certified accounting technician examination sample...

Certified ACCounting teChniCiAn exAminAtion

SAmple multiple ChoiCe queStionS – June 2009

Paper T5 Managing People and SystemsSection A only All questions are compulsory Note: Section B of the actual exam paper will contain five written questions

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the following questions are typical of those that will appear in Section A of the examination paper from June 2009 onwards. there will be a total of twelve questions in section A, three from each of the first four syllabus sections as indicated below. All questions in Section A will be worth two marks each.

Syllabus section 1 the business and accounting environment 1 Which of the following is an acronym used to describe the key elements of an organisation’s external environment? A B C d PERT PEST SWOT SPAM (2 marks)

2

Henry Mintzberg categorised five basic components of an organisation. Which tWo the following statements describes the work of the technostructure of an organisation? 1 designing systems 2 organising and controlling work 3 Standardising work 4 Securing inputs A B C d 1 and 2 1 and 3 2 and 3 3 and 4 (2 marks)

3

Which of the following is a correct definition of the term ‘span of control’? A B C d The number of employees reporting to one manager The number of managers to whom one employee reports The number of levels in the hierarchy The number of employees at each level of the organisation (2 marks)

Syllabus section 2 effective management of business and accounting systems 4 to whom is the internal auditor accountable? A B C d The directors of the company The employees of the company The shareholders of the company The external auditors of the company (2 marks)

2


5

SPAMSOAP is a mnemonic for the types of internal control employed by an organisation. Which tWo of the following are types of internal control included in SpAmSoAp? 1 output 2 Arithmetic 3 preventative 4 physical A B C d 1 and 2 1 and 3 2 and 3 2 and 4 (2 marks)

6

Which of the following are typical responsibilities of the financial accountant in a large organisation? 1 inventory valuation 2 Sales invoicing 3 project appraisal 4 payroll A B C d 1 and 2 2 and 4 1 and 4 3 and 4 (2 marks)

Syllabus section 3 management theory, principles and techniques 7 Who was responsible for developing the ‘Situational leadership’ model? A B C d Blake and Mouton Katz and Kahn Hersey and Blanchard Tannenbaum and Schmidt (2 marks)

8

Which of the following statements accurately describes a multi-disciplinary team? A B C d All team members collaboratively decide how to organise their work All team members have different skills and specialisms which they pool All team members can perform any and all of the group’s tasks All team members are jointly responsible for the leadership of the team (2 marks)

3


9

Which tWo of the following are examples of content theories of motivation? 1 maslow’s hierarchy of needs 2 Vroom’s expectancy theory 3 herzberg’s two factor theory 4 Adam’s equity theory A B C d 1 and 2 2 and 4 3 and 3 1 and 3 (2 marks)

Syllabus section 4 individual effectiveness at work 10 Which tWo of the following are examples of ‘on the job’ training 1 formal training courses 2 mentoring by a colleague 3 Self study courses 4 Secondments to other departments A B C d 1 and 2 2 and 3 3 and 4 2 and 4 (2 marks)

11 if a manager in the purchasing department requests the help of the human resources director in preparing for a difficult appraisal, what direction is the communication flow? A B C d Vertical Horizontal Lateral Diagonal (2 marks)

12 Honey and Mumford classified four different learning styles. Which of the following statements accurately describes the reflector? A B C d Prefers to understand principles Prefers to think things through first Prefers to try things ‘hands on’ Prefers to see practical examples (2 marks)

end of Sample questions

4


Answers

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Sample multiple Choice question paper t5 managing people and Systems 1 2 3 4 5 6 7 8 9 B B A A D B C B D

Answers

10 D 11 D 12 B

6


Managing People and SystemsACCA CERTIFIED ACCOUNTING TECHNICIAN EXAMINATION ADVANCED LEVEL FRIDAY 11 JUNE 2004

QUESTION PAPER Time allowed 2 hours ALL FIVE questions are compulsory and MUST be answered

Do not open this paper until instructed by the supervisor This question paper must not be removed from the examination hall

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Paper T5

Section A – ALL FIVE questions are compulsory and MUST be attempted 1 Organisations can be described as open systems, interacting with a variety of different stakeholders in an ever changing environment. Required: (a) Explain what you understand by the term ‘stakeholders’. (2 marks)

(b) Identify and describe three key stakeholders of an organisation and briefly explain their relationship with the organisation. (6 marks) (c) Identify and briefly explain the key external environmental influences which might impact on any organisation and its stakeholders. (6 marks) (d) Give examples of how any two of the influences you have described in part (c) might impact on your organisation, or an organisation with which you are familiar. (6 marks) (20 marks)

2

You have been asked to undertake a review of how the purchasing of stationery and computer consumables is undertaken within your organisation, or one with which you are familiar, with a view to controlling the process more effectively. Required: (a) Identify and explain the key stages in the purchasing cycle that you might expect to see when undertaking this review. (8 marks) (b) Make recommendations to your manager about the type of controls which could be implemented at three of the stages you have identified above. (12 marks) (20 marks)

3

Effective team working is an increasingly important aspect of organisational life. Required: (a) Outline the key characteristics/features of effective teams. (8 marks)

(b) Identify and explain the key stages of group development as identified by Tuckman. Your explanation should (12 marks) include reference to the role of the group leader at each stage. (20 marks)

4

You have been asked by your manager to write instructions for a new member of staff who is taking up their first appointment since leaving college. Required: (a) Write a memo to the new member of staff which identifies and explains how to use three different approaches (10 marks) to personal work planning. (b) Explain the main techniques and tools the new member of staff could use to help them manage their time as effectively as possible. (10 marks) (20 marks)

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5

The International Labour Organisation estimates that each year, more than two million people die of work related accidents and illnesses. Required: (a) Outline the role of training in raising awareness of health and safety issues. (8 marks)

(b) Describe the respective roles and responsibilities of senior management, the supervisor and the individual in promoting health and safety within the organisation. (12 marks) (20 marks)

End of Question Paper


Answers


ACCA Certified Accounting Technician Examination – Paper T5 Managing People and Systems

June 2004 Answers

1

(a)

A stakeholder is someone who has the ability to influence an organisation and can in turn be influenced by it. Stakeholders can also be considered as those individuals who depend on the organisation in some way and on whom in turn, the organisation depends e.g. shareholders. Stakeholders have varying degrees of power and can vary in importance to the organisation depending on this power and their ability and desire to use it. Stakeholders can be individuals or groups of individuals, in which case they would be referred to as a coalition. Key stakeholders of an organisation are: shareholders, employees, customers, suppliers and the local community. Shareholders are the owners of the firm and a source of finance and in some cases expertise. Organisations need to satisfy the expectations of the shareholders. These expectations may be a requirement for the payment of a dividend which shows a satisfactory return on investment, or they may be in terms of the survival and growth of the firm. Employees at all levels are important stakeholders. They provide the firm with the knowledge, skills and expertise to meet the requirements of the owners. In turn, the organisation rewards them appropriately through remuneration packages and opportunities for career and personal development. Customers are important stakeholders in that they transact with the organisation for whatever goods or services it is providing. The organisation needs to respond to the needs of customers in terms of the types of products and services they expect to be able to purchase or receive in order to retain customer loyalty. Suppliers are an important stakeholder in that they provide the goods and services needed by an organisation to carry out its business. Suppliers expect to be treated fairly and equitably at all stages of the purchasing cycle e.g. to be given as much information as possible when preparing a quotation; to be paid as per the agreed terms of payment. The organisation needs to be a good citizen within the local community. It takes from the community in terms of labour and resources and has the potential to give back to the community in terms of its support for local projects and also providing incomes for those that it employs. The key environmental influences which might impact on an organisation and its stakeholders can be examined using a PESTEL analysis. This is a mnemonic for the following key factors, all of which can be considered regionally, nationally or internationally. Some of these factors may overlap and can be considered in more than one category. (i) (ii) Political e.g. government policies on imports and exports; Economic e.g. tax changes, interest rates, exchange rates;

(b)

(c)

(iii) Social e.g. changing age profiles, increased incidence of overseas travel, increasingly diverse work groups; (iv) Technological e.g. impact of the internet, developments in mobile communications technology; (v) Environmental e.g. issues associated with the production of genetically modified food, powerful lobby groups;

(vi) Legal e.g. legislation affecting employment, health and safety legislation. (d) Considering a medium sized manufacturing firm, selling its products in international markets as the example, two influences which might impact on this organisation are technological and economic. (i) Technological. Factors such as the technology available to help the firm communicate more effectively with its customers e.g. e-mail and the use of websites, or developing process technologies wh

ich might require them to make capital investments in new equipment in order to keep up with competitors. Economic. Factors such as potential changes in government policies with regard to exporting to the countries where they do business, or changes which may enable them to open up new markets. Factors such as exchange rates which will affect the price of their goods overseas and of any supplies being purchased from international sources.

(ii)

This is a very general example, indicative of the depth of answer required for this part of the question. Students will choose examples from their own organisations and markers will need to use their professional judgement as to the appropriateness of the factors that are chosen.


2

(a)

The purchasing cycle is considered to begin when a specific need for goods or services is identified and ends when the need has been met and payment has been made. The various stages in this cycle will vary depending on the nature of the item being purchased, the size and structure of the organisation and also the position which purchasing holds within the organisation. Typically, purchasing systems within any purchasing cycle can be grouped into four main headings: Originating Sourcing Ordering Completing The key stages in the purchasing cycle that one might expect to see in any review of a purchasing system are as follows: Originating Identification of need Preparation of authorised requisition Link to appropriate budget Sourcing Request for quotation (RFQ) sent to approved suppliers Quotations received and analysed Negotiation (if appropriate) and mutual agreement on price, delivery and all commercial terms and conditions Most appropriate supplier selected Ordering Purchase order issued Purchase order acknowledged Completing Delivery takes place/work completed Invoice received Invoice checked Payment made Performance evaluation/supplier appraisal and review

(b)

Stationery and computer consumables are frequent, but usually considered to be relatively minor, purchases within organisations – nevertheless, given the nature of these items it is important that their purchase is effectively managed and controlled. Recommendations about the type of controls at each of these stages could be as follows: Originating Typical checks would ascertain that a legitimate signatory had authorised the purchase requisition and that he/she was not exceeding authorised spend levels. The originator of the requisition should not have any involvement in the checking of the requisition in accordance with the principle of segregation of duties associated with task execution and control. Other checks would include quantity details and delivery address. Sourcing Typical checks would ensure that only approved suppliers were sent the RFQ and that all suppliers on the approved supplier list had been duly audited and appraised. All potential suppliers should receive the same information. There should be clear criteria for the evaluation of quotations to ensure that suppliers are compared and evaluated objectively. Selected suppliers must meet predetermined criteria. Ordering Typical checks would ensure that only authorised purchase orders are issued by authorised individuals up to agreed amounts. All acknowledgements should be carefully checked for accuracy against the purchase and any discrepancies raised with the supplier for correction. Completing Typical checks would ensure that the invoice value and the order value match and that payment is then made in accordance with the agreed terms of payment. Throughout all of the above it is important that wherever possible there is a segregation of duties and responsibilities. One individual should not be in a position to record and process a complete transaction.


3

(a)

There are many definitions of teams and groups. A team as defined by Katzenbach and Smith (1993) ‘is a small number of people with complementary skills who are committed to a common purpose, performance goals and approach for which they hold themselves mutually accountable’. According to Mullins (1999) the underlying feature of an effective team or work group is ‘a spirit of cooperation in which members work well together as a united team’ This is apparent when: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Group members have a belief in shared aims and objectives Members show a sense of commitment to the group Members accept group values and norms There is a feeling of mutual trust and dependency There is full participation in decision making Decision making is by consensus There is a free flow of information and open communications Disagreements can be aired and resolved Conflicts are resolved by members themselves

(b)

The key stages of group development as identified by Tuckman are forming, storming, norming and performing. Later writers added two stages to Tuckman’s model – dorming and mourning/adjourning. (i) Forming – the initial formation of the group. Group members get to know one another and test out behaviours to find out what is acceptable to other group members and to find out the nature of the situation and the task. Each member wishes to impress his or her personality on the group. The leader generally acts as a facilitator – helping people to get to know one another and also to understand collectively the nature of the task. The leader has a concern for both task and team but at this early stage of team development is more likely to focus on team issues. Group members tend to be very dependent on the leader. Storming – characterised by a lack of unity and the emergence of open conflict as members have now got to know one another better and are prepared to put forward ideas. If the team is developing effectively this can be a very productive phase as more realistic targets are often set and trust between team members increases. The leader tries to resolve any conflicts that may arise and as a consequence is often much more heavily involved with team issues rather than task issues. Because of the dominant role that the leader often needs to take at this stage it is likely that there may be resistance to the leader from other group members.

(ii)

(iii) Norming – a general understanding of one’s own role and the role of others. A sense of unity develops as the group ‘settles down’. Differences are accommodated. Group cohesion develops and there is mutual support and cooperation. The group acquires a sense of identity. The leader is no longer required to facilitate team processes and resolve conflict and the leadership role changes to one of being much more focused on the task. This involves the leader in coordinating activities and tasks to ensure that the work is completed and the overall team objectives can be met. (iv) Performing – interpersonal problems are resolved and the team begin to focus on the task in hand and how to achieve their goal. The leadership role is much less in evidence at this stage of development as all team members including the leader are focused on completing the task and achieving the agreed objectives. The leader is likely to merge with the rest of the group. (v) Dorming – once a group has been performing well for some time, it may become complacent and fall back into selfmaintenance functions, at the expense of the task. The role of the leader would be one of trying to keep the group focused on the task, but this is sometimes difficult, or indeed may not happen, as the leader has merged with the rest of the group at the previous stage.

(vi) Mourning/Adjourning – the group sees itself as having fulfilled its purpose

. This can be a stage of confusion, sadness and anxiety as the group disbands and breaks up. There is evaluation of its achievements and gradual withdrawal of group members. The leader can be important in the evaluation of the group’s performance. If the group is to continue and go on to a new task – it will need to renegotiate aims and roles and will return to the forming stage and the group will once again be very dependent on the leader.


4

(a)

The following should be set out in the form of a memo as per the requirements of the question. There are a number of approaches to personal work planning that you might find useful including producing lists, prioritising and scheduling. In addition to these main approaches there are a number of other techniques that you might include e.g. diaries and timetables and a variety of charts. (i) Producing lists – these are useful ways of identifying and remembering what needs to be done and of monitoring the progress you have made with your daily workload or a set of specific tasks. It is usually best to make a list at the start of a day or at the start of a project. Try to stick to the list you have made and don’t get involved with things that are not on your list. If necessary add them to your list. Prioritising – this is about deciding which aspects of your work, or which specific tasks areas are more important than others. Some aspects of your work will need prompt attention whereas others can often wait. Important or essential work needs to be given a higher priority than other work. A piece of work or task is usually considered high priority if it has to be completed by a certain time or if other tasks or people depend on it.

(ii)

(iii) Scheduling – is about planning and controlling priorities and deadlines. A schedule establishes a timescale for a logical sequence of tasks. Scheduling involves making sure that everyone is aware of the schedule in good time. The schedule should be realistic in terms of the time allocated for each task. It is important to be able to make allowances for any unexpected events and to revisit the schedule if necessary. (iv) Action plans – set out a programme of work or action. (v) Timetables – the information you have for your action plan or from your diary might be formatted as a timetable for ease of reference.

(vi) Charts – these are useful for longer term schedules and again, make activities easier to see – especially in relation to each other. (vii) Gantt charts – are used to display progress and to show the amount of time allocated to a particular task. (viii) Diaries – like timetables these are to remind you of key events and activities, remind you of any advance planning that needs to be undertaken or any follow up actions and to help you coordinate your efforts more effectively. There is potential for some overlap in the responses to part (a) and part (b) of the question depending on the approach taken by the student. Should any of the latter points included in the suggested answer to part (a) above, also be included in part (b) of a student response – this should be rewarded accordingly. (b) There are a number of things to bear in mind when trying to manage your time effectively. Firstly it is important to recognise that your use of time can be affected by the nature of the job you are doing, by your own personality and also by your colleagues and how they influence you and place demands upon you. When planning your time you will need to identify your key tasks – those tasks that are most relevant to achieving your objectives. This is like sorting out what you must do, what you could do and what you would like to do. Once you have identified your key tasks you need to prioritise these in terms of their importance, the time needed to complete them and against any deadlines or specific time spans. Once you have prioritised you can then schedule your work, or set out a timetable for completion. It is sometimes helpful to assign start and end times to tasks. It is important to include ways of controlling your time and the plans you have made for using it effectively. This means that you will need to minimise disruption by unexpected events and requests. It is also important to monitor how you actually use your time – keep a note of how you spent your time and how valuable you think time spent on specific activities was. Also make a note of typical interruptions so that you can develop strategies for either avoiding these or dealing with them as effectively as possible if they cannot be avoided.

5

(a)

Training has a key role to play in the area of health and safety and can be seen as an important preventative measure. Health and safety training should be an important aspect of an induction programme for all new members of staff. They should be advised of their own responsibilities and those of their colleagues and the organisation. Attention should be drawn to particular hazards or safety issues associated with the specific industry in which they are working, within their workplace or within the specific context of their own particular work environment. Training should also take place following a transfer to a new job or department or following any relocation or change in working methods. Refresher training should take place at regular intervals. Special courses should be arranged whenever new equipment or changes to working methods or processes are introduced. Formal training can be reinforced in many ways including the use of notice boards, electronic bulletin boards and staff handbooks. Roles of senior management, the supervisor and the individual (i) Senior management is responsible for developing and implementing policies and can ensure that appropriate procedures are in place for carrying out risk assessments and safety audits. Management can also ensure that a coordinated approach to health and safety issues is maintained across the organisation. They also have a duty to monitor and evaluate health and safety and for taking any necessary corrective action. Supervisors – can have most influence as they are in immediate control of a situation and are usually in a position to take immediate action. They need to be vigilant and safety conscious at all times. They are also directly responsible for ensuring that individuals are conscious of health and safety hazards and do not take unnecessary risks. Supervisors are likely to be responsible for maintaining and updating any safety manuals and notices in conjunction with HR departments. They should ensure that all employees under their supervision are aware of things like fire exits and location of fire extinguishers, safety equipment and of the named first aider in the area.

