UNIVERSITY EXAMINATIONS UNIVERSITEITSEKSAMENS MNG2016 RMN201X ( 493794) October/November 2011 Duration EXAMINERS FIRST SECOND 2 Hours ( 478710) GENERAL MANAGEMENT MRSMJVRBA PROF T BREVIS-LANDSBERG This examination question paper remains the property of the Umveralty of South Africa and may not be removed from the examination venue The use of a calculator is not perm1ss1ble 70 Marks Thts paper consists of 17 pages plus instructions for the completion of a mark-read1ng sheet INSTRUCTIONS Th1s paper cons1sts of 70 multiple-choice questions Answer all the questions on the mark-reading sheet The quest1ons are worth one mark each Please supply the followtng tnformatton on the mark-reading sheet: • your student number • the module code (MNG2016 or RMN201X) • the umque number of the paper MNG2016 (493794) RMN201X (476710) PLEASE COMPLETE THE ATTENDANCE REGISTER ON lHE SlACK PAGE, 1'EAR' 0FF AND HAND TO THE INVIGILATOR [TURN OVER]
5 The main purpose of any manager rn an orgamsat1on 1s ___ _
1 to see to 1t that the organ1sat1on attams rts goals 2 planmng, organrs1ng, decrsron makrng and controllrng 3 sourcrng physrcal, human, rnformat1onal and financral resources 4 to develop subordrnates' skrlls
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Delegation is one of the principles of organisation TB223-224 i.e. assigning responsibility and authority for attaining goals. It is formal authority passed downwards from above. The different types of authority are TB224: 1. Formal and informal authority 2. Line and staff authority 3. Centralised and decentralised organisational authority
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The Role Distribution of Managers TB14: Henry Mintzberg, a famous theorist, came to the conclusion that managers play about 10 different roles i.e. the overlapping role distribution of managers: 1. Interpersonal role - Figurehead - Leader - Relationship builder 2. Information role - Monitor - Analyser - Spokesperson 3.Decision-making role - Entrepreneur - Problem solver - Allocator of resources - Negotiator
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Managerial Skills and Competencies at Various Managerial Levels TB15: The 3 major skills needed by managers at all levels and in all departments and sections of the organisation are: 1. Conceptual- The mental ability to view the organisation and its parts holistically. Involves the manager’s thinking and planning abilities 2. Interpersonal- The ability to work with people 3. Technical - The ability to use the knowledge or techniques of a specific discipline to reach specific goals
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3 MNG2016 October/November 2011
6 Select the correct statement
1 Scientific management focuses on be1ng effect1ve rather than efficrent 2 The contingency perspective helps managers find the "one best way" to manage
by show1ng them how to avOid unpredictable s1tuat1ons 3 A maJor hm1tatron of the human relat1ons approach to management IS the lack of
focus on workers as human be1ngs 4 Theory X managers assume that they must constantly coax workers rnto dorng
the1r work properly
Questions 7-8
Match the researcher m column A w1th an appropnate statement descnbmg h1s or her approach to management m column B
Column A Column B (Researcher) (Approach to management)
7 Henry Gantt 1 was Interested 1n the adm1mstrat1ve s1de of orgamsat1onal operations
8 L1lhan Gilbreth 2 showed the rmportance of pay1ng attention to people 1n order to 1mprove therr productrv1ty
3 focused on work s1mphficat1on
4 focused on product1v1ty on the shop floor level
Questions 9-10
Match the contemporary approach to management m column A w1th an appropnate statement describing the approach m column B
Column A Column B (Contemporary approach (Description of approach)
to management) 9 Total Quality Management (TQM) 1 deal w1th the 1ssue of performance excellence 10 Srx Srgma management system 2 1s used to create an orgamsatron committed to
contrnued Improvement 3 v1ews the orgamsat1on as a group of
Interrelated parts w1th the purpose to rema1n 1n balance
4 IS used for 1mplement1ng bus1ness strategy
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Scientific Management School TB34: 1. Founded by - Frederick W. Taylor 2. What he studiedStudied - Individual workers to see exactly how they performed their tasks 3. Premise- There is 1 best way to perform any task and measure everything that is measurable - known as time-motion-study 4. Problem he addressedHow to judge whether an employee had put in a fair day’s work 5. Limitations: - Workers cannot be viewed simply as parts of a smoothly running machine - Money is not the only motivator of employees - Creates the potential for exploitation of labour i.e. possible strikes by workers - Can lead to ignorance of the relationship between the organisation and its changing external environment as the focus remains on internal issues i.e. the workers and their productivity 6. Belief - Money motivates workers The 3 fundamental things he taught: 1. Find the best practice wherever it exists – today we call it “benchmarking” 2. Decompose the task into its constituent elements – we call it “business process redesign” 3. Get rid of things that don’t add value Summary: 1. Scientific management focused on the issue of managing work – not on managing people 2. Focus - Ways to improve the individual worker
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The Contingency Approach - based on the systems approach to management TB40: 1. Founded by - Not listed in text book 2. What he studied - Equifinality – there is more than one way to reach the same goal i.e. different treatments may be available for the same management problem 3. Premise - The application of management principles depends on the particular situation that management faces at a given point in time - Emphasises a situational approach (dependent on a specific situation) but not all management situations are unique, so - the characteristics of a situation are called ‘contingencies’: - The organisation’s external environment - its rate of change and degree of complexity - The organisation’s own capabilities – its strengths and weaknesses - Managers and workers – their values, goals, skills, and attitudes - The technology used by the organisation 4. Problem he addressed: - Recognises that every organisation, even every department or unit within an organisation is unique - Every organisation exists in a unique environment with unique employees and unique goals 5. Limitations - Not listed in text book 6. Belief: - There is no single best way to manage - Management has to decide whether to use principles of the: scientific, bureaucratic, administrative, behavioural, or quantitative approaches or a combination of these 7. Focus: - Tries to direct the available techniques and principles of the various approaches to management towards a specific situation in order to realise the goals of the organisation as productively as possible - The manager must learn multiple ways to compete, innovate, and lead
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Human Relations Movement TB36: - Grew out of a famous series of studies called the ‘Hawthorne Studies’. - The studies following the ‘Hawthorne Effect’ concluded that group pressure, rather than management demands, had the strongest influence on worker productivity. - In short, workers were more motivated by social needs than economic needs. 1. Founded by - Mayo 2. What he studied - Hawthorne Studies (see above) 3. Premise - Management’s concern for the well-being of their subordinates and sympathetic supervision enhances workers’ performance 4. Problem he addressed - Viewed workers as human beings and not as machines 5. Limitations: - The belief that a happy worker is a productive worker is too simplistic - Economic aspects of work remain important to workers - The human aspect of work is even more complex than originally suggested by the results of the Hawthorne Studies - Many factors play a role in the productivity of workers: their values, attitudes, perceptions, learning, motivation 6. Belief - Management’s concern for the well-being of their subordinates and sympathetic supervision enhances workers’ performance
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McGregor's Theory X and Theory Y TB37: McGregor distinguished two alternative basic assumptions about people and their approaches to work which he called Theory X and Theory Y. Theory X managers assume assume that workers must be constantly coaxed into putting effort into their jobs; that work is distasteful to workers, who must be motivated by force, money or praise. Theory Y managers assume that people relish work and approach their work as an opportunity to develop their talents. This approach reflects the basic assumptions of the human relations approach as well as the behavioural science approach to management.
