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CHAPTER 1: INTRODUCTION TO
MANAGEMENT
APR 2011
Question 1
a) Discuss Henry Mintzberg’s managerial roles. Provide appropriate examples.
Henry Mintzberg’s have three managerial roles. There are interpersonal
roles, informational roles and decisional roles.
Firstly, interpersonal roles are the manager’s responsibility for managing
relationships with organizational members and other constituents. In the
organizational have figurehead, leader and liaison to help manager in managing
the organization smoothly.
Secondly, informational roles are the manager’s responsibility for
gathering and disseminating information to the stakeholders of the organization.
There have monitor, disseminator and spokesperson in the informational roles.
Their responsibilities are to assist the manager in receiving and communicating
the information to make the right decision.
Lastly, decisional roles are the manager’s responsibility for processing
information and reaching conclusions including entrepreneur, disturbance
handler, resource allocator and negotiator. Besides that, manager should know
to identify and resolve problems and capitalize on opportunities.
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OCT 2010
Questions 2
a) In today’s world, managers are dealing with many influences that require them to
reshape and redefine management. Discuss any four influences with appropriate
examples.
Influences that require reshaping and redefining management are
planning, organizing, leading and controlling.
Planning involves setting goals and defining the actions necessary to
achieve those goals. While top level managers establish overall goals and
strategy. Managers throughout the hierarchy must develop operational plans for
their work groups that contribute to the efforts of the organization as a whole. All
managers must develop a plan for administering and coordinating the resources
for which they are responsible so that the goals of their work groups can beachieved.
Organizing involves determining the task to be done, who will do them and
how those tasks will be managed and coordinated. Managers must organize the
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members of their work groups and organization so that resources and task flow
efficiently through the organization. Most important, the organization must be
structured in light of its strategic and operational goals so that it can be
responsive to changes in business environment.
Managers must capable of leading the members of their work groups
toward the accomplishment of the organizations goals. To be effective leaders,
managers must understand the dynamics of individual and group behavior, be
able to motivate their employees and be effective communications. Only through
effective leadership, the goals of organizations can be achieved.
Managers must monitor the performance of the organizations as well as
their progress in implementing strategic and operational plans. Controlling
requires identify deviations between planned and actual results. When an
organization is not performing as planned, manager must take corrective action.
Control is an important function in the managerial process because it provides a
method for ensuring that the organization is moving toward the achievement of
its goals.
b) Distinguish efficiency and effectiveness.
Efficiency
• To achieved by using the fewest inputs to generate a given output
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Interpersonal roles are the manager’s responsibility for managing
relationships with organizational members and other constituents. Three other
constituents are figurehead, leader and liaison.
The meaning of figurehead is symbolic-head as manager to manage the
relationships with organizational members. Give a task to the first line manager
to supervise the employees to finish their work. The activities include ceremony,
status requests and solicitations. Figurehead also is a person who is the nominal
head or chief of a company not a real and who is name is used to give standing
to a business. In management, it is a role which is performed by a manager by
representing the company in meeting, conferences and at dinners. For example,
the managers give a good idea in the meeting to show his availability and
capability as manager.
Leader’s mean responsible for motivating and activating the subordinate.
It also is another role of a manager relating to hiring, firing, training and
motivating the employees. The activities include responsibility for staffing,
training, subordinate’s team building. Besides that, the leader is a process that is
an observable, understandable, learnable set of skills and practice available to
everyone anywhere in the organization. For example, give training to the
employees who not have any experience work.
Liaison, it is mean maintaining a self-developed network of outside contact
and information. It also is communication between two or more groups. It is
included in the manager’s role. The activities include interactions with outsider,
responding to mail and external board work.
b) Discuss four major challenges faced by managers in the rapid changing
environment.
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• Economic and technological change.
Several economic changes have occurred that have altered
employment and occupational patterns. A major change is the shift of jobs
from manufacturing and agriculture to service industries and
telecommunication. This shift has meant that some organization had to
reduce number of employees, while others had to attract and retain
employees with different capabilities than previously were needed. The
explosive growth of information technology, particularly linked to the
internet has forced many changes throughout organizations of all types.
• Workforce availability and quality concerns.
Significant workforce shortages exist due to an adequate supply of
workers with the skills needed to perform the jobs being added. Jobs
with extreme supply shortages for several years have included
specialized information system technicians, physical therapist,
plumbers, air conditioning repair technicians and many others.
Consequently, human resources professionals have faced greater
pressures to recruit and train workers
• Demographic and diversity issues
It is more diverse racially women are in the labor force in much
greater numbers than ever before and the average age of the
workforce is now considerably older than before. As a result of these
demographic shifts, human resource management in organization had
to adapt to a more varied labor force both externally and internally.
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• Organizational restructing
Many organizations have restructed in the past few years in order
to become more competitive. As part of the organization changes,
many organizations have “rightsized” either by eliminating layers of
managers, closing facilities, merging with other organizations or
outplacing workers. A common transformation has been to flatten
organizations by removing several layers of management and to
improve productivity, quality and service
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management. He attempted to define “the one best way” to perform every task
through systematic study and other scientific methods. He also believed that
improved management practice lead to improved productivity. Three areas of
focus is task performance, supervision and motivation. In task performance is
scientific management incorporates basic expectations of management including
development of work standards, selection of workers, training of workers and
support of workers. Supervision is Taylor felt that a single supervisor could not be
an expert at all tasks. As a result, each first level supervisor should be
responsible only workers who perform a common function familiar to the
supervisor. In motivation also Taylor believed money was the way to motivate
workers to their fullest capabilities. He advocated a piece work system in which
worker’s pay was tied to their output. Each contributor is Frank Gilbreth and
Lillian Gilbreth. Frank Gilbreth specialized in time and motion studies to
determine the most efficient way to perform tasks. Lillian Gilbreth is a strong
proponent of better working condition as a means of improving efficiency and
productivity.
Administrative management
It is basically focuses on how a business should be organized and the
practices an effective manager should follow. Ii also explored the possibilities of
an ideal way to put all jobs together and operate an organization. Administrative
management theory “emphasized management functions and attempted to
generate broad administrative principles that would serve as guidelines for the
rationalization of organizational activities”. Henri Fayol is the first recognized that
successful managers had to understand the basic managerial function. He
developed a set of 14 general principles of management. Fayol’s managerial
functions of planning, organizing, leading and controlling are routinely used in
modern organizations. Fayol’s work included a definition of a body of principles,
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which enables a manager to construct a formal structure of the organization and
to supervise it in a rational way.
Bureaucratic management
It can be described as “a formal system of organization based on clearly
defined hierarchical levels and roles in order to maintain efficiency and
effectiveness”. Max Weber was a historian that wrote about the emergence of
bureaucracy management from more traditional organizational forms. It also
based upon on firm rules, policies and procedures, a fixed hierarchy and a clear
division of labor. According to Weber, bureaucratic is a particular type of
administrative structure developed through rational-legal authority. Due to their
efficiency and stability, it would become the most prevalent form of organization
in society. Weber’s forms have three types of authority which are traditional,
charismatic and rational-legal authority. Traditional authority is subordinate
obedience based upon custom or tradition. Charismatic authority is subordinates
voluntarily comply with a leader because of his or her special personal qualities
or abilities. Rational-legal authority is subordinate obedience based upon the
position held by superiors within the organization.
