P4 Organisational Management and Information Systems

Transcription

1 Business Management Pillar Managerial Level Paper P4 Organisational Management and Information Systems 25 November 2009 Wednesday Afternoon Session Instructions to candidates You are allowed three hours to answer this question paper. You are allowed 20 minutes reading time before the examination begins during which you should read the question paper and, if you wish, highlight and/or make notes on the question paper. However, you will not be allowed, under any circumstances, to open the answer book and start writing or use your calculator during the reading time. You are strongly advised to carefully read ALL the question requirements before attempting the question concerned (that is all parts and/or subquestions). The requirements for questions 2 4 are highlighted in a dotted box. ALL answers must be written in the answer book. Answers or notes written on the question paper will not be submitted for marking. Answer the ONE compulsory question in Section A. This has fifteen subquestions on pages 2 to 5. Answer ALL six compulsory sub-questions in Section B on pages 6 and 7. Answer ONE of the two questions in Section C on pages 8 and 9. The list of verbs as published in the syllabus is given for reference on the inside back cover of this question paper. Write your candidate number, the paper number and examination subject title in the spaces provided on the front of the answer book. Also write your contact ID and name in the space provided in the right hand margin and seal to close. Tick the appropriate boxes on the front of the answer book to indicate which questions you have answered. P4 Organisational Management and Information Systems TURN OVER The Chartered Institute of Management Accountants 2009

2 SECTION A 40 MARKS [the indicative time for answering this section is 72 minutes] ANSWER ALL FIFTEEN SUB-QUESTIONS Instructions for answering Section A The answers to the fifteen sub-questions in Section A should ALL be written in your answer book. Your answers should be clearly numbered with the sub-question number and ruled off so the markers know which sub-question you are answering. For multiple choice questions you need only write the sub-question number and the answer option you have chosen. You do not need to start a new page for each sub-question. Each of the sub-questions numbered from 1.1 to 1.10 inclusive, given below, has only ONE correct answer. Each is worth two marks. Question One 1.1 Continuous improvement of quality through small steps is referred to as A business process re-engineering (BPR). B Kaizen. C cellular production. D incremental progression. 1.2 Depicting change as occurring in the context of various competing pressures is referred to as A B C D stakeholder analysis. the force field analysis technique. mind mapping. organisational development. 1.3 A soft issues approach to organisational change emphasises A culture, leadership style and behaviours. B incremental thinking and gentle transition. C laissez-faire management. D strategy, structures, productivity and performance. P4 2 November 2009

3 1.4 A co-optation strategy can include A buying off those resisting change by giving them positions of authority, etc. B increasing the number of suppliers within the value chain. C implementing a new system whilst parallel-running the old facility. D forming joint ventures with other organisations. 1.5 According to the market/product lifecycle the market shakeout stage follows immediately from A B C D market decline. market growth. market maturity. introduction. 1.6 Costs associated with planning, training and establishing methods and procedures in quality matters are referred to as A B C D external failure costs. internal failure costs. appraisal costs. prevention costs. 1.7 Organisations use psychometric testing mainly for A systems implementation. B selecting suitable supply partners. C validating market research data. D staff selection and promotion decisions. 1.8 Kirkpatrick s four level model is designed to evaluate A purchasing arrangements. B reward systems. C training programmes. D quality processes. Section A continues on the next page TURN OVER November P4

4 1.9 Natural wastage normally refers to A advertising effort failing to reach a target segment. B job applicants who fail to attend interviews. C customers lost to competitors every year. D a reduction in the workforce caused by the decisions of individual workers Flexible working practices and a commitment to improvement are features of A personal selling. B teleworking. C a performance management system. D lean production methods. (Total for sub-questions 1.1 to 1.10 = 20 marks) Section A continues on the opposite page P4 4 November 2009

5 Required: Each of the sub-questions numbered 1.11 to 1.15 below requires a brief written response. Each sub-question is worth 4 marks. Your response should be in note form and should not exceed 50 words per sub-question Contrast the thinking of F. W. Taylor and Edward Deming in the way in which they viewed the workforce. (4 marks) 1.12 Using the basic marketing mix as a framework, identify the main questions a strategic marketing plan should address. (4 marks) 1.13 Distinguish between penetration and premium pricing. (4 marks) 1.14 Some employee dismissals (termination of employment) may be wrongful. Identify the likely features of dismissals that might be considered fair by a good employer. (4 marks) 1.15 Identify the similarities between Plan-do-check-act (PDCA) and Quality Circles. (4 marks) (Total for sub-questions 1.11 to 1.15 = 20 marks) (Total for Section A = 40 marks) Reminder All answers to Section A must be written in your answer book. Answers or notes to Section A written on the question paper will not be submitted for marking. End of Section A Section B starts on the next page TURN OVER November P4