(b)

(ii)

(iii) Individuals – should be aware of safe working practices. Individuals have a responsibility for their own safety and for that of their fellow workers. They should carry out instructions associated with maintaining health and safety e.g. the wearing of protective clothing, or the use of safety guards when operating machinery. Individuals should ensure that they are up to date with the location of fire exits and fire extinguishers, safety equipment and of the named first aider in the area.


ACCA Certified Accounting Technician Examination – Paper T5 Managing People and Systems 1 (a) (b)

June 2004 Marking Scheme (2 marks) (3 marks) (3 marks)

2 marks for a clearly articulated definition, including reference to power, influence and dependency. 1 mark for each identified stakeholder. 1 mark per brief explanation and their relationship with the organisation.

(c) (d)

1 mark for each influence identified and one for a brief explanation up to a maximum of 2 marks per influence. (6 marks) 3 marks for each appropriate example. (6 marks) (Total 20 marks)

2

(a) (b)

2 marks for each stage identified and explained up to a maximum of 8 marks.

(8 marks)

2 marks each for each type of control identified and two marks for each type of control explained at each of the three stages nominated by the student, up to a maximum of 4 marks per stage. (12 marks) (Total 20 marks)

3

(a) (b)

1 mark for each characteristic or feature identified – up to a maximum of 8. 0.5 marks for each of the stages identified, up to a maximum of 2 marks 1.5 marks for offering explanation about each of the stages, up to a maximum of 6 marks. 1 mark for appropriate reference to the role of the leader at each stage, up to a maximum of 4 marks.

(8 marks) (2 marks) (6 marks) (4 marks) (Total 20 marks)

4

(a)

0.5 marks for each approach identified.

(1.5 marks)

2.5 marks for outlining how to use each of any three approaches effectively up to a maximum of 7.5 marks (2.5 x 3). (7.5 marks) 1 mark for using the correct format as identified in the question i.e. a memo. (1 mark)

(b)

2 marks for each main technique or tool explained up to maximum of 10 marks.

(10 marks) (Total 20 marks)

5

(a) (b)

1 mark for each point identified up to a maximum of 8 marks.

(8 marks)

1 mark each for identifying the key roles and responsibilities within each of the three categories up to a maximum of 4 marks within each category. (12 marks) (Total 20 marks)


Managing People and SystemsACCA CERTIFIED ACCOUNTING TECHNICIAN EXAMINATION ADVANCED LEVEL FRIDAY 10 DECEMBER 2004




Paper T5

ALL FIVE questions are compulsory and MUST be attempted 1 The accounting function is one of several key functions within an organisation, all of which integrate to ensure that the organisation is able to deliver its products or services as efficiently and effectively as possible. Required: (a) Explain the purpose of the accounting function within an organisation and identify and briefly describe how it interacts with ANY TWO OTHER functional areas. (8 marks) (b) Identify and describe the key factors which might affect the type of accounting system used within an organisation. (6 marks) (c) Explain how you would expect the accounting function to be affected if the organisation has its operations in a number of different countries. (6 marks) (20 marks)

2

Effective management control systems are an essential feature of all organisations. Required: (a) Identify and briefly describe the features of a good internal control system. (b) Outline the major limitations of internal control systems. (8 marks) (4 marks)

(c) Explain how the limitations of internal controls identified in part (b) above might be overcome, using (8 marks) examples. (20 marks)

3

An understanding of organisational culture is important because it can explain much of what happens in organisations and can also provide insights into how organisational effectiveness might be improved. Required: (a) Explain what you understand by the term ‘organisation culture’. (4 marks)

(b) Charles Handy’s classification identifies four distinct cultural types. Identify these four types and fully explain any two of these. (10 marks) (c) Identify and describe any two factors which might influence the development of an organisation’s culture. (6 marks) (20 marks)


4

Ineffective communication is frequently cited as being a major contributor to poor performance within organisations. Required: (a) Distinguish between formal and informal methods of communication used within organisations. (b) Explain the advantages and disadvantages of formal communications. (c) Explain the advantages and disadvantages of informal communications. (8 marks) (6 marks) (6 marks) (20 marks)

5

All employees, at whatever level, have a responsibility not only for their own safety in the workplace, but also for those around them. Required: (a) Identify and describe typical activities in which accidents might happen or where there may be risk or potential danger to employees. (10 marks) (b) What advice would you give to a new employee to enable them to minimise their exposure to safety hazards and risks in the workplace, thereby ensuring as safe a working environment as possible? (10 marks) (20 marks)



Answers


ACCA Certified Accounting Technician Examination – Paper T5 Managing People and Systems 1 (a)

December 2004 Answers

The purpose of the accounting function is to make sure that all of the organisation’s business transactions are recorded and processed accurately and securely and that the relevant information about business transactions is made available to management and appropriate external authorities as required. The accounting function interacts with a number of different departments. Some of these and the types of interactions which might take place are as follows: senior management requesting information provided by the accounting function via different types of reports; personnel or HR departments in terms of wages and salaries; the purchasing department who will authorise invoices for payment and require suppliers to be paid and all purchase ledger transactions; the sales department regarding payments received and any bad debts and all sales ledger transactions; the stores departments in terms of stock movements and stock control issues.

(b)

The key factors which might affect the type of accounting system used within an organisation are the type and size of organisation, organisation structure and regulations – both internal and external. A small organisation like a local general grocery store will have a relatively simple accounting system compared to a large multi-national organisation operating in a number of different sites with a larger range of products and services. Service businesses (such as a solicitor’s practice) will need accounting systems which enable them to record time spent on particular jobs or with particular clients whereas a manufacturing organisation will need to account for units of sales and will need to monitor the costs associated with the provision of raw materials and the supply of labour needed in the manufacturing process. Organisations operating in the public sector will be concerned with recording revenues and the monitoring of expenditure. The organisation structure will determine whether or not accounts are prepared on an area basis by area staff or the extent to which accounting staff are in a separate department. Internal and external regulations are an important factor affecting the accounting systems. Many businesses set out their own accounting rules and procedures and some aim to achieve external verification of their quality processes. In addition, accounting work has to comply with a range of external regulations and appropriate procedures need to be in place to ensure that the organisation complies with these as required. There are a number of ways in which the accounting function might be affected if the firm operates in a variety of different countries. Doing business in different currencies will present issues of recording information and reporting information, for example customers might want to pay in local currency but the business might have to pay for imported supplies in a different currency – this will need to be recorded carefully. Comparison between different parts of the business may be difficult and it may be necessary to convert to a single currency to facilitate this. There may be different legal, taxation and accounting requirements in different countries and this will determine how accounting information is prepared and reported. Differing economic conditions raise issues about accounting for inflation – especially when dealing with those countries that have very high levels of inflation.

(c)

2

(a)

An internal control system seeks to ensure that an organisation achieves its objectives and guards against the risks which may threaten its existence. The chara

cteristics of a good control system are that it should be acceptable to those it serves; appropriate to the needs of the organisation; matched to the capabilities of those that use it; accessible to non-experts or functional specialists; adaptable and capable of change if necessary; action oriented (i.e. should prompt corrective action) and affordable in terms of the overall cost for the benefits gained. In terms of appropriateness this means that it should be fit for purpose – neither overly complex nor unduly simple; it should be capable of effectively controlling the specific transactions relevant to the business for which it has been designed. In terms of accessibility it should be of use to a variety of organisation members outside the accounting function – it should be easy to use and understand and it should provide concise and relevant information to those that need it. It is important that any control system is capable of change in today’s business environment. All organisations need to be able to respond to change and the internal control system should be able to accommodate the circumstances and environment in which the organisation is operating, such that business transactions continue to be controlled effectively and appropriate and timely information is provided. It is important that the internal control system is action oriented and does not exist for its own sake. This means that it needs to highlight areas where action needs to be taken or changes made and should encourage proactive as well as reactive management responses. Finally it should be affordable, this means that it should not be overly time consuming for those that need to work with it nor should it unnecessarily duplicate areas of work or information provided or required. The overall costs of operating and maintaining the internal control system effectively should not outweigh the benefits that it provides to the organisation. The major limitations of an internal control system are associated with the human element necessary to ensure that they are applied properly and honestly. Internal controls rely on the honesty and integrity of those that apply them and if people are dishonest and wish to avoid them, there are ways in which they can do so. For example, managers can override the controls they have set up themselves or abuse authorisation controls. People can work together to abuse those controls through dishonest collusion. Also the warnings given by control systems may not be acted upon because of complacency or ignorance. Segregation of duties is concerned with separating executive tasks from control tasks. One individual should not be able to record and process a complete transaction. A simple example of this is highlighted when considering the recording and banking of cash. Cash may be received by the organisation through the post; it will need to be recorded as received and then at some point taken to the bank. It would not be good practice for these activities and duties to be performed by the same

(b)

(c)


person – the duties need to be segregated. If they are not segregated there is an opportunity for a dishonest person to receive the cash, fail to record its receipt and then keep the cash without anyone else being aware that any cash had ever been received into the business. This can be partially overcome by ensuring careful employee selection procedures, by checking references, by clear guidelines set out at induction and ongoing training and staff development. In addition, both internal and external audits can be used to demonstrate how some of these limitations can be exposed. Clear and heavy sanctions should be in place for use in any instances of dishonesty and collusion leading to the abuse of any internal control systems. Control systems should be continually reviewed for the relevance of their procedures and messages and staff reminded of the risks which they seek to guard against.

3

(a)

There are many different definitions of culture, some examples are as follows: ‘the collection of traditions, values, policies, beliefs and attitudes that constitute a pervasive context for everything we do and think in an organisation’ (McLean and Marshall); ‘the pattern of basic assumptions that a given group has invented, discovered or developed in learning to cope with its problems of external adaptation and internal integration’ (Edgar Schein). Culture then can be seen to be a collection of the organisation’s past achievements, current ambitions, attitudes, values and assumptions. More simply it is often described as ‘the way we do things around here’. Culture gives an organisation a sense of identity. The formal culture of the organisation is often seen as the ‘party line’. All definitions and explanations of culture emphasise that it is concerned with abstract concepts and themes like values and norms and as such it is difficult to articulate and often difficult to recognise. Charles Handy’s classification is based on Harrison’s ‘organisation ideologies’. Handy used the word culture as opposed to ideology as it was perceived to convey a feeling of deep seated and more pervasive way of doing things. His four types are: the power/club culture, the role culture, the task culture, and the person culture. The power/club culture is dependent on a central power source which controls the organisation. The rays of influence emanate from the centre and hence there is little need for formal rules and procedures. The organisation relies on interpersonal relationships and communications rather than hierarchy and power structures. It is typically found in small entrepreneurial firms, small family firms and small businesses controlled by the owner/manager. As the organisation increases in size this culture is less evident as the powerful rays of influence cease to reach all members of the organisation and there then becomes a need for more formality which comes with the introduction of systems and procedures. The role culture is typified by large bureaucratic organisations. Work is controlled by procedures and rules. Power is associated with positions and not people. It is based on order and rationality. The role culture is often represented diagrammatically as a Greek temple, with the pillars representing the functional specialisms within the organisation, all of which are controlled centrally by the senior managers. In addition to the strength of the functional ‘pillars’ the role culture needs a stable external environment to survive. The task culture reflects a team approach to getting a job completed. It often consists of people who solve problems in teams or specially formed work groups. Each person makes a contribution based on their own area of expertise and shares this with the team or group for the overall benefit of the task in hand. Status and job titles are not considered to be important in the task culture – the overall objective is to ensure that the job or task or project is satisfactorily completed. Influence is based on expert power rather than on position or personal power. Often, the team or group will be disbanded once the job or project is completed. Controlling can be difficult in this culture and is usually achieved by senior management through the appropriate allocation of tasks, people and resources. A task culture thrives in organisations that are faced with f

requent changes, as they are good at adapting and problem solving. The person culture exists to serve the individuals within the organisation and is one of the most unusual in Handy’s typology. All rules and procedures within the organisation exist to meet the needs of the individuals within it and can be changed as those needs change. A good example of a person culture would be that which might exist in a small professional business e.g. solicitors’ or dentists’ partnerships. There are many factors which might affect the way in which an organisation culture develops. These include, but are not necessarily limited to: the history of the organisation, the overall purpose of the organisation, the technology employed by the organisation, organisation size, location, the leaders and key decision makers in the organisation and the overall operating environment. The history of the organisation can be important in shaping the organisation culture because this will reflect the way in which the organisation was originally formed and also any key events in its development e.g. a merger or a takeover or a change in overall focus of the organisation. The overall purpose of the organisation and its goals and objectives influence the culture in that this will include the types of markets that the firm operates in, the type of products or services it offers and the types of customers it engages with. The key technology employed by the organisation can be important in influencing culture because this will determine ways of working and interacting with others. The organisation size can be important because this will determine the degree of formality and bureaucracy within the organisation and also the communication processes. The location of the organisation can be important. For example a firm situated in a busy city centre may face different issues in terms of staffing, types of customers etc than one located on a purpose built business park. The leaders and key decision makers can be important influences on culture and their own style or way of doing things is often reflected in the organisation as a whole. People identify with visionary leaders and often treat them as role models for their own behaviour. Finally, the overall operating environment is important because it can determine the rate of change that the organisation needs to deal with or the degree of uncertainty within the environment. Issues of stability and dynamism are important aspects of the external environment which might affect the overall culture of an organisation.

(b)

(c)


4

(a)

All organisations are likely to use some combination of formal and informal communications. Formal communication channels and systems are usually set up by management within the organisation and would include regular meetings, formal presentations and conferences where both written and verbal information can be presented. These will be considered to be legitimate forms of communication and will be sanctioned by the organisation i.e. they will be officially recognised by the organisation. The larger the organisation, the more likely it is to have more formal communication channels and systems. Informal communication channels are much less structured and would include informal telephone conversations, discussions in the staff canteen or any other form of informal contact with colleagues, supervisors and managers. Informal communications usually take place outside of the more formal organisation structures and processes that have been set up by management. Some of the advantages of formal communication are that they are recognised by all members of the organisation, they form part of the overall command and control structure of the organisation, they are based on legitimate and accepted power bases within the organisation; they provide effective co-ordinating mechanisms, they provide records and evidence of points of agreement and disagreement and of decisions made, they are transparent and available for all. However, there are also disadvantages to formal communications and some of these are as follows: they can be time consuming and involve an unnecessary amount of people; they may act merely as a ‘rubber stamp’ for issues and procedures that have been agreed informally; they can become unwieldy. The advantages of informal communications are that they are more flexible and responsive, they permit speedier decisionmaking, they permit all members of the organisation to contribute and participate, and they can identify issues of concern within the organisation. The disadvantages include the fact that they may conflict with the formal communication system and recipients may receive mixed messages; they may be used subversively, they may be biased and inconsistent, they may encourage rumours, or they may lead to too much information being available and cease to be effective co-ordinating mechanisms.

(b)

(c)

5

(a)

There are many activities which are undertaken in the workplace which can give rise to hazards and risks and where accidents can easily happen. Whilst many of the ones that you are likely to come across will be in the office environment, there are a variety of other situations that you may need to be aware of, e.g. those that might occur in a manufacturing environment. The broad range of activities which might give rise to hazards and risks include, but are not limited to, the following: General maintenance of building and fabric – involving use of ladders or roof work where there is potential for people to fall from high buildings or constructions. Using certain types of equipment e.g. VDUs where there is potential for eyestrain or repetitive strain injury associated with the continued use of a keyboard or a mouse. Using badly designed workspaces and office accommodation, where posture may be affected or there is potential for falls or tripping over electrical or computer connections; or where light is inappropriate. Using electricity, hand tools or extension leads where there is potential for electric shock or physical harm if using the equipment incorrectly. Carrying and/or lifting equipment which might lead to muscle strain or damage to the spine if not carried out correctly. Receiving raw materials – involving lifting or carrying, ag

ain having the potential to cause muscle damage or damage to the spine. Stacking or storing material – there may be falling materials. Moving material – using forklift trucks or lifting equipment. Operating machinery, where it is important that appropriate guards and shields are correctly deployed and where it is important to operate the machine within specified operational limits in terms of speed, or running time. Not wearing protective clothing and equipment for example ear defenders, safety glasses, protective footwear or using appropriate barrier creams when using certain substances. Dealing with emergencies, this is especially important as it is when dealing with emergency situations that standard procedures and ways of working are often inadvertently ignored or forgotten.


(b)

All new employees should attend any health and safety training offered as part of their induction programme and employees should be encouraged to update their knowledge and the information provided on a regular basis. This can be done by attending further training or by reading notice boards or any safety bulletins which may be issued. They should be fully aware of any procedures associated with evacuation in the event of accidents or fire and this will include familiarisation with the location of fire escapes, fire extinguishers and any other safety equipment. They should make themselves aware of the nominated first aider in their area. They should be aware of any specific hazards associated with the nature of their work i.e. exposure to substances hazardous to health, unsafe operating practices, potential dangers when using machinery and lifting equipment and the possible hazards of using computers. They should wear protective clothing if necessary e.g. gloves, eye shields or ear defenders and ensure that they adopt safe seating positions and avoid repetitive strain injuries by having adequate and regular breaks from work stations during the working day. These measures should be provided and promoted by the organisation as necessary but all employees have a responsibility to ensure that they are made available and appropriately used.



