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1: March 2008
CONFIDENTIAL / SULIT
UNIVERSITI
Tun Abdul Razak
FINAL EXAMINATION
MAY 2009
MATRIC NUMBER
SECTION
COURSE TITLE PRINCIPLES OF MANAGEMENT
COURSE CODE SMBIOI3
DATE/DAY 15 JULY 2009 / WEDNESDAY
TIME/DURATION 9.00 AM - 12.00 PM /3 HOURS
INSTRUCTIONS TO CANDIDATES:
1. This Question Booklet consists of FOUR (4) Sections, Section A, B, C and D.
2. Write all information required on this cover page in the space provided as well as
attendance slip.
3. Answer ALL QUESTIONS in the question paper itself and submit this question
paper.
4. Candidates are not allowed to bring into the examination hall/room any form of written
materials or electronic gadget except for stationery that is permitted by the Invigilator.
5. Students who are caught breaching the Examination Rules and Regulation will be
charged with an academic dishonesty, and if found guilt y of the offence. the maximum
penalty is expulsion from the University.
............................................. K
ATTENDANCE SLIP
DATE
NO..............................................................SECTION . .......................................
%MME
CODE/TITLE:
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Principles of Management (SMBI0I3) CONFIDENTIAL
May 2009 Final Examination
Principles of Management (SMBIOI3) CONFIDENTIAL
May 2009 Final Examination
SECTION A: MULTIPLE CHOICE (40 Marks)
There are FORTY (40) questions in this part. Answer ALL questions in the table provided
on PAGE 14. Each question is worth I mark.
1. An automobile manufacturer that increased the total number of cars produced at the same
cost, but with many defects, would be:
A. efficient and effective.
B. increasing efficiency.
C. increasing effectiveness.
D. concerned with inputs.
2. Dato Seri Najib Tun Abdul Razak is said to have legitimate power. What is legitimate
power?
A. The power a leader has as a result of his position.
B. The power of a leader has due to his admired personal traits.
C. The power a leader has to give positive benefits or rewards.
D. The power a leader has to punish or control his followers.
4. Who proposed guidelines for improving productivity efficiency by putting the right person on
the job with the correct tools and equipment, having a standardized method of doing the
job, and providing an economic incentive to the workers?
A. Douglas McGregor
B. Frederick W. Taylor
C. Henry Fayol
D. Max Weber
5. Encik lzwan's work team consists of individuals who are experts in various specialities and
who work together on various tasks. Encik Izwan is part of a team.
A. self-managed
B. virtual
C. problem-solving
D. cross-functional
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May 2009 Final Examination
7. Market control is an approach that emphasizes the use of external market mechanisms
such as:
A. administrative rules.
B. relative market share.
C. administrative procedures.
D. traditions and norms.
9. 7-Eleven is a worldwide chain of convenience stores. Its stores are located in eighteen
countries, with its largest markets being Japan, the United States, Canada, Taiwan, and
Thailand. Which of the following are the 7-Eleven's external forces in its specific
environment?
I. Its customers
II. Its employees
Ill. Its competitors
IV. Its culture
A. I and II only
B. I and III only
C. II and III only
D. IV only
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May 2009 Final Examination
11. Which of the following organizational practices promote continuation of the organizational
culture?
I. Improve the organization's facilities and its work environment
II. Develop acronyms and jargons specific to the organization
III. Orientation or induction programs for new employees
IV. Recruitment of like-minded employees that fit into the organization
A. I and II only
B. II and Ill only
C. III and IV only
D. I and IV only
12. Tony Fernandes is the Group CEO of AirAsia Berhad. He is a leader who is enthusiastic,
has high self-confidence and whose personality and actions could influence people to
behave in a certain way. He can be considered as a:
A. visionary leader.
B. team leader.
C. transnational leader.
D. charismatic leader.
15. IBM of the United States, Toshiba of Japan, and Siemens of Germany had formed a
partnership to develop new generations of computer chips, where they shared resources
and knowledge as well as risks and rewards. Their type of partnership is known as:
A. licensing agreement.
B. joint venture.
C. strategic alliances.
D. foreign subsidiary.
Principles of Management (SMB10I3) CONFIDENTIAL
May 2009 Final Examination
16. Which of the following statement is TRUE about using stock option in designing rewards
programs?
A. It is a financial instrument that gives employees the right to purchase shares of stock
at a set price.
B. It is a non monetary compensation offered by the employer to employees.
C. It is a variable compensation plan that rewards employees on the basis of their
performance.
D. It is a financial instrument that gives employer the right to offer shares of stock at a
set price.
17. The tendency for an individual to expend less effort when working collectively than when
working individually is known as:
A. social loafing.
B. social behavior.
C. social facilitation.
D. social obligation.
18. Bruce Wayne is a marketing manager at Gotham Toys Maker Sdn. Bhd. He has high
concern for people but low concern for production. Based on The Managerial Grid (Blake
and Mouton), which type of managerial style is he using?