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Total Quality Management TB42 1. Founded by - W. Edwards Deming 2. What he studied: - Total: quality involves everyone and all activities in the organisation - Quality: meeting customers’ agreed requirements, formal and informal, at the lowest cost, first time every time; - Management: quality must be managed 3. Premise: - A well-organised organisation was one in which statistical control reduced variability and resulted in uniform quality and a predictable quantity if output - It is a philosophy of management that is driven by competition and customer needs and expectations - Customer: everyone who interacts with the organisation’s products or services, internally or externally i.e. employees, suppliers and the people who buy the products or services 4. Problem he addressed - Countered the belief that low costs were the only way to increase productivity 5. Limitations: - Should not be confused with quality control: quality control identifies mistakes that may already have occurred where; - TQM emphasizes actions to prevent mistakes 6. Belief - A profound knowledge, including an understanding of a system, statistics, and psychology, is required for the achievement of quality 7. Focus - Create an organisation that is committed to continuous improvement
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Six Sigma p44: Six Sigma is a high performance system for implementing business strategy. It is a top-down solution to help organisations to: 1. Align their business strategy to critical improvement efforts 2. Mobilise teams to attack high-impact projects 3. Accelerate improved business results 4. Govern efforts to ensure improvements are sustained DMAIC TB46: D - Define - Define the goals of the improvement activity M - Measure - Measure the existing system A - Analyse - Analyse the system to identify ways to eliminate the gap between the current performance of the system or process and the desired goal. Statistical tools should be used. I - Improve - Improve the system. Use statistical methods to validate the improvement C - Control - Control the new system 1. Founded by - Motorola in the 1980s 2. Premise: - Six Sigma is a quality initiative that focuses on defects per million - The difference between potential and actual quality is waste 3. Problem he addressed- Designed to improve manufacturing processes 4. Belief - Defined at 3 different levels at Motorola University: - As a metric of 3.4 defects per million opportunities (DPMO) - As a methodology i.e. a business improvement methodology that focuses on: - Understanding and managing customer requirements - Aligning key business processes to achieve those requirements - Utilising rigorous data analysis to minimise variation in those processes - Driving rapid and sustainable improvement to business processes - As a management system 6. Focus: - Focus on improving quality (reducing waste) by helping organisation to produce products and services better, faster and more cheaply - Focuses on defect prevention, cycle-time reduction, and cost savings - Identifies and eliminates costs that provide no value to customers i.e. wasted costs
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TB33
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Scientific Management School TB33: Frank and Lillian Gilbreth focused on work simplification as an answer to the productivity question. He studies the movements of bricklayers and determined that many of their body movements could be combined or eliminated.
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4 MNG2016 October/November 2011
11 . A human resources manager regularly h1res entry-level employees She knows upon see1ng someone's resume whether the applicant should be h1red In such cases, the HR manager 1s mak1ng a decision
1 programmed 2 nonprogrammed 3 rational 4 nsky
12 Managers at ABC Company are cons1denng a restructunng plan for the company, wh1ch w1ll1nvolve that some employees move to other departments Knowrng that the affected employees w1ll res1st the change, the managers plan to offer Incentives to them dunng the followrng step 1n the decision-making process
1 selection of the best alternative 2 evaluation of alternatives 3 1mplementat1on of the chosen alternative 4 settrng of goals and cntena
13 The owner of a computer shop has a chance to buy 50 laptop computers for R3 000 each and sell them at a profit of R2 000 each However, there 1s a 40% poss1b1hty that the manufacturer w1ll Introduce a new model of the computer and thus render the computer shop's Inventory obsolete The shop owner must make her decision under conditions of ___ _
1 dec1s1ons are made by experts 1n different geographical areas 2 the dec1s1on-makmg process 1s unstructured and debate 1s encouraged 3 group members are encouraged to generate as many Ideas as possible to
mcrease the hkehhood of one outstanding rdea emergrng 4 the group votes on alternatives generated by group members
Woolworths uses changes
_ _ __ systems to record sales, purchases and mventory
1 transaction processing 2 office automation 3 process control 4 1nformat1on report1ng systems
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Types of Managerial Decisions TB166: 1. Programmed decisions – repetitive and routine: - There are definite methods for obtaining a solution to the decision – managers do not have to investigate anew each time they occur - Managers can usually handle programmed decisions by means of policies, standard operating procedures, and rules 2. Non-programmed decisions – novel and ill-structured: - Non-programmed decisions have never occurred before - Complex and elusive - No established method for dealing with them
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The Decision-Making Process TB170: (Learn Figure 6.2: Model of the Decision-Making Process TB171) (stage 2-5 are not generally follows in programmed decisions – criteria is already set in policies etc.) Stage 1: Recognise, classify and define the problem or opportunity - The type of decision: Programmed or non-programmed - The decision-making condition: certainty, risk, uncertainty - The decision-making model: rational or bounded-rationality model - Define the problem: distinguish the symptom from the cause of the problem - Note Kepner-Fourie method p171 Stage 2: Set goals and criteria Stage 3: Generate creative alternative courses of action - Innovation and creativity play a major role in this stage - Using groups to generate a solution can enhance this process - During this stage managers need to decide: - Consider all options and optimise the decision (rational model); or - Search only until a satisficing model option (bounded rationality) has been reached Stage 4: Evaluate alternative courses of action Stage 5: Select the best option Stage 6: Implement the chosen option Stage 7: Conduct follow-up evaluation
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The 2 primary decision-making models TB169: 1. The rational model - The decision-maker should select the best possible solution aka optimising 2. The bounded-rationality model - The decision-maker uses satisficing – selecting the first option that meets the minimal criteria Managers need to know which model to use when: 1. Rational model (optimise) - Non-programmed, high-risk, in conditions of uncertainty 2. Bounded-rationality model (satisfice) - Programmed, low-risk, or certain conditions