December 2004 Marking Scheme

2 marks for a clear explanation which includes reference to recording, processing and providing information. 1/2 mark for identifying key functional areas up to a maximum of 2 marks. 2 marks for each brief description of how the accounting function interacts with both functions identified up to a maximum of 4 marks.1/ 2

8 marks

(b)

a mark for each factor identified up to a maximum of 2 marks. 1 mark each for appropriate description and explanation of key factors up to a maximum of 4 marks. 1·5 marks for each area explained up to a maximum of 6 marks.

6 marks 6 marks Total 20 marks

(c)

2

(a)

1 mark for identifying specific features up to a maximum of 4 marks. 1 mark each for a brief description of those identified up to a maximum of 4 marks. 1 mark for each limitation up to a maximum of 4 marks. 2 marks for each brief discussion of how these might be overcome, up to a maximum of 4 marks. 2 marks each for an appropriate and clearly explained example, up to a maximum of 4 marks.

8 marks 4 marks

(b) (c)

8 marks Total 20 marks

3

(a)

1 mark for a clearly articulated and well written definition of culture and 1/2 a mark for including any of the following points in an explanation (up to a maximum of 3 marks): values, assumptions, norms, ‘way we do things around here’, beliefs, attitudes, shared expectations, shared goals.1/ 2

4 marks

(b)

mark for each type identified, up to a maximum of 2 marks. 4 marks each for a full explanation of any 2 of the 4 types identified. Explanation should include but not necessarily be limited to inclusion of typical type of environment, degree of flexibility, ability to cope with change, type of structure, sources of power, control mechanisms, inclusion of examples etc. 1 mark for each factor identified. 2 marks for appropriate description of factors identified.


(c)

4

(a) (b) (c)

4 marks each for a clear explanation of formal and informal communications. 2 marks for each advantage and disadvantage identified up to a maximum of 6 marks. 2 marks for each advantage and disadvantage identified up to a maximum of 6 marks.

8 marks 6 marks 6 marks Total 20 marks

5

(a)

1 mark each for identifying typical activities up to a maximum of 5 marks. 1 mark each for brief description of activities identified and for the use of simple examples, up to a maximum of 5 marks. 2 marks for each piece of appropriate advice offered.


(b)






Paper T5

Section A – ALL FIVE questions are compulsory and MUST be attempted 1 Organisation structures are the framework for getting work done efficiently and effectively. Businesses are organised and structured in a variety of different ways and as well as ‘tall’ or ‘flat’ structures, a matrix structure is adopted by some organisations. Required: (a) What do you understand by the term ‘matrix structure’? (b) Identify and briefly explain four key advantages of a matrix structure. (c) Identify and briefly explain four key disadvantages of a matrix structure. (4 marks) (8 marks) (8 marks) (20 marks)

2

Legislation requires that the accounts of a public limited company must be audited. Required: (a) Explain the role of an external auditor. (3 marks)

(b) What is the purpose of the external auditor’s report and what would you expect to be included in it? (8 marks) (c) What are the three main differences between the internal and the external auditor? (9 marks) (20 marks)

3

Henri Fayol was a key contributor to the classical view of management and identified five functions of management which apply to any organisation. These are planning, organising, commanding, coordinating and controlling. Required: (a) What are the key characteristics of the classical view of management? (b) Fully explain what is involved in any two of Fayol’s five functions. (10 marks) (10 marks) (20 marks)

4

Conflict in organisations is often considered to be inevitable and can have positive as well as negative outcomes. Required: (a) Identify and explain the key sources of conflict in organisations. (12 marks)

(b) Explain the win-win approach to resolving conflict and contrast this approach with win-lose and lose-lose approaches. (8 marks) (20 marks)


5

Data in the workplace is potentially at risk of security breaches. It can be damaged, lost or stolen in the same way that equipment and valuables can. Required: (a) Outline and briefly explain the potential risks to data held in organisations, including data that is held or transmitted electronically. (10 marks) (b) Identify ways in which the risks to data identified in (a) can be reduced or avoided. (10 marks) (20 marks)



Answers



June 2005 Answers

1

(a)

A matrix structure is likely to be found in contracting, research and development and consultancy and essentially ‘crosses’ functional and product/project organisation so that staff in different functional or regional departments are responsible to both their department manager and also to a product or project manager. They are responsible to their departmental or functional manager for activities specific to the department or function and to the project manager for activities specifically relating to the product or project. Typically, staff from various disciplines are assigned to projects. While engaged on the project individuals will be responsible on a day-to-day basis to the project leader but will continue to be functionally responsible to the head of their department. The key advantages of a matrix structure are: it enables the organisation to quickly assemble teams consisting of people with the most appropriate expertise and experience; it allows speed of response and flexibility; it provides a variety of experiences to team members; it supports inter-disciplinary co-operation and multi-functional working; it develops tolerance of ambiguity; it encourages team members to see the broader picture rather than over focus on their own specific department or functional area; it encourages greater market and customer awareness, it brings conflicts out into the open. The key disadvantages of a matrix structure are: it can be fragmented; it can be difficult to develop and maintain commitment to the organisation; it requires individuals to be responsible to two bosses simultaneously; it needs careful planning; it can lack continuity; it can lead to competition and conflict between managers; staff can have conflicting demands; decision making can be slower.

(b)

(c)

2

(a)

The external auditor is usually a firm of chartered or certified accountants whose role is to undertake an independent examination of the financial statements of an organisation and to express an opinion on those financial statements. If the organisation is a limited company, external audit means statutory audit, under for example the Companies Act 1985 in the UK. The purpose of the external auditor’s report is to summarise their conclusions on the company’s financial statements to the shareholders. The report must state whether in the auditor’s opinion: – The balance sheet is a true and fair view of the financial state of affairs of the company at the end of the financial year. The words true and fair are generally used together rather than separately and the term is generally considered to mean ‘reasonably accurate and free from bias or distortion’ – The profit and loss account or income statement gives a true and fair view of the financial performance of the company for the financial year being audited. – The financial statements have been properly prepared in accordance with Companies Act 1985, or other similar legislation. There are three main differences between the internal and the external auditor: – Appointment. External auditors are appointed by the shareholders and must be independent of the company whereas internal auditors are employees of the organisation – Responsibility. External auditors are responsible to the owners, who can be shareholders, the public or parliament whereas int

ernal auditors are responsible to senior management – Objectives. The objectives for external auditors are defined by law whereas those for internal auditors are set by management and the audit process is a key part of evaluating the effectiveness of the management control system in the light of risks identified.

(b)

(c)

3

(a)

The classical theorists were primarily concerned with the maintenance of control from the top of an organisation. They wrote at a time when relatively little was understood about the ways in which organisation design can affect human motivation and about the human relations aspects of management and work organisation. The classical school of management held the view that there were universal principles that can be applied to all organisations. Management was seen as a matter of controlling resources and processes rather than people. Classical theory focuses on the efficient structuring of organisations. Henri Fayol was one of the most influential classical theorists – a French industrialist who pioneered ideas about how organisations might best be structured – he advocated that there should be division of labour i.e. the practice of dividing work into specialised tasks that enable people to specialise in what they do best. Other important elements of the classical school were the ideas of limited spans of control (i.e. number of direct subordinates) – typically a limit of three to six were recommended and also that there should be a limited number of hierarchical levels. Spans of control were to be limited so that it was possible to retain adequate supervisory control over subordinates, sufficient communication with them and adequate coordination between their activities. A restricted number of hierarchical levels were advocated so that loss of control down a hierarchy and any dilution of instructions before they reached the required level were minimised. Planning involves working out, in broad outline, the things that need to be done and the methods for doing them to accomplish the overall purpose set for the organisation. This involves setting objectives and the procedures for ensuring that the objectives are achieved. This can be for the whole organisation or for a part of it. Organising involves setting up and staffing the most appropriate form of organisation to achieve its overall aims and objectives. This will include grouping task and activities into jobs for individuals and groups, creating groups of jobs into sections and departments and delegating authority to carry out jobs. Commanding involves giving instructions to others to carry out tasks where the manager has

(b)


authority over decisions and responsibility for performance. This also involves exercising leadership to motivate people to work together to the best of their ability as part of a team. Coordinating involves harmonising the activities of individuals and groups within the organisation and integrating various parts of the work. Controlling involves measuring, monitoring and correcting, as necessary, the progress of work in relation to the overall plan – this will include the activities of individuals and groups. 4 (a) Conflict takes place in organisations because they function by means of adjustments and compromises. People’s views often conflict because individuals and teams have their own goals, interests and priorities which may not always be compatible. In addition there can be personality clashes. Conflict can arise when there is change because change may be seen as a threat to be challenged or resisted. Power and resources in organisations are limited and people compete for them - this can also lead to conflict. There may also be differences and incompatibilities of work methods, timescales and working style so that individuals or teams frustrate each other with apparent lack of co-ordination. Poor communication can often lead to conflict. This approach suggests that there are three basic ways in which a conflict or problem can be worked out: win-lose, lose-lose or win-win. Firstly, win-lose – this is quite common and describes a situation where one party gets what it wants at the expense of the other party. Secondly, lose-lose – this describes a situation where neither party gets what it really wanted - in essence a poor compromise. This is often a common outcome to resolving conflict. Thirdly, win-win – this is not necessarily common but working towards it often leads to the best solution. It describes a situation where both parties get as close as possible to what they really want. It is critical to this approach to fully understand what both parties really want, and what they really don’t mind giving up. The main risks to data are as follows: (i) (ii) human error – individuals can lose, damage or incorrectly input or store data; technical problems – data can be lost or corrupted when equipment fails;

(b)

5

(a)

(iii) catastrophic events such as natural disasters or accidents such as fire or burst pipes can break or destroy data storage and transmission facilities; (iv) malicious damage by individuals inside or outside the organisation who deliberately attempt to damage or tamper with data; (v) industrial espionage or sabotage by individuals who deliberately attempt to steal or damage data and information from the organisation with a view to commercial gain;

(vi) dishonesty by those who may wish to access information for personal gain; (vii) when data is transmitted over a network or a telecommunications line, especially the internet, there may be additional specific security dangers which arise because the data is carried by third party carriers and is outside the direct control of the organisation; (viii) additional dangers include the following: corruptions from viruses, the possibility of inadvertently overwriting someone else’s data, unauthorised individuals being able to access parts of the network, risks from hackers, the downloading of inaccurate or imperfect information or information being intercepted leading to loss of service; (ix) in addition to the above, all organisations have a responsibility to ensure that data is adequately protected against any breaches of confidentiality. (b) There are a number of ways in which the risks to data identified above can be minimised. Risks of human error can be reduced by checks and controls, systematic procedures, ongoing employee training and also appropriate supervision. Rigorous recruitment and selection procedures go some way to ensuring that staff employed are honest and trustworthy and will not engage in malicious acts or any form of espionage. Risk of malicious damage can also be minimised by controlling access, both physically (using

locks and security checks) and electronically (using passwords, encryption of data, anti-virus software etc). Risks of disaster are difficult to foresee, but contingency plans may be made, including off-site back-up storage of files, emergency power generators and adequate insurance for any loss or damage to data and associated systems. Organisations should take care to ensure that paper files or computer disks are not left where they are generally accessible. Safes, strongboxes and filing cabinets should be locked when not in use. Passwords should be used where advised and should not be shared. Confidential information should not be copied or transmitted without specific authorisation and appropriate security measures. It is important to ensure that appropriate communication channels are selected to protect data where necessary. Back-up systems are important to minimise the risks associated with data held electronically. E-mail, intranets and the Internet mean that computer systems are increasingly connected over telecommunications lines and these are rarely completely secure. Use of passwords and userprofiles make an important contribution to minimising risk. A password is a unique code a person uses to enter the system. For a password system to be effective, passwords should be changed regularly, difficult to guess, confidential and hidden. A user profile in a networked system only allows certain people access to certain files. Records can be kept of access to files, so that a trail can be left of unauthorised attempts at entry. Despite passwords and user profiles, expert hackers may still be able to enter the system. Keeping track of any attempts made can alert managers to repeated attempts to break into the system or of any emerging patterns. Use of anti-virus software which can detect and eradicate viruses is an important way to minimise risks to electronic data. Latest upgrades should be used to ensure that any new viruses could be dealt with. Organisations must also guard against the introduction of unauthorised software to their systems as many viruses are spread on pirated versions of popular software. Any disks received from outside should be checked to ensure that they are virus free. Systems should also make use of firewalls to ensure the safety and security of their data.



June 2005 Marking Scheme

1

(a) (b) (c)

4 marks for clear explanation of matrix structure 2 marks for each advantage up to a maximum of 2 marks for each disadvantage up to a maximum of


2

(a) (b) (c)

3 marks for a clear explanation of the role 2 marks for the purpose of the report. 2 marks for each item included up to a maximum of 3 marks for each difference identified up to a maximum of


3

(a) (b)

10 marks for clear explanation of classical management, to include control issues, spans of control, hierarchy, universal rules, top down, and consideration of human aspects. 5 marks for each full explanation of any two functions.


4

(a) (b)

2 marks per valid point made about each source of conflict identified up to a maximum of 3 marks for clear description of win-win, 2·5 marks for contrast with win-lose, 2·5 marks for contrast with lose-lose.


5

(a) (b)

2 marks per valid point made about each potential risk identified and explained up to a maximum of 2 marks per valid point made about each method of minimising risk explained up to a maximum of







Paper T5

ALL FIVE questions are compulsory and MUST be attempted 1 Planning is an important business process and can be critical to an organisation’s success. Required: (a) Give two reasons why business planning is important to managers in organisations. (b) Explain two main differences between strategic planning and tactical planning. (4 marks) (4 marks)

(c) Identify and briefly describe four elements that you might expect to see in an organisation’s human resource plan. (12 marks) (20 marks)

2

All business and accounting systems require formal controls if they are to be useful and effective within an organisation: the payroll system is one example. Required: (a) Explain the purpose of a payroll system. (2 marks)

(b) What information relating to individual employees would you expect to be held on a payroll file? (6 marks) (c) Identify and explain four key controls relating to wages and salaries. (12 marks) (20 marks)

3

Delegation of authority is the process whereby a superior devolves to the subordinate part of his or her own authority to make decisions. Required: (a) Give three reasons why a manager or supervisor might delegate some of their authority to their subordinates. (6 marks) (b) What factors should a manager or supervisor take into account when deciding whether or not to delegate? (6 marks) (c) Briefly give four reasons why many managers and supervisors are reluctant to delegate. (8 marks) (20 marks)


4

One of the main purposes of an effective appraisal system is to improve individual and organisational performance. Required: (a) Identify the four key stages of the appraisal interview process. (4 marks)

(b) Provide a full explanation of the kind of activities and actions you would expect to take place at any two of the stages you have identified in part (a) above. (8 marks) (c) Identify and explain two potential disadvantages of an appraisal scheme. (8 marks) (20 marks)

5

Security aims to prevent others from illegally accessing, stealing and damaging the property of an organisation and/or the people who work in it. Required: (a) Identify and explain the three basic principles of effective security. (b) Provide two examples of who or what might be particularly at risk in a business organisation. (c) Provide two examples of particular locations within an organisation that might be at risk. (12 marks) (4 marks) (4 marks) (20 marks)



Answers




If individuals and groups within organisations are to be effective in working for the achievement of the organisation’s objectives, they need to know what it is they are expected to do. Planning is important to managers because it enables them to identify the objectives for which they are responsible, enables them to organise how to achieve them and then helps them to measure if they are being successful in achieving those objectives. Strategic planning involves making decisions about what business the organisation should be in and what its overall objectives should be. Strategic planning is long term and considers where the business wants to be in two to three years time – longer in some cases. This involves a consideration of environmental factors, current and potential competitors, declining and emerging markets, possible technological change, etc. Strategic planning deals with many variables and a high level of uncertainty. The strategic plan is likely to be amended in the light of new developments. Tactical planning involves making decisions about how an organisation should go about achieving the overall objectives determined by the strategic plan. Tactical planning considers a much shorter time period, for instance a year, and decides what needs to be done within that year to implement the strategic plan. At this level, planning will involve deciding upon expansion targets, market penetration, asset purchases, financing requirements and any improvements which need to be made to efficiency. The human resource plan of an organisation is prepared on the basis of the analysis of its future human resource and skills requirements. Depending on the organisation’s requirements and the availability of skills within the organisation which can be developed or deployed, the human resource plan could include the following elements: (i) (ii) Recruitment plan – which considers the numbers and types of people/skills and when these are required, along with a target recruitment programme for both internal and external appointments. Training and development plan – which considers the skills needing to be developed, the number of trainees required and also programmes for retraining if appropriate.

(b)

(c)

(iii) Succession plan – which includes programmes for identification and development of individuals for promotion and plans for replacements for key management posts. (iv) Productivity plan – which considers programmes for improving productivity or reducing staffing costs and also develops productivity targets. (v) Retention plan – which identifies the actions necessary to reduce avoidable staff turnover or wastage and includes a review of working terms and conditions.

(vi) Redundancy plan – which considers policies for selection and timing of redundancies, timetable for union consultation if appropriate and budgets for redundancy payments. (vii) Reward plan – which considers salary structure and plans for merit or performance related pay and also salary rises over time.

2

(a)

The purpose of a payroll system is to compute the gross and net wages and salaries of all employees, to produce payslips, cheques and/or listings sent to banks instructing them to make payments and to account for all statutory and non-statutory deductions. Payroll files will consist of an individual record for each employee which includes both standing and variable (sometimes called transactional) data. Standing data will include personal details e.g. name, employee number, j

ob grade, address etc as well as the rate of pay for the employee, details of any deductions, their tax code and their holiday entitlement. Variable or transactional data will include gross pay to date, tax to date and pension contributions if applicable. The four main aims of any control system relating to a payroll system are concerned with the following areas: (i) (ii) Setting of wages and salaries. This includes ensuring that employees are only paid for work that they have done and that gross pay has been calculated correctly and appropriately authorised. Recording of wages and salaries. This includes making sure that gross and net pay and deductions are accurately recorded on the payroll; that the wages and salaries actually paid are recorded correctly in the bank and cash records and general ledger.

