Introduction to Management Principles

1 Copyright © Business Management Training College (Pty)
Ltd
DIPLOMA IN BUSINESS MANAGEMENT 1ST YEAR
DIPLOMA IN HUMAN RESOURCES MANAGEMENT 1ST
YEAR
MODULE 1, 2 & 3: INTRODUCTION TO MANAGEMENT,
PLANNING AND ORGANISING
& LEADERSHIP
SUMMATIVE ASSIGNMENT
ASSIGNMENT NO: MAN631-1-2
BUSINESS MANAGEMENT TRAINING COLLEGE
SOUT H AF RIC A’S MOST PR EST IGIOU S DIST ANC E
EDU C AT ION BU SIN ESS COLLEGE
147 Second Road - Chartwell - Fourways | Private Bag X100 -
Bryanston - 2021
Tel: 010-010-0936 | Fax: 086-639-4687 | E-mail
[email protected]
www.BMTColl ege.edu.z a
2014 First Edition - First Print February 2014

© Copyright 2014 - All rights reserved.
No part of this publication may be reproduced, stored in a
retrieval system,
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Ltd
Learner Instructions and Guidelines
1. Remember to keep a copy of your answers.
2. Read the learner instructions carefully before you start with
your assignment.
3. DO NOT leave out any questions! Please contact your study
advisor if you do not
understand a question.
4. Make sure to indicate the assignment number on the front of
your assignment cover.
5. The suggested time to complete a module is 3 months.
6. NB!! Due to the fact that evidence provided has to be

current, this assignment is ONLY valid
for 6 months from the date of receipt. If you take longer than 6
months to complete this
assignment and module, please contact the College to get the
latest assignment for this
module.
7. Please check that you received the correct assignment before
you start with the
assignment. The assignment number and module number is
indicated on the first page.
BMT College takes no responsibility for students who complete
incorrect assignments. If
you received an incorrect assignment contact the college so that
this can be rectified.
Ltd
Question 1: Select from column A the correct answer to match
column B.
Match the management functions in column A with the
descriptions in column B:
A Statement: B Nr: Your Answers:
a) Organising.

1.1 Determines an organisation's vision, mission and
goals.
1.1
b) Controlling
1.2 Monitoring progress and taking corrective steps to
reach the mission and goals.
1.2
c) Planning. 1.3 Motivating and directing employees. 1.3
d) Leading
1.4 Grouping together activities and allocating
resources .
1.4
/4 Total question 1
column B.
Match the management levels in column A with the descriptions
in column B:
a) Top managers 2.1 Implementing policies, plans and
strategies. 2.1
b) Middle management 2.2 Spend the greatest portion of their
time on leading. 2.2
c) First line managers or

supervisors
2.3 Develop longer-term goals and strategies to reach
them.
2.3
/3 Total question 2
column B.
Match the managerial roles in column A with the descriptions in
column B:
a) Interpersonal 3.1 Acts as spokesperson for the department 3.1
b) Decision making
3.2 Acts as negotiator about goals, standards of
performance and resources.
3.2
c) Information 3.3 Act as figurehead and leader. 3.3
/3 Total question 3
SUMMATIVE ASSESSMENT 1 (MODULES 1, 2 & 3):
MANAGEMENT PRINCIPLES
SECTION A: SHORT QUESTIONS

Ltd
Question 4: Read each statement carefully then state true or
false in the space provided.
Nr: Statement or question: Your Answers
4.1
A manager is considered competent if he or she has all the
relevant knowledge
that is required to do the job of a manager.
4.2 Ecological forces influenced the evolution of management
theories.
4.3 Frederick Taylor conducted the Hawthorn studies in the late
1800’s.
4.4 Henri Fayol formulated 14 principles for effective
management
4.5
The Hawthorne effect refers to the negative effects poor light
has on workers’
performance
4.6
Six Sigma is a business improvement methodology that focuses
on understanding

and managing workers’ requirements.
4.7
The individual organisation has limited control over the
components of the macro
environment but can have a strong influence on some of the
variables.
4.8
Environmental scanning is necessary to determine whether
factors in the
environment constitute a threat to the organisation’s mission,
vision and goals.
4.9
When an organisation has to decide whether to centralise or
decentralise
authority, the skills of the lower-level managers have to be
considered.
4.10
Tactical planning involves aligning the organisation’s internal
environment with the
threats and opportunities caused by the external environment.
/10 Total question 4

Question 5: Choose the CORRECT answer by selecting a or b.
Nr: Statement or question:
Your
Answers
5.1
‘Ethnocentrism’ refers to the belief that …
a) One’s own group and culture must be placed first in decision
making.
b) One’s own group and culture is inherently superior to other
cultures and groups.
5.2
Job opportunities is an environmental ...
a) output or
b) Input.
5.3
The social environment is part of the ...
a) Micro environment
b) Macro environment

