DURATION: THREE (3) HOURS TOTAL MARKS (100) Internal Examiner: Dr W. Raubenheimer. External Examiner: Professor J Buss

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1 UNIVERSITY OF KWAZULU-NATAL, PIETERMARITZBURG SCHOOL OF MANAGEMENT EXAMINATIONS: November 2007 COURSE : Management 120 MODULE CODE : MGNT102 DURATION: THREE (3) HOURS TOTAL MARKS (100) Internal Examiner: Dr W. Raubenheimer External Examiner: Professor J Buss NB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO WRITE LEGIBLY. INSTRUCTIONS: 1. THIS PAPER CONSISTS OF TWO (2) SECTIONS, SECTION A AND SECTION B. SECTION A: THIS SECTION COMPRISES OF 60 MULTPILE-CHOICE QUESTIONS. THERE WILL BE ONE (1) MARK FOR A CORRECT ANSWER AND NO NEGATIVE MARKING. ANSWER ALL THE QUESTIONS USING THE ANSWER SHEET PROVIDED. FURNISH ONLY ONE (1) ANSWER FOR EACH QUESTION USE A SOFT PENCIL TO FACILITATE CORRECTIONS SECTION B: THIS SECTION COMPRISES THREE (3) SHORT ESSAY QUESTIONS. ANSWER ANY TWO (2) QUESTIONS FROM THIS SECTION. USE ONE ANSWER BOOK ONLY FOR THIS SECTION. 2. PLEASE ENSURE THAT YOUR STUDENT NUMBER APPEARS ON THE ANSWER SHEET PROVIDED AND ON THE ANSWER BOOK 3. THIS EXAMINATION QUESTION PAPER MUST BE RETURNED TOGETHER WITH YOUR MCQ ANSWER SHEET AND ANSWER BOOK 4. THIS EXAMINATION PAPER CONSISTS OF 11 PAGES (INCLUDING THIS COVER PAGE). PLEASE ENSURE THAT YOU HAVE ALL OF THEM.

2 SECTION A 1. All of the following are essential managerial functions EXCEPT: A) leading. B) controlling. C) demonstrating. D) planning. E) organising. 2. The process which managers use to select "appropriate" goals for the organisation is called: A) organising B) leading C) planning D) controlling E) demonstrating 3. The process that managers use to design a structure of working relationships that allows managers to work together to achieve organisational goals is called: A) planning. B) leading. C) demonstrating. D) controlling. E) organising. 4. Which of the following gives managers the right to direct and to control their subordinates in order to attempt to accomplish organisational goals? A) The Hawthorne effect B) Bureaucracy C) Esprit de corps D) Authority E) Discipline 5. Formal, written instruction which specify what workers should do on the job under different conditions are known as: A) rules. B) norms. C) informal organisational understandings. D) standard operating procedures. E) bureaucratic control. 6. Specific written instructions as to how a worker should perform an aspect of his or her work task are known as: A) norms. B) standard operating procedures. C) job specialization. D) unity of command. E) centralization. 7. The tendency of a manager to get along well with other workers is known as: A) negative affectivity. B) agreeableness. C) conscientiousness. D) openness to experience. E) the locus of control. PAGE 2

3 8. The tendency of a manager to be careful and persevering in work-related tasks is known as: A) conscientiousness. B) the locus of control. C) negative affectivity. D) agreeableness. E) openness to experience. 9. The degree to which a manager feels good about himself or herself and their capabilities is known as: A) need for achievement. B) need for power. C) need for affiliation. D) self-esteem. E) negative affectivity. 10. The principle that states that promotions within the organisation should be based on a manager's contributions to the organisation, independent of irrelevant personal characteristics, is known as: A) procedural justice. B) the glass ceiling effect. C) distributive justice. D) the ombudsman effect. E) social auditing. 11. The idea that a manager should establish an objective process for deciding who to promote to a new position within his or her department is based upon which principle? A) The glass ceiling B) Procedural justice C) The ombudsman effect D) Social auditing E) None of the above 12. When the top management of American Airlines creates a policy that the company will require law firms which represent American Airlines to submit regular reports which show the amount of time that "diverse employees" of the law firm worked on American's account, this is an example of: A) managing diversity. B) quid pro quo. C) the ombudsman effect. D) bias. E) stereotyping. 13. To Dell Computer, the educational institutions that train future Dell employees are: A) Competitors B) Distributors C) Customers D) Suppliers E) Sociocultural forces PAGE 3