(b)

(c)

(iii) Payment of wages and salaries. This means ensuring that the correct employees are paid. (iv) Deductions. This includes making sure that the statutory and non-statutory deductions have been calculated correctly and are authorised and that the correct amounts are paid to the taxation authorities (and also into pension schemes if appropriate).


3

(a)

Managers and supervisors might need to delegate authority for a number of reasons, including the following. There are physical and mental limitations to the workload of any one individual in authority and it may be necessary to delegate to ensure that the workload can be effectively managed. Managers and supervisors may wish to delegate in order that they are free to concentrate on the aspects of their work which only they are competent to do (e.g. detailed planning or aspects of budgeting). The increasing size and complexity of many of today’s organisations demands increasing specialisation and effective delegation is one way of developing this. Managers also need to consider that delegation provide subordinates with development opportunities. The decision of whether or not it is appropriate to delegate authority is an important one and there are a number of factors which may need to be taken into consideration. It is always important that authority resides where it is best placed to be exercised effectively. The manager or supervisor will need to be confident that the subordinate has the necessary experience and expertise to undertake the task. The manager will also need to trust the reliability and competence of the subordinate to undertake the task or make the decision. The task or decision should be within the capability of the subordinate and he or she must be consulted and be prepared to accept it. Many managers and supervisors are reluctant to delegate and attempt to do many routine tasks themselves as well as more important ones. Some of the reasons for this might be as follows: (i) (ii) They may have low confidence and trust in the abilities of their staff; They may believe that they are the only one capable of doing the task properly;

(b)

(c)

(iii) They may wish to keep enjoyable parts of the job to themselves; (iv) Some managers feel more powerful by retaining their decision making privileges; (v) They may fear that their subordinates will use the authority poorly;

(vi) They may not wish to take on the additional burden of being accountable for any mistakes that their subordinates might make while executing the task; (vii) They may believe that their subordinates do not wish to have broader decision making responsibilities; (viii) They may wish to ‘stay in touch’ with the department or team and feel that any act of delegation removes them from the day to day activities; (ix) They may feel threatened and be unwilling to admit that assistants have developed to the extent that they could perform some of the manager’s duties. They may feel threatened by this sense of redundancy. (x) There may be poor control and communication in the organisation so that the manager feels he has to do everything himself in order to retain control and responsibility for the tasks;

(xi) There may be an organisational culture which has failed in the past to recognise and reward effective delegation. In this climate the manager may feel that delegation is seen as shirking responsibility; (xii) There may be a lack of understanding about what delegation involves; (xiii) There may be a lack of training and development of managers in the skills needed for effective delegation; (xiv) Managers and supervisors may have had poor experiences of delegating to others.

4

(a)

The four key stages of an appraisal interview are: prior preparation, the interview itself, gaining commitment and follow up actions. There are a number of activities and actions that might take place at each of the four stages. (i) Prior preparation. At the preparation stage it is important that the appraiser ensures that the time and place planned for the interview are appropriate and that there will be no interruptions. The appraiser should ensure that he/she has all of the information needed to be able to conduct the interview effectively e.g. he/she should review the employee’s history and any previously agreed targets or objectives. Other sources of feedback should be consulted if necessary e.g. liaison with other work teams or consultation with other department managers if the appraisee has been involved in more than one area of the business. Finally it is important that the appraisee is given time to prepare and to undertake their own self-appraisal before the interview and to gather any information that they may need. The interview itself. It is important that the interview is seen as a two way process and exchange. The appraiser must be able to demonstrate effective listening skills. The employee should be encouraged to share views freely and to review his/her work performance objectively and honestly. Any problems or development needs should be identified.

(b)

(ii)

(iii) Gain commitment. At this stage it is important to agree a plan of action that both parties can agree and commit to. There may be actions for both parties and it is important that these are recorded accurately. Usually at this stage all of the associated appraisal documentation is completed and development plans are put in place. (iv) Follow up. This is an important stage of the appraisal interview process and involves making sure that any agreed actions are carried out and that progress is monitored. It also involves making sure that both parties are kept informed of progress.


(c)

There can be many reasons why the outcomes of an appraisal system are not satisfactory, including the following. There can be uncertainty, lack of clarity and lack of a shared understanding regarding the overall objectives of the appraisal system. Sometimes appraisals are seen as confrontational or as an opportunity to tackle major problems which have not been dealt with effectively in the past. This means that the overall purpose and objective of the appraisal is not achieved and people do not approach the appraisal with a positive attitude. In these circumstances the outcomes are not always satisfactory e.g. it is not always possible to reach agreement on performance levels or to get objective feedback. Feedback at an appraisal is often delivered badly, the appraisal may be based on most recent performance and not on the whole year and there can be a lack of attention to the development needs of the employee. Sometimes appraisal can be seen as a one sided process, where the interview provides an opportunity for the manager to sit in judgement on the employee. This can lead to the employee feeling threatened and he/she is put on the defensive. In some cases, the introduction of an appraisal system can lead to increased labour turnover. Appraisal can sometimes be seen as nothing more than an informal, friendly chat with no real purpose or outcome. Some managers may be embarrassed by the need to give feedback and may do so inappropriately. In some organisations, the appraisal system is over bureaucratic and involves a great deal of form filling. This can lead to it being seen only as a form filling exercise, with no real outcomes. In some cases, organisations do not allocate sufficient resources to the appraisal system; this means that development needs might be identified but cannot be fulfilled. The underlying purpose of the appraisal, to improve individual and organisational performance, can be overlooked.

5

(a)

The three basic principles of security are delay, checking and alarm. Delay means providing appropriate lines of defence before vulnerable areas and items can be reached. This could include some or all of the following: making sure that outer doors to the main building are securely locked and bolted, ensuring that there is a secure, staffed reception area for visitors, ensuring that all offices are locked and where appropriate, guarded, by making sure that filing cabinets are lockable and are kept locked when not in use and finally by providing safes. The second principle of security is checking – this means having appropriate procedures for authorised access to vulnerable areas or items. This could include some or all of the following: making sure that authorised staff can be clearly identified either by a uniform or an identity badge, (preferably showing a photograph), by ensuring that all visitors are checked in, escorted while they are on the premises and checked out on departure, by always ensuring that any unauthorised visitors on the premises are challenged, by the use of personal pass words or swipe cards to gain authorised access to different parts of the organisation and finally by seeking appropriate authorisation before access to files can be allowed. The third principle of effective security is alarm. This means making sure that there are adequate procedures for alerting those responsible for responding to security breaches. This could include some or all of the following: ensuring that buildings are fitted with electronic security alarms and by carefully controlling access to entry codes, by training all individuals in the organisation to be alert to potential security breaches and to be aware of the procedures for reporting them and through ensuring that computer systems have the ability to warn of any unauthorised attempts to access files. Internal security is also important and organisations should ensure that they have effective recruitment, selection and screening systems for all staff and security staff in particular.

(b)

Items that are valuable, portable and easily saleable are particular security risks in an organisation, for example small equipment such as computers, printers, video and television equipment; vehicles or office furniture. Documentation such as ownership documents e.g. share certificates or title deeds and cash and cheques are also vulnerable. Other vulnerable items include security devices like pass cards and keys or information stored in portable form e.g. paper files, floppy discs and CD Roms. The types of people who might be at particular risk in an organisation are: front line security staff e.g. security guards and reception staff, staff with custody of important assets e.g. counter staff in banks. Key personnel may also be at risk of intimidation for the purposes of obtaining cash, assets or security codes. The following are some of the most vulnerable areas or locations in an organisation: all public or open areas (such as entrances, hallways, parking areas, toilets, stairways and lifts), especially if they are unattended, all points of entry and exit (doors, windows, gates and lifts), all unattended areas (store rooms), unlit areas, and reception areas. Points of transit or storage outside the organisation’s premises can also be a source of security risk e.g. valuable items may be taken out of the office e.g. cash for banking, products for delivery, laptop computers for working at home. Finally any areas where at-risk items and data might be concentrated also pose a security risk e.g. store rooms, computer rooms, offices, file stores etc – especially if they are located near points of entry or exit or busy public areas.

(c)


ACCA Certified Accounting Technician Examination – Paper T5 Managing People and Systems 1 (a) (b) (c) 2 marks for each reason given. 2 marks for each difference explained.

December 2005 Marking Scheme 4 marks 4 marks 12 marks Total 20 marks

1 mark for each element identified and a further 2 marks for each element subsequently explained.

2

(a) (b) (c)

2 marks for a clear explanation of the purpose. 1 mark for each item of information included up to a maximum of 6 marks. 1 mark for each aim identified up to 4 marks and a further 2 marks for each aim appropriately explained.


3

(a) (b) (c)

2 marks for each reason given. 1 mark for each factor identified up to a maximum of 6 marks. 2 marks for each reason identified up to a maximum of 8 marks.


4

(a) (b) (c)

1 mark for each stage identified. 4 marks for each full explanation. 1 mark for each reason identified and further 3 marks for the explanation of each reason.


5

(a)

1 mark for each principle identified up to a maximum of 3 marks and a further 3 marks for an explanation of each of the three principles. 2 marks for each example provided. 2 marks for each example provided


(b) (c)






Paper T5

ALL FIVE questions are compulsory and MUST be attempted 1 Every organisation interacts with its external environment. Required: (a) Identify four external environmental influences which can affect any organisation. (8 marks)

(b) Explain fully, with the use of examples, how any two of those external influences identified in part (a) above, might affect your own organisation, or one with which you are familiar. (12 marks) (20 marks)

2

Management information is used for a wide variety of purposes. Three main functions of management where management information can be useful are planning, control and decision-making. Required: (a) Explain how management information can assist in each of the three areas identified above. (b) Identify and describe four key internal sources of management information. (12 marks) (8 marks) (20 marks)

3

Robert Blake and Jane Mouton carried out research (The Ohio State Leadership Studies) into managerial behaviour and developed a grid to explain their findings. Required: (a) What are the two essential dimensions of Blake and Mouton’s managerial grid? (b) Identify and explain any two of the styles of management shown in the grid. (c) Identify and briefly explain two practical applications of the grid. (4 marks) (10 marks) (6 marks) (20 marks)

4

Communication underpins everything you do at work. Effective communication is a two way process and is often shown as a cycle. Required: (a) Explain, with the aid of a diagram, the communication process/cycle. (b) Identify four barriers to effective communication. (c) Identify four ways in which management could improve communication in an organisation. (8 marks) (4 marks) (8 marks) (20 marks)


5

The International Labour Organisation (ILO) has never accepted that disease and injury are an inevitable part of working life. Required: (a) Identify four reasons why health and safety should be important to all organisations. (b) What responsibilities do individuals have to ensure a healthy and safe working environment? (c) What responsibilities do organisations have to ensure a healthy and safe working environment? (4 marks) (8 marks) (8 marks) (20 marks)



Answers



June 2006 Answers

1

(a) (b)

Any four of the following might be identified: political, economic, sociocultural, technological, ecological, legal, demographic. Answers will vary depending on which two factors candidates chose to explain more fully and also on the type of employing organisation and the examples used. (i) Political – government policy affects the whole economy and governments are responsible for creating and maintaining a stable framework in which business can be done. The quality of government policy is important in providing physical, social and market infrastructures. Businesses operating internationally need to satisfy themselves that the political environment in any countries in which they may wish to operate is satisfactory. Other political factors include government stability, taxation policy, foreign trade polices and social welfare policies. Economic – the economic environment is an important influence at local and national level. It will include overall growth or fall in gross domestic product which will have an impact on the demand for goods and services. An understanding of local trends e.g. types of industry in the area, office/factory rents, labour rate and house prices will be important for firms wishing to invest in an area or seeking to relocate their business. Inflation can have an impact on business decisions – often wage inflation compensates for price inflation. Interest rates determine how much it costs to borrow money – some businesses carry a high level of debt – or may wish to borrow funds in order to undertake a major investment. Other economic factors include: general business cycles, money supply, unemployment, and disposable income.

(ii)

(iii) Sociocultural – this embraces a number of areas including demographics (see below) and also the implications of technology on working patterns. There is now a greater emphasis on work–life balance issues and this can impact on employment polices and approaches to managing work. The increased incidence of out of town supermarkets and retail centres in some countries has implications for town centre developments and transportation links. Other sociocultural factors include income distribution, social mobility, lifestyle changes, consumerism and levels of education. (iv) Technological – technology enables new products and processes to be developed as well as affecting the ways in which some services can be provided e.g. companies selling easily transportable goods like books and CDs are having increasing success over the internet. Technology can also affect the way in which some firms are managed through better communication methods or by enabling home working. The education sector has been affected by the growing use of internet technology over the past few years – some course materials for students are now available electronically and some of these enable interaction with tutors and with other students; lectures can be delivered via video links to multiple audiences simultaneously. This has implications for the skills and resources required by organisations who are in the business of education and training. Other technological factors include government spending on research, speed of technology transfer and rates of product and process obsolescence. (v) Ecological/Ethical – this is a growing area and will include approaches to waste disposal, pollution, energy consumption and corporate social responsibility (CSR) issues within the supply chain. New markets for products and services are opening up in this area and new industries are developing to serve these. This kind of development could be important for a company which manufactures and supplies traditional packaging products which may be required to modify their manufacturing processes or material used to ensure that the end products can be disposed of appropriately

. Similarly, an organisation which undertakes manufacturing in a low labour cost country will need to satisfy itself that the employment conditions of the employees is satisfactory and does not contravene any legal requirements. With the increasing emphasis on the CSR agenda, this is becoming an important business issue for many organisations.

(vi) Legal – the legal environment is often included in a discussion of the political environment as it is within this environment that laws are made. However, for many organisations, the legal or regulatory framework within which they operate is so important that it is considered as a separate and distinct category. Legal factors include: the overall general legal framework which will determine the basic ways of doing business, ownership issues, right and responsibilities; health and safety, data protection issues, environmental considerations like pollution control, and waste disposal and specific laws surrounding tax payments or competition law dealing with cartels and price fixing. Some legal and regulatory factors will affect particular industries, particularly if the public interest is served – for example, in the UK there are specific regulations which influence price and market access in the areas of electricity, gas, telecommunications, water and rail transport. (vii) Demographic – this is often included as part of the social environment, but for some organisations it is often a crucial issue and is worthy of separate consideration. Some important demographic factors are: growth (or decline) of national population, changes in the age distribution of the population, concentration of population into certain geographical areas, ethnicity, household and family structure, employment trends and increases or decreases in the overall standard of living. An example of the effect of a demographic factor would be an organisation which specialises in the provision of services to the elderly: in the UK, demographic shifts have led to an increasingly ageing population and this can have a major impact on the resources that the organisation might need to enable them to continue to offer an appropriate level of service to this group.


2

(a)

Three main functions of management where management information can be useful are as follows: (i) Planning: management needs to decide what the objectives of the company are and how they can be achieved. Management information is used to help management to plan the resources that a business will require and how they will be used. Control: once management puts a plan of action into operation, there needs to be some control over the business’s activities to make sure that they are carrying out the original plans.

(ii)

(iii) Decision-making: management at all levels within an organisation takes decisions. Decision-making always involves a choice between alternatives. It is the role of the management accountant to provide information so that management can reach an informed decision. Management information is also needed for pricing, valuing stock, assessing profitability and deciding on the purchase of capital assets. (b) Primary sources of management information include sales invoices and purchase invoices. These also provide information for the financial accounts of a company. In many organisations this information will be keyed into a computer system and will be coded so that information can be provided in the specific categories required. For example, if the organisation is divided into different business units, information about costs and income must be coded to the correct business unit. In a factory which makes different products, raw materials must be coded to the product which uses them. Errors in coding will lead to inaccurate information which may have an impact on management planning, control and decision-making. Other sources of information may include reports from various departments of the organisation including: timesheets, employee and wages and salary information from the human resources department; goods received notes and materials requisition notes from the warehouse; and price lists (in-house and also suppliers).

3

(a)

Blake and Mouton carried out research into managerial behaviour and observed two basic dimensions of leadership: (1) concern for production (or task performance) and (2) concern for people. Along each of these two dimensions managers could be located at any point on a continuum from very low concern to a very high concern. Blake and Mouton observed that the two concerns did not seem to correlate either positively or negatively – for example a high concern in one dimension did not seem to imply a high or low concern in the other dimension. Individual managers could reflect varying degrees of concern for people or concern for task. The five styles of management can be seen on the grid which follows. This plots a manager’s style in terms of concern for people and concern for production. The managerial grid High 9 8 7 Concern for people 6 5 4 3 2 1 Low 1 Low 2 3 4 5 6 7 Concern for production 8 9 High 1.1 (impoverished) (task) 9.1 5.5 (middle road) 1.9 (country club) (team) 9.9

(b)

(i)

(9:9) – the ‘team management style’ this combines deep concern for people with a clear concern for production. This is a high performance manager who achieves high work achievements through ‘leading’ committed people who identify themselves with organisational aims. (1:9) – the ‘country club management style’, this man

ager is too concerned with people and often gets very little work done. The manager is very attentive to staff needs and has developed satisfying relationships. However, little attention is paid to achieving results.

(ii)

(iii) (9:1) – ‘task management style’, this is too concerned with production and creates an atmosphere of low morale. This approach shows almost total concentration on achieving results. People’s needs are virtually ignored.


