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Exam Date: 20th June 2011 (Monday)Time: 2:00pm 5:00pmDuration: 3 HrsClosed Book Exam
The Paper Consists of ONE Section Only.y 7 Questions
y Choose & Answer Only 5 Questions
y Approx. 35 mins Per Question
Topics:-
y Topic 1 & 2: One Question
y Topic 3 & 4: One Question
y Topic 5: One Question (Chapter 5 of Textbook)
y Topic 6: One Question (Chapter 7 of Textbook)
y
Topic 7: One Question (Chapter 10 of Textbook)y Topic 8: One Question (Chapter 11 of Textbook)
y Topic 9: One Question (Chapter 13 of Textbook)-------------------------------------------------------------------------------------------------------------------------------
Topic 1: Managers & Management
1) What is Management?
What is Management?Management is a process of getting things done effectively and efficiently,through and with other people.
What is Effectiveness?Effectiveness means Doing the Right Things, doing those tasks that help anorganization reach its goals.
What is Efficiency?Efficiency is a concern with means, efficient use of resources like people, moneyand equipment.
2) 4 Elements of Management Functions?
Planning:-
Implies that managers think through their goals and actions in advance. Actionsare based on some methods or plans rather than a hunch.
Organizing:-Allocate work among groups and persons determining their responsibilities andrelations to the extent of their delegation.
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Leading:-Describes how managers get their jobs done through directing and influencingtheir subordinates, by establishing the proper atmosphere.
Controlling:-
Managers attempt to ensure that plans have been carried out towards its goalsand attending to deviations.
Topic 2: The Management Environment
3) Socially Responsible Actions:
Actions Definitions ExamplesSocial Responsibility Beyond its legal and
economic obligations, todo the right things and
act in ways that aregood for society.
y One example is toprovidehandicapped
friendly facilities.y Companies can
give money to thearts, fund academicscholarships,support community-building initiatives,and so on.
y One example isreduce air pollution,anti-weaponbuildings, etc.
Social Obligations When a business firmengages in socialactions because of itsobligation to meetcertain economic andlegal responsibilities.
y One example is tosell ONLY itemsthat are approvedby the authority.
y Foreigners stay inSingapore ONLYbe approved by theICA.
Social Responsiveness When a business firmengages in socialactions in response tosome popular socialneed.
y One example is toprovide child carefacilities in theworkplace.
y Companies usingre-cycled papersfor packagingpurposes.
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4) Workforce Diversity (Pg.68 to pg.69) (1 to 2 marks) (Case Study)
Ways in which people in workforce are similar and different from one another in
terms of gender, age and culture.
Challenges of managers:-
- Language Barriers:Good cross-cultural communication and language skills.
- Cultural Differences:Flexibility and open-mindedness about other cultures.
- Communications:A willingness to communicate, form relationships with others, and try new
things.
Note: Workforce Diversity is a case study question. According to Dr. Sam, the above scenario
could be used and were told to read about it.
MANAGING DIVERSITY | The Paradox of Diversity
When organizations bring in diverse individuals and socialize them into culture, a paradox is created.
Managers want the new employees to accept the organizations core cultural values so they dont
have a difficult time fitting in or being accepted. At the same time, managers want to openly
acknowledge, embrace, and support the diverse perspectives and ideas that the new employees
bring to the workplace.
Strong organizational cultures pressure employees to conform, and the range of acceptable
values and behaviors is limited hence the paradox. Organizations hire diverse individuals because
of their unique strengths, yet their diverse behaviors and strengths are likely to diminish in strong
cultures as people attempt to fit in.
A managers challenge is to balance two conflicting goals: to encourage employees to accept
the organizations dominant values and to encourage employees to accept differences. As the
external environment changes and brings about change in an organization, managers need to
remember the importance of keeping diversity alive.
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Topic 3: Planning Foundations
1) Decision - Making Models (Pg. 90 to Pg. 92)
Rational Models:
The managers decision making will be rational logical and consistent choices to
maximize value.