5.4
The changes in the environment impacts on management
functions and eventually on the
a) performance or
b) culture of the organisation.
5.5
In the controlling function managers monitor
a) remuneration
b) progress.
/5 Total question 5
Ltd
Question 6: Choose the appropriate word or concept for the
following statements. Select only
one word from the list below for each statement and write down
the corresponding letter (a/b/c
etc.) in the answer column.
a. Liquidity

b. Decision-making conditions
c. Activity
d. Decision-making tools
e. Characteristics of useful information
f. Service
g. Leverage
h. Failure analysis, call centres.
i. Profitability
j. Administration
Nr: Statement or question:
Your
Answers:
6.1 An organisation’s ability to meet its short-term obligations.
6.2 It looks at the source of the organisation’s capital.
6.3 The organisational function that is supported by office
systems and personnel records.
6.4 It measures how well an organisation is using its resources.
6.5 It measures how well an organisation is managed.
6.6 Certainty, uncertainty, risk.

/6 Total question 6
Question 7:Listed below are the forces of change that drive the
need for organisations to
change. Each one of these forces consists of certain
components. Choose the appropriate word
or concept for the following set of components. Write down the
corresponding letter (a/b/c etc.)
in the answer column.
Force of change:
a. Economic and market forces
b. Technological forces
c. International forces
d. Social forces
Nr: Components Your Answers:
7.1 Nepad, Common wealth of Nations, EU.
7.2 Business ethics, demographic trends.
7.3 Trade union activities, free trade globally, more countries
join market.
7.4 New products, new and faster production, internet.
/4 Total question 7

Ltd
Question 8: Choose the CORRECT answer by selecting a or b.
Nr: Statement or question: Nr: Your Answers
8.1
One of the reasons why organising is necessary is ...
a) departmentalisation or b) goal formulation
8.1
8.2
The narrowing-down of activities to simple, repetitive routines.
a) job design or b) job specialisation
8.2
8.3
People naturally __________ change.
a) embrace or b) resist
8.3
8.4
Managers can respond to change either through reactive change
or
a) planned change or b) forced change
8.4
8.5

Control systems is an element of the ________ area of
organisational change.
a) structure or
b) technology
8.5
8.6
Bureaucracy falls within the __________ area of organisational
change.
a) structure or b) people
8.6
8.7
One of the reasons that people resist change is
a) Micro environment or b) Macro environment
8.7
8.8
One of the elements of the strategy area of organisational
change is _______
a) corporate combinations or b) decision making
8.8
8.9
In organisational culture analysis (OCA), the condition that
determines the
sharing of power is ___________.
a) commitment or b) collaboration

8.9
8.10
The perception that a group of people has certain collective
characteristics is
known as ____________.
a) stereotyping or b) generalisation
8.10
/10 Total question 8
Question 9: Fill in the missing words from the paragraph below:
Accountability…
Nr: Statement or question: Nr: Your Answers:
9.1 has its roots in the ____a____ management theories, a)
9.2 in the division of ____b____ into parts, and explicit job
specification. b)
9.3 and in explicit job ____c_____. c)
9.4 Consistent with Taylor’s ____d____ management, d)
9.5 employees are deemed _____e_____ for the work under
their control. e)
/5

Total question 9
TOTAL: SECTION A /50
Ltd
SECTION B : ESSAY QUESTIONS
Nr: Question: Mark:
10.
Discuss the three main environments that make up the
management environment.
Your discussion should include:
a. All the variables that make up each environment (14)
b. The level of control that the manager has over each
environment (3)
c. The influences that these environments had on South African
managers in the
past 5 years (3)
20
11. Explain the main reasons why people generally resist change
10

12.
Explain the main features of each of the five stages in group
and team development.
Also indicate what the main role of the team or group leader
would be during each
stage.
20
13.
Discuss five of the characteristics of good corporate governance
that were identified
by the King II report.
10
14.
Discuss the importance of the organising function in the
management process. Refer
to the necessity of organising to make the other management
functions work
effectively.
10
15.
Discuss the challenges for management in each of the following
features of the ‘new
organisation’:
a. Operating in a global economy
b. Virtual organisations
c. Flatter and leaner organisational structures

d. Flexibility
e. Workforce diversity
15
16.
Illustrate how the management functions vary between the
different levels of
management in terms of the responsibilities, competencies and
roles of managers on
these levels. Use the following format for your illustration:
15
/100
TOTAL:SECTION B
Top Middle Low
Planning
Organising