(iv) (1:1) – ‘impoverished management style’, – this has no concern for either people or output. (v) (5:5) – ‘middle-of–the-road management style’, (sometimes also referred to as the dampened pendulum), this shows some concern for people and some concern for production. The manager adopting this style will achieve adequate performance through balancing the necessity to get results while maintaining the morale of people at a satisfactory level.

There are a number of practical applications of the managerial grid. These include: (i) (ii) (iii) (iv) As a training aid As a management development tool As part of an appraisal Enables managers to reflect on and assess the appropriateness of their own management style in different situations and circumstances.

4

(a)

Communication is the transmission and exchange of information and is a two way process. Signals or messages are sent by the communicator and received by the other party who sends back some form of confirmation that the message has been received and understood. Encoding and decoding are important elements within the communication process/cycle; words are merely the symbols or ‘stand-ins’ for your ideas and intentions in communicating. In other situations, a gesture, pictures, symbols or numbers will be the most appropriate to use. Whatever codes are used, it is important that they are understood by both parties. Feedback is another important element in the communications cycle. It is the reaction of the receiver that indicates to the sender that the message has (or has not) been received and enables him or her to assess whether the message has been understood and correctly interpreted. Feedback can range from a smile or a nod to a blank look or a shrug of the shoulders. Feedback can also range from the desired action being taken to no action, or the wrong action, being taken. The communications process/cycle is often represented diagrammatically as follows: CHANNEL

SENDER Information Ideas Attitudes Needs

�

ENCODED MESSAGE (words, symbols, sounds, gestures etc)

�

MEDIUM Letter Poster Discussion Etc

�

DECODED MESSAGE (Information. ideas, attitudes, needs)

�

RECEIVER Under-standing of message and/or response required

(phone line, postal services, noticeboard, interviews etc) FEEDBACK Message received and understood?

(b)

There can be many barriers to effective communication including the following (i) Distortion – this is the term used for a process through which the meaning of a message is lost in the coding or decoding stages. Misunderstandings may arise from technical or ambiguous language, misinterpretation of symbols and tones of voice. Noise – this refers to general interference in the environment of communi

cation which prevents the message getting through clearly. This might be physical noise e.g. passing traffic or machinery operation, technical noise e.g. a bad internet connection or a poor telephone line, social noise e.g. differences in personalities, status or education or psychological noise e.g. anger, stress or prejudice which can distort what is heard.

(ii)

(iii) Misunderstandings, due to lack of clarity or poor explanation. (iv) Non-verbal signs e.g. gestures or facial expressions which contradict the verbal message. (v) Failure to give feedback.

(vi) Overload – a person being given too much information to digest in the time available. (vii) People only hearing what they want to hear- i.e. being selective in how they receive the message. (viii) Differences in social, cultural or educational background. (ix) Poor communication skills on the part of either the sender or the recipient or both.


(c)

There are many ways in which the communication system in an organsation could be improved. Depending on the problem, some measures might be as follows: (i) Encourage, facilitate and reward effective communication. Status and functional barriers can be minimised by improving opportunities for formal and informal networking and feedback. This means creating a culture where effective communication can take place. Give training and guidance in basic communication skills, including consideration of recipients, listening and giving feedback.

(ii)

(iii) Minimise the potential for misunderstanding. Make people aware of the differences in culture and perception and teach them to consider others’ viewpoints. (iv) Adapt technology systems and procedures to make communication easier; making it more effective through clear mobile phone reception for example or by making it faster by providing laptops for e-mailing instructions or decisions, making it more consistent through regular reporting routines and making it more efficient through reporting by exception. (v) Manage conflict and politics in the organisation so that no basic unwillingness exists between business units or departments.

(vi) Establish communication channels and mechanisms in all directions; regular staff or briefing meetings, in-house newsletters or journals. Upward communicating should be particularly encouraged, using mechanisms such as internal meetings, suggestion schemes, open door access to managers and regular performance feedback sessions. (vii) Communication is generally improved when interpersonal trust exists – especially between subordinates and superiors. This is achieved in a variety of ways and will depend very much on the management style of the manager, on the attitudes and personality of the individuals involved and on other environmental variables.

5

(a)

There are many reasons why health and safety at work should be important to all organisations. (i) (ii) Employees – as human beings – should be protected from needless pain and suffering. Employees and employers often both have legal obligations to take reasonable measures to promote health and safe working.

(iii) Accidents, illness and other causes of employee absence and/or impaired performance cost the employer money. (iv) A business’s corporate image may suffer if its health and safety record is poor. (v) A business’s employer brand, i.e. its reputation as an employer may suffer if its health and safety record is not good. This may make it difficult to attract and keep qualified staff.

(b)

In very general terms, everyone in the organisation is responsible for health and safety. As an individual, in order to contribute to a healthy, safe and secure environment there are a number of things that you may need to do: (i) (ii) Be alert to potential hazards as you go about your work Take responsibility for your own behaviour in the workplace, in order to protect yourself and others.

(iii) Co-operate with your employers’ health and safety measures: read instructions, follow procedures, perform fire drills, etc. (iv) Keep yourself informed about health and safety issues relevant to your workplace. (v) Undertake regular training as necessary.

(vi) Warn people who may be at immediate risk as a result of hazardous conditions or behaviours. (vii) Take steps to minimise hazards, for example by clearing your own work area of obstructions. (viii) Take steps to mobilise appropriate response procedures for example by sounding alarms or calling a first aid officer in the event of an accident. (ix) Inform appropriate people of identified hazards and the need for corrective action which might be beyond the scope of your own authority.


(c)

Your organisation may have dedicated departments, managers or staff in charge of health and safety. These may include specialists such as, a first aid officer or a medical officer, an employee counsellor and/or health promotion officer, a fire prevention officer, security guards or a building manager with responsibly for a many different aspects of the work environment. The role of all of these people is to make and implement relevant polices and procedures, to listen to employee concerns and to respond to problems and emergencies. In addition, a number of employee health and safety representatives may be appointed by the trade unions or staff associations in your workplace, by agreement with your employer. Their role is to listen to employees’ concerns and to consult with the employer on their behalf. Legislation can also impose general duties upon employers to make sure that all systems and work practices are safe, that the work environment is safe and healthy – i.e. well lit, warm, ventilated and hygienic and that all plant and equipment is kept up to the necessary standard. Organisations may be required to provide protective clothing, safety guards on machinery and appropriate training to enable employees to use machinery and equipment in a safe manner.




1

(a) (b)

2 marks for each influence identified up to a maximum of 8 marks.

8 marks

3 marks for each influence explained, up to a maximum of 6 marks, and a further 3 marks for appropriate use of examples in each explanation. 12 marks Total 20 marks

2

(a) (b)

4 marks for each explanation up to a maximum of 12 marks. 2 marks for each source identified up to a maximum of 8 marks.


3

(a) (b) (c)

2 marks for each dimension identified. 5 marks for each style identified and explained. 3 marks for each practical application identified.


4

(a) (b) (c)

6 marks for a full explanation to include reference to encoding, decoding and feedback and 2 marks for a clearly labelled diagram. 8 marks 1 mark for each barrier identified up to a maximum of 4 marks. 2 marks for each improvement suggested up to a maximum of 8 marks. 4 marks 8 marks Total 20 marks

5

(a) (b) (c)

1 mark for each reason identified up to a maximum of 4 marks. 2 marks for each responsibility up to a maximum of 8 marks. 2 marks for each responsibility up to a maximum of 8 marks.







Paper T5

6D–ENGPA Paper T5

ALL FIVE questions are compulsory and MUST be attempted 1 Many accounting systems are now computerised. Computerised accounting systems have a number of advantages over manual systems, but there are also a number of disadvantages. Required: (a) Identify four advantages of computerised accounting systems. (b) Identify four disadvantages of computerised accounting systems. (10 marks) (10 marks) (20 marks)

6D–ENGAA Paper T5

6D–ENGAB Paper T5

2

Every organisation is likely to be exposed to the risk of fraud. Required: (a) Identify four common types of fraud. (b) Explain the consequences of the types of fraud identified in part (a) above. (8 marks) (12 marks) (20 marks)

6D–ENGAC Paper T5

3

Motivation is a very important element in the management of individuals and can be a useful tool for improving productivity. Required: (a) Explain Abraham Maslow’s theory of motivation. (b) Give five major practical limitations of Maslow’s theory. (10 marks) (10 marks) (20 marks)

6D–ENGAD Paper T5

4

Training is the systematic development of the attitude, knowledge, skill and behaviour pattern required by an individual in order to perform a given task or job effectively. Required: (a) Explain five benefits of training for an organisation. (b) Explain five benefits of training for individual employees. (10 marks) (10 marks) (20 marks)


6D–ENGAE Paper T5

5

An effective health and safety policy is an important part of maintaining the health and safety standards promoted by the International Labour Organisation. Required: (a) Identify the five key elements that you would expect to see in a health and safety policy. (10 marks)

(b) Identify five steps an organisation can take to ensure that its health and safety policy is effective. (10 marks) (20 marks)



Answers


6D–ENGIX Paper T5

ACCA Certified Accounting Technician Examination – Paper T5 Managing People and Systems 1 (a) The advantages of computerised accounting systems compared with manual systems are: (i) (ii) (iii) (iv)


6D–ENGAA Paper T5

Systems and packages can be used by non-specialists. Computerised systems are more accurate than manual systems. A computer is capable of handling and processing large volumes of data. Once the data has been inputted, computerised systems can analyse data very quickly to present useful control information for managers such as a trial balance or debtors’ schedule.

(b)

The disadvantages of computerised accounting systems over manual systems are: (i) The initial time and costs involved in installing the system, including the need for staff training. (ii) The need for security checks to make sure that unauthorised personnel do not gain access to data files. (iii) Computers require information to be expressed in the form of codes and it is necessary to develop systems of coding and checking. (iv) The potential for a lack of audit trail – as it is not always easy to see where a mistake has been made.

6D–ENGAB Paper T5

2

(a)

Fraud falls into one of two main categories: the removal of funds or assets from a business; and the intentional misrepresentation of the financial position of the business. Types of fraud associated with the removal of funds or assets include: (i) (ii) (iii) (iv) (v) (vi) (vii) Theft of cash or stock. Payroll fraud through falsifying timesheets, deliberate miscalculation of payslips, fictitious staff added to payroll lists. Fictitious customers. Collusion with customers. Manipulation of bank reconciliations and cash books. Misuse of pension funds or other assets. Disposal of assets to employees.

Types of fraud associated with the intentional misrepresentation of the financial position of the business include: (i) Over or under valuation of stock. There is a range of ways in which stock may be incorrectly valued for accounts purposes: the records can be manipulated by deliberate miscounting, deliveries to customers may be omitted from the books, returns to suppliers may not be recorded and obsolete stock may not be written off but held at cost on the balance sheet. (ii) Fictitious sales channelled through the accounts. (iii) Manipulation of year-end events to enhance turnover during the year just ended. (iv) Understating expenses. Failure to record all expenses accurately will inflate the reported profit figure. (v) Manipulation of depreciation figures. Applying incorrect rates or inconsistent policies in order to understate depreciation will result in a higher profit and a higher net book value, giving a more favourable impression of financial health. (b) The precise ways in which an organisation is affected by fraud depends upon the type of fraud being carried out. If the fraud is in the category of the removal of funds or assets from the business then there will be both immediate financial consequences and also longer-term effects on company performance. The immediate consequence is that profits will be lower than they should be. The business has less cash and fewer assets and therefore the net asset position is weakened. Returns to shareholders (if applicable) are likely to fall as a

result. In the longer term, the reduction in working capital makes it more difficult for the company to operate effectively. In the most serious cases, fraud can ultimately result in the collapse of the business. If the fraud is in the category of intentional misrepresentation of the financial position of the business then the financial statements will not give a true and fair view of the financial situation of the business. Results may be either artificially enhanced or under-reported. It is also possible that managers in charge of a particular division can artificially enhance their divisions’ results, thereby deceiving senior management.

6D–ENGAC Paper T5

3

(a)

Maslow described five needs and put forward a theory about the motivating power of each of those needs. The five needs are: (i) (ii) (iii) (iv) (v) Physiological needs – food and shelter. Safety needs – the need for security and order and the need to be free from threat. Social needs – the need for belonging, for relationships. Esteem needs – the need for respect, recognition and status. Self actualisation – the need for personal fulfilment

In addition to identifying these needs, Maslow argued that these needs could be seen as hierarchical in nature, from physiological needs at the bottom up to self-actualisation needs at the top. Each level of need is dominant until it is satisfied and only then does the next level of need become a motivating factor. Once a particular need has been satisfied it ceases to be a motivator.


6D–ENGAC Paper T5

(b)

There are a number of major limitations to Maslow’s theory: (i) An individual’s behaviour may be in response to several needs simultaneously. (ii) The same need may cause different behaviour in different individuals. (iii) The theory ignores the concept of deferred gratification, whereby individuals are prepared to ignore current suffering or dis-satisfactions for the promise of future benefits. (iv) Verification of the hierarchy is difficult. The role of pay is ambiguous and self-actualisation is very subjective. (v) The hierarchy reflects UK and US cultural values which may not transfer to other contexts.

6D–ENGAD Paper T5

4

(a)

There are many benefits of training to organisations, including: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Increased motivation. Training programmes can increase commitment to the organisation’s goals, by satisfying employee’s self-actualisation needs. Managing change. Training can help organisations manage change by letting people know why the change is happening and give them skills to cope with it. Developing corporate culture. Training programmes can be used to build the corporate culture or to direct it in certain ways. Staff retention. Training can lead to internal transfers and promotions. Recruitment and succession planning. Increased organisational flexibility. Training ensures that people have a variety of skills. Fewer accidents and better health and safety. Less need for supervision – properly trained people can get on with the job. Better job performance resulting from improved skills.

(b)

There are many benefits of training to individuals, including: (i) Psychological benefits. The employee feels reassured that he or she is of value to the organisation. Increased skill, knowledge and competence also enhances self-esteem and confidence. (ii) Enhanced portfolio of skills. Even if not specifically related to the current job, training can be useful to the employee in different contexts and can make a valuable contribution to the enhancement of their CV. (iii) Training can also provide the necessary skills and competence that an employee needs for future promotion. (iv) Social benefit. People’s social needs can be met through training and they can also develop a network of contacts. (v) The job itself. Training can help people to do their job better, thereby increasing job satisfaction, promotion and earning prospects. (vi) An increased understanding of the business as a whole if staff train with other departments.

6D–ENGAE Paper T5

5

(a)

Regardless of the specific needs and hazards of a particular workplace, there will be several key elements to a health and safety policy which will be common to all. The key elements are: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Risk assessment. Hazard minimisation. Systems and procedures (e.g. accident reporting and safety procedures for using specific equipment). Equipment (provision of protective clothing, ergonomics, safety equipment, maintenance). Information (warnings, instructions). Training (use of equipment and safety procedures). Responsibilit

ies. On-going monitoring.

(b)

There a number of steps an organisation can take to ensure that its health and safety policy is effective, including: (i) (ii) (iii) (iv) Making sure that the policy is known and understood by everyone in the organisation. Involving people in the development of the policy. Regularly reviewing the policy. Clear identification of roles and responsibilities. Everyone in the organisation has a role to play in ensuring their own health and safety as well as that of their colleagues. It is important that employers and employees are aware of their own specific responsibilities. Employers are required to make sure that all systems and work practices are safe, that the work environment is safe and that all plant and equipment is maintained to the necessary standard. Employees are required to take reasonable care and to cooperate with employers to help them comply with their legal obligations. (v) Nominating individuals throughout the organisation with specific responsibility for health and safety. This will include nominated safety representatives and trained first aiders within each department. Many organisations appoint a safety committee to keep safety measures and policies under review. (vi) On-going risk management rather than a one-off risk assessment. This includes the following: introducing controls to reduce risk, sharing of risk and hazard information, revising safety policies as appropriate, identifying any particular categories of employee who are especially at risk and identifying any training needs.


(vii) On-going health and safety training. The amount and types of training required should be assessed according to individual needs. All employees should receive induction training when joining the organisation or when transferring to a different department or location. In addition there may be training requirements associated with the use of specific equipment or machinery. Training may also be required on a regular basis to update people regarding any changes to the law or for technical updates (viii) Information sharing, awareness and consultation are important in ensuring a health and safety policy is effective. Employees must be clearly advised of any risks and how they can be minimised.

6D–ENGAE Paper T5


6D–ENGMS Paper T5

ACCA Certified Accounting Technician Examination – Paper T5 Managing People and Systems 1 (a) (b) 2·5 marks for each advantage identified up to a maximum of 10 marks 2·5 marks for each disadvantage identified up to a maximum of 10 marks

December 2006 Marking Scheme 10 marks 10 marks Total 20 marks

2

(a) (b)

2 marks for each type of fraud identified up to a maximum of 8 marks. 3 marks for each implication explained up to a maximum of 12 marks.


3

(a) (b)

1 mark for each of the five levels of need identified. 5 marks for a clear explanation of the theory. 2 marks for each limitation given up to a maximum of 10 marks.


4

(a) (b)

2 marks for each benefit identified up to a maximum of 10 marks. 2 marks for each benefit identified up to a maximum of 10 marks.


5

(a) (b)

2 marks for each of the five elements identified up to a maximum of 10 marks. 2 marks for each step identified up to a maximum of 10 marks.