Bounded Rationale:
Due to limited ability to process information, managers satisfice (accepting
solutions that are good enough), rather than maximize.
Intuition:
Its making a decision on the basis of experience, feelings, and accumulated
judgment.
2) Group Decision Making: How? (Pg. 96)
Decision Making Groups are experts in their field of work, who will represent the
people mostly affected by the decisions being made. They spend a large portion
of their time in defining problems, arriving at solutions to those problems, and
determining the means for implementing the solutions.
How Can You Improve Group Decision Making? (Pg.99) (Scenario Question)
Brainstorming:-
An idea-generating process that encourages alternatives while withholding
criticism.
Nominal Group Technique:
A decision-making technique in which group members are physically present but
operate independently.
Electronic Meeting:
Participants linked by computer (Delphi Decision Making). In short, Nominal
Group Technique + Computer Technology = Electronic Meeting.
3) Advantages and Disadvantages of Group Decision Making (Pg. 97 Pg. 98)(List 2 Advantages and 2 Disadvantages)
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- 8
Group Decision Making
Advantages Group decisions provide
more complete
information
Diversityofexperiences
and perspectives are
higher
Groups generate more
alternatives
Group decisionsincrease
acceptance ofa solution
Disadvantages Group decisions are time
consuming
May be subjectto
minority domination
Subjecttopressure to
conform
Responsibilityis
ambiguous
SubjecttoGroupthink
which underminescriticalthinking
Cop
right 2011 Pearson Education
Diagram from PowerPoint Slide 18 of Management week 3.
Topic 4: Foundations of Planning
4) Strategic Management (Pg. 112)
Strategic Management is what managers do to develop an organizations
strategies.
Competitive Strategy (Pg. 118)
Competitive Strategy is a strategy for how an organization will compete in its
business(es).
Strategic Management and types of Strategies Popularized by Michael Porter:
Cost Leadership Strategy
Differentiation Strategy Definitions & Examples.
Focus Strategy
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-19
Types ofCompetitive trategies
Cost L
d
rshipStr
t
gyhttp://www.p kns v
.co.nz/AboutUS/
Comp
ting onth
b sisofh ving th
lowestcostsintheindustry (eg W l- rt)
ifferenti
tionStr
tegy
Competing onthe b sisofh ving uniqueproductsth t rewidely v lued bycustomers (eg Hero Hond , Asi n P ints,HLL, Nike thleticshoes, Perstorp BioProducts, AppleComputer, nd Mercedes-Benz utomobiles.)
FocusStr
tegy
Competing in n rrowsegmentornichewith either costfocusor differenti tionfocus (eg Southwest Airlines)
Copyright 2011 Pearson Education
Diagram from slide 19 of Management week.4 with added examples of each
strategies.
Topic 5: Organizational Structure
1) List and Define the 6 Key Elements in the Organizational Design: (Pg.152)
Work Specialization:It means dividing work activities into separate job tasks also called division of
labor.
Departmentalization:
It means how jobs are grouped together.
Authority and Responsibility
- Chain of Command:
The line of authority extending from upper organizational levels to lower
levels, which clarifies who reports to whom.
- Authority:
The rights inherent in a managerial position to give orders and expect the
orders to be obeyed.
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- Responsibility:
An obligation to perform assigned duties.
Span of Control:
The number of employees a manager can efficiently and effectively supervise.
Centralization & De-Centralization:
- Centralization:
The degree to which decision making takes place at upper levels of the
organization.
- De-Centralization:
The degree to which lower-level managers provide input or actually make
decisions.
Formalization:
- How standardized an organizations jobs are and the extent to which
employee behavior is guided by rules and procedures.
2) Generic Organization Structure (Pg.160)
5-16
Whatfactorsaffectstructural
choice?
Mechanistic Or anization A bureaucraticor anization;astructurethats hi h
inspecialization, formalization, and centralization
E amplesareMilitary, Government-Aided Schools,McDonalds.
Or anic Or anization
A structurethatslowinspecialization,formalization, andcentralization
E amplesare Salvation Army, Goo le,Sin apore
EnvironmentCouncil.