CHAPTER 3: PLANNING
APR 2011
Question 5
a) If an organization is in an environment that experiences constant change, what is
the point of trying to develop long term plans?
There is abundant evidence that planning is the most prominent and pervasive of the
management functions or processes. Planning is prominent because of the evidence of
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failure in organizations traceable to poor planning or preparation for the future on
management's part. Planning is pervasive in that it cuts through all management
functions and is a function that is applicable to all managerial levels. It cuts through the
other management functions of organizing, controlling, staffing, directing, and decision
making in the sense that it is a vital and necessary component of each of these
processes. That is, managers must plan for each of the other functions. Planning is
applicable to every managerial level because managerial action and decision making,
whether at the chief executive's level or at the first-line supervisor's level, should ideally
be predicated upon preliminary thought and anticipation of future issues, problems, or
details that invariably come into play in the process of making organizations work.
Before planning is anything else, it is a mental process. It is a process of thinking
through all facets of an issue or a problem before taking action. At the same time, it
provides the ingredients for action.
Planning is a process that entails an assessment of the organization, its resources, and
its environment, and encompasses the setting of objectives. Using that assessment as
a backdrop, planning entails looking at the past, the present, and the future. So often we
stress the futurity of planning to such an extent that we fail to make it clear that the past
and the present are our points of departure. Using the past and the present as points of reference, in planning we consider both what we anticipate the future will be like, and
what we desire it to be like.
b) Explain three types of planning and provide examples for your answer.
"To-Do-List" Planning
Very few managers can function without a "to-do-list." Since managers areso busy, it is essential that they be able to list the projects, reports, meetings, or
goals they need to accomplish on a day-to-day basis. Human nature seems to be
that we respond well to actually, or mentally "checking off" activities that have
been accomplished during the day. To-do-list planning is narrowly focused, daily
or weekly in time span, and frequently personal. Nevertheless, it represents an
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invaluable discipline on the part of the individual manager desiring to see things
"get done" or to "make the organization work."
Not only are "to-do-lists" valuable for personal planning, they are valuable
mechanisms for delegating tasks to others. Instead of providing verbal
instructions of what to do, provide your subordinates or co-workers with a "to-do-
list" if you find that it is essential for that day or week. Personal experience
indicates that others assume more of a responsibility for the task if it is written
down than if it is verbally communicated.
Operational Planning
Operational planning is gauged toward the mid-range of time. This may be
weeks or months or may extend to a year or two. Typically, operational planning
is derived from or is in response to an annual budget. Some planning experts
have termed this type of planning tactical planning.
Whether it is driven by an organization's budget, a personal budget or a
functional area of responsibility, operational planning focuses on getting the work
accomplished effectively between now and some limited time period.
Another way of looking at operational planning is that it is in response to a
more comprehensive strategic plan of the organization. That is, operational
planning is derived from strategic planning. It flows from strategic planning. In
essence, it may be seen as part of the implementation phase of a more
comprehensive long range plan.
Planning or scheduling in the functional areas such as manufacturing,marketing, sales, and finance are examples of operational planning. Planning to
meet monthly work orders is operational planning. Planning next year's annual
meeting is operational planning. Though operational planning is often associated
with middle-level managers, it is indispensable to top level executives and first
line supervisors as.
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Strategic planning
Strategic planning is an organization's process of defining its strategy, or
direction, and making decisions on allocating its resources to pursue this
strategy. In order to determine the direction of the organization, it is necessary to
understand its current position and the possible avenues through which it can
pursue a particular course of action. Generally, strategic planning deals with at
least one of three key questions:"What do we do?", "For whom do we do it?" and
"How do we excel?"
In many organizations, this is viewed as a process for determining where
an organization is going over the next year or—more typically—3 to 5 years (long
term), although some extend their vision to 20 years.
The key components of 'strategic planning' include an understanding of
the firm's vision, mission, values and strategies. The vision and mission are often
captured in a Vision Statement and Mission Statement.
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OCT 2010
Question 6
Planning actually helps new business to survive longer. It makes better decisions of
what needs to be done through planning. However, too much planning could prevent
these firms from becoming successful. Explain the benefits and costs related to
planning
Planning provides a means for actively involving personnel from all areas of the
business enterprise in the management of the organization. Company-wide participation
improves the quality of the plans. Employee involvement enhances their overall
understanding of the organization's objectives and goals. The employees' knowledge of
the broad plan and awareness of the expected outcomes for their responsibility centers
minimizes friction between departments, sections, and individuals. Involvement in
planning fosters a greater personal commitment to the plan and to the organization.
These positive attitudes improve overall organizational morale and loyalty.
Managerial performance can also benefit from planning, although care must be
taken that planning does not become an empty task managers do periodically and
ignore the rest of the time. Successful planning focuses the energies and activities of
managers in the utilization of scarce resources in a competitive and demanding
marketplace. Able to clearly identify goals and objectives, managers perform better, are
more productive, and their operations are more profitable. In addition, planning is a
mental exercise from which managers attain experience and knowledge. It prepares
them for the rigors of the marketplace by forcing them to think in a future- and
contingency-oriented manner.
Costs that related to planning are collection, analysis and evaluation of different
information internal or external source. To get fact and alternative involves a lot of
expenses in term, effort and money. According to Koontz and O’ Donell “expenses on
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planning should never exceed the estimated benefits from planning”. Planning process
require a substial amount of managerial time and energy. Manager must work with their
employees to evaluate existing resources, identify opportunities to improve the
operation of the work group, and establish organization goals. Some work groups may
find that planning requires an assessment of external information related to the
products, prices, and strategies of competing firms, the collection analysis, and
interpretation of such information can be time-consuming and costly. Another potential
cost of planning is that it may delay decision making. This is requiring time-consuming
acquisition of information and data. Furthermore managers argue that planning directs
the focus toward evaluating rather than doing. This can delay the organization’s
response to changes in the industry, marketplace, or internal operations.
OCT 2009
Question 1
a) Define planning and briefly discuss four important aspects of planning.
Planning that provides the details necessary to achieve the overall mission
on and strategic goals. This planning is the process of outlining the activities that
are necessary to achieve the goals of the organization. Through planning,
managers determine how organizational will be assigned to individuals and work
groups. The output of the planning process is the plan. A plan is a blueprint for
action; it prescribes the activities necessary for the organization to realize its
goals. The purpose of planning is simple- to ensure that the organization is both
effective and efficient in its activities. In a broad sense, an organization must
develop a plan that ensures that the appropriate product and services are offered
to its customers. More specifically, planning gives guidance and direction to the
members of the organization about their role in delivering those products and
service. 4 important aspects are:
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Programme: Programmes are detailed statements about a project which
outlines the objectives, policies, procedures, rules, tasks, human and physical
resources required and the budget to implement any course of action.