A. Impoverished management
B. Task management
C. Country club management
D. Team management
19. If the standard is not acceptable, the manager's course of action should be to:
A. revise the standard.
B. do nothing.
C. correct the variance.
D. accept the variance.
20. When an organization drops its structure based on countries and reorganizes according to
industries, it is pursuing a global organizational operation known as:
A. ethnocentrism.
B. polycentrism.
C. borderless organization.
D. multinational organization.
22. Which of the following is the purpose of electronic monitoring in the workplace?
I. To avoid the company from being sued due to inappropriate message on employee's
computer screen
II. To ensure company secrets are not leaked by employees to company's competitors
III. To make sure employee's productivity is not affected by unbeneficial activities during
working hours
IV. To ensure employees rights to privacy at the workplace is not violated by employer
A. I and IV only
B. II and IV only
C. I, II and Ill
D. I, III and IV
24. The management team of Sanjung Tinggi Sdn Bhd would like to implement several ways to
reduce unethical behavior in their organization. Which of the following is NOT a way to
achieve their objective in improving ethical behavior?
A. Select individuals with high ethical standards
B. Establish codes of conduct
C. Provide ethics training for their employees
D. Monitor employee telephone calls
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May 2009 Final Examination
28. If you believe that you control your own destiny, then your personality would be described
as having a(n):
A. external locus of control.
B. high Mach iavellianism score.
C. high self-esteem.
D. internal locus of control.
30. A retail clothing store manager who estimates how much to order for the current spring
season based on last spring's outcomes is operating under what kind of decision-making
condition?
A. Seasonal
B. Risk
C. Uncertainty
D. Certainty
31. The process through which the symbols of a message are translated into a form that the
receiver can understand is called:
A. decoding.
B. feedback.
C. encoding.
D. recording.
32. Plans are documents that outline how goals are going to be met and:
A. define which department has what responsibilities needed to accomplish the goals.
B. tell what materials and processes are necessary to fulfill the goals.
C. identify how much capital and resources are required to complete the goals.
D. describe resource allocations and activity schedules to accomplish the goals.
33. When a person tells his or her manager what the manager wants to hear, that individual is
using which of the following barriers to effective interpersonal communication?
A. Filtering
B. Emotions
C. Feedback
D. Defensiveness
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34. A city's policy concerning parking violation that provides guidance for police action would
be considered what type of plan?
A. Standing plan
B. Contingency plan
C. Directional plan
D. Single-use plan
35. When an organization is analyzing its financial and physical assets, it is studying its:
A. organizational culture.
B. internal environment.
C. external environment.
D. organizational structure.
36. A textile manufacturing company has divided its departments into pattern making, fabric
cutting, and fabric coloring. What type of departmentalization is this?
A. Geography departmentalization
B. Function departmentalization
C. Process departmentalization
D. Product departmentalization
37. If DCL Marketing Sdn Bhd would like to adopt differentiation as a strategy, it will require the
firm to:
A. aggressively seeking to attain the lowest cost structure.
B. be unique and distinctive in its product offering.
C. aim at a cost advantage in a niche market.
D. aim to be similar to its competition in all operations.
38. The concept that defines the number of subordinates that report to a manager and that
indirectly specifies the number of levels of management in an organization is called:
A. formalization.
B. unity of command.
C. responsibility factor.
D. span of control.
39. Which form of communication are students using to tell their instructor that class is over
when they begin putting their books, notebooks, and papers away?
A. Interpersonal communication
B. Skilled communication
C. Nonverbal communication
D. Filtering communication
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Principles of Management (SMB10I3) CONFIDENTIAL
May 2009 Final Examination
SECTION B: TRUE I FALSE (20 Marks)
There are TWENTY (20) questions in this part. Answer ALL questions in the table provided
on PAGE 15. Each question is worth I mark.
1. Effectiveness refers to the relationship between inputs and outputs. TRUE! FALSE
2. Authority is the rights inherent in a managerial position to tell people what to do and to
expect them to do. TRUE! FALSE
3. Informal communication takes place when employees talk with each other in the
lunchroom, as they pass in hallways, or as they're working out at the company exercise
facility. TRUE! FALSE
5. Strategic management is the set of managerial decisions and actions that determines the
short-term performance of an organization. TRUE / FALSE
7. The three key elements in the definition of motivation are energy, direction, and
achievement. TRUE! FALSE
8. The more employees accept the organization's key values and the greater their
commitment to those values, the stronger the culture is. TRUE / FALSE
9. Contingency theories are leadership theories that identified two dimensions of leader
behavior which is employee oriented and production oriented. TRUE / FALSE
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Principles of Management (SMB10I3)
May 2009 Final Examination CONFIDENTIAL
10. McGregor's Theory X assumes that workers can exercise self-direction, desire
responsibility, and like to work. TRUE/FALSE
11. Control is the process of monitoring activities to ensure that they are being accomplished
as planned and of correcting any significant deviations. TRUE/FALSE
12. In the socioeconomic view of organizational social responsibility, management's only social
responsibility is to maximize profits by operating the business in the best interests of the
shareholders. TRUE/FALSE
13. A formal group of employees who operate without a manager and are responsible for a
complete work process or segment is referred to as the self-managed team.