Copyri
ht 2011 Pearson Education
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3) Organizational Culture (Pg. 171)
The shared values, principles, traditions, and ways of doing things that influence
the way organizational members act.
How do employees learn the culture? (Pg. 172) (Scenario Question) Culture is represented in a groups:
- Stories:
Narrative of events / people like the organizations founders, reactions to
past events.
- Rituals (Daily Work Practices):
Repetitive sequence of activities.
- Material Symbols:
To create an organizations personality.
- Language:
To identify and unite members.
Topic 6: Managing Change and Innovation
1) Categories of Organizational Change (Pg. 218)
What is Organizational Change?
It is any alteration of an organizations people, structure or technology.
Exhibit 7-1 as shown in Management Slide 4 week.6
Exhibit 7-1 | Categories of Organizational Change
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Structure:
Change in authority relationships, degree of centralization. (eg. Increase work
specialization)
Technology (Process-Oriented):Change in technology and how work is done. (eg. Decision to use statistical tools
in decision-making)
People:
Change in persons attitude and expectations. (eg. Decision to link performance
to pay)
2) Calm Waters Metaphor: The Kurt Lewins Process (Pg. 222)
Kurt Lewins 3-Step Change Process:
Step 1: Unfreezing the status quo (eg. Gaining acceptance for change)
Step 2 Changing to a new state (eg. Adopting new attitudes, modifying
behavior usually requires a change agent)
Step 3: Freezing the new change to make it permanent (eg. Re-enforce
new patterns of thinking/working)
Describe Lewins 3-Step Change (Calm Waters) Process. (6 marks)
The driving forces, which direct behavior away from the status quo, can be increased. Unfreezing is necessary to move from the current equilibrium.
The new situation needs to be re-frozen so that it can be sustained overtime. Unless this
is done, there is a strong chance that the change will be short-lived.
The objective of the re-freezing is to stabilize the new situation by balancing the driving
and restraining forces.
3) Why Employees Resist Change? There are 4 reasons: (Pg. 225)
Change replaces the known with uncertainty.
We do things out of habit.
Fear of losing something already possessed.
Change is not compatible with the goals and interests of the organization.
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How to Reduce Resistance? There are 6 techniques. (Pg. 226) (Exhibit 7-3)
Education and Communication.
Participation.
Facilitation and Support.
Negotiation. Manipulation and Co-optation.
Coercion
For Exhibit 7-3, only name the 6 technique to reduce resistance.
Topic 7: Motivating and Rewarding Employees
1) Herzbergs 2-Factor Theory (Motivation-Hygiene Theory):
Fredrick Herzbergs 2-factor Theory proposes that:
- Intrinsic Factors (matters within itself) are related to job satisfaction.
- Extrinsic Factors (matters depending on circumstances) are associated
with job dissatisfaction.
Motivators (Intrinsic):
Factors that increase job satisfaction and motivation (e.g., challenging work,
recognition, responsibility).
Hygiene Factors (Extrinsic):
Factors that eliminate job dissatisfaction but do not motivate (e.g. status, job
security, salary, fringe benefits, work conditions).
Exhibit 10-2 Herzbergs 2-Factor Theory (Pg.295) (Scenario Question)
Motivators Hygiene Factors
Extremel Satisfied Neutral Extremel Dissatisfied
Supervision
Company Policy
Relationship with Supervisor
Working Conditions
Salary
Relationship with Peers
Personal Life
Relationship with Employees
Status
Security
Ah
e
e
e
Re !
g !
W! " #
I $
e% &
Re$ ' ! $
b % (
Ad
a
e
e
) " !
wh
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Implications for Managers:
- To increase satisfaction, focus on Motivators.
- To reduce dissatisfaction, focus on Hygiene Factors.
Paying Higher Salaries Reduces Dissatisfaction, But Does Not Increase Satisfaction Hygiene Factor.
2) Equity Theory (Pg. 300)
10-21
What Is Equity Theory?