Budget: It is a plan which quantifies future facts and figures. It is a fundamental
planning instrument in many organizations.
b) Explain single use plan and its various types.
Single use plan is a type in plan of operational plan. Operational plan is a
Focuses on determining the day-to-day activities that are necessary to achieve the long-
term goals of the organization. Single use plan is a designed for a specific purpose or
period. There three type of single use plan are program, project and budget.
Programs are a single-used plan that designed to accomplish a particular set of
goals. E.g.: Program Pembangunan Pelajar. Another is a project. Project is the efforts of
individuals or groups toward the achievements of a specific goal. Projects are short time
in nature. E.g.: Project KLCC. Lastly is a Budget. Budgets are a plan that specifies how
financial resources should be allocated. E.g.: Budgets are plan that commit resources,
activities, projects or programs
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problem and achieve objectives. I may rely on my training, personal experience and
knowledge of the situation to generate alternatives.
Forth is evaluating alternatives. Which solution is the best. Fundamentals to this
step are the ability to assess the value or relative advantages and disadvantages of
each alternative under consideration. This help to identify the advantages and
disadvantages of the car.
Fifth is reaching decisions. The best are often based on careful judgements
making a good decision involve carefully examining all the facts, determining whether
sufficient information is available and finally selecting the best choices of the car that I
need.
Sixth is choosing implementation strategies. The key to effective implementation
are sensitivity to those who will be affected by the decision and proper planning and
consideration of the resources necessary to carry out the decision. Those parents
should understand the choice so the decision will be accepted and supported
Seventh is monitoring and evaluating. I must observe the impact of the decision
as objectively as possible and take further corrective action is necessary. Monitoring the
decision is useful whether the feedback is positive or negative. Then, we indicate that
the decision is correct because the car that I buy is useful and bring advantages to me.
OCT 2009
Question 5
a) Explain the participative decision-making approach
The process through which managers and leaders identify and resolve
problems and capitalize on opportunities. Good decision making is important at
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all levels in the organizations. It begins with recognition of awareness of
problems and concludes with an assessment of the results of action taken to
solve those problems
b) Discuss decision making process and give examples
First is identifying opportunities and diagnosing problems. Decision makers must
know where action is required. The first step in decision making process is the clear
identification of opportunities or the diagnosis of problems that require a decision. An
assessment of opportunities and problems will only be as accurate as the information
on which it is based. Therefore, managers must place a premium on obtaining accurate
and reliable information
Second is identifying objectives. Objectives reflect the results that we wants to
attain. Both the quantity and quality of the desired results should be specified, for these
aspects of the objectives will ultimately guide the decision maker in selecting the
appropriate course of action.
Third is generating alternatives. Once an opportunity has been identified or a
problem diagnosed correctly, a manager develops various ways to solve the problem
and achieve objectives. Managers may rely on their training, personal experience and
knowledge of the situation to generate alternatives. The alternatives can be standard
and obvious as well as innovative and unique.
Forth is evaluating alternatives. It involves determining the value or adequacy of
the alternatives generated. A fundamental to this step is the ability assess the value or
relative advantages and disadvantages of each alternative under consideration.
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Fifth is reaching decisions. Decision making is commonly associated with making
a final choice. Although choosing an alternative would seem to be a straightforward
proposition, in reality, the choice is rarely clear cut
Sixth is choosing implementation strategies. The bridge between reaching a
decision and evaluating the results is the implementation phase of the decision-making
process. The key to effective implementation are sensitivity to those who will be affected
by the decision and proper planning and consideration of the resources necessary to
carry out the decision.
Seventh is monitoring and evaluating. There is no decision-making process is
complete until the impact of the decision has been evaluated. The importance of
assessing the success or failure of a decision cannot be overstated. Evaluation of past
decisions as well as other information should drive future decision making as part of an
ongoing decision-making feedback loop.
CHAPTER 5: ORGANIZING
APR 2011
Question 2
a) Explain the differences between wide span and tall span of management
Span of management is generally categorized under two heads- Narrowspan and Wide span. Narrow Span of management means a single manager or
supervisor oversees few subordinates. This gives rise to a tall organizational
structure. While, a wide span of management means a single manager or
supervisor oversees a large number of subordinates. This gives rise to a flat
organizational structure. There is an inverse relation between the span of
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management and the number of hierarchical levels in an organization, example
narrow the span of management , greater the number of levels in an
organization.
Narrow span of management is more costly compared to wide span of
management as there are larger number of superiors/ managers and thus there
is greater communication issues too between various management levels. The
less geographically scattered the subordinates are, the better it is to have a wide
span of management as it would be feasible for managers to be in touch with the
subordinates and to explain them how to efficiently perform the tasks. In case of
narrow span of management, there are comparatively more growth opportunities
for a subordinate as the number of levels are more.
The more efficient and organized the managers are in performing their
tasks, the better it is to have wide span of management for such organization.
The less capable, motivated and confident the employees are, the better it is to
have a narrow span of management so that the managers can spend time with
them and supervise them well. The more standardized is the nature of tasks ,i.e.,
if same task can be performed using same inputs, the better it is to have a wide
span of management as more number of subordinates can be supervised by a
single superior. There is more flexibility, quick decision making, effective
communication between top level and low level management, and improved
customer interaction in case of wide span of management. Technological
advancement such as mobile phones, mails, etc. makes it feasible for superiors
to widen their span of management as there is more effective communication. An
optimal/ideal span of control according to the modern authors is fifteen to twenty
subordinates per manager, while according to the traditional authors the ideal
number is six subordinates per manager. But actually, an ideal span of control
depends upon the nature of an organization, skills and capabilities of manager,
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the employee’s skills and abilities, the nature of job, the degree of interaction
required between superior and subordinates.
b) Elaborate on the process of delegation
A concept related to authority is delegation. Delegation is the downward transfer of
authority from a manager to a subordinate. Most organizations today encourage
managers to delegate authority in order to provide maximum flexibility in meeting
customer needs. In addition, delegation leads to empowerment, in that people have the
freedom to contribute ideas and do their jobs in the best possible ways. This
involvement can increase job satisfaction for the individual and frequently results in
better job performance. Without delegation, managers do all the work themselves and
underutilize their workers. The ability to delegate is crucial to managerial success.
Managers need to take four steps if they want to successfully delegate responsibilities
to their teams.
1. Specifically assign tasks to individual team members.
The manager needs to make sure that employees know that they are ultimately
responsible for carrying out specific assignments.
2. Give team members the correct amount of authority to accomplish
assignments. Typically, an employee is assigned authority commensurate with
the task. A classical principle of organization warns managers not to delegate
without giving the subordinate the authority to perform to delegated task. When an
employee has responsibility for the task outcome but little authority, accomplishing
the job is possible but difficult. The subordinate without authority must rely on
persuasion and luck to meet performance expectations. When an employee has
authority exceeding responsibility, he or she may become a tyrant, using authority
toward frivolous outcomes.