Paper T5

7J–ENGPA Paper T5

ALL FIVE questions are compulsory and MUST be attempted 1 Many different types of activity are carried out in a typical organisation. Many of these activities can be grouped into broad functional areas within the organisation structure. Required: (a) Identify and fully explain any two broad functional areas within an organisation. (10 marks)

7J–ENGAA Paper T5

(b) Briefly explain any five factors which might influence the way in which an organisation is structured. (10 marks) (20 marks)

7J–ENGAB Paper T5

2

An integrated system links together the different elements of an accounting package such as sales, purchases and stock. Required: (a) Explain four potential benefits of an integrated system. (b) Identify and briefly explain five key outputs from a computerised sales ledger system. (10 marks) (10 marks) (20 marks)

7J–ENGAC Paper T5

3

There are different levels of management in most organisations. The supervisor is the first level of management. Required: (a) Explain four key features of supervision. (8 marks)

(b) With reference to appropriate theories, identify and fully explain three key differences between management (12 marks) and leadership. (20 marks)

7J–ENGAD Paper T5

4

Interpersonal skills are skills used in the interactions and relationships between two or more people. Required: (a) State and briefly explain five examples of interpersonal skills. (10 marks)

(b) State and briefly explain five examples of where interpersonal skills are important in an organisation. (10 marks) (20 marks)


7J–ENGAE Paper T5

5

A safe and healthy working environment is an important part of maintaining the health and safety standards promoted by the International Labour Organisation. Required: (a) Give five examples of costs that might be incurred by an organisation as a consequence of accidents or illness within the workplace. (10 marks) (b) Identify and briefly explain five key factors which can contribute to a safe and healthy working environment. (10 marks) (20 marks)



Answers


7J–ENGIX Paper T5


June 2007 Answers

7J–ENGAA Paper T5

Within a typical organisation, there are many different types of activity being carried out for example (two only required): – – – – – – – – Purchasing materials and components Carrying out operations on purchased materials and components Research on and development of new products and technologies Communicating with customers and potential customers Taking and processing sales orders Accounting and record keeping Employing and managing people Planning and controlling all of the above activities to ensure that the organisation reaches its goals

Many of these activities can be grouped under the following broad functions (two only required): (i) Production or direct service provision. This is the reason the organisation is in business. It covers the output of factories and farms and also the provision of services. For manufacturing industry, purchasing of components and raw materials are important functions, and research and development expenditure is necessary in order to stay ahead technologically. Over the past few decades, manufacturing has been relocating to parts of the world where labour is cheaper, so a larger proportion of the workforce in a number of countries is now engaged in service industries. Sales and marketing. The sales function covers both retail operations and the activities of the sales force who deal in large orders and contracts. This is a vital function. The outputs of the business are of no value if they cannot be sold. Marketing seeks out prospective customers for the product and looks for the best way to present it to them. Marketing has become increasingly sophisticated over the past decade with customer profiling and use of web-based technologies.

(ii)

(iii) Accounting and finance. Sales and purchases give rise to transactions (which must be recorded) and movements of funds (which must be monitored). The accounting and finance functions are there to safeguard the assets of the business, comply with the statutory requirements and provide the information needed by management in order to run the business profitably. (iv) Human resource planning and management. For most businesses, personnel are the biggest cost and most valuable asset. This becomes more and more the case as service-based industries replace traditional manufacturing. Recruiting, keeping and training the right people is now a major function in large organisations. Planning and budgeting will also involve calculating future human resource needs. (b) There are many influences on organisation structure (five only required). (i) (ii) There are certain internal principles of organisation, which determine some aspects of structure. The scalar chain of authority, span of control and centralisation and decentralisation are all significant influences. The objectives of the organisation and how these are broken down to define the goals of sub-units. Diversified organisations, for example, may require more decentralised structures with autonomous specialist units. Organisations that want to support innovation may need more flexible structures.

(iii) The task or activity of the organisation, which determine which line and support functions are required, and the relative importance of each. (iv) The technology of the task (how it is organised, as well as the tools and techniques used). Technologies require certain forms of organisation to maximise their efficiency and the needs of the people involved. (v) The size of the organisation. As structures get larger they tend to get more complex. Formalisation, specialisati

on and sub-division are required in order to control and coordinate performance more closely. Geographical spread, on the other hand, may require more decentralised structures to take local factors into account.

(vi) The human resources of the organisation. Their skills and expectations influence how far authority is decentralised (giving them more responsibility) and how work is organised (facilitating team working or utilising multi-skilled workers, for example). (vii) The environment of the organisation. Many factors and changes within the business environment represent opportunities and threats to which the organisation structure must be able to adapt. For example, information and communication technology has enabled organisations to adopt looser, more network-style units and to outsource areas of their activities to other organisations. (viii) The culture of the organisation. Managerial willingness to delegate authority will support decentralisation and values about ‘responsiveness’ will lead to a more flexible culture. (ix) Geographical location.


7J–ENGAB Paper T5

2

(a)

An integrated system automatically links together the different elements of an accounting package, such as sales, purchases and stock. In this way, data entered into one module can automatically update a database shared by all modules. For example, a sales invoice generated by the system could then update: – – – The sales ledger The stock module, recording the movement out of the goods The sales account in the nominal ledger.

There are a number of potential benefits to this (four only required): (i) (ii) One entry updates all of the others so there are fewer data inputs and fewer errors. Fewer people need to be involved in the input. This makes it possible to have more restricted access to the computer system, which enhances overall control. (However, this may have some implications for segregation of duties.)

(iii) Errors in one module are unlikely to go unnoticed because they will impinge upon other areas. (iv) Frauds involving just one accounting area are difficult to maintain because queries will tend to arise in other areas. (v) All of the above lead to the amalgamation of better information as the basis of improvements via the integrated system and easier generation of reports across a number of module areas.

(b)

Typical outputs of a computerised sales ledger are as follows (five only required): (i) (ii) Day book listing. A list of all transactions posted each day. This provides an audit trail, information which the auditors of the business can use when carrying out their work. Batch and control totals will be included in the listing. Invoices and statements, produced for customers at point of despatch and at the end of the month or a given period.

(iii) Aged debtors list, typically produced monthly. (iv) Sales analysis reports. This will analyse sales according to the sales analysis codes on the sales ledger file. (v) Debtors’ reminder letters. Letters can be produced automatically to chase up late payments when the due date for payment goes by without payment having been received.

(vi) Customer lists. This list might be printed onto adhesive labels, for sending out customer letters or marketing material. (vii) Responses to enquiries, perhaps output onto a VDU screen rather than as printed copy, for fast response to customer enquiries. (viii) Output onto disk file for other modules, e.g. to the stock control module and the nominal ledger module, if these are also used by the organisation, and the package is not an integrated one.

7J–ENGAC Paper T5

3

(a)

The key features of supervision are as follows (four only required): (i) A supervisor is usually a front-line manager, dealing with the levels of the organisation where the day-to-day work is done. The supervisor will deal with matters such as staffing and health and safety at the day-to-day operational level, whereas a manager might deal with them at a policy making level. A supervisor does not spend all of his or her time on the managerial aspects of the job. Much of the ti

me will be spent doing technical/operational work.

(ii)

(iii) A supervisor is a gatekeeper or filter for communication between managerial and non-managerial staff, both upward (conveying reports and suggestions) and downward (conveying policies, instructions and feedback). (iv) The supervisor monitors and controls work by means of day-to-day, frequent and detailed information: higher levels of management plan and control using longer-term, less frequent and less detailed information, which must be ‘edited’ or selected and reported by the supervisor. (v) Supervisors often carry out Fayol’s five functions of management (planning, organising, commanding, coordinating and controlling) at a lower, more operational level.

(b)

The terms ‘management’ and ‘leadership’ are often used interchangeably. However, there have been many attempts to distinguish meaningfully between them (three only required). (i) Kotter (2001) argues that leadership and management involve two distinct sets of action. Management is about coping with complexity: its functions are to do with logical structure, analysis and control, and are aimed at producing order, consistency and predictability. Leadership, by contrast, is about coping with change: its activities include creating a sense of direction, communicating strategy, and energising, inspiring and motivating others to translate the vision into action. Yukl (1998) suggests that while management is defined by a prescribed role and position in the structure of the organisation, leaders are given their roles by the perception of others, through election, choice or influence. Leadership is an interpersonal process. Managers have subordinates; leaders have followers.

(ii)


(iii) Zaleznik (1992) suggests that managers are mainly concerned with order and maintaining the status quo, exercising their skills in diplomacy and focusing on decision-making processes within the organisation. Leaders, in contrast, direct their energies towards introducing new approaches and ideas. They create excitement and vision in order to arouse motivation and focus with empathy on the meanings of events and actions for people. Leaders search out opportunities for change. (iv) Katz and Kahn (1974) point out that while management aims to secure compliance with stated organisational objectives, leadership aims to secure willingness, enthusiasm and commitment. Leadership is the influential increment over and above mechanical compliance with the routine directives of the organisation. (v) Management can be exercised over resources, activities, projects and other essential non-personal things. Leadership can only be exercised over people.

7J–ENGAD Paper T5

7J–ENGAC Paper T5

4

(a)

Interpersonal skills are particular types of communication skills and include (five only required): (i) (ii) Building a rapport or a sense of ‘being in tune with’ another person, which draws them into a relationship. Building trust and respect, so that the relationship is maintained and co-operation facilitated.

(iii) Managing conflict in such a way that the relationship is preserved. (iv) Persuading or influencing another person to do what you want them to do or to share your beliefs. (v) Negotiating or bargaining in order to reach mutually acceptable or compromise solutions to problems.

(vi) Communicating assertively, so that you uphold your rights and get your needs met – without violating the rights or ignoring the needs of others. (vii) Communicating informally, so that you give (and receive) relevant and timely information. (viii) Communicating supportively, so that you encourage the other person and gain their commitment. (b) Interpersonal skills are particularly important for processes such as (five only required): (i) (ii) Motivation: persuading and inspiring employees to committed performance. Teamworking and team building: building trust, encouraging communication, forming co-operative relationships and managing conflict.

(iii) Customer care (including internal customers): winning trust, managing conflict, exchanging information and persuading. (iv) Human resource management: negotiating, interviewing, conducting appraisals, managing formal disciplinary and grievance procedures. (v) Negotiation: maintaining relationships despite conflicting interests, working towards mutually acceptable solutions.

(vi) Workload management: being able to delegate effectively, negotiating assistance, saying ‘no’ assertively. (vii) Career development: demonstrating networking, communication and leadership skills – increasingly essential for managerial roles.

7J–ENGAE Paper T5

5

(a)

Costs to the employer may include the following (five only required): (i) (ii) Productive time lost by the absent employee, and by other employees who stop work

at the time of, or following, the accident. A proportion of the cost of employing first aid and medical staff.

(iii) The cost of disruption to operations at work. (iv) The cost of any damage to equipment, including subsequent modifications to make it safer. (v) The cost of any compensation payments or fines resulting from legal action following an accident or illness.

(vi) The costs of increased insurance premiums. (vii) Possible reduced output from the employee on return to work. (viii) Possible reduced output, increased absenteeism or increased labour turnover as a result of low morale among workers in an environment which has been shown to be unsafe or unhealthy. (ix) The cost of recruiting and training a replacement for the absent employee. (b) Some of the key requirements of a safe and healthy working environment are as follows (five only required): (i) (ii) Cleanliness. Floors and steps to be cleaned regularly. Clean furniture and fittings. No accumulation of rubbish. Avoid overcrowding. Make sure that each person has an adequate amount of space in which to work comfortably.


7J–ENGAE Paper T5

(iii) Ventilation. There must be an adequate supply of fresh or purified air in circulation. (iv) Temperature. A reasonable temperature must be maintained. (v) Lighting and windows. There must be adequate natural or artificial light. Windows must be kept clean inside and outside.

(vi) Toilets. There must be enough suitable toilets for all employees. They must be properly ventilated and lit, kept clean and properly maintained. (vii) Washing facilities. There should be access to clean hot and cold water, soap and towels, or equivalent. (viii) Drinking water. Adequate drinking water must be provided together with cups or a fountain. (ix) Seating. Where work must be done sitting down, seats must be suitable in design, construction and size. (x) Lifts. Lifts must be safe and maintained regularly.

(xi) Machinery and equipment. All equipment must be maintained. Dangerous parts of machinery should have appropriate guards. Appropriate training should be given in the use of all machinery. (xii) No heavy lifting. People should not be required to lift, carry or move a load likely to cause injury. Appropriate training should be provided for all those required to undertake any lifting. (xiii) Fire precautions. Appropriate fire fighting equipment should be provided. Valid fire certificates should be in evidence. Escape routes clearly marked etc. (xiv) First aid. A first aid box/room, a trained first aider, and first aid training should all be made available.


7J–ENGMS Paper T5



1 mark for each functional area identified up to a maximum of 2 marks; 4 further marks for each explanation of the two areas previously identified. 1 mark for each factor given up to a maximum of 5 marks; a further 1 mark for the explanation of each factor given up to a maximum of 5 marks.

10 marks

(b)


2

(a)

2·5 marks for each benefit explained up to a maximum of 10 marks (1 mark only if no explanation offered). 1 mark for each output identified up to a maximum of 5 marks and 1 further mark for each accompanying explanation.

10 marks

(b)


3

(a)

2 marks for each feature explained (1 mark only to be awarded if a feature is identified but no explanation is offered), up to a maximum of 8 marks. 1 mark for each difference identified up to a maximum of 3 marks. 1 mark for each theorist referenced, up to a maximum of 3 marks. 2 marks for each explanation of the difference up to a maximum of 6 marks.

8 marks

(b)


4

(a)

2 marks for each example stated and explained up to a maximum of 10 marks (1 mark only if no explanation offered). 2 marks for each example stated and explained up to a maximum of 10 marks (1 mark only if no explanation offered).

10 marks

(b)


5

(a) (b)

2 marks for each example of cost identified up to a maximum of 10 marks. 1 mark for each factor identified up to a maximum of 5 marks. 1 further mark for the accompanying explanation.

10 marks



Certified Accounting Technician Examination Advanced Level

Managing People and SystemsFriday 7 December 2007

Time allowed: 2 hours

ALL FIVE questions are compulsory and MUST be attempted.

Do NOT open this paper until instructed by the supervisor. This question paper must not be removed from the examination hall.

The Association of Chartered Certified Accountants


Paper T5

ALL FIVE questions are compulsory and MUST be attempted 1 The accounting function is part of the broader business system and does not operate in isolation. Accounting systems must be adequate to fulfil a range of objectives. Required: (a) Identify FOUR key purposes of an accounting system. (8 marks)

(b) Identify and explain, with the use of examples, any TWO organisational factors that might influence the accounting systems of a business. (12 marks) (20 marks)

2

Control systems make sure that the organisation drives its plans forward and achieves its objectives. An effective control system will promote corrective actions where necessary and also help to detect and deter fraud or prevent inefficiency. Required: (a) List EIGHT types of internal controls that can be used by an organisation. (b) Fully explain any THREE of the types of controls identified in part (a) above. (8 marks) (12 marks) (20 marks)

3

Team working allows tasks to be shared amongst a number of individuals so that they get done faster and more effectively and with a greater range of skills and knowledge than by individuals working alone. Required: (a) Fully explain any TWO different approaches to the organisation of teamwork. (8 marks)

(b) Describe any FOUR of the team roles identified by Belbin and explain their contribution to the team. (12 marks) (20 marks)

4

There are several different schools of learning theory which help to describe and understand how people learn. Required: (a) Using the work of either Honey and Mumford or Kolb, explain the FOUR key elements of the experiential learning cycle. Your explanation should include a fully labelled diagram. (10 marks) (b) Identify and fully explain any TWO of the learning styles classified by Honey and Mumford. (10 marks) (20 marks)


5

Security aims to prevent others from taking away or doing damage to things that belong to your organisation and/or the people who work within it. Required: (a) Identify and explain any FOUR vulnerable points found on business premises and within systems. (8 marks) (b) Give FOUR examples of security procedures that should be in place in an organisation and explain how the contents of each might protect the organisation from potential security risks. (12 marks) (20 marks)



Answers




The accounting function handles the financial operations of the organisation and also provides information externally and advice to other departments. The exact nature of the accounting system will depend on a number of factors, but it should provide for the orderly collection, recording and processing of accounting information and appropriate analysis to enable financial statements to be prepared. The main purposes of any accounting system are (four only required): (a) (b) (c) (d) (e) (f) to to to to to to control the organisation provide information for decision making provide planning and monitoring information safeguard the assets prepare the financial statements comply with the relevant legislation

(b)

Accounting systems within an organisation are affected by the nature of its business transactions and the sort of business it is in, including the following (two only required): (a) The size of the organisation can affect the accounting systems. For example a small business like a greengrocer is likely to have a simple accounting system where the main accounting records will be the till roll and invoices from suppliers. A large retail business, such as a chain of supermarkets will have more elaborate accounting systems covering a large number of product ranges and sites. The type of organisation can affect the accounting system. For example, a service business might need to record the time employees take on particular jobs or activities. For example calculating charge out rates say in accounting, on a job or client basis, might also be a feature of service businesses. A public sector organisation, such as a government department, may be more concerned with the monitoring of expenditure against performance targets than recording revenue. A manufacturing company will account for both unit sales and revenue, but also needs to keep a detailed track of material and other costs for decision-making purposes and so forth. The structure of the organisation will affect the accounting system. In a business managed divisionally, accounts will be prepared on a devolved basis. In a functional organisation where the accounts staff are in a separate department, accounting may be wholly centralised. Some organisations are spread over many countries and are organised regionally. In such organisations the accounting function will be organised geographically and accounts will need to be prepared and reported segmentally.

(b)

(c)

2

(a)

There are eight types of internal controls. These are often remembered using the mnemonic SPAMSOAP. (a) (b) (c) (d) (e) (f) (g) (h) Segregation of duties. Physical controls. Authorisation and approval. Management controls. Supervisory controls. Organisation as a control. Arithmetical and accounting controls. Personnel.