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Techniques For Improving Group Decision Making TB175: The 4 popular techniques: 1. Brainstorming - Criticism is prohibited - No “yes, but…” comments allowed - Imaginative solutions are welcome - Quantity is important - Combination and improvement of suggested solutions is encouraged 2. Nominal group technique: - 7-10 members meet as a group - Each member independently writes down his/her ideas - Each member presents one idea to the group – no discussion takes place until all ideas have been recorded - The ideas are clarified through a guided decision - The group leader instructs participants to vote on their preferred solutions - Each member silently and independently ranks the ideas - The process may conclude with an acceptable solution - Appropriate when there is a: dominant person, conformity, or groupthink 3. The Delphi technique: - Does not require the physical presence of participants - Involves using a series of confidential questionnaires to refine a solution - Characterised by the following steps: i. Problem identified and members asked to provide solutions using a questionnaire ii. Each member anonymously and independently completes the first questionnaire iii.Results compiled at a central location, transcribed, and reproduced iv. Each member then receives a copy of the results v. Process repeats (last 2 steps) 4. Group decision support system (GDSS): - Computer-supported group decision-making systems
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Operations information systems TB198 – make routine decisions that control physical processes: 1. Transaction-processing systems (TPS) – record and process data resulting from business transactions such as sales, purchases and inventory changes 2. Process control systems (PCS) – an information system in which decisions adjusting a physical production process are automatically made by computers 3. Office automation systems (OAS) – support office communication and productivity such as word processors, email, desktop publishing, teleconferencing
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5 MNG2016 October/November 2011
Questions 16-17
Match the information system m column A wtth an appropriate description m column B
Column A Column B (Information system) (Description)
16 Expert systems 1 record and process data wh1ch results from bus1ness transactions
17 DeciSIOn support 2 can make rout1ne dec1s1ons that control phys1cal systems processes
3 computer-based 1nformat1on systems that prov1de mteract1ve 1nformat1on support to managers dunng the dec1s1on-mak1ng process
4 IS a branch of applied art1f1c1al mtelhgence
18 An m-depth study of the 1nformat1on requirements of an orgamsat1on and 1ts end users 1s part of the systems step in the development of an information system.
20 Which one of the followmg IS not a characteristic of strategic planning?
1 IS an ongomg act1v1ty 2 requ1res well-developed conceptual sk1lls 3 focuses on the orgamsat1on as a whole 4 a1ms at separat1ng the functional areas
21 The second step 1n the development of an organisation profile IS to ____ _
1 conduct an In-depth study of the functional areas of an orgamsat1on 2 1dent1fy and exam me key aspects of the orgamsat1on's bas1c capab1ht1es,
llm1tatrons, and charactenst1cs 3 1dent1fy the potential strengths and weaknesses of the organ1satron 4 1dent1fy factors that prov1de the orgamsat1on w1th an edge over 1ts competitors
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Management information systems – Provide information on and support for decision-making managers – it supports the decision-making needs at the operational, tactical and strategic levels of management 1. Information-reporting systems (IRS) TB200 – information reports 2. Decision support systems (DSS) TB201- Computer based information systems that provide interactive information support to managers during the decision-making process. Use: - Analytical models - Specialised databases - The decision-maker’s own insights and judgements - Interactive computer-based modelling process 3. Executive information systems (EIS) TB201: - Tailored to the strategic information needs of top management - Access to information on the organisation’s critical success factors 4. Other classifications 4a. Expert systems (ES) p201: branch of applied IA - An attempt to mimic human experts - Decision-making and/or problem-solving package 4b. Business function information systems 4c. The internet: - Email - Telnet - WWW
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Systems development life cycle (SDLC) TB204: 1. Systems investigation 2. Systems analysis 3. Systems design 4. Systems implementation, maintenance, and security Systems Analysis - Involves many of the activities used when a feasibility study is conducted, but is a more in-depth study of end-user information requirements. Steps: 1. Study of the information requirements of an organisation and its end-users 2. Understand the current system that is to be improved or replaced – determine the importance, complexity and scope of the problem at hand 3. Determine the system requirements for a new or improved IS Systems Design - Specifies how a system will accomplish the goal from systems analysis -it involves logical and physical design activities Systems Implementation, Maintenance, and Security: - Systems Implementation: 1.Acquiring hardware and software 2.Developing software 3.Testing programs and procedures 4.Developing documentation 5.Carrying out installation activities 6.Training of end-users and operating personnel -Systems Maintenance p206: 1.Monitoring 2.Evaluating 3.Modifying 4.Enhancing a system once it is up and running 5.Post audit - Systems Security - Access rights
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Characteristics of Useful Information TB197: 1. Accurate - quality (accuracy) 2. Relevant - relevance – when it can be used directly in problem-solving and decision-making processes 3. Sufficient - quantity (sufficiency) – more is not always better 4. Current - timeliness (currency)
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Strategic planning has some unique characteristics TB92: 1. It is an ongoing activity (a process) 2. Requires well-developed conceptual skills and is performed mainly by top management 3. Focuses on the organisation as a whole 4. It is future oriented 5. It is concerned with the organisation’s vision, mission, long-term goals, and strategies 6. Aims at integrating all management functions 7. Focuses on opportunities that may be exploited, or threats that may be dealt with
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Assessing the Internal Environment TB99: 1. To ensure that the mission statement is realistic, management must: - Evaluate the organisation’s (internal) capabilities (strengths and weaknesses) as well as; - The opportunities and threats posed by the changing external environment 2. The end result of an internal environmental assessment is called the organisational profile – this profile depicts the strategically important strengths and weaknesses on which the organisation should base its strategy 3. The 3 step process of internal analysis: - Identify strategic internal factors – key aspects of capabilities, limitations and characteristics - Evaluate strategic internal factors - Develop input for the strategic planning process
6 MNG2016 October/November 2011
22. Which of the followmg are not d1mens1ons of the balanced scorecard?
a customer b financial c orgamsat1onal culture d learn1ng and growth e market growth f market share
1 abc 2 bde 3 cde 4 cef
23 What are the charactenst1cs of a strategic bus1ness umt classified as a "question mark" by the Boston Consulting Group Growth/Share Matnx?