3. Make sure that team members accept responsibility.
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Responsibility is the flip side of the authority coin. Responsibility is the duty to
perform the task or activity an employee has been assigned. An important
distinction between authority and responsibility is that the supervisor delegates
authority, but the responsibility is shared. Delegation of authority gives a
subordinate the right to make commitments, use resources, and take actions in
relation to duties assigned. However, in making this delegation, the obligation
created is not shifted from the supervisor to the subordinate — it is shared. A
supervisor always retains some responsibility for work performed by lower-level
units or individuals.
4. Create accountability.
Team members need to know that they are accountable for their projects.
Accountability means answering for one's actions and accepting the
consequences. Team members may need to report and justify task outcomes to
their superiors. Managers can build accountability into their organizational
structures by monitoring performances and rewarding successful outcomes.
APR 2010
Question 4
a) Define organizing and briefly describe the process of organizing.
“The process of determining the tasks to be done, who will do them, and how
those tasks will be managed and coordinated”. To structure or arrange the
relationship between people, the work to be done, & the facilities so that goals
are achieved. Organizing, like planning, must be a carefully worked out and
applied process. This process involves determining what work is needed to
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accomplish the goal, assigning those tasks to individuals, and arranging those
individuals in a decision-making framework (organizational structure). The end
result of the organizing process is an organization, a whole consisting of unified
parts acting in harmony to execute tasks to achieve goals, both effectively and
efficiently. A properly implemented organizing process should result in a work
environment where all team members are aware of their responsibilities. If the
organizing process is not conducted well, the results may yield confusion,
frustration, loss of efficiency, and limited effectiveness. In general, the
organizational process consists of five steps
1. Review plans and objectives. Objectives are the specific activities that must be
completed to achieve goals. Plans shape the activities needed to reach those
goals. Managers must examine plans initially and continue to do so as plans
change and new goals are developed.
2. Determine the work activities necessary to accomplish objectives. Although this
task may seem overwhelming to some managers, it doesn't need to be.
Managers simply list and analyze all the tasks that need to be accomplished in
order to reach organizational goals.
3. Classify and group the necessary work activities into manageable units. A
manager can group activities based on four models of departmentalization:
functional, geographical, product, and customer.
4. Assign activities and delegate authority. Managers assign the defined work
activities to specific individuals. Also, they give each individual the authority
(right) to carry out the assigned tasks.
5. Design a hierarchy of relationships. A manager should determine the vertical
(decision-making) and horizontal (coordinating) relationships of the organization
as a whole. Next, using the organizational chart, a manager should diagram the
relationships.
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b) Explain two advantages and two disadvantages of divisional structure.
Advantages divisional structure can make activities can be easily focuses and
coordinated. Also enhance speed and effectiveness of decision making and easy to
assess performance and identify accountability/liability. Disadvantages of divisional
structure are manager just focus only on own products and can make increase the
administrative costs.
CHAPTER 6: LEADERSHIP &
MOTIVATION
APR 2011
Question 6
a) Define leadership and explain four significance of leadership to an organization.
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Leadership is defined as a social influence process to influence people to
achieve a common goal. Leadership is not a position, title or privilege. It is
responsibility and a process as an observable, understandable, learnable set of
skill and practices available to everyone, anywhere in the organization. Typically,
leadership involves creating a vision of the future, devising a strategy for
achieving that vision and communicating the vision so that everyone understands
and believes in it. Leadership also entails building a culture that will inspire and
motivate people to overcome obstacles. In this way, leadership gets results and
brings about change. One view is that manager’s carry out responsibilities,
exercise authority and worry about how to get things done, whereas leaders are
concerned with understanding people’s beliefs and gaining their commitment. In
other words, managers and leaders differ in what they attend to and in how they
think, work and interact. A related argument contends that leadership is about
coping with change, whereas management is about coping with complexity. It is
important for all managers to think of themselves as leader and consequently, we
use the term leadership to encompass both leadership and management
functions.
b) Leaders use various types of powers to influence others. Describe with examples
any four types of power exercised by leaders
Power is derived in part from the opportunities inherent in a position in an
organization. First, legitimate power stems from formal authority. This authority is
based on perceptions about the obligations and responsibilities associated with
particular positions in an organization. For example, Anne Mulchay uses
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Task orientation is leadership behaviors that include setting performance
goals, planning and scheduling work, coordinating activities, giving directions,
setting standard, providing resources and supervising worker performance.
James Hackett president and CEO of Steelcase, is known for his task orientation
when dealing with analysts, employees, dealers and the community
Relations orientations is leadership behavior that shows empathy for
concerns and feelings, being supportive of needs, showing trust, demonstrating
appreciation, establishing trusting relationships and allowing subordinates to
participate in decision making. Elizabeth Robert, president and CEO of the
Vermant Teddy Bear Company is an example of a leader who demonstrates a
strong relation orientation. When she was CEO and the company was in the
verge of insolvency, employees came to her and asked for her help. When she
became CEO, she kept that demeanor. For examples, she listens when people
come to her with an idea, she involves employees in the decision process and
she asks for input on the future direction for the company.
b) Discuss four leadership styles according to the Situational Leadership Model
Situational Leadership Model is an approach that examines the interaction
between leadership style and employee readiness.
A leader using the telling style provides specific instructions and closely
supervises performance. This is the most directive of the 4 styles and the leader
is primarily focused on giving explicit guidelines, setting goals and providing
structure. This style works best when employee’s readiness is low. The direction
provided by this leadership style defines roles for employees who are unable or
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unwilling to take responsibility because it eliminates any insecurity about the task
that must be done
The selling style, the leader explains decisions and provides opportunities
for clarification. This style offers both direction and support for employees who
are not yet competent but are willing to take on responsibility. It combines a
directive approach with positive support, interaction, involvement and
reinforcement for maintaining enthusiasm.
The participating style involves sharing ideas and maintaining two way
communications to encourage and support the skills the employees have
developed. It is used most appropriately for moderate to high employee
readiness. The leader focuses on sharing ideas and responsibility with an
emphasis more on the relationship and employee involvement than on the
specific of the task. Competent employees require supportive behavior to
increase their motivation. This style helps enhance a subordinate’s desire to
perform a task because it shares the decision making.
Leaders use a delegating style to provide subordinates with minimal
directions and support for the relationship. When employees have reached a high
level of readiness, the leader allows them to decide how and when to do things.
This is because employees are able and willing to take responsibility for what
needs to be done, it is appropriate for the leader to use a delegating style.
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OCT 2010
Question 3
a) Elaborate acquired-needs model.
Acquired-needs model is a need that is acquired or learned from the life
experiences in the culture or country in which we live and can influence behavior.
The model proposes that when a need is strong, it will motivate the person to
engage in behavior to satisfy that need.
First, need for achievement is represented by the drive to excel,
accomplish challenging tasks and achieve a standard of excellence. Managers
who want to motivate high achieves need to ensure that such individuals have
challenging but attainable goals that allow relatively immediate feedback about
their progress. High achievers often pursue a professional career in sales and
are successful in entrepreneurial activities such as running their own business,
managing a self-contained unit within a large organization and holding positions
in which success depends largely on individual achievement.
