MODULE: ORGANISATION AND MANAGEMENT
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1 BSc.(Hons) Public Administration and Management Diploma In Public Administration and Management Diploma In Human Resource Management Diploma In Public Sector Finance Management Cohort: BPAM/PT - Year 1 / DPAM/PT Year 1/ DHRM/PT Year 1/DPFSM/PT Year 1 Examinations for / Semester 2 MODULE: ORGANISATION AND MANAGEMENT MODULE CODE: MGMT1101 Duration: 2 Hours Reading Time: 10 Minutes Instructions to Candidates: 1. This paper consists of Sections A and B. 2. Section A is compulsory. 3. Answer any two questions from Section B. 4. Always start a new question on a fresh page. 5. Total marks 100. This question paper contains 5 questions and 2 pages. Page 1 of 6
2 SECTION A: COMPULSORY QUESTION 1: (40 MARKS) i) Differentiate between internal and external environment in which an organization operates.(20 marks) Explain that the organization is an open system and it is affected by the environment 4 marks Distinguish the two types of environment,i.e, the internal environment which is mainly the organizational culture 4 marks The external environment consist of the specific and the general environment-2 marks The specific environment consists of the followings: the customer, the supplier, the advocacy groups, the industry regulations, the competitors.- 6 marks The main components of the general environment are: the political factors, social factors, economical factors and the technological factors.- 6 marks ii) How managers can reduce the influence of the external environment on their organization? (20 marks) Explain that the scanning of the external environment is very important for any organization to succeed due to the beneficial and adverse impact that the external environment may have on the organization 3 marks The ways in which the managers can influence the specific environment are as follows: i. Customer forward integration, lower prices than competitors, distinctive brands, cater for the need of the customers 2 marks ii. Competitors horizontal integration, benchmarking, improve cost of production to charge lower prices,- 2 marks iii. Suppliers backward integration, increase bargaining power by looking for more suppliers,- 2,marks Page 2 of 6
3 iv. Industry regulation abide by the regulation 1 mark v. Advocacy group respecting environmental factors, funding environmental project to improve image of the organization.- 2 marks The ways in which the managers can deal with the general environment are: o Political factors lobbying the government, monitor political stability 2 marks o Economical factors monitor the inflation rates, taxation policy, monetary policy on the organization, use of hedging techniques 2 marks o Social factors ageing population and provision of products and services for this target group 2 marks o Technological factors use of technology to bring new products, improve quality, increase efficiency of the different processes and thus reduce cost 2 marks SECTION B: ANSWER ANY TWO QUESTIONS QUESTION 2: (30 MARKS) What difficulties might confront a manager today if he tries to implement Taylor s view of management as they were originally stated? Explain scientific management and the different principles associated with scientific management 5 marks Explain the limitations of each principle like specialization can imply that the job is boring, training can be costly and if the employee leaves the organization the organization can lose the investment made, he also proposed that money is the only motivator for higher performance which is questionable -10 marks Other limitations in comparison to other movements in history 10 marks o It did not recognized the importance of the informal group on the performance of the individual as proposed by Elton Mayo Page 3 of 6
4 o The theory of Scientific management is mostly for the operational level and not the management level o The principle of only one best way of doing work will not be applicable in dynamic environment whereby the contingency approach is more appropriate and decisions have to be made according to the context and the situation at hand. o Information management is also very important today for decision making and scientific management did not considered it at the time it originated. Some of the principles are still being used in different sectors in terms of time and motion study, training of workers, performance related pay but it can not be applied as it was proposed by Taylor as the context has changed 5 marks QUESTION 3: (30 MARKS) What are the benefits and pitfalls of planning? Definition of planning 5 marks The benefits of planning are : - 10 marks o It gives a sense of direction o It minimizes waste and redundancy o It is the basis for control o It minimizes the impact of change The pitfalls of planning are: - 10 marks o Planning may create rigidity o Plans can t be developed for a dynamic environment o Formal plans can not replace intuition and creativity o Planning focuses managers attention on today s competition not on tomorrow s survival o Formal planning reinforces success which may lead to failure Managers must still plan as it has benefits but they must try to make it flexible so as to counteract the change in the external environment.- 5 marks Page 4 of 6
5 QUESTION 4: (30 MARKS) Using Maslow s theory of needs, explain whether money is the only motivating factor Definition of motivation - 4 marks Explain the theory of motivation of Maslow - 4 marks Explain the different types of needs: Physiological needs, safety needs, social needs, esteem needs and self actualization needs -7 marks Explain that according to Maslow, money is only one of the factors that can motivate people. Once a level of need is satisfied, this need will no longer motivate the employee. Thus once physiological needs are satisfied by money, money will no longer motivate the employees. The other needs that will motivate the employees.- 10 marks Money is only one of the factors that motivate people. There are other factors as depicted by the hierarchy of needs put forward by Maslow.- 5 marks Question 5 (30 marks) (a) Outline the decision-making process. (5 marks) (b) Distinguish between short run and long run decisions. (5 marks) (c) Describe two internal and two external constraints that can affect the decisionmaking process. (20 marks) (a) The decision-making process is an attempt to eliminate guesswork and bias by following a scientific approach based on: - 5 marks setting objectives gathering data forming hypotheses testing alternatives implementing a chosen alternative controlling and reviewing the situation. (b) Long run decisions are made by senior management and tend to be in force for a considerable length of time i.e. several years. An example might be the credit policy of the company. Page 5 of 6
6 Short run decisions are the day-to-day decisions taken by middle management and supervisors and might apply to one-off situations. An example might be the resolution of a customer query. 5 marks (c)internal constraints that affect the decision-making process include: -10 marks inadequate or incorrect information about the problem failure to identify the problem resistance of employees to change poor quality management lack of resources both financial and physical poor communication systems lack of team work the culture of the organisation External constraints that affect the decision-making process include: - 10 marks the time available to react speed of competitor reaction macro economic forces such as interest rate changes and government taxation changes in consumer preferences changes in technology new safety or consumer legislation availability and cost of information. Note for the questions above: Marks will also be given for any other relevant ideas not mentioned in the answers and for the use of appropriate examples showing the maturity of the student. ***END OF QUESTION PAPER*** Page 6 of 6
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