Match the type of plan m column A w1th the appropnate description m column B
Column A Column B (Type of plan) 1Description)
24 Operational plan 1 narrowly focused and have relatively short t1me span 25 Tact1cal plan 2 focuses on ent1re orgamsat1on
3 focus on creatmg and ma1ntaimng a compet1t1ve advantage for the orgamsat1on
4 deals pnmanly w1th people and act1on to Implement strateg1c plans
26 At strategic level, dec1s1ons are and management at th1s level needs 1nformat1on from m order to evaluate the orgamsat1on's Internal
well as m the external environment ----
1 structured, external sources, strengths and weaknesses, opportumties and threats
2 unstructured, Internal sources, strengths and weaknesses, opportumties and threats
3 unstructured, external and mternal sources, strengths and weaknesses, opportumt1es and threats
4 unstructured, external sources, opportumt1es and threats, strengths and weaknesses
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Translating the Mission into Long Term Goals TB110 - The Balanced Scorecard (BSC) is used for this purpose. When fully deployed, the BSC transforms strategic planning from a conceptual exercise into the nerve centre of an organisation. The 4 BSC perspectives measure the following: 1. Financial perspective – operating income, return on capital employed and economic value added 2. Customer perspective – number of new customers, customer retention, customer defection and customer satisfaction 3. Internal business processes – continuous improvement, throughput and quality e.g. number of mistakes made during a certain process, and number of new processes incorporated in last year 4. Learning and growth – competency of employees, innovative ideas generated by employees and managers, and staff retention
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There are many different approaches to portfolio management, we focus on the Boston Consulting Group growth/share matrix (BCG) TB119: 1. Each of the organisation’s strategic business units (SBUs) is plotted according to its: - Market growth rate (percentage growth in sales) - Relative competitive position (market share) 2. Learn Figure 4.14: The Boston Consulting Group growth/share matrix p121 3. Business are classified as: - Stars – businesses in rapidly growing markets with large market shares, require substantial investment - Cash cows – low market growth but high market share - Question marks – high growth, low share SBUs, require a lot of cash to maintain - Dogs – low market share and low growth i.e. saturated market with intense competition and low profit margins
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Operational plans TB136: Operational goals focus on carrying out tactical plans to achieve operational goals: - Narrowly focused - Short time horizons (monthly, weekly, day-to-day) There are 2 basic forms of operational plan: 1. Single-use plans: used for non-recurring activities: - Programmes - Projects - Budgets 2. Standing plans: remain roughly the same for long periods of time: - Policies - Standard procedures - Rules
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Tactical plans TB136: Tactical plans deal mainly with people and action to implement the strategic plans. Synergy is important in tactical planning
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Management Information Systems (MIS) TB200: 1. Operational level – decisions are structured – MIS process transactions as they occur 2. Tactical level – decisions are semi-structured – middle managers receive results from the operational level 3. Strategic level – decisions are unstructured – top management needs information from internal and external sources
7 MNG2016 October/November 2011
27 Wh1ch one of the follow1ng IS wrong regard1ng the management by objectives process?
1 It can cause too much paperwork and record keep1ng 2 Subordinates have more clanty about the goals they have to ach1eve 3 Commumcat1on Improves because managers and subordinates thoroughly
diSCUSS goals 4 It can lead to lower morale 1f subordinates feel that the1r workload 1s too heavy
28 Goals need to meet certam specifications 1n order to fulfil the1r purpose, 1nclud1ng
29 Management at Deep M1ne dec1ded to paint their off1ce bu1ld1ngs, redes1gn the garden at the1r head off1ce and to upgrade the sport fac1llt1es they prov1de for the1r employees
Upgradmg the sport factllftes ts an example of a ___ _
1 m1ss1on statement 2 programme 3 proJeCt 4 long term goal
30. Orgamsat1ons normally use departmentalisation when they concentrate on a particular segment of the market
1 customer 2 location 3 product 4 functional
31 Select the wrong statement
1 If you have more than one manager, your orgamsat1on does not adhere to the umty of command pnnc1ple
2 If a manager's subordmates are work1ng 1n vanous locations, her span of control 1s w1der than 1f all the subordinates are workmg 1n the same locat1on
3 In a shoe factory where one umt shapes the leather and then passes the form to another un1t for attach1ng the sole, the units are sequentially Interdependent
4 A flat orgamsat1on structure results 1n few levels of management and decentrahsed authonty
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Techniques for Goal Setting TB154 - Management by Objectives (MBO): 1. Based on the belief that the joint participation of subordinates and superiors in translating or converting broad organisational goals into more specific individual goals has an impact on employee motivation 2. You are motivated to perform more efficiently in an organisation if you participate in selecting your own personal goals 3. Learn Figure 5.10: The Process of MBO p155 4. The process of MBO: - The goal hierarchy – hierarchy of plans and goals in the organisation - Job output – outputs, KPAs, KPIs - Performance targets – quantitative, specific, concise, time-related - Discussion of goals - Determination of checkpoints - Evaluation and feedback 5. Some of the major benefits of MBO: - Improved employee morale through participation in goal setting - Increased clarity of the outputs that have to be delivered - Improved communication resulting from the process of discussing goals
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Properties of Well-Formulated Goals TB151 - Goals need to meet certain specifications in order to fulfil their managerial purpose: 1. Specific 2. Flexible 3. Measurable 4. Attainable 5. Congruent 6. Acceptable
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Departmentalisation TB229: 1. Functional 2. Product 3. Location 4. Customer 5. Multiple - Matrix - Divisional - Network - New venture units - Team approach - Virtual network approach
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Unity of command and direction TB219: 1. Each employee should report to one supervisor 2. All tasks and activities should be directed toward the same mission and goals