Second, need for power to influence and control one’s environment as a
particularly important motivator in organizations. It also may involve either
personal power or institutional power. Individuals with a high need for personal
power want to dominate others for the sake of demonstrating their ability to
influence and control. In contrast, individuals with a high needs for institutional
power want to solve problems and further organizational goals
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Third, need for affiliation is the desire for friendly and close interpersonal
relationships. Individuals with a high need for affiliation enjoy working in teams
and are likely to gravitate toward professions that involve high levels of
interaction with others, such as teaching, counseling, coaching and sales.
Although not individuals have the appropriate need profile to be successful
managers, the acquired-needs model of motivation argues that employees can
be trained to stimulate their achievement needs. If an organizational position
requires a high need for achievement or develop its own candidate through
training.
b) State which component in the acquired-needs model’s that you would apply if
you were to work in a service-oriented firm.
Acquired-needs model is a need that is acquired or learned from the life
experiences in the culture or country in which we live and can influence behavior.
Therefore, I would choose need for affiliation which the desire for friendly
and close interpersonal relationships. This is because individuals with a high
need for affiliation enjoy working in teams are likely to gravitate toward
professions that involve high levels of interaction with others, such as teaching,
coaching, counseling and sales.
Although not individuals have the appropriate need profile to be successful
managers, the acquired-needs model of motivation argues that employees can
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be trained to stimulate their achievement needs. If an organizational position
requires a high achiever, management can selected a person with a high need
for achievement or develop its own candidate through training.
OCT 2009
Question 2
a) Compare and contrast Douglas Mc Gregor’s theory X and theory Y.
The Mc Gregor’s Theory X and Y are the approach again draws upon thework of Herzberg and develop a human resources management approach to
motivation. This theory first classifies manager into two groups.
The Theory X managers views the employees as unmotivated and
disliking of works. Under the Theory X approach, the manager’s role is to on the
hygiene and to control and direct the employees. In contrast, Theory Y manager
focus on Herzberg’s motivator and work to assist employees in achieving these
higher level.
Factors Theory X Theory Y
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Employee
attitude toward
work
Employees dislike
work and will avoid it
if at all possible
Employees enjoy
work and will
actively seek it
Management
view of direction
Employees must be
directed, coerced,controlled, or
threatened
Employees are
self-motivatedand self-directed
toward achieving
Employees
view of
direction
creativity
Employees wish to
avoid responsibility:
prefer to be directed
and told what to do
and how to do it.
Employees seek
responsibility:
imagination, and
ingenuity in
performing their
jobs.
Management
style
Authoritarian style of
management
Participatory style
of management
b) Discuss the four principles of coordination that promote effective work groups.
i) Division of work
By dividing the work into smaller elements and assigning specific elements workers, the
work can be performed more effectively and more productively.
ii)Authority and responsibility
Authority is necessary to carry out managerial responsibilities. Managers have the
authority to give orders so that work will be accomplished.
iii) Unity of command
To avoid conflicting instructions and confusion, each employee should receive orders
from only one superior.
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iv) Discipline
To ensure the smooth operation of the business, it is essential that members of the
organization respect the rules that govern it.
CHAPTER 7: CONTROL
APR 2011
Question 1
Explain two criteria for measuring managerial performance.
To be effective in detecting and correcting unacceptable performance, a control
system must satisfy several criteria. The system must be acceptable to a diverse
workforce and use all steps in the control process.
i) Acceptable to a diverse workforce
To be effective, organizational controls should be accepted by employees. The
control system should motivate workers to recognize standards and act to achieve
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Concurrent control which focuses on the transformation process to ensure
that it is functioning properly. For example, sewing-machine operators must
continuously monitor their process to ensure that seams are being sewn straight
and threads are interlocking appropriately.
Feedback control or corrective control which focuses on discovering
undesirable output and implementing corrective action. For example, if the
design stitching on the back pockets is misaligned, corrective action would be
needed at the pocket-stitching operation to correct this problem.
b) With the aid of a diagram, explain the four steps in an organization control
process.
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Setting
Standards for
Performance
The
control
process
should begin
with
establishing
standards of performance against which organizational activities can be
compared. Standards of performance can be set after the organization has
developed its strategic plan and the managers have defined goals for all the
departments. The standards must be sated clearly, measurable, specific and
acceptable by all employees
Measuring Actual Performance
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In some cases measuring actual performance can be simple but in most
cases it can be quite difficult. Things like what to measure, when to measure and
how to measure must be decided. For example, sales, costs and profits
Comparing Actual Performance with Standards
This step involves determining if actual performance compared to
standards falls within acceptable limits. For example, suppose a leader of Berner
Foods set an average productivity standard in the Baby Swiss Cheese
manufacturing area of 500 pounds of cheese per worker per day, with an
acceptable deviation of plus or minus 50 pounds. Measurement outside the
range indicates an out-of-control situation that requires corrective action.
Responding to Deviations
If the deviation from performance is unacceptable, then corrective action is
warranted. But if the deviation is acceptable, no correction action is necessary.
For example, if a student has midterm exam score 75, the undesirable deviation
requires a response to be taken either prepare more on the final exam to
reestablish performance or raise goals to course grade A.
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CHAPTER 8: COMMUNICATION APR 2010
Question 3
a) Briefly explain any four types of nonverbal communication and give appropriate
examples
Kinesics behavior or body motion that is the movement of the body and
face, such as gesture, facial expressions, eye contact, touching and any other
movement of the body provide signals of approval, disbelief or trust. For example
avoid eye contact when they tell lies or a are embarrassed
Physical characteristics, such as body shape, physique, posture, height,
weight and skin color, which may transmit confidence or fear.
Paralanguage, such as voice quality, volume, speech rate, pitch and
laughing that may transmit approval, nervousness, confidence, enthusiasm of
excitement. For example, when people are not sure of what to say, they would
speak softly. When nervous, people would stammer or talk faster.
Proxemics, such as the way people use and perceive space, seating
arrangement and conversational distance that transmit approval or pleasure. For
example, we would sit very close to a person that we like.
Environment, such as building and room design, furniture and interior decorating, light, noise and cleanliness.
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b) Discuss five barriers to effective communication.
Cross-cultural diversity is the greater the difference between the sender’s
and receiver’s cultures, the greater the change for miscommunication.
Trust and credibility is lack of trust can cause the receiver to look for
hidden meanings in the sender’s messages.
Information overload is the amount of information one can process is
exceeded. Information overload can lead to: failing to process or ignoring some
of the information, processing the information incorrectly, delaying the process of
information until the information overload abates, searching for people to help
process some of the information, lowering the quality of information processing
and withdrawing from the information flow.
Language characteristics are when two individual are using different
meanings or interpretations of the same word and do not realize it, a
communications barrier exists.
Gender differences, males and females are treated differently from
childhood they develop different perspectives, attitudes about life and
communication styles.
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OCT 2009
Question 6
a) Briefly explain the formal communication channels and spontaneous
communication channels
Formal communication channels are referring to channels officially used
by organizations to transmit information within and outside the organization.
