MANAGEMENT MAY 2013 SOLUTIONS

  1. c
  2. b
  3. a
  4. d
  5. b
  6. c
  7. c
  8. b
  9. a
  10. a
  11. b
  12. a
  13. b
  14. a
  15. c
  16. a
  17. a
  18. a
  19. c

SECTION B

(a)Functional departmentalization is grouping activities by functions performed. Activities can be grouped according to function (work being done) to pursue economies of scale by placing employees with shared skills and knowledge into departments for example human resources, IT, accounting, manufacturing, logistics, marketing, and engineering.

(b)(i)The three new perspectives of leadership are:

-Substitute leadership

-Charismatic leadership

-Transformational leadership (each one mark)

(ii) any two points, two marks each

  1. Substitute for leadership

-Concept developed because existing models and theories of leadership do not account for a situation in which leadership is not needed

-These simply try to specify what kind of leader behavior is appropriate

-Identifies situations in which leadership behavior are neutralized or replaced by characteristics of subordinate, the task and organisation

-Eg, a profession at the hospital in an emergency does not wait for the leader to tell him/her what to do

  1. Charismatic leadership

-Assumes charisma is a characteristic of the leader

-Charisma is a form of interpersonal attraction that inspires support and acceptance

-Someone with charisma is more likely to have more influence

-Subordinates with charisma are more successful

  1. Transformational leadership

-Can also be similar to charismatic leadership, inspirational leadership, symbolic leadership

-Leadership that goes beyond ordinary expectations by transmitting sense of mission, stimulating learning experiences, and inspiring new ways of thinking.

-Because of turbulence in environment, this type of leadership is seen to be vital to the success of business.

Question 2

(a) The structures

(i)Matrix structure

-adv: flexible and can respond to environmental changes OR Speed in decision making

-disadv: Complexity of assigning of people to projects OR Personality and task conflict also

(ii)Team structure

-adv: employees are more involved and empowered OR Reduced barriers

-disadv: there is no clear chain of command OR Pressure on teams to perform

(b)Three implications of centralization

  1. Reservation of decision making power at top level
  2. Reservation of operating authority with the middle level managers
  3. Reservation of operation at lower level at the directions of top level (2 marks each)

(c)Any two of the following factors that can affect span of control

  1. Geographic location: if branches of organisation are widely dispersed, then the supervisor will have problems supervising each one of them
  2. Capability of workers, those highly capable do not require much control so easy to have more of such subordinates than those who are not capable
  3. Similarity of task. If the task is similar across, you can supervise a larger number of employees (3 marks each)

Question 3

(a)Information system can affect the organization design by

(i)Creating a separate unit to handle information management

(ii)Managers may eliminate layers in the managerial hierarchy

(b)The business must consider the following three factors:

(i)Scheduled changes to the composition of the existing workforce (e.g. promotions; job rotation)

(ii)Normal loss of workforce - e.g. through retirement, "normal" labour turnover

(iii)Potential exceptional factors - e.g. actions of competitors that create problems of staff retention

(c)Marketing argument on diversity

-A business with diverse workforce will be able to understand different customers and different market segments

-Women and blacks can understand what fellow women look for in a cosmetic and what blacks look for in their products

Question 4

(a)Political behaviours: (each is 2 marks)

(i)Inducement: a manager offers to give something to someone in return for a favour to be done

(ii)Persuasion: relying on both logic and emotions. Influence by using logic or emotions

(iii)Creation of an obligation: supporting a recommendation so that the other one supports you. Scratch my back I will scratch yours

(b)Core process of resolving conflict within yourself (each step 4 marks)

(i)Step 1: Name the conflict or identify the issue including what you are not getting. Consider writing your thoughts down. Talk to someone to help you summarize the conflict in less words

(ii)Step 2: Get the perspective by discussing the issue with your friend or putting it down in writing. How important is the issue? Does the issue seem worse because you are tired? Angry? What is your role in this issue?

(iii)Step 3: Pick at least one thing you can do about the conflict. Identify at least three courses of action. For each one of the actions, list the pros and cons then select an action. Discuss the course of action with a friend

(iv)Step 4: do something. Wait at least a day before you do anything about the conflict. This is the cooling off period. Then take action. Have in mind a date when you will act agin if you feel there is no improvement

Question 5

(a)Four decisional roles (each is 2 marks)

(i)Entrepreneur: voluntary initiator of change

(ii)Disturbance handler: handling problems like strikes

(iii)Resource allocator: decides how resources are to be distributed

(iv)Negotiator: he negotiates with other groups as a representative of the organisation

(b)SWOT analysis (each is 3 marks)

(i)S for strengths: these are internal. The organisation would maximize use of their strengths

(ii)Weaknesses: These are also internal that hinder the organisation from achieving results. The organisation will try to minimize their weaknesses

(iii)Opportunities: These are external advantages the organisation can make use of. Identification of these will allow the organisation to take advantage of them

(iv)Threats: These are external hindrances that will impinge on achievement of goals. The organisation will minimize the impact that these may have on the organisation.