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Span of control TB221 – aka span of management: 1. The number of subordinates reporting to a manager 2. The span of control is proportionate to the height of the organisation
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8 MNG2016 October/November 2011
32 The ma1n difference between the authority of line and staff managers 1s that
1 staff managers have more adm1mstrat1ve dut1es 2 hne managers must adhere to the adv1ce of staff managers, but staff managers
may choose to ignore the adv1ce of hne managers 3 hne managers are lower-level managers and staff managers are m1ddle- and top
level managers 4 line managers are directly responsible for atta1nmg the orgamsat1on's goals
while staff managers advise and ass1st
33 A/an usually performs core act1v1t1es 1tself but subcontracts some or many of 1ts noncore operat1ons to other organisations
1 new venture umt 2 orgamsat1on w1th a team approach 3 orgamsat1on w1th a network structure 4 orgamsat1on w1th a VIrtual-network approach
34 enta1ls 1ntegratmg all organ1sat1onal tasks and resources to meet the organ1sat1on's goals
1 Effective commun1cat1on eliminates all confl1ct resulting from Interpersonal relat1ons
2 In the encodmg step of commumcat1on, meamng may take the form of words or gestures
3 Research shows that the 1nformat1on earned through an organisational grapevme IS Inaccurate
4 No1se emanates only from external factors that disturbs or mterferes w1th the transm1ss1on of the message
36. The market1ng manager 1nv1tes the operat1ons-, f1nance- and purchas1ng managers to a meetmg to d1scuss the poss1b1hty of a new product
Th1s ts an example of ____ communication
1 honzontal 2 upward 3 downward 4 lateral
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Line and Staff Authority TB224: 1. Line authority: - The responsibility to make decisions and issue orders down the chain of command - Line managers are directly responsible for attaining the organisation’s goals 2. Staff authority: - The responsibility to advise and assist other personnel - In functional authority, staff personnel have the right to issue orders to line personnel in established areas of responsibility 3. Dual-line authority – staff managers may have both line and staff authority
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Network structure TB233: 1. Describes an interrelationship between different organisations 2. A network organisation usually performs the core activities itself but subcontracts non-core activities to other organisations 3. Disadvantage- must coordinate its network partners activities to ensure they contribute to the networked organisation’s mission and goals 4. Figure 8.8: Network Structures p233
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The virtual network approach TB234: 1. Builds on the features of the network organisation 2. No longer necessary to have all employees, teams, departments in one office or facility 3. Advantage – provides flexibility because partnerships and relationships with other organisations can be formed or disbanded as needed 4. Disadvantage – higher levels of reciprocal and sequential interdependence than a network organisation
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Team approach TB233: 1. Gives managers a way to delegate authority, push responsibility to lower levels and be more flexible and responsive in the competitive global environment 2. Figure 8.9: The Team Approach p234
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New venture units TB233: 1. Groups of employees who volunteer to develop new products or ventures 2. Uses a form of matrix structure and when complete can be adopted into: - The new products or ventures become part of the traditional departmentalisation - The products are developed into a totally new department - The new products grow into divisions
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9 MNG2016 October/November 2011
37 In an orgamsatton where employees do not trust the1r managers and where the climate IS poor, factors may be a barrier to effect1ve communication
38 Dunng the first phase of the negotiating process, ____ tend to dominate
1 task leaders 2 experts 3 soc1o-emot1onalleaders 4 workmg groups
39 The leadership approach that 1s based on the prem1se that the act1ons of successful leaders differ from those of unsuccessful leaders, 1s the approach
1 By def1mt1on, leaders are employee onentated rather than JOb onentated 2 A s1tuat1onal approach to leadership attempts to establish umfonmty of
behaviour from one s1tuat1on to the next 3 According to Fiedler's contingency theory of leadership, the most favourable
situation from the leader's pomt of v1ew IS one 1n wh1ch employee tasks are h1ghly structured
4 The Vroom-Yetton-Jago model helps managers to determine how much to Involve subordinates 1n decis1on-makmg
41. Leadership behaviour assoc1ated w1th leadership 1s the ab11Jty of a leader to be aware of the orgamsat1on's env1ronment and to sense needs, opportumt1es and dangers
The Vroom-Yetton-Jago Model TB322: 1. Recognised that task structures have varying demands for routine and non-routine activities – leader behaviour must adjust to reflect the task structure. 2. The model provided a sequential set of rules to be followed in determining the form and amount of participation in decision making in different types of situations. 3. The model is a decision tree incorporating 5 alternative leadership styles and 12 contingencies. 4. Refer Figure 11.5 TB320
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Transformational leadership TB323 – ability to bring about innovation and change e.g.: South Africa: 1. Leaders tune into their organisation’s environment 2. Leaders think in a kaleidoscopic way – challenge assumptions to find new solutions 3. Leaders form and communicate inspiring visions – help give meaning 4. Leaders build a coalition to support their change 5. Leaders turn dreams into reality by nurturing and supporting their coalitions 6. Leaders drive the change process by pushing and overcoming obstacles 7. Leaders make heroes
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Female leadership TB325 – interactive, concerned with consensus building
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Charismatic leadership TB323 – emotional impact on subordinates e.g.: Bill Gates
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Transactional leadership TB323 – traditional approach: 1. Clarify the role of subordinates 2. Initiate structures 3. Provide appropriate rewards 4. Conform to organisational norms and values 5. Style is characterised by objectives and standards and the evaluation and correction of performance, policies, and procedures
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42 Accordmg to leadership model, employees are "mature" when they have a strong need for achievement, the Willingness to accept responsibility and task-related abihty and expenence
44 When performance is equal to standards dunng the third step of the control process, a manager would normally ___ _