6 SECTION B 30 MARKS [the indicative time for answering this section is 54 minutes] ANSWER ALL SIX SUB-QUESTIONS. EACH SUB-QUESTION IS WORTH 5 MARKS. Question Two DY1 manufacturing company purchased an information systems package many years ago. The system focuses on daily transaction processing of stock, sales and purchasing, and provides regular user summaries. Unfortunately, the output is not user friendly and a coordinator downloads output onto spreadsheets which are then manipulated, enhanced and ed to users. Managers and senior managers often complain that even this information is inadequate for their needs. In response, DY1 has employed a business information consultancy firm to conduct a review. The consultancy firm reported that the existing system is outdated and incompatible with the more recent software on the market. The main issues and recommendations are summarised as follows: Purchase a new system DY1 should purchase a system (called OSM) which provides more meaningful, timely information. The OSM system is easy to understand and navigate and would offer a more comprehensive analysis than the existing package provides, including historical statistics and comparison to prices charged by competitors. OSM also offers potential for further customisation to local needs through its display functions and flexible formats. Users (senior managers, managers and others) would be able to use the software efficiently straight away without additional training so long as other types of support are provided. Daily transaction processing routines would remain unchanged. Implementation of the new system The system should be implemented by direct changeover because DY1 s network servers have insufficient capacity to maintain both new and old systems. The installation should take place over a weekend to minimise disruption. Once installed, systems maintenance should be minimal. Redesign of coordinator s role This role should be redesigned so that the existing post-holder becomes responsible for validating OSM output, coordinating information enhancements and providing support and advice to users. DY1 s managing director is familiar with OSM through past working experience and agrees that it is a worthwhile package. She is, however, unhappy about how the consultants have conducted their review. In particular, she is concerned that very few managers, senior managers and other information users have been involved in discussions. She also believes that any job design needs to concentrate on the characteristics of the post in order to gain maximum motivation and job performance. She therefore treats the findings and recommendations of the consultants with caution. A fellow director has advised her not to implement the consultants recommendations without further reference to the workforce as this might lead to staff resistance. The requirement for this question is on the opposite page P4 6 November 2009

7 Instructions You should use no more than one page per sub-question. Use a separate page of your answer book for each sub-question (meaning that your notes are contained on no more than six pages in total). Your notes can take any form and might include diagrams, tables, sentences or bullet points, etc. Required: In terms of the recommendation to purchase the OSM system: (a) (b) (c) Explain the issues DY1 should consider before accepting the recommendation. Discuss the reasons why there may be user resistance. Explain the types of support that could be organised to help users utilise OSM efficiently. In terms of the recommendations relating to implementation: (d) Explain the potential difficulties involved (apart from resistance discussed in (b)). In terms of the recommendation relating to the redesign of the coordinator s role: (e) (5 marks) (5 marks) (5 marks) (5 marks) Discuss the characteristics (features or core dimensions) of the coordinator s role that should be considered when redesigning it. Assuming the OSM system is adopted by DY1: (f) (5 marks) Explain the types of system maintenance that are likely to be performed by DY1 in the future. (5 marks) (Total for Question Two = 30 marks) (Total for Section B = 30 marks) End of Section B Section C starts on the next page TURN OVER November P4