Formal communication follows the chain of command and is recognized as
official.
Informal communications is the spontaneous channels of communication
that arise from the social relationships that evolve in the organization. They are
not required or controlled by the administration of the organization. In formal
communication is also known as the grapevine. It is depicted as the wondering of
messages throughout the organization. It involves small groups of people who
exchange information in all directions through unsanctioned organizational
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channels and networks. The messages passed are likely to be inaccurate and
distorted.
b) Describe the different types of formal and spontaneous communication channels
in an organization. Give examples.
Typically, formal communication flows “downward” from executives to directors to
managers to staff regarding company direction and instruction and “upward” from staff
to managers to directors to executives in the form of data and reports. The
communication flowing through these channels is specific to the jobs and departments.
Such formal communication is well established and planned. For example,
reports and data from staff are organized are generally submitted in prescribed
templates and according to a set schedule. Communication focused on a company’s
strategy and direction, which originates from company executives, is funnelled through
the organizational chart and changed in such a way to be relevant to each department
and manager. What starts out as “high-level” communication on corporate strategy
needs to be thought out through planning sessions so that the communication provides
direction and is actionable for the individuals who implement the tasks of the strategy.
The better the communication the better employees and staff will understand what is
expected and required of them.
Probably the most common term used for the informal communication in the
workplace is “grapevine” and this communication that is sent through the organizational
grapevine is often considered gossip or rumour. While grapevine communication can
spread information quickly and can easily cross established organizational boundaries,
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the information it carries can be changed through the deletion or exaggeration crucial
details thus causing the information inaccurate – even if it’s based on truth.
The use of the organizational grapevine as an informal communication channel
often results when employees feel threatened, vulnerable, or when the organization is
experiencing change and when communication from management is restricted and not
forthcoming.
c) Based on your answer in (b), explain any two problems that might arise from
these channels of communication.
In case of formal communication caution, there is almost no chance of misunderstanding. While in informal due to lack of control misunderstanding can takes
place. Second problem in formal as official discipline is maintained chance of mistakes
is very low. But in informal strict rules are not followed possibility of mistakes is very
high.
CHAPTER 9: HUMAN RESOURCE
MANAGEMENT
APR 2011
Question 3
a) Discuss two advantages and two disadvantages of external recruitment.
External recruitment involves advertising for and soliciting applicants from
outside the company. If internal sources do not produce an acceptable candidate or it is
decided that the best candidate would come from the outside, a wide variety of external
sources are available. The sources differ in term of ease of use, cost, and the quality of
applicant obtained.
The advantages of external recruitment are:
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i) Possibly cheaper than training a professional
Deploying outer workforce is cost effective for an organization. When they recruit
internal workforce, the organizations need to train them after the organization’s need.
Besides, the process requires a long time. But for the outer employees they do not need
to offer or conduct any training sessions. They own the required experience. Thus it
saves the training and other costs
ii) New ideas, insight
The external recruitment can help attract candidates who could increase the
diversity of skills within the company and can contribute new and innovative ideas and
approaches towards organizational growth. This recruitment practice enables the
organization to adapt to the changing market trends and it lowers the chance of
partiality as it encourages increased competition within the organization.
The disadvantages of external recruitment are:
i) Selected person may not fit job or organization
The new appointee may not fit the existing culture within the organization. The
turnover rate for external hires is almost always higher than internal promotions
because the candidates must both adjust to a new environment and they come to us as
relative unknowns.
ii) Long adjustment time may be needed
This can be time consuming and costly, particularly in a full employment
economy. Organizations need to be wary of the state of the labor market as it relates to
the particular vacancy at hand, so that an effective external recruitment strategy can be
clearly thought through and put into place.
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b) Explain four uses for conducting job analysis.
Job analysis refers to studying a job to understand what knowledge, skills,
abilities, and attitudes are required for successful performance. The uses of job
analysis are:
i) Recruitment and Selection Job analysis
This provides information about what the job entails and what human
characteristics are required to perform these activities. The information, in the
form of job descriptions and specifications, helps management decide what sort
of people to recruit and hire.
ii) Compensation Job analysis
The information is crucial for estimating the value of each job and its appropriate
compensation. Compensation such as salary and bonus usually depends on the
job’s required skill and education level, safety hazards, degree of responsibility,
and so on which all factors can be assess through job analysis. Furthermore,
many employers group jobs into classes. Job analysis provides the information to
determine the relative worth of each job.
iii) Performance appraisal
A performance appraisal compares each employee’s actual performance with his
or her performance standards. Managers use job analysis to determine the job’s
specific activities and performance standards.
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iv) Discovering Unassigned Duties
Job analysis can also help reveal unassigned duties. For example, your
company’s production manager says she’s responsible for a dozen or so duties,
such as production scheduling and raw material purchasing.
APR 2011
Question 6
a) Briefly explain there categories of tests usually used in the selection of the best
candidates for jobs.
The test usually used in the selection of the best candidates for jobs can be
written, performance and personality.
The written test is to measure the knowledge, ability, skill, intelligence, or
interest. They usually called paper-and-pencil test, although that title is outdated
because many neither are nor computerized. For example is the driver’s license exam.
The performance test measures the ability, skills for specific jobs. It is requires
the job candidate to actually perform in the job usually some small part of the job or for
a short time. It also consists of actual job behavior. For example is assessment center,
or work sample.
The personality test measures the characteristics and personality. It is to
increase the number of organization hires the “right” people. For example is the locus of
control measure.
b) Discuss any five key components of the Strategic Human Resources
Managements.
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The strategic human resource management (HRM) refers to the managing
in such way as to coordinate all human resources components and focus them
on achieving organizational goals and overall strategy. It involves the analysis,
forecasting, recruiting, selecting, training, appraising and rewarding.
i) Analysis
Job analysis refers to studying a job to understand what knowledge, skills,
abilities, and attitudes are required for successful performance. A factory job
might require skills needed to successfully engage in groups and group decision
making. A person’s attitudes and other personality characteristics may become a
more important component of a job. This is because that person can be more
successful if fits into the culture of the organization, into the “way things are
done”.
ii) Forecasting
The important aspect is forecasting the demand for and supply of both short term
and long term planning. Both types of forecasts require looking into the future.
The demand forecasting involves determining the number of employees that the
organization will need at some point in the future as well as knowledge, skills,
and abilities that these employees must possess. While the supply forecasting
involves determining what human resources will be available both inside and
outside the organization.
iii) Selecting
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Selection is a process of evaluation and choosing the best-qualified candidate
from the pool of applicants available for the position. It entails the exchange of
accurate information between employers and job candidates to optimize the
person-job match.
iv) Training
Training is a planned effort to assist employees in learning job-related behaviors
that will improve their performance. It is vital to the success of the organization.
v) Rewarding
Organizations must reward employees for doing good job and for helping achieve
the goals and mission of the organization. For example are rewards like
encouragement, recognition from the manager, coaching and mentoring from the
manager, and supportive types of communication.
OCT 2009
Question 7
a) Define performance appraisal.