1 set the standards h1gher 2 push for h1gher performance 3 do nothmg 4 lower the standards
45. A budget's contnbution to f1nanc1al control1s that 1t ___ _
1 supports management in coordmat1ng resources, departments and prOJects 2 enhances flex1b1llty 3 IS the only mstrument that managers can use to apply financ1al control 4 IS developed only top-down and therefore a very effective form of control
46 To ensure that a manufactunng orgamsat1on meets the quality standards for the products they produce, they use control
47 The charactenst1cs of an effect1ve control system Include the followmg
1 complexity to measure all possible vanances 1n orgamsat1onal performance 2 flex1b1hty to promote stability 3 accuracy to prov1de a goal onented p1cture of the s1tuat1on 4 all three of the above
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Fiedler’s Contingency (or Situational) Theory of Leadership TB320: 1. Based on the assumption that, for lack of a single best style, successful leadership depends on the match between the leader, the subordinate, and the situation i.e. how well the leader’s style fits the situation 2. According to Fiedler, a manager can maintain this match by: - Understanding his or her style of leadership (task or employee-oriented) - Analysing the situation to determine if the style will be effective (whether to use autocratic or democratic) - Matching the style and the situation by changing the latter to make it compatible with the style
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Hersey and Blanchard’s Leadership Cycle Model TB321 (well-known situational model): 1. Postulates that the most effective management style for a particular situation is determined by the maturity of the subordinate(s) i.e. that person’s need for achievement, willingness to accept responsibility, and task-related ability and experience 2. The degree or level of maturity is represented by 4 quadrants: - Supporting: High relationship and low task - Coaching: High task and high relationship - Directing: High task and low relationship - Delegating: Low task and low relationship 3. The leadership cycle model postulates that managerial style must change as a group of subordinates develops and reaches maturity 4. Leaders must thus analyse the situation, determine the degree of training required and adapt style
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The Vroom-Yetton-Jago Model TB322: 1. Recognised that task structures have varying demands for routine and non-routine activities – leader behaviour must adjust to reflect the task structure 2. The model provided a sequential set of rules to be followed in determining the form and amount of participation in decision making in different types of situations 3. The model is a decision tree incorporating 5 alternative leadership styles and 12 contingencies. 4. Refer Figure 11.5 p320
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Transformational leadership TB323 – ability to bring about innovation and change e.g.: South Africa: 1. Leaders tune into their organisation’s environment 2. Leaders think in a kaleidoscopic way – challenge assumptions to find new solutions 3. Leaders form and communicate inspiring visions – help give meaning 4. Leaders build a coalition to support their change 5. Leaders turn dreams into reality by nurturing and supporting their coalitions 6. Leaders drive the change process by pushing and overcoming obstacles 7. Leaders make heroes
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Transactional leadership TB323 – traditional approach: 1. Clarify the role of subordinates 2. Initiate structures 3. Provide appropriate rewards 4. Conform to organisational norms and values 5. Style is characterised by objectives and standards and the evaluation and correction of performance, policies, and procedures
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Charismatic leadership TB323 – emotional impact on subordinates e.g.: Bill Gates
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Dynamic engagement TB326 – 5 categories and 10 behaviours: 1. Challenging the process - Search for opportunities - Experiment and take risks 2. Inspiring a shared vision - Envision the future - Enlist others 3. Enabling others to act - Foster collaboration - Strengthen others 4. Modelling the way - Set the example - Plan small wins 5. Encouraging the heart - Recognise the individual contribution - Celebrate accomplishments
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The control process comprises 4 steps TB441: 1. Setting standards against which actual performance can be measured 2. Measuring actual performance 3. Evaluating any deviations that might occur 4. Taking steps to rectify deviations
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TB443
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A budget's contribution to financial control is as follows TB449: 1. It supports management in coordinating resources, departments, and projects 2. It provides guidelines on the application of the organisation's resources 3. It defines or sets standards that are vital to the control process 4. It makes possible the assessment of resource allocation, departments, or units
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Operations control TB454-456: 1. Preliminary control - anticipate and prevent possible problems 2. Screening control - ensure that standards for product or service quality are met 3. Post-action control - actions taken to fix a faulty output
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The characteristics of an effective control system TB456: 1. Integration 2. Flexibility 3. Accuracy 4. Timeliness 5. Unnecessary complexity
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Questions 48-49
11 MNG2016 October/November 2011
Match the approach to ethical decision making in column A w1th the correct explanation m column B
Column A Column B (Approach to ethical decision (Explanation)
making) 48 Just1ce approach 1 the dec1s1on benefits the maJonty of
stakeholders 49 Ut1htanan approach 2 the dec1s1on 1s based on standards of equ1ty,
fairness and 1mpart1ahty 3 the dec1s1on protects the natural nghts of those
affected by 1t 4 the dec1s1on IS based on the v1ew that an
orgamsat1on has only legal and econom1c respons1b1httes to soc1ety
Question 50
Match the level of social responsibility column A with the correct explanation m column B.
Column A Column B (Level of social responsibility) (Explanation)
50 Soc1al react1on 1 an organisation pursues profit w1th1n the constraints of the law 1m posed by society
2 a m1mmum requirement is that orgamsat1ons are accountable for the ecolog1cal, environmental and soc1al costs Incurred by their act1ons
3 an orgamsat1on seeks to prevent or find solutions to social problems
4 an organisation protects the natural nghts of 1ts stakeholders
SECTION B (Questions 51-70)
Read the following case study and complete, on the mark-reading sheet, the questions that follow.