8 SECTION C 30 MARKS [Indicative time for answering this question is 54 minutes] ANSWER ONE QUESTION ONLY Question Three X graduated from university last summer having studied advanced computing. Whilst at university he was encouraged to maintain an electronic portfolio of experience using a sophisticated university computer system. The system allows students to: Record skills, events and achievements throughout their academic study; Share documents and work collaboratively with other students; Build a collection of items related to an individual student s studies, personal development, events of personal significance, etc.; Develop an electronic curriculum vitae (ecv) with embedded web links to supporting documents, etc. One of the aims of the electronic portfolio is to allow students to showcase their abilities and experiences to prospective employers when they seek full time employment for the first time. X believes that a similar system would also have great potential for senior managers and executives. Since leaving university, he has developed and patented software called ecv. The main use of the software is to provide a virtual CV document that can show video messages, graphs, charts and work samples through embedded links. In addition, ecv can provide: An e-business card that can be attached to the bottom of an message; A social network for invited business contacts, so creating a private community where membership is by invitation only (a walled garden ); A record and evidence of continuing professional development (CPD) achievements. The conditions under which content, either wholly or partly, would be shared with others is for the individual user of ecv to decide. X is having discussions with a large executive recruitment agency which is very interested in the software, despite a huge cost investment. The agency has, in the past, experimented with e- recruitment, blogging and virtual careers fairs. One of its strategic aims is to use the newest technology for effective recruitment and networking. The majority of its competitors have yet to recognise this potential. The agency believes that ecv could be a way of presenting candidate information to its member firms. It is attracted in particular to the walled garden within ecv where senior executives who are looking for a new job can engage with a prospective new employer, knowing that privacy is guaranteed. Required: (a) Explain the contribution a CV or curriculum vitae can make as part of an organisation s recruitment and selection processes. (10 marks) (b) (c) Explain the advantages ecv would offer to the executive recruitment agency. (10 marks) Explain the potential disadvantages of ecv for the executive recruitment agency. (10 marks) (Total for Question Three = 30 marks) Section C continues on the opposite page P4 8 November 2009

9 Question Four ABC is a manufacturing company which operates with three factories in the north of the country. It was founded 30 years ago by Z who operated as managing director and took personal control of sales and production. Recently however, ill-health has meant that he had to retire. His daughter has been given complete control of the company. She recognises the importance of two key areas, namely marketing and product quality, which are particularly significant in the current economic climate. She is confident that ABC can operate more effectively and has created two new positions: director of marketing and director of operations. Both posts have been filled by experienced professional managers appointed from outside ABC s current workforce. She has asked the new directors, as their first major task, to conduct a thorough review and make recommendations that will bring about significant improvements. The marketing director s view leads him to believe that the current mass marketing approach that ABC employs needs to be revised. ABC tries to sell its full product range to all potential customers, even though it is geographically difficult to fulfill obligations to customers in the south of the country. He wishes to commission a sophisticated market research project in order to target ABC s most appropriate customer base more closely. He believes that there will be many advantages to be derived from information generated through market research and from market segmentation. The director of operations has discovered that no systematic quality control exists within ABC and he thinks that differing operating efficiencies exist both within and between ABC s factories. He has also discovered a worrying trend of an increasing number of returned goods which require replacement or reworking. He is recommending that ABC should seek the international quality standard ISO 9000 certification. Although the company has no immediate plans to sell globally and customers are not demanding such a certification, the process should, he feels, still deliver significant benefits to ABC. Required: (a) (b) (c) Explain the use ABC might make of the information gained through market research. (10 marks) Describe the advantages of market segmentation for ABC. (10 marks) Describe the benefits of quality standard ISO 9000 certification to ABC. (10 marks) (Total for Question Four = 30 marks) End of Question Paper November P4

10 [This page is blank] P4 10 November 2009

11 LIST OF VERBS USED IN THE QUESTION REQUIREMENTS A list of the learning objectives and verbs that appear in the syllabus and in the question requirements for each question in this paper. It is important that you answer the question according to the definition of the verb. LEARNING OBJECTIVE VERBS USED DEFINITION 1 KNOWLEDGE What you are expected to know. List Make a list of State Express, fully or clearly, the details of/facts of Define Give the exact meaning of 2 COMPREHENSION What you are expected to understand. Describe Communicate the key features Distinguish Highlight the differences between Explain Make clear or intelligible/state the meaning of Identify Recognise, establish or select after consideration Illustrate Use an example to describe or explain something 3 APPLICATION How you are expected to apply your knowledge. 4 ANALYSIS How you are expected to analyse the detail of what you have learned. 5 EVALUATION How you are expected to use your learning to evaluate, make decisions or recommendations. Apply Calculate/compute Demonstrate Prepare Reconcile Solve Tabulate Analyse Categorise Compare and contrast Construct Discuss Interpret Produce Advise Evaluate Recommend To put to practical use To ascertain or reckon mathematically To prove with certainty or to exhibit by practical means To make or get ready for use To make or prove consistent/compatible Find an answer to Arrange in a table Examine in detail the structure of Place into a defined class or division Show the similarities and/or differences between To build up or compile To examine in detail by argument To translate into intelligible or familiar terms To create or bring into existence To counsel, inform or notify To appraise or assess the value of To advise on a course of action November P4

12 Business Management Pillar Managerial Level Paper P4 Organisational Management and Information Systems November 2009 Wednesday Afternoon Session P4 12 November 2009