TRUE/FALSE
14. Employees with high self-esteem tend to be more satisfied with their jobs than low self-
esteem employees. TRUE/FALSE
15. The control process is a two-step process that compares actual performance against a
standard and takes managerial action to correct deviations or inadequate standards.
TRUE/FALSE
16. Operational plans specify the details of how the achievement of the overall objectives is to
be obtained. TRUE/FALSE
17. The solution to non-programmed decision making relies on procedures, rules, and policies.
TRUE/FALSE
18. Directional plans are flexible plans that set out general guidelines, provide focus and yet
allow discretion in implementation. TRUE/FALSE
19. When decisions tend to be made at lower levels in an organization, the organization is said
to be decentralized. TRUE/FALSE
20. In the chain network, communication flows according to the formal chain of command, both
downward and upward. TRUE/FALSE
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Principles of Management (SMB 1013)
May 2009 Final Examination CONFIDENTIAL
Question I
a) Define the following term in the context of organizational structure:
i) Work specialization (2 marks)
ii) Formalization (2 marks)
b) Briefly explain the difference between social responsiveness and social responsibility.
Provide appropriate examples. (6 marks)
C) Explain the stages of group development. (10 marks)
(Total 20 Marks)
Question I
Sam and Sandra both are employees at a food processing plant in Petaling Jaya. Sam is a
manager in a quality control department and Sandra is a manager in the information and
communication technology (ICT) department.
Sam realized that he has not been receiving the information that he needs from his current
control system. By the time Sam receives the information, the activity has occurred. Sam would
like to do better. He would like to fix things before the damage is done and anticipate more of the
problems that occur.
Meanwhile, Sandra has been given the responsibility of analyzing the company's present
information system and she has been asked by the top management to decide whether the
company should add to the existing information system or buy a new system.
a) Sam needs appropriate tools for monitoring and measuring the performance of the
company. Explain the controlling tools that are available. (6 marks)
Which controlling tools that Sam is using now? Which controlling tools that Sam would like
to use?
(1 mark)
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May 2009 Final Examination
c) Sandra has been asked to make a decision about the company's existing information
system.
i) Define the term "decision" in the context of decision making process. (1 mark)
ii) Explain to Sandra the steps in decision making process. (12 marks)
(Total 20 Marks)
Question 2
Mr. Marvel is the president of Super Delicious Taco, a new and successful chain of 100 Mexican
fast food restaurants and Mr. Weston, a manager, is one of the employees in this company.
The success that Mr. Marvel has experienced in the last 5 years has made him think of what to
do with the business next. Should he expand the business at the current rate or open new and
different restaurant?
Meanwhile, Mr. Weston has two very different first-line supervisors who report directly to him.
Aaron firmly believes in strict controls and punishment for those workers who do not perform up
to the company expectations. Zach, on the other hand, has very few controls and believes that as
long as people know what their objectives are, they will exercise self-control and self-direction.
Aaron has been trying to use working conditions to increase level of productivity in his
department. However, when conditions were improved, workers were still not motivated. In
contrast, Zach chooses to use responsibility and the opportunity for growth to increase
productivity levels in his department, and he has been much more successful.
a) Given Mr. Marvel's managerial position at Super Delicious Taco, explain briefly what type
of planning he has to make for the company? (6 marks)
b) If Mr. Marvel would like to expand his business by using growth strategies, how does he go
about doing it? Explain your answer and provide appropriate examples. (10 marks)
c) Explain briefly Aaron and Zach motivation approach towards their employees in the effort
to increase the level of productivity in their departments in relation to Maslow's Hierarchy of
Needs theory. Justify your answer. (4 marks)
(Total 20 Marks)
END OF QUESTION
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May 2009 Final Examination
SECTION: NO.:___________
COURSE CODE : CENTRE
Answer to SECTION A
1 21
2 22
3 23
4 24
5 25
6 26
7 27
8 28
9 29
10 30
11 31
12 32
13 33
14 34
15 35
16 36
17 37
18 38
19 39
20 40
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Principles of Management (SMB 1013) CONFIDENTIAL
May 2009 Final Examination
SECTION: MATRIC NO.:___________
COURSE CODE CENTRE
1 11
2 12
3 13
4 14
5 15
6 16
7 17
8 18
9 19
10 20
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May 2009 Final Examination CONFIDENTIAL
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Principles of Management (SMBI0I3)
May 2009 Final Examination CONFIDENT/AL
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May 2009 Final Examination
SECTION: NO.:
COURSE CODE :_______________________ CENTRE
Question No.:
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