The University of the South Pacific Faculty of Business and Economics School of Management and Public Administration MG 101

F2F Introduction to Management Mid Semester Examination, Semester 2, 2012 Time allowed: 50 minutes
Instructions 1. Write down your names, ID numbers and the campus in the space provided in the answer sheet. 2. There are three sections in paper and all sections are compulsory. 3. Answers to all questions are to be written in the Answer Book provided.

Summary of the questions

Section A B C Guidelines Total Marks There are ten objective type multiple-choice 10 questions. All questions are compulsory There are five objective type True and False 5 questions. All questions are compulsory There are three Short Answer questions in 15 this section. Answer all three questions from this section Total 30

Section A Multiple Choice [10 marks] The multiple choice questions in this section are compulsory. For each question, circle the letter that represents the best answer in the answer book provided.

1. __________ introduces you to the concepts, themes and directions that are consistent with career success and organisational leadership in today's high performance work settings. A. The study of workforce diversity B. The study of management C. The study of the global economy D. The study of decision making E. The study of great leaders
2. An organisation can achieve a competitive advantage through which of the following ways?

A. Pricing and customer service B. Cost efficiency and quality C. Customer service and quality D. All of the above E. None of the above
3. Intellectual capital can be defined as

A. the use of new ideas to create a competitive advantage by producing high quality products B. the concentration of wealth in technologically advanced countries C. the shared knowledge of a workforce that can be used to create wealth D. a plan to promote higher education through annual fund raising events E. the development of an organisational training program to increase information learning

4. Oxford Industries Inc. installed a new computer system to clock every worker's pace to a thousandth of a second and to determine each worker's pay and bonus scale on the basis of his or her performance against the standard. This is an example of A. administrative principles. B. scientific management. C. contingency theory. D. self-actualisation. E. Fayol's principles of management.

5. Which of the following is NOT correct regarding the importance of planning? A. Planning is central to the management process. B. Planning is important for staying ahead of the competition. C. Planning helps an organisation become better at what it does. D. Planning helps an organisation to be action oriented. E. Planning eliminates the need for effective leadership.

6. Scenario planning facilitates control by defining the objectives and A. identifying the specific courses of action to be taken. B. creating specialisation among the workers. C. improving organisational structures. D. developing the human resources. E. motivating the workers.

7. Controlling does all of the following EXCEPT A. make sure that overall direction is consistent with plans. B. ensure that objectives and accomplishments of various subgroups of the organisation are consistent with each other. C. secure adequate financing for the enterprise. D. make sure employees comply with organisational policies. E. make sure organisation members act with propriety and respect for each other.

8. Effective planning by managers helps accomplish which step in the control process? A. Measuring actual performance B. Comparing actual performance with objectives and standards C. Establishing performance objectives and standards D. Taking necessary corrective action E. Evaluating the results of corrective action

9. __________ is an action focus that links an organisation to its environment. A. Objective setting B. Ecological management C. Problem solving D. Strategy E. Decision making

10. The __________ begins with a careful assessment and clarification of organisational mission, values and objectives. A. organisational planning process B. strategic management process C. culture formation process D. organisational design process E. organisational change process

Section B - True or False [5 marks] Five statements are given below. In the blank space provided in the Answer Book, write either True or False for each statement 1. The four functions of management are Planning, Leading, Orientation and Controlling. T/F 2. Five essential characteristics of useful information are timeliness, quality, completeness, relevance and understanding. T/ F 3. Maslows theory includes physiological, safety, social, esteem and self actualization needs. T/ F 4. SMART goals are specific, maintaining, achievable, realistic and timely. T/ F
5. Scenario Planning does not improve action orientation. T/ F

Section C Short Answers [10 marks] Answer each question in the space provided in the Answer Book.

1. Change is a continuing theme in Management studies. There are many forces and trends in the new work place. Discuss with relevant examples at least 4 trends that are having an impact on organizations. (4mrks)

A) Intellectual capital Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create value. A knowledge worker is someone whose mind is a critical asset to employers and who adds to the intellectual capital of the organisation. B) Globalisation The national boundaries of world business are disappearing rapidly. Globalisation is the worldwide interdependence of resource flows, product markets and business competition that characterises the new economy. C) Technology The Internet, World Wide Web, computers and information technology have transformed and continue to transform the modern workplace. As the pace and complexities of technological change accelerate, the demand for knowledge workers with the skills to utilise technology to full advantage is increasing. D) Diversity
Changing demographics are making the workforce increasingly diverse with respect to

differences in gender, age, race, ethnicity, religion and sexual orientation.

