
and other 
stakeholders
. 
QUESTION 
Management structure
 
John, Paul, George and Ringo set up in business together as repairers of musical instruments. Each has 
contributed $5,000 as capital for the business. They are a bit uncertain as to how they should run the 
business and, when they discuss this in the pub, they decide that attention needs to be paid to planning 
what they do, reviewing what they do and controlling what they do. 
Suggest two ways in which John, Paul, George and Ringo can manage the business assuming no other 
personnel are recruited. 
 EXAM FOCUS POINT 
There is an article on the ACCA website entitled “Theories of leadership style” that is relevant to 
material in this chapter. 
BPP Tutor Toolkit Copy

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CHAPTER 11
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LEADING AND MANAGING PEOPLE 
 
295 
ANSWER 
The purpose of this exercise has been to get you to separate the issues of management functions from 
organisational structure and hierarchy. John, Paul, George and Ringo have a number of choices. Here 
are some extreme examples. 
(a) 
All the management activities are the job of one person. 
In this case, Paul, for example, could plan, direct and control the work and the other three would 
do the work. 
(b) 
Division of management tasks between individuals could be carried out (repairing drums 
and
ensuring plans are adhered to would be Ringo's job, and so on). 
(c) 
Management by committee. All of them could sit down and work out the plan together etc. In a 
small business with equal partners this is likely to be most effective. 
 
Different organisations have different structures for carrying out management functions. For example, 
some organisations have separate strategic planning departments. Others do not. 
In a