4 14. Organisations that help other organisations to sell their goods to customers are known as: A) competitors. B) potential competitors. C) distributors. D) customers. E) none of the above. 15. Organisations that produce goods that are similar to another organisation's goods are known as: A) suppliers. B) distributors. C) competitors. D) customers. E) none of the above. 16. When organisations use labour from other countries in order to lower their production costs, this is an example of: A) a free-market economy. B) a totalitarian regime. C) a representative democracy. D) the free-trade doctrine. E) global outsourcing. 17. The governments of Great Britain and Canada represent what type of governmental structure? A) Totalitarian regimes B) Collectivism C) Representative democracies D) Socialist states E) None of the above 18. The citizens of a country elect officials to run their government. This type of governmental system is said to be: A) a totalitarian regime. B) a socialist state. C) a mixed society. D) a representative democracy. E) none of the above. 19. A manager's ability to make a good decision based on past experience and "a gut feeling" is known as: A) a programmed decision. B) a nonprogrammed decision. C) a heuristically decision. D) an intuitive decision. E) the illusion of control. 20. The manager's ability to develop a sensible opinion based on the way that he or she evaluates the importance of the available information is known as: A) a programmed decision. B) a nonprogrammed decision. C) heuristics. D) judgment. E) a creative decision. PAGE 4

5 21. When we say that the classical model of decision making specifies how managers should make decisions, this is another way of saying that this model is: A) heuristic. B) prescriptive. C) incomplete. D) intuitive. E) satisficing. 22. Another name for the departmental level of the organisation is the level of the organisation. A) functional B) divisional C) business D) corporate E) first-line 23. Which plan of the organisation contains top management's decisions about the organisation's mission, goals, strategy, and structure? A) Corporate-level plan B) Divisional-level plan C) Functional-level plan D) Business-level plan E) Departmental-level plan 24. Which type of organisational strategy states in which industries and in which markets the organisation intends to compete? A) Divisional-level strategy B) Departmental-level strategy C) Functional-level strategy D) Corporate-level strategy E) Business-level strategy 25. According to Woodward, which type of technology is almost completely mechanized and controlled by computers? A) Small-batch technology B) Continuous-process technology C) Task force technology D) Functional technology E) None of the above 26. The process by which managers decide how to organize the tasks that workers need to do into the jobs that are needed to produce the organisation's goods or services is known as: A) job design. B) continuous-process technology. C) small-batch technology. D) mass-production technology. E) job enrichment. 27. A manager increases the number of tasks that a subordinate has to do in order to attempt to make the job more interesting for the subordinate. This is called: A) job simplification. B) job enlargement. C) job enrichment. D) a matrix structure. E) a functional job structure. PAGE 5

6 28. The workers of an organisation perform the same activities in the same way over and over again based on rules which managers have developed. We say that the behaviour of these workers has been: A) compromised. B) standardized. C) maximized. D) minimized. E) none of the above. 29. The set of values, norms, and expectations of behaviour which control the ways in which workers interact with one another within the organisation is known as: A) bureaucratic culture. B) organisational culture. C) an MBO culture. D) a feedback control culture. E) a feedforward control culture. 30. The type of control that is imposed on workers within the organisation by the shared values and standards of behaviour for workers within that organisation is known as: A) bureaucratic control. B) feedforward control. C) clan control. D) feedback control. E) concurrent control. 31. The process by which managers decide the relative qualifications of job applicants for an open position is known as: A) training. B) selection. C) development. D) performance appraisal. E) feedback. 32. The set of activities in which managers engage to forecast the future human resource needs of their organisation is known as: A) performance appraisal. B) feedback. C) human resource planning. D) recruitment. E) selection. 33. When managers attempt to estimate both the qualifications of workers and the number of workers that their organisation will need in the future, this is known as: A) supply forecasting. B) recruitment. C) selection. D) demand forecasting. E) development. PAGE 6

7 34. Behaviour which is performed by an employee to acquire a material reward, to acquire a social reward, or to avoid punishment is referred to as: A) extrinsically motivated behaviour. B) equity behaviour. C) underpayment inequity. D) intrinsically motivated behaviour. E) overpayment inequity. 35. Which of the following is NOT an example of an employee's outcome from an organisation? A) effort B) feeling of accomplishment C) vacation time D) pleasure of performing interesting work E) autonomy 36. Which of the following is an example of a manager's input to the organisation? A) Education B) Experience C) Skills D) Work behaviours E) All of the above 37. The ability of a leader to get others to act in certain ways is known as that leader's: A) power. B) initiating structure. C) consideration. D) task-orientation. E) task structure. 38. Which of the following is a type of power which leaders exert over subordinates? A) Reward power B) Referent power C) Legitimate power D) Coercive power E) All of the above 39. The authority that a manager has because of his or her position in the organisational hierarchy is known as: A) coercive power. B) legitimate power. C) reward power. D) referent power. E) expert power. 40. Research and development (R&D) teams are a common practice in which of the following industries? A) High-tech B) Electronic imaging C) Computers D) Electronics E) All of the above PAGE 7