WOOLWORTHS RETAIL
Woolworths was founded by Max Sonnenberg and the f1rst store opened 1n Adderley Street, Cape Town Sonnenberg's behef that success lay 1n prov1d1ng customers w1th supenor qualrty merchandise at reasonable pnces has been Instrumental 1n establishing Woolworths as one of South Afnca's lead1ng reta1l cha1ns
Woolworths Hold1ngs L1m1ted 1s one of the top 100 compames listed on the Johannesburg Secunttes Exchange Its core bus1ness focus 1s the prov1s1on of retail and f1nanc1al serv1ces to upper and m1ddle mcome groups ma1nly m South Afnca but also 1n Afnca, Australia and New
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12 MNG2016 October/November 2011
Zealand It operates through two subs1d1anes, Woolworths (Propnetary) L1m1ted and Country Road L1m1ted
Woolworths (Propnetary) L1m1ted 1s a respected cha1n of over 400 retail stores (Including some franchise stores) offenng a selected range of quality clothmg, food, homeware, beauty and financial serv1ces (m partnership w1th Absa Bank) under 1ts own brand name in South Afnca, Afnca and the Middle East
Woolworths descnbe themselves as follows "We, as pass1onate committed retailers, understand and lead our customers through excellence and a deep knowledge of our products and serv1ces and the world we live 1r1 We hve the Woolworths Difference through our values quality and style, value, service, mnovat1on, mtegnty, energy and susta1nab1hty "
As Woolworths has grown, evolved and adapted to a chang1ng world, they have always remained true to the1r core values and have contmually stnved to make a difference m the lives of the1r customers Customers expect to find the nght product, where they need 1t and at the right time - th1s rema1ns one of Woolworths' biggest challenges and a key focus for the business Accordmg to Woolworths, generations of South Afncans know them s1mply as 'Woollies," and they have 1ndeed grown to become part of the structure of South Afncan soc1ety, a benchmark for excellence and an 1con of qual1ty
Woolworths stnves to be the lead1ng reta1l brand 1n South Afnca, offenng merchandise that IS remarkably affordable w1th a umque combmat1on of quality, value, 1nnovat1on and style Woolworths customers are at the heart of the retail strategy that dnves all merchand1smg and selling decrsions. Understanding customer needs 1s cnt1cal to prov1d1ng the nght product at the nght t1me m the spec1fic store where customers expect to find what they are looking for Woolworths has over 3 8 m1lhon customers, and the ms1ghts from thelf customers ennch the1r segmentation model and dnve new opportumt1es
Woolworths operates a t1ghtly Integrated network of suppliers, to ensure exact1ng quality standards and forms long-lasting relattonsh1ps w1th 1ts suppliers Conformance to the Woolworths Supplier Code of Busmess Pnnc1ples IS a prerequ1s1te to ensure soc1al and envtronmental responsibility across the supply chain
Woolworths' employees are their most Important brand ambassadors and thelf most valuable asset Integrated performance management IS fundamental to their employment pract1ces Virtually every Woolworths' employee partiCipates 1n th1s process on a yearly bas1s Woolworths IS committed to th1s practice and believes that th1s 1s the key to building a h1gh performance orgamsat1on
Ongomg talent management rema1ns a key pnonty for Woolworths They perform regular aud1ts for talent and 1n1t1ate appropnate retent1on and development plans The Woolworths Retaal Academy helps to grow h1gh potential m1ddle managers 1nto leadership roles The programme prov1des learmng m a broad range of reta1l leadership sk1lls. IndiVIduals wishing to attend the academy undergo a ngorous selection process and upon successful completion of the qualification, candidates rece1ve a Post Graduate Diploma 1n Management Practice from the Umvers1ty of Cape Town
Woolworths offers all statutory benefits for example, annual leave, s1ck leave, maternity leave and family responsibility leave Beyond the legal mandate, Woolworths supports a comprehensive range of employee benef1ts throughout the busmess, for example, employees
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are able to purchase foods and clothing at a d1scount and are elrg1ble to buy surplus food at a substantial d1scount
Woolworths, together w1th a range of non-profit orgamsat1ons, IS mvolved m a w1de range of envrronmental, soc1al and transformation 1ssues Th1s Includes the Worldwide Fund for Nature (WWF), Conservation International, Food & Trees for Afnca and Heartbeat amongst others
Woolworths' "1ngra1ned culture of profess1onahsm and trad1bon of 1ntegnty ensures that we act responsibly w1th regard to all stakeholders, mcludmg customers, suppliers, employees, shareholders and the commumty "Woolworths applies the pnnc1ptes and recommendations of the Code of Corporate Pract1ces and Conduct as set out 1n the second King Report"
Source WHL Woolworths Hold1ngs L1m1ted [Online] Available http //www woolworthsholdmgs co za/ Accessed 1 July 2011
51 Accordmg to Woolworths, generations of South Afncans know them s1mply as "Woollies," and they have mdeed grown to become part of the structure of South Afncan society, a benchmark for excellence and an 1con of quality
Thts perceptton of South Afncans of Woolworths refers to alan ____ m Woo/worths' environment
52. Woolworths' understandmg of the1r customers' needs 1s cnt1cal for them to prov1de the nght product at the nght trme rn the specrfic store where customers expect to find what they are lookmg for.
Woo/worths' understandmg of thetr customers' needs to Woolworths' relates to thetr ____ environment.
1 micro 2 market 3 macro 4 econom1c
53 Woolworths has grown, evolved and adapted to the changmg world, wh1ch md1cates that they use as a tool to measure, proJect and evaluate changes m therr envtronment
1 the Gantt chart 2 environmental scanmng 3 PERT (Programme Evaluation and Rev1ew Techmque) 4 Delphi technique
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14 MNG2016 October/November 2011
54 Woolworths' decision to obtam maJonty shareholdmg in Country Road (L1m1ted) was a well-researched dec1s1on, based on Woolworths' analyses of the Country Road (Lrm1ted) financial statements, data obta1ned from the Australian Stock Exchange, and proJeCtions by respected analysts regardrng the company's chances to remain profitable.
It was a decJston taken under conditions of ___ _
1 certainty 2 nsk 3 randomness 4 uncertarnty
55. Woolworths cons1der the msrghts of therr customers as cntrcal to therr success. A surtable information system to prov1de Woolworths' top managers wrth feedback from therr customers rn order for them to make dec1srons that w1ll enrrch therr segmentatron model 1s a/an system
58. Woolworths followed a strategy when they decrded to extend therr influence to Austraha by garmng a maJorrty share rn the Austrahan retarl charn, Country Road Lrmrted
Executive information systems (EIS) TB201: 1. Tailored to the strategic information needs of top management 2. Access to information on the organisation’s critical success factors
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Expert systems (ES) TB201: branch of applied IA 1. An attempt to mimic human experts 2. Decision-making and/or problem-solving package
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Computer based information systems that provide interactive information support to managers during the decision-making process TB201: A DSS uses: 1. Analytical models 2. Specialised databases 3. The decision-maker’s own insights and judgements 4. Interactive computer-based modelling process
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Concentric diversification TB117 – the addition of a business related to an organisation in terms of technology, markets, or products (the core components of a mission statement) e.g. Nandos’ selling tis sauces in Checkers
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Market development TB114 – sell products in new markets by opening additional new outlets or attracting other market segments
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Concentration growth strategy TB114 – ‘sticking to the knitting’ i.e. concentrating on improving what the organisation is already doing
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Horizontal integration TB114 – long-term strategy in which one or more organisations are taken over for reasons such as scale-of-operations benefits or a larger market share
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Corporate combination strategies TB118: 1. Joint ventures (JV) – long-term 2. Strategic alliances – time limited e.g. Protea Hotels and Budget Car Rental – the advantages: - Growth through expansion - Sharing of technical and operational know how - More time for each partner to focus on its core business - Cost reduction 3. Mergers – total pooling of resources 4. Acquisitions – when one organisation takes over another and clearly establishes itself as the new owner – the advantages (same for merger): - Staff reductions - Economies of scale - Access to new technology - Higher sales and visibility in the industry
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15 MNG2016 October/November 2011
59 Woolworths, through a ____ w1th Absa bank, offer f1nanc1al serv1ces to the1r customers
60 As they grow and evolve, Woolworths follows a strategy, for example, a key focus of the orgamsat1on IS to have the nght products available for the1r customers, where and when they need 1t
61 Woolworths addresses the1r values of quality and style, value, serv1ce, mnovat1on, integrity, energy and susta1nabJhty as part of their "philosophy" 1n the1r
62 "We, as passionate comm1tted retailers, understand and lead our customers through excellence and a deep knowledge of our products and serv1ces and the world we live In"
Thts statement addresses the questton of "what is our technology?" In Woolworths' case tf ts ---1 a selected range of quality clothing, food, homeware, beauty and f1nanc1al
serv1ces 2 a deep knowledge of the1r products and serv1ces 3 be1ng passionate, committed retailers 4 a deep understanding of the world we hve 1n
63 Woolworths operates a t1ghtly Integrated network of suppliers, wh1ch forms part of the1r environment ----
1 macro 2 Internal 3 task 4 ecological
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Backward vertical integration – increased control of supply sources e.g. Sappi Forward vertical integration – acquisition of a business nearer to the ultimate consumer e.g. paper producer buying a bookstore
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64 Integrated performance management 1s fundamental to Woolworths' employment pract1ces and 1s a focus area of the function of managers
1 decision mak1ng 2 orgamsmg 3 leading 4 controlling
65 The Woolworths Retail Academy helps to grow h1gh potenttal m1ddle managers mto leadership roles, thereby sat1sfy1ng the managers' , accord1ng to the acquired needs model of motivation.