The performance appraisal is a systematic process of evaluating each
employee’s job related achievements, strengths, and weakness, as well as
determining ways to improve the performance.
b) Explain four ways how managers can use the performance appraisal information.
The methods that managers can use the performance appraisal information are
graphic rating scales, behavioral-anchored rating scales (BRASs), results-oriented, and
360-degree feedback.
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The graphic rating scale assesses employees on a series of performance
dimensions, such as initiative, tardiness, accuracy of work, using a 5- or7-point scale.
For example, a typically rating scale that ranges from 1 to 5, which 1 represent poor
performance while 5 is representing the outstanding performance.
BARSs are similar to the graphic rating but they use more detailed
examples of job behaviors to represent different levels of performance. It relies on job-
analysis information to describe a range of desirable and undesirable behavior for each
performance dimension.
The result-oriented methods of performance appraisal are an alternative to
the behavior-based ones. It requires the establishment of goals, targets, or result
expected, and then a person’s performance is judged against these.
The 360-degree feedback is use by some organization. The approach
includes feedback about performance from four sources which are the supervisor, the
subordinates, coworkers, and self-appraisal. This approach requires trust and
communication skills.
c) In your opinion, do you think that all employees are satisfied with their
performance appraisals that were carried out by their respective managers? Give
three reasons to support your answer.
In my opinion, I think that all employees are not satisfied with their performance
appraisal that carried out by the managers. This is because of several reasonswhich are:
i) The halo effect which occur when a manager rates employee high or low
on all items because of one characteristics. For example, a worker who has few
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absences might receive high rating in all other areas of work, including quantity and
quality of output.
ii) The manager may develop the rating pattern. For examples, some
managers have a problem with central tendency which occurs when the rater judges
all employees as average, even though their performance varies.
iii) A leniency error occurs when the rater evaluates some in a group higher
than they should be or when the rater is unjustifiably easy in evaluating
performance.
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Product manufacturers are increasingly facing costly legal suits over damages
caused by faulty products. The successful TQM efforts typically result in
improved products and its performance, in a long-term it will reduce the product
liability cost.
iv) Customer Satisfaction
Quality management ensures customer satisfaction. Conduct customer
satisfaction surveys to understand the qualities of the product important to the
customer. Also conduct surveys with those who are not the company's
customers. This will also provide insight into why these businesses use the
services of the competitor. Use customer surveys to target those features of a
product or service that need improvement. The quality management program
provides a methodology to use to create the type of product the customer
desires.
b) Discuss two (2) distinct differences between manufacturing and serviceorganizations.
Defining quality in manufacturing organizations is often different from that of
services. Manufacturing organizations produce a tangible product that can be seen,
touched, and directly measured such as cars, CD players, clothes, computers, and food
items. Therefore, quality definitions in manufacturing usually focus on tangible product
features. The most common quality definition in manufacturing is conformance, which is
the degree to which a product characteristic meets preset standards.
Other common definitions of quality in manufacturing include performance such
as acceleration of a vehicle; reliability which that the product will function as expected
without failure; features such the extras that are included beyond the basic
characteristics; durability which is the expected operational life of the product; and
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serviceability where define how readily a product can be repaired. The relative
importance of these definitions is based on the preferences of each individual customer.
It is easy to see how different customers can have different definitions in mind when
they speak of high product quality.
In contrast to manufacturing, service organizations produce a product that is
intangible. Usually, the complete product cannot be seen or touched. Rather, it is
experienced. Examples include delivery of health care, experience of staying at a
vacation resort, and learning at a university. The intangible nature of the product makes
defining quality difficult. Also, since a service is experienced, perceptions can be highly
subjective. In addition to tangible factors, quality of services is often defined by
perceptual factors. These include responsiveness to customer needs, courtesy and
friendliness of staff, promptness in resolving complaints, and atmosphere.
OCT 2010
Question 5
a) Explain the roles of benchmarking, continuous improvement and quality circles in
Total Quality Management.
The term ‘benchmark’ originally meant a surveyor’s mark out in a rock used as a
point of reference. In general sense, therefore, benchmarking mean setting standards
which acts as a point of reference. Benchmarking is one of the many techniques that
one can employ to gather management information.
The role of benchmarking is to provide management with knowledge of what
constitutes “best performance” or “superior performance” in a particular field. Best
performance relates to output, efficiency, quality and any other measurement relevant to
performing the job. Benchmarking not only investigates what best practice means in
terms of performance yardsticks but also examine how best practices is achieved.
Benchmarking is, therefore, not only the practice of obtaining measurements but also
involves understanding the conditions, resources and competence necessary to deliver
top performance.
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The Continuous Improvement is a concept that recognizes that quality
improvement is a journey with no end and that there is a need for continually looking for
new approaches for improving quality. The philosophy that seeks to make the never-
end improvements in which the process of converting inputs into the output process.
Kaizen is a Japanese word for continuous improvement. In addition, it is to meet
dynamic customer needs in which the organization itself must be dynamic, has to adjust
this position, the elimination of positions or whole classes of work and employees may
receive this and actively resist against such moves.
A Quality Circle is a small group of employees from the same work area who
voluntarily meet regularly to identify, analyze and resolve work related problems. This
not only improves the performance of any organization, it also motivates and enriches
the work life of employees. The philosophy behind Quality Circles is building people.
The circle comprise a number of workers who get together periodically to discuss
ways of improving products and processes. Quality circles are usually less structured
and more informal than teams involved in continuous improvement.
b) Describe two pros and two cons of Total Quality Management (TQM).
The pros or advantages of TQM are:
i) Lowers Production Costs
A Total Quality Management program eliminates defects and waste, which
reduces production costs in a business. As teams gather to identify and eliminate
weaknesses in the business, the company continues to enjoy reduced costs and higher
profit. Quality improvement teams can eliminate defects, reduce lead time and identify
redundancies in the production process that can significantly add to the profit the
company earns.
ii) Employee Participation
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Once workers understand their participation and involvement in Total Quality
Management is essential to its success, morale and productivity improve. Workers
become empowered through participation on quality improvement teams. Businesses
can improve morale further by recognizing improvement teams that make meaningful
changes in the production process to reduce or eliminate waste.
The cons or advantages of TQM are:
i) Production Disruption
Implementing a Total Quality Management system in a company requires
extensive training of employees. The employee training includes instruction in problem
solving techniques and the tools to evaluate a process and identify weaknesses such as
statistical process control, Pareto diagrams and brainstorming techniques. During the
initial training period, productivity can decline. Meetings for quality improvement teams
also take workers away from their duties, which also reduce productivity. While the
improvements do reduce lead time, eliminate waste and improve productivity, the
beginning stages of implementing Total Quality Management in an organization can
reduce worker output.
ii) Employee Resistance
Total Quality Management requires change in mindset, attitude and methods for
performing their jobs. When management does not effectively communicate the team
approach of Total Quality Management, workers may become fearful, which leads to
employee resistance. When workers resist the program, it can lower employee morale
and productivity for the business. Total Quality Management uses small incremental
improvements to move the business forward. It can take years for a company to enjoy
the benefits of the program.
