-Student NumberSummative Assessment 1Management Principles.docx

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Student Number:
Summative Assessment 1
Management Principles
(Modules 1, 2 and 3)
Assignment no. MAN61S-123-1
SECTION A
/50
SECTION B
/100
SECTION C
/50
TOTAL
/200
1
Copyright © Business Management Training College (Pty) Ltd
6
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Student Number:
SUMMATIVE ASSESSMENT 1 (MODULES 1, 2 & 3):
MANAGEMENT PRINCIPLES
SECTION A: SHORT QUESTIONS
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
1.1
goals.
b) Controlling 1.2 Monitoring progress and taking corrective
steps to
reach the mis sion and goals. 1.2
c) Planning. 1.3 Motivating and directing employees. 1.3
d) Leading 1.4 Grouping together activities and allocating
1.4
resources .
Total question 1 /4
Question 2:
Select from
column A
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
2.3 Develop longer-term goals and strategies to reach
2.3
supervisors
them.
Total question 2 /3
Question 3:
Select from
column A
column B
.

Match the managerial roles in column A with the descriptions in
colum n B:
a) Interpersonal 3.1 Acts as spok esperson 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
Total question 3 /3
2
-
Student Number:
Question 4:
Read each statement carefully then state
true or false
in the space provided.
Nr: Statement or question:
Your Answers
A manager is considered competent if he or she has all the
relevant knowledge
4.1
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
The Hawthorne effect refers to the negative effects poor light
has on workers’
4.5

performance
Six Sigma is a business improvement methodology that focuses
on understanding
4.6
and managing workers’ requirements.
The individual organisation has limited control over the
components of the macro
4.7
environment but can have a strong influence on some of the
variables.
Environmental scanning is necessary to determine whether
factors in the
4.8
environment constitute a threat to the organisation’s mission,
vision and goals.
When an organisation has to decide whether to centralise or
decentralise
4.9
authority, the skills of the lower-level managers have to be
considered.
Tactical planning involves aligning the organisation’s internal
environment with the
4.10
threats and opportunities caused by the external environment.
Total question 4 /10
Question 5:
Choose the
CORRECT
answer by selecting
a or b.
Your
Answers
‘Ethnocentrism’ refers to the belief that …
5.1
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.
Job opportunities is an environmental ...
5.2
a) output or
b) Input.
The social environment is part of the ...
5.3
a) Micro environment
b) Macro env ironment
The changes in the environment impacts on management
functions and eventually on the
5.4
a) performance or
b) culture of the organisation.
In the controlling function managers monitor
5.5
a) remuneration
b) progress.
Total question 5 /5
3
-
Student Number:
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
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 pers onnel 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.
Total question 6 /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 mark et.
7.4 New products, new and faster produc tion, internet.
Total question 7 /4
4
-
Student Number:
Question 8:
Choose the
CORRECT
answer by selecting
a or b.
Nr: Your Answers
8.1 One of the reasons why organising is necessary is ...
8.1
a) departmentalisation or b) goal formulation
8.2 The narrowing-down of activities to simple, repetitive
routines.
8.2
a) job design or b) job specialisation
__________
change.
8.3 People naturally
8.3
a) embrace or b) resist
Managers can respond to change either through reactive change
or
8.4

8.4
a) planned change or b) forced change
Control systems is an element of the
________
area of organisational change.
8.5
a) structure or
8.5
b) technology
__________
area of organisational change.
8.6 Bureaucracy falls within the
8.6
a) structure or b) people
One of the reasons that people resist change is
8.7
8.7
a) Micro environment or b) Macro environment
One of the elements of the strategy area of organisational
change is
_______
8.8
8.8
a) corporate combinations or b) decision mak ing
In organisational culture analysis (OCA), the condition that
determines the
sharing of power is ___________.
8.9
8.9
a) commitment or b) collaboration
The perception that a group of people has certain collective
characteristics is
known as
____________.
8.10
8.10

a) stereotyping or b) generalisation
Total question 8
/10
Question 9:
Fill in the
missing
words from the paragraph below:
Accountability…
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)
____d____
management,
9.5 employees are deemed
_____e_____
for the work under their control. e)
Total question 9 /5
TOTAL: SECTION A /50
5
SECTION B : ESSAY QUESTIONS
Nr: Question:
Mark:

Discuss the three main environments that make up the
management environment.
Your discussion should include:
All the variables that make up each environment.
9.
20
The level of control that the manager has over each
environment.
The influences that these environments had on South African
managers in the
past 5 years.
10. Explain the main reasons why people generally resist
change 10
Explain the main features of each of the five stages in group
and team development.
11.
Also indicate what the main role of the team or group leader
would be during each
20
stage.
12. Discuss five of the characteristics of good corporate
governance that were identified
10
by the King II report.
Discuss the importance of the organising function in the
management process. Refer
13.
to the necessity of organising to make the other management
functions work
10
effectively.
Discuss the challenges for management in each of the following
features of the ‘new
organisation’:
a. Operating in a global economy
b. Virtual organisations

14.
15
c. Flatter and leaner organisational structures
d. Flexibility
e. Workforce diversity
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:
Top Middle Low
Planning
15.
15
Organising
Leading
Controlling
TOTAL:SECTION B
100
6
SECTION C : CASE STUDIES
C
1
ASE
STUDY
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 mark et 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 c an recognise the needs
of their customers. The employees work in a wide range of roles
in both store and non-store functions, such
as:
Customer Assistants on the shop floor either directly assisting
customers or preparing orders for delivery
to customers who have ordered online.
Department Managers leading a team of Customer Assistants
Warehouse employees who help catalogue and store clothing
and textiles.
Office-based staff working in a range of functions at Head Offic
e, including finance, purchasing, personnel
or marketing.
Logistic s staff 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 assis tants 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.
7
QUESTIONS: CASE STUDY 1
Nr: Question:
Mark:
a. Draw up a
decision tree

to determine expected values for each option. Use the
5
results to decide which option to choose.
b. Identify the mission of ABC and translate it into at least 3
measurable, long-term goals.
4
c. Draw up a table or diagram to illustrate ABC business as a
system
that operates in a
16.
specific environment, by identifying:
inputs from the environment,
processing of inputs and
5
outputs to the environment.
a. What type organisational structure does ABC have currently?
1
b. What are the disadvantages of this structure for this spec ific
organisation?
2
17.
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
3
with their strategy. Motivate your choice.
18. Use the leadership cycle model to suggest the most
effective leadership style for Andy. 10
Total case study 1 30
C
2
ASE
STUDY
Sportswear
Joe and Jane are customers of ABC’s. They own a sportswear

retail s hop. Their shop is in an area that has
changed over the last five years form a once vibrant bus iness
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.
Mark:
Nr: Question:
i. What external factors are influencing the succ ess and
survival of the sportswear shop
in the s hopping centre?
19.
6
ii. What factors should they have considered in their strategic
planning?
4
8

C
3
ASE
STUDY
(From Business Management—a value chain approach by
Gideon Nieman and Alf Bennet)
When Esk om 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.
Esk om stated that the power station could no longer c ontinue
to operate because of the rising labour and
maintenance costs.
Nr: Question:
Mark:
a. Explain what changing environmental conditions could have
caused the shutdown of
the power station.
5
b. Explain from the viewpoint of a retailer, how environmental
conditions caused the town
to be closed.
20.
3
c. How do you think the changes in the environment affected
the operations of a
2
vegetable farmer?
TOTAL:SECTION C
50
TOTAL OF ASSIGNMENT : 200

9

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