1 self-actuallsat1on needs 2 esteem needs 3 need for power 4 need for achievement
66 Woolworths offers all statutory benefits e g annual leave, SICk leave, maternity leave and family responsibility leave, wh1ch are accordmg to Herzberg's two-factor motivation theory
67 Accord1ng to the theory of motivation, an employee will be motivated to work hard for the opportunity to attend the Woolworths Retail Academy If she believes that she Will be successful m the selection process and subsequently complete her stud1es successfully She places a h1gh value on the Post Graduate D1ploma m Management Pract1se offered by the U mvers1ty of Cape Town
1 path-goal 2 expectancy 3 equity 4 reinforcement
68 Woolworths together w1th a broad range of non-profit orgamsat1ons are Involved 1n a range of environmental, soc1al and transformation 1ssues as part of the1r ___ _ efforts
Acquired Needs Model (McClelland’s Achievement Motivation Theory) TB392: Postulates that people acquire certain types of needs during a lifetime of interaction with the environment – when a need is strong, it will motivate the person to engage in behaviours to satisfy that need: 1. The need for achievement (N Ach) 2. The need for affiliation (N Aff) 3. The need for power (N Pow)
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Herzberg’s Two-Factor Motivation Theory TB389 - Studied the relationship between job satisfaction and productivity in the 1950s: Motivator factors – relate to job content (what people actually do in their work): 1. Achievement 2. Recognition 3. Work itself 4. Responsibility 5. Advancement Hygiene factors – relate to job context: 1. Salary 2. Interpersonal relations (supervisor and subordinates) 3. Company policy and administration 4. Status 5. Job security
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The Expectancy Theory of Motivation (Victor Vroom) TB395: People will act according to: 1. Their perceptions that their work efforts will lead to certain performances and outcomes; and 2. How much they value the outcomes An individual’s work motivation is determined by the following elements: 1. Expectancy (effort-performance relationship) 2. Instrumentality (performance-reward relationship) 2. Valence (rewards-personal goals relationship) – value attached to outcomes Criticism – rewards are not linked to performance.
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Path-Goal Theory TB322: Developed by Robert House – it is the leader’s job to assist his or her followers in attaining their goals and to provide the necessary direction and support to ensure that their goals are compatible with the overall mission and goals of the organisation. The role of the leader – to make the journey along the path easier by reducing obstacles and pitfalls. House identified 4 leadership behaviours: 1. The directive leader – lets employees know what is expected of them and gives specific guidance as to how the work should be done 2. The supportive leader – shows concern for the needs of employees 3. The participative leader – consults with employees and uses their suggestions before making a decision 4. The achievement-oriented leader – sets challenging goals and expects employees to perform at their highest level
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The Equity Theory of Motivation TB394: An individual must be able to perceive a relationship between: 1. The reward he or she receives; and 2. His or her performance
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The Reinforcement Theory of Motivation TB397: Reinforcement theory is a behaviourist approach – behaviour is a function of its consequences, so: behaviours followed by positive consequences will occur more frequently and vice-versa. Reinforcement can be positive or negative: 1. Positive: - Positive reinforcement - Avoidance 2. Negative: - Punishment - Extinction Strategies for scheduling reinforcement: - Continuous reinforcement – when managers reinforce all desired behaviours - Fixed interval schedule – fixed times regardless of behaviour - Variable interval schedule – used mainly for praise or rewards - Fixed ratio schedule – provides reinforcement after a fixed number of performances - Variable ratio schedule Fred Luthans – US expert on management – studied effects of reinforcement theories. The 5 steps that managers should follow to enhance motivation in the workplace by using reinforcement theory TB398: 1. Identify critical, observable, performance-related behaviours that are NB to successful job performance 2. Measure how often workers engage in these behaviours 3. Analyse the causes and consequences of these behaviours 4. Use positive and negative reinforcement to increase frequency of critical behaviours 5. Evaluate extent to which reinforcement has changed workers’ behaviour
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69 Woolworths' "rngrarned culture of professronalrsm and trad1t1on of 1ntegrrty ensures that we act responsibly w1th regard to all stakeholders, Including customers, suppliers, employees, shareholders and the communrty"
Which of the following are Woolworths's secondary stakeholders?
1 customers, suppliers and the communrty 2 shareholders and employees 3 suppliers and customers 4 the community
70 Woolworths applies the pnnc1ples and recommendations set out 1n the second K1ng Report The three K1ng reports address, amongst other 1ssues, the issue of ____ , which 1s the system of reference from whrch the organisation's values and eth1cs emerge
1 business ethics 2 corporate social responsrbrlrty 3 corporate governance 4 sustainabrlrty
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