(b)

The controls listed in part (a) can be described as follows (three only required): (a) Segregation of duties. Executive tasks should be separated from control tasks. One of the prime means of control is the separation of those responsibilities or duties which would, if combined, enable one individual to record and process a complete transaction. Segregation of duties reduces the risk of intentiona

l manipulation or error and increases the element of checking. Some functions should be separated whenever possible. For example, authorisation, execution and custody. An example of segregation of duties concerns the receipt, recording and banking of cash. It is not a good idea for the person who opens the post to be the person responsible for recording that the cash has arrived. It would be even poorer practice for that person to be responsible for taking that cash to the bank. If these duties are not segregated, there is always the chance that the person will misappropriate or steal the cash and no-one would know. Physical controls. These are concerned with the custody of assets and records and are also concerned with ensuring that access to assets and records is only permitted to authorised personnel. Procedures and security measures are needed to ensure that access to assets is limited to authorised personnel. Such controls include locks, safes and entry codes. Authorisation and approval. All transactions should be authorised or approved by an appropriate responsible person. The limits for these authorisations should be specified. In a purchasing system there should be authority limits, where purchases of amounts exceeding those limits require higher authority. Management controls. Management controls are exercised by management outside the day-to-day routine of the system. These include the following: overall supervisory controls, review of management accounts and comparison with budgets, internal audit function and special review procedures.

(b)

(c)

(d)


(e) (f)

Supervisory controls. Any system of internal control should include the supervision by responsible officials of day-to-day transactions and the recording of them. Organisation as a control. Enterprises should have a plan of their organisation, defining and allocating responsibilities and identifying lines of reporting for all aspects of the enterprise’s operations, including the controls. There must be a well-defined organisational structure showing how responsibility and authority are delegated. An effective plan would require: (i) (ii) (iii) (iv) separation of a company’s operations into appropriate divisions and sub-divisions, appointment of persons to assume responsibility, establishment of clear lines of responsibility between each division and sub-division and the board of directors, overall co-ordination of the company’s activities.

This will help to prevent friction so that staff work together well. It also means that no duties go unperformed or unchecked. (g) Arithmetical and accounting controls. These controls are within the recording function and check that the transactions to be recorded and processed have been authorised, that they are included and that they are correctly recorded and accurately processed. This includes: checking the arithmetical accuracy of the records, the maintenance and checking of totals, reconciliations, control accounts, trial balances, accounting for documents.

(h) Personnel controls. These are procedures to ensure that personnel have capabilities appropriate to their responsibilities, since the proper functioning of any system depends on the competence and integrity of those operating it. The qualifications, selection and training of the personnel involved are important features to be considered in setting up any control system. For example, a company accountant should be suitably qualified.

3

(a)

There are a number of approaches to the organisation of teamwork: including multi-disciplinary teams, multi-skilled teams, self-managed teams and virtual teams. (Two only required). (a) Multi-disciplinary teams bring together individuals with different skills and specialisms so that their skills, experience and knowledge can be pooled or exchanged. Such teams are typically project; customer or product focused and are a feature of matrix type structures. Multi-disciplinary teams increase workers’ awareness of their overall objectives and targets. They aid coordination and communication across functional boundaries. They help to generate new ideas and solutions to problems, since the team has access to more perspectives. Multi-skilled teams bring together a number of individuals who can perform any of the group’s tasks. These tasks can then be shared out in more flexible ways between group members, according to who is available and best placed to do a given job at the time it is required. Multi-skilling is the cornerstone of team empowerment, since it cuts across the barriers of job descriptions and demarcations, to enable teams to respond flexibly to changing demands. Self-managed teams are the most highly developed form of team working. They are permanent structures in which team members collaboratively decide all the major issues affecting their work: work processes and schedules, task allocation, the selection and development of team members, the distribution of rewards and the management of group processes (e.g. problem solving, conflict management, internal discipline etc). Self-managed team working has a number of advantages including, saving managerial costs, improvements in quality and productivity, encouraging individual initiative and responsibility and gains in efficiency through multi-skilling. Virtual teams – the development of ICT has enabled communication and collaboration among people in remote locations, via teleconferencing and video conferencing, locally networked PCs and the Internet. This has created the concept of the ‘virt

ual team’: an interconnected group of people who may never be present in the same place at the same time – but who share information and tasks, make joint decisions and fulfil the collaborative functions of a team with ‘physical’ proximity.

(b)

(c)

(d)

(b)

Belbin researched business game teams at the Henley Management College and drew up a widely used framework for understanding roles within teams. He identified nine team roles: (i) (ii) The plant. The plant is creative, imaginative and unorthodox, contributing to the team by solving difficult problems. The plant tends to ignore details and is often too pre-occupied to communicate effectively. The resource investigator. The resource investigator is extrovert, enthusiastic and communicative; contributing to the team by exploring opportunities and developing contacts. The resource investigator can be over-optimistic and loses interest once the initial enthusiasm has passed.

(iii) The coordinator. The coordinator is mature, confident and a good chairperson; contributing to the team by clarifying goals, promoting decision making and delegating well. The coordinator can be seen as manipulative. (iv) The shaper. The shaper is challenging, dynamic and thrives on pressure; contributing to the team by having the drive and courage to overcome obstacles. The shaper can be provocative and sometimes hurts other people’s feelings. (v) The monitor evaluator. The monitor evaluator is strategic and discerning; contributing to the team by seeing all options and making accurate judgements. The monitor evaluator can lack drive and the ability to inspire others and tends to be over critical.


(vi) The teamworker. The teamworker is co-operative, mild, perceptive and diplomatic; contributing to the team by listening, building relationships and calming tensions. The teamworker can be indecisive in difficult situations and can be easily influenced. (vii) The implementer. The implementer is disciplined, reliable, conservative and efficient; contributing to the team by turning ideas into practical actions. The implementer can be somewhat inflexible and slow to respond to new possibilities. (viii) The completer. The completer is painstaking, conscientious and anxious; contributing to the team by searching out errors and omissions and delivers on time. The completer can be inclined to worry unduly and is often reluctant to delegate. (ix) The specialist. The specialist is single-minded, self-starting and dedicated; contributing to the team by providing specialist knowledge and skills. The specialist contributes on a very narrow front, tends to dwell on technicalities and overlooks the bigger picture. The nine roles are complementary and Belbin suggested that an ‘ideal’ team should represent a mix or balance of all of them.

4

(a)

Honey and Mumford (building on the work of Kolb) have produced a simple model called the learning cycle, which shows how individuals can turn everyday work into learning opportunities. This is known as experiential learning or ‘learning by doing’. Having an experience

Planning the next steps

Reviewing the experience

Concluding from the experience The diagram shows the four stages in the learning cycle. Having a concrete experience – this is about being fully involved in an action or interaction, utilising your current knowledge and skills. This is followed by reflection and reviewing the experience – this is about looking back after the event, describing it and reflecting on how effective you were and what you could do differently or better. People often use personal development journals to write about events and interactions to help reflect on these issues. Concluding from the experience (Kolb referred to this phase of the cycle as abstract conceptualisation) – this is about forming general principles or theories that suggest how you might do something different next time in order to achieve different results. Planning the next steps (active experimentation in Kolb’s terms) – this is about planning specific opportunities to apply and test your conclusions in action. This provides a new experience with which to start the cycle again. (b) The way in which people learn most effectively differs according to individual psychological preferences, which have been categorised as distinct learning styles. Peter Honey and Alan Mumford have drawn up a popular classification of four learning styles (two only required): (a) Theorists (i) Prefer to understand principles. (ii) Take an intellectual ‘hands-off’ approach. (iii) Learn best from programmed and structured training which allows time for analysis. (iv) Learn best from teachers who share their preference for concepts and analysis. Reflectors (i) Prefer to think things through first. (ii) Observe phenomena, think about them and then choose how to act. (iii) Need to work at their own pace. (iv) Find learning difficult if forced into hurried programmes. (v) Produce carefully thought out conclusions after research and reflection. (vi) Tend to be fairly slow, (non-participative unless to ask questions) and cautious. Activists (i) Prefer to try things ‘hands-on’ and require training based on ‘hands-on’ experience. (ii) Deal with practical, active problems and do not have patience with theory. (iii) Are excited by participation and pressure, such as new projects. (iv) Are flexible and optimistic but tend to rush at some things without undue preparation. Pragmatists (i) Prefer to work with real tasks and problems. (ii) Only like to study if they can see its direct link to practical problems.

(b)

(c)

(d)


(iii) Good at learning new techniques in on-the-job training. (iv) Aim is to implement action plans and/or do the task better. (v) May discard good ideas which may only require some development.

5

(a)

There are a number of vulnerable points on business premises and within systems. These include (four only required): (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) Public and open areas, such as entrances, hallways, parking areas, toilets, stairways and lifts – particularly if these are unattended or inadequately attended for the volume of traffic. Points of entry and exit, e.g. doors, windows, gates and lifts. These are points where intruders may attempt to gain access. Attention should be paid to open, unsecured or broken windows or doors – especially in unattended areas. Unattended areas, e.g. store rooms or back stairs, where there are not always people about. Ill-lit areas like car parks and stairwells. Reception areas, if an unauthorised person can talk, trick or slip their way past reception they may be much harder to identify as a stranger (and subsequently to locate within the premises) later. Areas where at-risk items and data are concentrated e.g. store rooms, computer rooms, offices etc., especially if they are located near points of entry or exit and busy public areas. Points of transit or storage outside the organisation’s premises. Valuable items taken out of the office (for banking, delivery, work at home) may be particularly vulnerable. Risks to computerised systems relating to the environment in and around the location of hardware – this could lead to disruption of service. Risk of fraudulent manipulation of data. Manipulating input data. Incorrect processing of data. Unauthorised access to personal or confidential data. Risks to data output. Risks to data at point of storage.

(b)

The following are examples of security procedures. (Four only required). (i) Procedures for identifying regular staff. This includes instructions about the wearing of identity badges at all times, regardless of how well people might be known. Clear instructions about showing the pass whenever buildings and premises are entered. It also includes being clear about the requirement to sign in and out of buildings and premises. Procedures for vetting non staff members. If someone is coming to visit you on business then you may be required to go down to a reception area and accompany him or her back to the place where you work. If you have not met them before you may need to ask them to produce some further means of identification, for example a letter inviting them to attend a meeting or an event.

(ii)

(iii) Procedures for non-business visitors. If you are meeting a friend or relative for lunch, your visitor may not be allowed on the premises or beyond the reception area. It is important that your visitor does not unwittingly break, or try to break, the rules. (iv) Procedures for protecting the building. A particular door may have to be kept locked at all times or at specified times. It may be a nominated person’s responsibility to ensure that this is adhered to. It may be part of an individual’s responsibility to ensure that all windows in his or her working area are closed and locked at the end of the day or at the end of a shift. (v) Procedures for protecting the organisation’s assets. Individuals usually have responsibility to lock away items in a desk drawer, e.g. calculators etc.

(vi) Procedures for protecting documents and information. Locking away files and ledgers, or not leaving a computer terminal such that it can be used by someone without the password, are typical of measures of this sort. Other aspects of wo

rk may be sensitive and some individuals may have a confidentiality clause in their contract of employment. (vii) Procedures for protecting procedures. Computer passwords should not be revealed to others. Safe and lock combinations should not be made generally available, they should be restricted to nominated individuals. There should also be procedures to control keys – such as a list of authorised key holders and instructions about where keys should be kept and who should hold master keys if they are used. The organisation’s security should not be discussed with anyone outside of the organisation. (viii) Procedures for explaining what to do in the event of a breach of security. The names and numbers should be available of people to contact and also of the information that they will need to be told: location of the intruders, for example, time of entry, how many there are, items missing or damaged, and so on. (ix) Fall back procedures. If service is disrupted by non-availability of computerised services there should be fall back procedures in place to enable (limited) business services to continue. Also tested stand by and recovery procedures should be available to enable normal business to be quickly resumed.


ACCA Certified Accounting Technician Examination – Paper T5 Managing People and Systems 1 (a) (b) 2 marks for each purpose given, up to a maximum of 8 marks.

December 2007 Marking Scheme 8 marks

4 marks for each factor explained up to a maximum of 8 marks. 2 marks for each example given within each factor, up to a maximum of 4 marks.


2

(a) (b)

1 mark for each correct type of internal control identified, up to a maximum of 8 marks. 4 marks for each type of internal control fully explained, up to a maximum of 12 marks.


3

(a) (b)

4 marks for each full explanation offered up to a maximum of 8 marks. 1 mark for each team role identified up to a maximum of 4 marks and 2 further marks for each explanation of the four roles identified.

8 marks


4

(a) (b)

2 marks for each stage clearly explained and 2 marks for a clearly labelled diagram. 1 mark for each style correctly identified. 4 further marks for each full explanation of each style identified.


5

(a)

1 mark for each vulnerable point identified up to a maximum of 4 marks. 1 further mark for each one explained. 1 mark for each example given, up to a maximum of 4 marks and 2 further marks for a full explanation of how the content of each one identified might protect the organisation.

8 marks

(b)




Managing People and SystemsFriday 6 June 2008






Paper T5

ALL FIVE questions are compulsory and MUST be attempted 1 Organisations operate within a regulatory framework set by government which is very broad in scope and deals with a range of specific issues. Required: (a) Explain four principal aims of the government regulation of business. (8 marks)

(b) Identify and explain, with the use of examples, any four key areas in which an organisation is affected by government legislation and regulation. (12 marks) (20 marks)

2

Cash is a significant asset for many businesses and the control of cash is of prime importance. Required: (a) Outline three key objectives for the control of cash in any cash system. (6 marks)

(b) Identify any two types of cash system and in each case recommend three forms of control that should be included in a detailed control procedure. (14 marks) (20 marks)

3

A leader is someone who exercises influence over other people. There are many different leadership models and theories which try to explain the process of leadership. Required: (a) Outline three classifications of the theories, or ‘schools’ of leadership. (9 marks)

(b) Explain the Hersey and Blanchard situational leadership model. Your explanation should include a description of the four leadership styles identified within the model. (11 marks) (20 marks)

4

The effective employee needs to know exactly what their job entails and needs to be very familiar with the work methods and practices of their organisation. Required: (a) Explain the purpose of a job description and outline any four sections that might be included within it. (10 marks) (b) Identify and briefly explain five factors that affect the work methods and practices employed in an organisation. (10 marks) (20 marks)


5

Required: (a) Explain why emergency procedures are important and outline four key areas that you would expect to see included in an organisation’s emergency procedures. (10 marks) (b) Explain why accident reporting procedures are important and outline three important steps that you would expect to see included in an organisation’s accident reporting procedures. (10 marks) (20 marks)



Answers


ACCA Certified Accounting Technician Examination – Paper T5 Managing People and Systems 1 (a) The principal aims of government legislation are: (4 only required): (i)

June 2008 Answers

To protect business entities, e.g. by enacting laws putting limits on market dominance by acting against monopolies and restrictive practices and by providing financial assistance to selected ailing industries and companies. (ii) To protect consumers through consumer protection regulations covering packaging, labelling, food hygiene and advertising. (iii) To protect employees with laws governing the recruitment of staff and health and safety legislation that regulates conditions of work. (iv) To protect third parties such as shareholders, suppliers and creditors through Companies Act regulation on capital maintenance and insolvency. (v) To protect the interests of society at large against excessive business behaviour, e.g. by acting to protect the environment. (b) Organisations are affected by legislation and regulation in the following areas (four only required). (a) (b) (c) (d) (e) Health and safety at work Intellectual property and copyright Data protection Discrimination and equal opportunities Preparation of accounts

Health and safety at work. As an example of such legislation, the Health and Safety at Work Act 1974 is a major piece of legislation in the UK. It provides the legal framework to promote, stimulate and encourage high standards. The Act sets out the general duties that employers have towards employees and members of the public. It also sets out the general duties that employees have to themselves and others. Organisations are affected in a number of areas including (but not limited to) the following areas, which are included here as examples. Organisations are required to have health and safety procedures including emergency procedures, evacuation procedures and accident reporting procedures. Employers are required to look after the health and safety of their employees by ensuring that plant and equipment are safe and that articles and substances are handled and stored safely. There is also a requirement to provide appropriate information, instruction, training and supervision. A safe working environment and adequate welfare facilities must be provided. Intellectual property and copyright. This refers to the reproduction and use of other people’s work, including photocopying and recording. Copyright law covers books of all kinds, sound recordings, film and broadcasts, computer programs, dramatic and musical works. Modern technology enables the copying and distribution of software packages or DVDs to be done relatively easily and cheaply compared with the cost of developing and producing the original. Manufacturers are increasingly bringing prosecutions to try and reduce the number of pirate copies of their material. Data protection. The underlying principles behind the legislation in this area are openness, good practice in obtaining, using and securing data and an opportunity for redress when an individual has cause for complaint. The legislation (for example in the UK, the 1984 and 1998 Data Protection Acts) places obligations on those who use personal data – they must be open about the use of data and must follow a code of good practice. The requirements will cover obtaining, storing, disclosing and using any personal data about individuals. The need for privacy is recognised by the requirement that all data should be held for clearly designated purposes. Accuracy and integrity must be maintained and data must be open to inspection. Only legitimate parties can access data, and information must be secured against alteration, accidental loss or deliberate damage. Data must be obtained fairly, to precise specifications and must not be kept for longer than is required. There may also be codes of practice around how organisations respond to requests by individuals to access data held about them. Discrimination and equal opportunities. Equal opportunities is a term describing the belief that there should be an equal chance for all workers to apply to be selected for jobs, to be trained and promoted in employment and have that employment terminated fairly. Organisations are affected in a number of areas including (but not limited to) the following areas, which are included here as examples. The legislation covers specific issues like discriminatio

n on the grounds of race, ethnic origin, gender or marital status. There is also specific legislation around equal pay for work of equal value and also disability. The legislation includes the administration of recruitment, selection, promotion, training and pay policies. It also includes interpersonal behaviours that imply racial or sexual harassment. Preparation of accounts. This includes keeping appropriate accounting records. It also includes preparing and circulating annual reports and accounts and the preparation of auditing and financial statements. Accounts of companies prepared under the Companies Acts are affected in a number of areas including the following which are included here as examples. Limited companies are required to publish accounts annually for distribution to shareholders. Financial statements of companies must show a ‘true and fair view’. Prescribed formats for income statements and the balance sheet must be used. Detailed disclosures of information are required. A company is limited in the amount of profit it can distribute to shareholders. Various provisions have to be satisfied if a company wishes to increase or decrease its share capital. Company law also requires that the accounts of a limited company must be audited. This means engaging a chartered or certified accountant to conduct an examination of the financial records of the company to ascertain that they present a ‘true and fair view’ and comply with the relevant Companies Acts.