OCT 2009
Question 3
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a) State two (2) reasons why quality is crucial.
The reasons quality is crucial in many organization are:
i) Positive company image
A positive image helps a firm accelerate its sales, can recruit new employees,
obtain loans from financial institution and numerous of other organizational
benefits.
iii) Lower cost and higher market share
The organizational activities that contribute to product quality will result in such
benefits as increased productivity, lower rework and scrap costs, lower costs of
servicing products after they are sold and so increase the market share.
b) Describe the finding and major contributions of W. Edwards Deming and Joseph
Juran.
Deming's management system was philosophical, based on continuous
improvement toward the perfect ideal. He believed that a commitment to quality requires
transforming the entire organization. His philosophy is based on a system known as the
Fourteen Points. These points express the actions an organization must take in order to
achieve TQM:
1. Create constancy of purpose for improvement of product and service.
2. Adopt a new philosophy.
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3. Cease dependence on mass inspection.
4. End awarding business on price.
5. Improve the system of production and service constantly.
6. Institute training.
7. Institute leadership.
8. Drive out fear.
9. Break down barriers between departments.
10. Eliminate slogans, exhortations, and numerical targets for the workforce.
11. Eliminate numerical quotas or work standards.
12. Remove barriers that prevent workers from taking pride in their
workmanship.
13. Institute a vigorous program of education.
14. Take action to accomplish the transformation.
Joseph Juran sees quality planning as part of the quality trilogy of quality
planning, quality control, and quality improvement. The key elements in implementing
company-wide strategic quality planning are in turn seen as: identifying customers and
their needs; establishing optimal quality goals; creating measurements of quality;
planning processes capable of meeting quality goals under operating conditions; and
producing continuing results in improved market share, premium prices, and a reduction
of error rates in the office and factory.
Juran's formula for results is to establish specific goals to be reached, and then
to establish plans for reaching those goals; assign clear responsibility for meeting the
goals; and base the rewards on results achieved.
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Juran also believes that the majority of quality problems are the fault of poor
management, not poor workmanship, and that long-term training to improve quality
should start at the top with senior management.
CHAPTER 11: MANAGEMENT FROM ISLAMIC
PERSPECTIVE
APR 2011
Question 7
A Muslim manager who holds strong Islamic values will strive for both worldly and after worldly gains. Elaborate any five principles of Islamic management and support your
answers with appropriate examples.
Islamic management is the ability to utilize resources both material and human,
optimally in order to achieve goals, and be it short term or long term. It is based on the
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teachings generated from the Al-Quran and the As-Sunnah. It also provides guidance
in making decision and the Islamic leadership under Prophet Muhammad through the
Islamic way of managing things had created a strong (Muslim) society.
The first principle of Islamic management is the ultimate goal of our life should be
harmoniously linked with the worldly aims. Humans as khalifah must be able to balance
their short term and long term goals such as serving Allah, worshipping Him and
seeking his worthy pleasure and reward. For examples, as a Muslim manager, he/she
want the organizations that he/she leading to achieves the goals such gain the higher
profit and at the same time he/she is not forgot the responsibility towards Allah which
important to have good and bless life in the world and here after.
Secondly, the moral or religious value of work should be integrated in the work or
activities we do. Working is not merely means for material gains, but also moral
obligation and a measure of pleasing Allah and getting nearer to him.
Third principle is the time is to be well invested, not to be wasted. Time should be
treated as a commodity. This statement requires us to use our time efficiently by being
punctual, doing diligent work, never play around, not to procrastinate and engage
ourselves in meaningless conversation. A leader should have to become punctual to
come to work since it can be a role model or mentor to the other employees.
Forth is we should uphold and internalize the Islamic ethical values. In whatever
we do, we should internalize Islamic values of truthfulness, honesty, dedication, self-
restraint, self-discipline and fear of Allah. This important in help to achieve an establish
management and organization.
Lastly, self-criticism should be exercised periodically both individually and
collectively and should be practiced by all workers at all levels. Each individual shouldreview his/her work and analyze his actions and attitudes. This can improve the
performance and also increase the organization’s achievement.
APR 2010
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Question 7
Discuss any five principles of Islamic Management and give appropriate examples to
support your answers.
Islamic management is the ability to utilize resources both material and human,
optimally in order to achieve goals, and be it short term or long term. It is based on the
teachings generated from the Al-Quran and the As-Sunnah. It also provides guidance
in making decision and the Islamic leadership under Prophet Muhammad through the
Islamic way of managing things had created a strong (Muslim) society.
The first principle is there shall be no favoritism and discrimination. Heads of
departments, managers and leaders must be fair to employees. There should not be
discrimination and favoritism because of mutual interests of family ties etc.
Second principle is human nature and needs should be both considered
simultaneously. Both psychological and economical contracts of a person must be met.
For example, working hours must be reasonable and fair. The pay system should be fair
(equity).
The third is the responsibility of the management to provide conductive and
healthy working conditions in the work-place. Management should employ people as awhole considering both their emotional and psychological needs.
The forth principle is there should be conductive rewards for exceptional
achievement and adequate measures to detect and prevent violations. For example, a
leader will reward the followers based on their performance in doing task given.
The fifth is the concept of al-Syura, it is a consultation based on mutual
discussion and inculcating cooperation among members of organization. A leader will
conduct a meeting for every month to make improvement and solve problem together
with departments.
OCT 2009
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Question 4
a) What is the major difference between management from the Islamic perspective
and the contemporary perspective?
Contemporary perspective Islamic perspective
Solution of a problem by groups,no reference to and divine effortsin order to achieve goals.
Seeking Allah’s pleasure insolving a problem by group toachieve the goals.
b) Discuss any five principles of management from the Islamic perspective.
Islamic management is the ability to utilize resources both material and human,
optimally in order to achieve goals, and be it short term or long term. It is based on the
teachings generated from the Al-Quran and the As-Sunnah. It also provides guidance
in making decision and the Islamic leadership under Prophet Muhammad through theIslamic way of managing things had created a strong (Muslim) society.
The first principle of management from the Islamic perspective is the ultimate
goal of our life should be harmoniously linked with the worldly aims. Humans as khalifah
must be able to balance their short term and long term goals such as serving Allah,
worshipping Him and seeking his worthy pleasure and reward.
Secondly, the concept of al-Syura, it is a consultation based on mutual
discussion and inculcating cooperation among members of organization. This is the
most important principle that should be in a management. A leader will conduct a
meeting for every month to make improvement and solve problem together with
departments.
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Thirdly, provide conductive and healthy working conditions in the work-place.
Management should employ people as a whole considering both their emotional and
psychological needs.
Forth is the time is to be well invested, not to be wasted. Time should be treated
as a commodity. This statement requires us to use our time efficiently by being
punctual, doing diligent work, never play around, not to procrastinate and engage
ourselves in meaningless conversation.
Fifth, the moral or religious value of work should be integrated in the work or
activities we do. Working is not merely means for material gains, but also moral
obligation and a measure of pleasing Allah and getting nearer to him.