Workforce diversity describes the composition of a workforce in terms of differences among

the members. E) Ethics Modern society is growing very strict in its expectations that social institutions conduct their affairs according to high moral standards. Treating customers right and acting in ways that are consistent with societys values are essential for keeping customers. The ethical expectations of society for contemporary businesses include: a. sustainable development and protection of the natural environment. b. protection of consumers through product safety and fair practices. c. protection of human rights, including employment policies and practices. F) Careers.
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The typical career of the 21 century will not be uniformly full- time and limited to a single; large employer. It is more likely to unfold opportunistically and involve several employment options over time. Also Students can use the example of Irish shamrock used by Charles Handy to describe the career implications for employees in todays dynamic environment. Each leaf of the shamrock has a different career implication.

1. One leaf contains core workers full-time employees who pursue career paths with a traditional character. 2. A second leaf contains contract workers who perform specific tasks as needed by the organisation and are compensated on a contract or fee-for-services basis rather than by a continuing wage or salary. 3. The third leaf contains part-time workers who are hired only as needed and for only the number of hours needed. Note: Students should give a brief description on each of these challenges and give examples Examples should be suitable and relevant to the related point/ challenge discussed.

2. Explain using examples any 3 components of the external environment. (3 mrks)

The external environment consist of general and specific environment (specific environment is also known as task environment) A) The general environment is comprised of: Socio-cultural - General state of prevailing social values on such matters as human rights and environment, trends in education and related social institutions, as well as demographic patterns. Economic - General state of the economy in terms of inflation, income levels, gross domestic product, unemployment, and related indicators of economic health. Legal-political - General state of the prevailing philosophy and objectives of the political party or parties running the government, as well as laws and government regulations. Technology - General state of the development and availability of technology in the environment, including scientific advancements. Natural environment conditions General state of nature and conditions of the natural or physical environment, including levels of environmentalism. B) The specific environment (or task environment) consists of all the actual organisations, groups and persons with whom an organisation must interact in order to survive and prosper. The stakeholders important to the specific environment are: Customers - specific consumer or client groups, individuals and organisations that purchase the organisations goods and/or use its services. Suppliers - specific providers of the human, information, and financial resources and raw materials needed by the organisation to operate. Competitors - specific organisations that offer the same or similar goods and services to the same consumer or client groups. Regulators - specific government agencies and representatives, at the local, state and national levels, that enforce laws and regulations affecting the organisatio ns operations. Note: Students to provide relevant example of each element

3. Apply the steps in the decision-making process to a decision that you have made or are in the process of making. (3 mrks)
Step 1: identify and define the problem Students should clearly identify and define the problem - .Problem finding involves identifying gaps between actual and desired states of affairs and determining their causes. Please take note of some common mistakes students may make when defining problems.

Mistake number 1 defining the problem too broadly or too narrowly: students should define problems so as to give themselves the best possible range of problem-solving options. Mistake number 2 focusing on symptoms instead of causes: symptoms are indicators that problems may exist, but students should not confuse them with the problems themselves. Mistake number 3 choosing the wrong problem: students should set priorities and deal with the most important problems first; they should also give priority to problems that are truly solvable. Step 2: generate and evaluate possible solutions Several potential solutions are formulated at this stage. More information is gathered, data are analysed, and the advantages and disadvantages associated with possible alternative courses of action are identified. Common mistakes in generating and evaluating possible solutions include:
selecting a particular solution too quickly choosing a convenient alternative that may have damaging side effects or may not be as

good as other alternatives that might be discovered with some extra effort.
Cost-benefit analysis involves the comparison of what an alternative will cost in

relationship to the expected benefits. At a minimum, the benefits should exceed the costs. Step 3: choose a solution Students should clearly state the solution they chose to the mentioned problem. Also should be able to justify the reason for choosing that solution. Step 4: implement the solution Implementation involves taking action to make sure the solution decided upon becomes a reality. Students need to have the determination and creativity to reach a decision, as well as the ability and willingness to implement it. Step 5: evaluate results Evaluation involves comparing the actual and desired results to ensure that the problem has really been solved. The positive and negative consequences of the chosen course of action should be examined. Note: Students to state how effective they are as decision makers