Leading
Controlling
Ltd
SECTION C : CASE STUDIES
CASE STUDY 1
ABC company initially supplied businesses with exceptional
quality textiles. Later on they started to supply
businesses with professional quality uniforms and also sports
gear. They provide their customers with quality
products and services on time and on budget to enhance the
image and performance of their customers’ companies.
As the company grew, so did its workforce. From two people in
a garage, their wholesale division has grown from
servicing a small localised market in Cape Town, to one that
today meets the requirements of clients in many other
locations throughout South Africa.
The current organisational structure is designed around the
different products. Although each manager knows all the
other products quite well, they each are responsible for one type

of product only: Tim is in charge of the industrial
uniform section, Sally overlooks the sportswear section and
Heather runs the textile division. All three of them are
competent with their section, but Tim for instance would have
liked to be more involved in the other sections as well.
To serve its widening markets the business needs flexible and
well-trained staff that can recognise the needs of their
customers. The employees work in a wide range of roles in both
store and non-store functions, such as:
assisting customers or preparing orders for delivery to
customers who have ordered online.
ading a team of Customer Assistants
and textiles.
-based staff working in a range of functions at Head
Office, including finance, purchasing, personnel or
marketing.
aff who plan and carry out the distribution of
products to stores.
Andy works in Sally’s department (sportswear) and manages a
small team of customer assistants who must prepare
online orders for delivery. He expects them to liaise with the

customers before setting up the order, to ensure
maximum client satisfaction. As the team members are still
new, they lack the necessary experience and are not
willing to take on the responsibility of liaising with the
customers themselves. Currently this all comes down to Andy,
who then does not have sufficient time for his managerial
duties. He intends seeking advice in this regard.
Due to the business’s great success and customer demand,
management have been thinking about establishing an
outlet in Durban. They have the opportunity to buy an existing
warehouse in Durban for R 1,5 million. The other
option is to rather invest an amount of R 800 000 in a new
product range.
ABC must make a decision: should they buy the existing
clothing retailer or is it better to invest an amount of R 800
000 in a new product range.
They did some investigation into the probability of success and
failure of each option, and possible results. With this
information at hand, they decided to use a decision tree to help
them with this big decision. The estimated outcomes
and probabilities are as follows:
They have two options:
A: Buy an existing business for R 1.5 m. B: Invest in new

product range R 800 000.
Successful option A will give 20% gain, failed option A will
give 10% loss. There is a 40% chance of success and a
60% chance of failure for option A.
Successful option B will give 10% gain, 5% loss. There is a
50% chance of success and a 50% chance of failure for
option B.
Ltd
QUESTIONS: CASE STUDY 1
Nr: Question: Mark:
17.
a. Draw up a decision tree to determine expected values for
each option. Use the results to
decide which option to choose.
b. Identify the mission of ABC and translate it into at least 3
measurable, long-term goals.
c. Draw up a table or diagram to illustrate ABC business as a
system that operates in a
specific environment, by identifying:

and
5
4
5
18.
a. What type organisational structure does ABC have currently?
b. What are the disadvantages of this structure for this specific
organisation?
c. The organisation has a vision of expanding the business and
opening more branches in
different areas. Suggest a new structure for the organisation,
that would fit in better with
their strategy. Motivate your choice.
1
2

3
19. Use the leadership cycle model to suggest the most effective
leadership style for Andy. 10
Total case study 1 /30
CASE STUDY 2
Sportswear
Joe and Jane are customers of ABC’s. They own a sportswear
retail shop. Their shop is in an area that has
changed over the last five years form a once vibrant business
and retail hub with three large shopping centres to a
business environment focusing nowadays mainly on vehicle
maintenance and support services.
The rental cost in the area is very competitive in comparison to
other new shopping centres in the vicinity. Various
new and exciting shopping centres in the neighbouring suburbs
have opened their doors. The business was
exceptionally successful, but has experienced an average annual
drop in sales of 10% during the past four years.
Joe is convinced that the decline in turnover can be attributed to
the drop in customer traffic in the shopping centre.
Competitors are opening new stores in other suburbs. There are
currently two similar stores who are extremely
price competitive and provide a variety of goods at lower

prices.
Joe has lowered the prices of their popular products since the
beginning of last year. Although sales increased by
15% during the previous year, profit dropped by 5%. During
December, two shop owners in the area were gunned
down.
Nr: Question: Mark:
20.
i. What external factors are influencing the success and survival
of the sportswear shop in
the shopping centre?
ii. What factors should they have considered in their strategic
planning?
6
4
/10 Total case study 2
Ltd

CASE STUDY 3
(From Business Management—a value chain approach by
Gideon Nieman and Alf Bennet)
When Eskom had started the shutdown of the Highveld power
station in 1958, one of the small towns in the Free
State became a ghost town.
The shutdown caused the number of residents to shrink from
2000 to about 463.
Eskom stated that the power station could no longer continue to
operate because of the rising labour and
maintenance costs.
Nr: Question: Mark:
21.
a. Explain what changing environmental conditions could have
caused the shutdown of the
power station.
b. Explain from the viewpoint of a retailer, how environmental
conditions caused the town to
be closed.
c. How do you think the changes in the environment affected the

operations of a vegetable
farmer?
5
3
2
/10 Total case study 3
TOTAL:SECTION C /50
TOTAL OF ASSIGNMENT /200
SECTION A /50 %
SECTION B /100 %
SECTION C /50 %
TOTAL /200 %

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