Equity Theory
Developed by J.Stacey Adams, a Psychologist, in
1963. The theorythat an employee compares hisor her
jobsinput-outcomesratiowith thatofrelevant
others and thencorrects anyinequity
Referent
The persons, systems, orselves againstwhich
individualscompare themselvesto assess equity
Copyright 2011 Pearson Education
Management Slide 21 week 7.
Implications for Managers:
- Share info with employees on how allocation decisions are made.
- Procedure must be consistent and unbiased.
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Management Slide 23 week.7 (pg.301)
Refer to Exhibit 10-7, what would you do if:
Outcomes A Outcomes B
---------------- < ----------------
Inputs A Inputs B
1) Increase Outcome A aka Work Harder
2) Cut Input A aka Less Commitment / Lazy
3) Quit aka Resign.
Table 8: Leadership and Trust
1) Path-Goal Theory (Pg.329)
A leadership theory that says the leaders job is to assist followers in attaining
their goals and to provide direction or support needed to ensure that their goals
are compatible with the organizations or groups goals.
OR
Path-goal theory is about how leaders motivate subordinates to accomplish
designated goals.
Roles of Leaders:
Leadership Behaviors (4 types):
- Directive Leader:
Lets subordinates know whats expected of them, schedules work to be
done, and gives specific guidance on how to accomplish tasks. (The
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theory argues that this behaviorhas the most positive effect when the
subordinates' role and task demands are ambiguous and intrinsically
satisfying.)
- Supportive Leader:Shows concern for the needs of followers and is friendly. (The leader
shows concern for the followers psychologicalwellbeing. This behavior
is especially needed in situations in which tasks or relationships are
psychologically or physically distressing.)
- Participative Leader:
Consults with the group members and uses their suggestion before
making a decision. (This behavior is predominant when subordinates are
highly personally involved in their work.)
- Achievement-Oriented Leader:
Sets challenging goals and expects followers to perform at their highest
level. (Occupations in which the achievement motive were most
predominant were technical jobs, sales persons, scientists, engineers,
and entrepreneurs.)
Management Slide 23 week.8 (Scenario Question read its predictions below dia. on pg.330)
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2) Contemporary Views of Leadership (Pg.331)
Transactional Leaders:
- Leaders who lead primarily by using social exchanges (or transactions).
- Transactional Leaders guide or motivate followers to work towards
established goals by exchanging rewards for their productivity.
Transformational Leaders:
- Leaders who stimulate and inspire (transform) followers to achieve
extraordinary outcomes.
- Transformational Leaders conform to network and coworkers in the best
fashion in order to benefit the organization while still sharing ideas.
Topic 9: Foundations of Control
1) Why Is Control Important? (Pg.376 - Pg.377)
To know whether organizational goals are being met and if not, the reasons why.
Control is important because of employee empowerment where managers fear
something will go wrong for which they would be held responsible.
To protect the organization and its asset.
2) Balanced Scorecard: (Pg.388)
It is a performance measurement tool that looks at more than just the financial
perspective.
4 areas of Control / Perspective:- Financial: encourages the identification of a few relevant high-level
financial measures. In particular, designers were encouraged to choose
measures that helped inform the answer to the question "How do we look
to shareholders?"
- Customer: encourages the identification of measures that answer the
question "How do customers see us?"
- Internal Business Processes: encourages the identification of measures
that answer the question "What must we excel at?"
- Learning and Growth: encourages the identification of measures that
answer the question "Can we continue to improve and create value?".
3) When does Control take place? (Pg.383)
Feedforward Control:
- Control that takes place before a work activity is done.
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Concurrent Control:
- Control that takes place while a work activity is in progress.
Feedback Control:
- Control that takes place after a work activity is done.
Examples at Pg.391 Pg.393 (Application / Scenario)
Exhibit 13-8 Controlling Workplace Violence (Pg.393) Management Slide 24 week.9
NB: Pls read Exhibit 13-7 Controlling Employee Theft (Pg.391). Question will be asked to list
down and define the applications of Feedforward, Concurrent and Feedback control.
-----------------------------------------------------All The Best----------------------------------------------------------