8 41. Another name for command groups is: A) informal groups. B) virtual groups. C) interest groups. D) social loafing groups. E) departments. 42. Task forces that are relatively permanent are referred to as: A) interest groups. B) informal groups. C) standing committees. D) virtual groups. E) sequential task interdependence groups. 43. Information is shared between two or more people in which stage of the communication process? A) Transmission B) Encoding C) Filtering D) Sending E) None of the above 44. In which stage of the communication process is a common understanding reached between the participants? A) Sending B) Filtering C) Encoding D) Feedback E) Transmission 45. In the transmission phase of communication, the person who wishes to share information with someone else is known as the: A) encoder. B) messenger. C) noise. D) receiver. E) sender. 46. Which of the following is a type of conflict that can occur in organisations? A) Intergroup conflict B) Intragroup conflict C) Interorganisational conflict D) Interpersonal conflict E) All of the above 47. When different managers within the organisation have different goals which produce conflict between them, this is an example of: A) intragroup conflict. B) intergroup conflict. C) interpersonal conflict. D) interorganisational conflict. E) top-down conflict. PAGE 8

9 48. When two managers are in conflict because they hold very different values about the importance of the organisation protecting the environment, this is an example of: A) interpersonal conflict. B) bottom-up conflict. C) intergroup conflict. D) interorganisational conflict. E) intragroup conflict. 49. Information that reflects current conditions is called information. A) timely B) relevant C) real-time D) complete E) all of the above 50. Information which gives managers all of the information which they need to exercise control, to coordinate their activities, or to make an effective decision is known as information. A) complete B) timely C) real-time D) relevant E) all of the above 51. Information that is useful to the particular circumstances facing a manager is known as information. A) timely B) relevant C) complete D) real-time E) none of the above 52. The concept of refers to goods and services that are reliable, dependable, and satisfying and which do the job that they were designed for. A) efficiency B) JIT C) facilities layout D) quality E) quality circles 53. The concept of quality refers to goods and services that are: A) dependable. B) satisfying. C) reliable. D) able to do the job they were designed for. E) all of the above. 54. refers to the amount of input that is required to produce a given level of output. A) quality. B) responsiveness to customers. C) efficiency. D) quality control. E) TQM. PAGE 9

10 55. The change in demand for a product over time is known as: A) the product development plan. B) the product life cycle. C) the stage-gate development funnel. D) the contract book. E) concurrent engineering. 56. Which of the following is a stage of the product life cycle? A) Growth B) Mature C) Embryonic D) Decline E) All of the above 57. In which stage of the product life cycle are many consumers entering the market and buying the product for the first time? A) Embryonic B) Growth C) Decline D) Mature E) Stage-gate 58. In general, the mobilization of resources within an organisation in order to take advantage of opportunities to provide customers with new or improved products is called: A) quantum product innovation. B) quantum technological change. C) entrepreneurship. D) concurrent engineering. E) skunkworking. 59. When entrepreneurs score high on a personality trait that suggests that they are predisposed to be daring and to take risks, we say that they have scored high on: A) openness to experience. B) internal locus of control C) external locus of control D) need for achievement. E) self-esteem. 60. An autonomous part of an organisation given all resources it needs to develop and market its product is called a(an): A) skunkworks B) new venture division C) cross-functional team D) product champion team E) learning organisation PAGE 10

11 SECTION B ANSWER ANY TWO OF THE FOLLOWING THREE QUESTIONS. PLEASE USE ONLY ONE ANSWER BOOK FOR BOTH OF YOUR ANSWERS. 1. When and under what conditions might managers change from a functional to (a) a product, (b) a geographic, or (c) a market organisation structure? (20 marks) 2. Organisations rely on groups and teams to achieve their goals and gain competitive advantage. Briefly discuss this statement. (20 marks) 3. Managers use the Internet for a variety of communication purposes. Discuss these various purposes and their advantages and disadvantages. (20 marks) PAGE 11