2

(a)

The control of cash is of prime importance in any business. Key objectives for the control of cash are to ensure that: (i) (ii) (iii) (iv) All sums are received and subsequently accounted for. No payments are made which should not be made. All receipts and payments are promptly and accurately recorded. As part of working capital management an organisation does not run out of money.

(b)

There is not one ‘cash system’ in the same way as there is a sales cycle for example; there are a number of different types of cash system which each have their own considerations as to the controls necessary. Cash systems also refer to cheque receipts and payments. Controls over cheque transactions are easier to establish and maintain and most organisations try to conduct all of their cash transactions by means of cheques or other forms of bank transfers. The following are types of cash systems (two only required): (a) (b) (c) (d) (e) (f) Cash (both cheques and paper money) receipts by post Cash (cheques and paper money) collected by sales people. Cash sales Controls over banking Cheque payments Petty cash

The forms of control, which should be included in a detailed control procedure, are listed below (three only required for each cash system identified): (a) Cash received by post (i) There should be safeguards against possible interceptions between receiving and opening the post, e.g. a locked mailbox and restricted access to keys. (ii) The opening of post should be supervised. (iii) All cheques and postal orders should be restrictively crossed ‘Account payee only, not negotiable’ as soon as the post is opened. (iv) Records should be made of cheques, postal orders and cash received at the time of opening the post. This can be in the form of a cashbook, adding machine list, or copies of remittance advices. It provides control over the eventual sums banked and entered into the cashbook. (v) The cashier and sales ledger personnel should not have access to the receipts until the record has been made. (vi) Post should be date stamped. It provides evidence of when remittances are received and can be checked against the date of banking. This helps to prevent cash received one day from being banked as representing different receipts on a later day (teeming and lading). (vii) All monies should be banked promptly. (viii) The loss of receipts through theft or accident must be prevented. Cash collected by sales staff (i) Authority to collect cash should be clearly defined. (ii) Sales staff should be required to remit cash and report sales at regular intervals. (iii) There should be clearly specified follow up actions if sales staff do not submit returns as required. (iv) Collections should be recorded when received e.g. in a cashbook or by copies of receipts, which should be given to the sales staff. (v) The collector’s cash received should be reconciled to the eventual banking. (vi) The sales person’s own receipt books should be checked against the cashbook entries. (vii) If sales staff hold stocks of goods, an independent reconciliation of stock with sales and cash received should be made. Cash sales (i) Cash sales should be recorded when the sale is made, normally by means of a cash till or the use of cash sale invoices. (ii) If cash sale invoices are used they should be pre-numbered, a register should be maintained of cash sale invoice books and copies should be retained. (iii) Cash received should be reconciled daily with either the till roll or the invoice totals. (iv) Someone independent of those receiving the cash and recording the sale should carry out this reconciliation. (v) Daily banking should be checked against the till roll or invoice total and differences investigated. (vi) A responsible official should sign cancelled cash sale invoices at the time of cancellation. All such invoices should be checked periodically for the sequential numbering. Controls over banking (i) Monies received should be banked daily. (ii) Each day’s receipts should be recorded promptly in the cashbook. (iii) Sales ledger personnel should have no access to the cash or the preparation of the paying-in slip. (iv

) Periodic comparisons should be made between the split of cash and cheques: (i) received (and recorded in the cashbook) (ii) banked (and recorded on paying-in slip)

(b)

(c)

(d)


(e)

Cheque payments (i) Unused cheques should be kept securely and access to them restricted. (ii) The person who prepares cheques should have no responsibility over purchase ledger or sales ledger. (iii) Cheques should be signed only when evidence of a properly approved transaction is available. Such evidence may take the form of invoices, payroll, petty cash book etc. (iv) Two signatories at least should be required. (v) The signing of blank cheques should be prohibited. (vi) Cheques should be crossed before they are signed. (vii) Supporting documents should be cancelled as paid to prevent their use to support further cheque payments. (viii) Returned cheques may be obtained from the bank and a sample checked against cashbook entries and supporting documentation. Petty cash (i) The level and location of cash floats should be formally laid down. (ii) There should be restricted access to the petty cash float. (iii) Cash should be held securely in a locked drawer or cupboard and access to keys should be restricted. (iv) All expenditure should require a voucher signed by a responsible officer, not the petty cashier. (v) Vouchers should be produced before a cheque is signed for reimbursement. (vi) Vouchers should be cancelled once reimbursement has taken place. (vii) A maximum amount should be placed on a petty cash payment to discourage normal purchasing procedures being by-passed. (viii) The petty cash should be reconciled by an independent person periodically. (ix) Rules should exist preventing the issue of IOUs for the cashing of cheques.

(f)

3

(a)

There are several classifications of the theories or ‘schools’ of leadership, including: (a) (b) Trait theories – these are based on analysing the personality characteristics or preferences of successful leaders and assume that leaders are born, not made. Lists of traits included physical traits, personality traits and social traits. Style theories – these are based on the view that leadership is an interpersonal process whereby different leadership behaviours influence people in different ways. More or less effective patterns of behaviour (or styles) can therefore be adopted. Contingency theories – these are based on the belief that there is no ‘one best way’ of leading, but that effective leaders adapt their behaviour to the specific and changing variables in the leadership context: the nature of the task, the personalities of team members, the organisation culture etc.

(c)

(b)

Hersey and Blanchard’s model of situational leadership is based on the amount of direction (task behaviour) and the amount of support (relationship behaviour) a leader must provide given the situation and the ‘level of maturity’ of the followers. Task behaviour is the extent to which the leader provides directions for the actions of followers, sets goals for them, and defines their roles and how to undertake them. Relationship behaviour is the extent to which the leader engages in two way communication with followers, listens to them and provides support and encouragement. The Hersey and Blanchard model also considers the ‘readiness’ level of people the leader is seeking to influence. Readiness is the extent to which followers have the ability and willingness to accomplish a specific task. This notion of ‘readiness’ is divided into a continuum of four stages from low to high. The four stages are described as R1 (low), R2 and R3 (moderate) and R4 (high). The ‘level of maturity’ is the extent to which the people are willing and able to take responsibility for directing their own behaviour. People tend to

have varying degrees of maturity depending on the specific task, function or objective that a leader is attempting to accomplish. To determine the appropriate leadership style to use in a given situation, leaders must first determine the maturity level of their followers in relation to the specific task that they want to accomplish through the effort of the followers. As the level of maturity increases leaders should begin to reduce their task behaviour and increase their relationship behaviour. As the followers begin to move into an above average level of maturity, leaders should decrease not only task behaviour but also relationship behaviour. From the combination of task behaviour and relationship behaviour, four leadership styles (S) emerge: telling (S1), selling (S2), participating (S3) and delegating (S4). S1 – telling – emphasises high amounts of guidance (task behaviour) but limited supportive (relationship) behaviour. This leader provides clear instructions and specific direction. This style is most appropriate for low follower readiness (R1). S2 – selling – emphasises high amounts of both directive (task) and relationship behaviours. The leader encourages two-way communication and helps build confidence and motivation in followers. The leader retains responsibility and controls decision-making. This style is most appropriate for low to moderate follower readiness (R2). S3 – participating – emphasises a high amount of two-way communication and supportive (relationship) behaviour but low amounts of guidance (task behaviour). The leader and the followers share decision making and no longer need or expect the relationship to be directive. This style is most appropriate for moderate to high follower readiness (R3). S4 – delegating – emphasises little direction or support with low levels of both task and relationship behaviours. This style is appropriate for leaders whose followers are ready to accomplish a particular task and are both competent and motivated to take full responsibility. This style is most appropriate for high follower readiness. Hersey and Blanchard suggest that the key to using situational leadership is that any leader behaviour may be more or less effective according to the readiness of the person the leader is attempting to influence. The model draws attention to the


importance of developing the ability, confidence and commitment of subordinates. The leader should help followers to develop in readiness to the extent that they are able and willing to successfully accomplish the task. This development should take place by adjusting leadership behaviour through the four styles of telling, selling, participating and delegating. This can be summed up as follows: (high) Share ideas and facilitate in decisionmaking

PAR TIC IP

IN AT

G

SE

(Supportive behaviour) RELATIONSHIP BEHAVIOUR

Explain decisions and provide opportunity for clarification

IN LL

G

S3

S2

S4Turn over responsibility for decisions and implementation Provide specific instructions and closely supervise performance

S1EG AT ING

G IN LL TE

(low)

DE L

TASK BEHAVIOUR (Directive behaviour)

(high)

4

(a)

A job description specifies and describes the role and responsibilities of a particular job. It is a statement of the tasks, responsibilities and relationships involved in a given job. All employees should have a job description that specifies tasks, details responsibilities, sets authority limits, distinguishes accountability and outlines the organisational relationships that the job entails. The following sections should be included in a job description (four only required): (i) (ii) (iii) (iv) The identification of the job, including the job title, the department structure and the number of people doing the job. The purpose of the job – identifying its objectives in relationship to the overall objectives, e.g. to manage the purchasing section responsible for buying raw materials. The position in the organisation – indicating the relationships with other jobs and the lines of responsibility. Often an organisation chart is included here. The pri

ncipal duties to be performed, with emphasis on key tasks and limits to the jobholder’s authority. A more detailed breakdown might be included which identifies specific tasks in terms of precisely what is to be done, with some explanation, both in terms of quantity and quality. Responsibilities – a statement outlining any responsibilities for the resources e.g. staff and budgets. Job requirements and physical conditions – including details of noisy, dirty, dangerous conditions or pleasant office conditions and also hours of work, overtime, unsocial hours. Grade and salary range – details of the rate for the grade, incremental scales, piecework, bonuses and commissions. Additional benefits such as pension schemes and the provision of a company car would also be included in this section. Reporting structure – to whom the job holder reports and at what level, with possible indications about future succession, prospects of promotion or transfer.

(v) (vi) (vii) (viii)

(b)

The work methods and practices of your department and organisation arise from a number of factors (five only required): (i) (ii) (iii) (iv) The nature of the specific task: i.e. what needs to be done, in what order and in what manner, in order for the purpose of the task to be fulfilled. The requirements of the relevant laws (e.g. Data Protection Acts, Companies Acts), regulations and Codes of Practice established to ensure that tasks are completed safely, fairly and in accordance with the rights of individuals and society. The requirements of organisational policy, formulated to reflect the organisation’s values, culture and intentions. The requirements of the organisation’s systems, procedures and rules developed so that standard, safe, predictable and dependable methods are used to encourage everyone to work together towards achieving the objectives of the organisation. Formal instructions from people in positions of authority. Where there is no set policy, procedure or legal constraint, a manager can largely determine how things are done. Informal ground rules or customs, developed over time by the work group or the organisational culture. Methods of communication and coordination in place within the structure of the organisation – designed to ensure that all sections of the organisation are pursuing common objectives and that duplication of effort is avoided.

(v) (vi) (vii)


5

(a)

Emergency procedures are particularly important to ensure that people are aware of the scope and limits of their responsibility. Health emergencies may include any form of workplace injury (e.g. fractures, burns, eye injuries etc), electric shock, fainting or collapse, allergic reactions to toxic substances or manifestations of illness such as heart attacks or epileptic fits. Procedures need to be in place so that these can be dealt with as quickly and effectively as possible. Employers also need to plan for emergency situations such as fire and bomb alerts, chemical spillage etc. The plan should be written down and communicated to all employees and others who may be affected by it. Specific employees with allocated duties within the plan should be given appropriate, regular training in the correct procedures to follow. The purpose of emergency procedures is to ensure that everyone is clear about what to do and where to go in the event of an emergency. The following areas should be included in an organisation’s emergency procedures (four only required): (i) How to raise the alarm – this includes ensuring that employees are aware of the location of fire alarms and that the alarms are regularly tested so that employees are able to recognise the sound. (ii) What to do – i.e. how to call the emergency services and how to respond to a fire or evacuation alarm. This is achieved by carrying out fire and evacuation drills throughout the year. (iii) Where to go to reach safety – this includes ensuring that employees are aware of fire and emergency exits, that they are clearly marked and lead as quickly as possible to a designated safe area and are kept clear at all times. This may also include evacuation procedures. (iv) Names of nominated first aiders in each department or area – with full contact details. (v) Essential actions such as emergency factory shutdown – locations of adequate protective equipment (such as sprinklers and fire extinguishers) should be in hand and regularly maintained.

(b)

Accident reporting procedures are important to ensure that the circumstances and facts are recorded accurately as soon as possible after an accident. It may be necessary to refer to accident reports at a later date if complications emerge some time later. An accident reporting procedure would require the person reporting the accident to do the following: (i) Report the accident to someone in authority as soon as possible. This can be done informally, but in addition it is usual practice to complete an accident report form. (ii) Record the details of the accident in an accident book. (iii) Get signed statements from any witnesses to the accident, including names and addresses.


ACCA Certified Accounting Technician Examination – Paper T5 Managing People and Systems 1 (a) (b) 2 marks for each aim explained up to a maximum of 8 marks.

June 2008 Marking Scheme 8 marks

1 mark for each area identified up to a maximum of 4 marks. 1 further mark for each area explained up to a maximum of 4 marks and 1 further mark for each example used up to a maximum of 4 marks.


2

(a)

2 marks for each objective outlined up to a maximum of 6 marks. Marks could also be awarded for other relevant points. 1 mark for each type of cash system identified up to a maximum of 2 marks. Up to 2 marks for each form of control recommended within each system up to a maximum of 6 marks in each area.

6 marks

(b)


3

(a) (b)

3 marks for each classification or ‘school’ outlined, up to a maximum of 9 marks. 3 marks for a general overview of the model. 1 mark for each style identified up to a maximum of 4 marks and 1 further mark for each style explained up to a maximum of 4 marks.

9 marks


4

(a) (b)

2 marks for an explanation of the purpose. 2 marks for each section outlined up to a maximum of 8 marks. 1 mark for each factor identified up to a maximum of 5 marks, 1 further mark for each factor explained up to a maximum of 5 marks.

10 marks


5

(a) (b)

2 marks for an explanation of the importance. 2 marks for each area outlined up to a maximum of 8 marks. 4 marks for an explanation of the importance. 2 marks for each step outlined up to a maximum of 6 marks.

10 marks 10 marks

Total 20 marks



Managing People and SystemsFriday 5 December 2008






Paper T5

ALL FIVE questions are compulsory and MUST be attempted 1 (a) Explain the role of coordination in an organisation’s strategic planning process. (b) Identify and briefly explain four key stages in human resource planning. (12 marks) (8 marks) (20 marks)

2

(a) Explain three different types of comparison that managers might make when reviewing reports on business or functional performance. (12 marks) (b) Outline the information you would expect to be included in EITHER a production and material control report OR a marketing and distribution report. (8 marks) (20 marks)

3

(a) Explain McGregor’s concept of Theory X and Theory Y regarding human nature and behaviour at work. (12 marks) (b) Briefly explain William Ouchi’s concept of the Theory Z organisation and give three of its key characteristics. (8 marks) (20 marks)

4

Work planning is an important part of a manager’s day-to-day work, as well as making an important contribution to how individuals can organise themselves effectively. Required: (a) Describe the steps a manager should take when planning the work of a department. (8 marks)

(b) Explain how you would use any four planning aids to help you to organise your personal workload effectively. (12 marks) (20 marks)

5

(a) Explain five key components of an effective health and safety policy.

(10 marks)

(b) List the steps a health and safety manager should take in order to design and implement an effective risk (10 marks) management programme. (20 marks)



Answers




Within any organisation, the departments, sections and individuals must all be organised in such a way so as to ensure that the overall strategic objectives of the organisation are attained and that each department, section and individual makes a contribution. It is essential that the efforts of each contributor are coordinated to ensure that objectives are met. The function of an organisation i.e. attaining a strategic objective, is operated via the attainment of contributory objectives by departments, sections and individuals. This is why efforts at all levels must be coordinated. As the business plan will cover all departments of the organisation, so all of the departmental plans and budgets must be coordinated, so that they are all working together to achieve the business plan. For example, sales should be planning to sell the number of units which the production departments agreed to produce otherwise there will be either unsold stock or unfulfilled orders. Functional plans cannot proceed without regard for those of other functions. There must be coordination between them and an integration of all towards successful performance. At the production level for example, coordination will ensure that: (i) (ii) departments know what it is they need to achieve and when; work flows from one department to another without hold-ups or clashes and without idle time or overwork for staff or machinery; (iii) the resources required for a task are available where and when they are required; (iv) there is no duplication of effort. Each department will have its own set of priorities but effective coordination may cause some of these to change in the interests of pursuing an overall set of priorities.

(b)

Human resource planning can be described as a strategy for the acquisition, utilisation, improvement and retention of an organisation’s human resources. The four main stages are auditing, forecasting, planning and controlling resources. The auditing stage involves the analysis of the strategic environment (trends in population growth, education, pensions etc) in the light of the organisation’s strategic objectives. The strategy chosen will have implications for the numbers of employees and the mix of skills required. The forecasting stage analyses the demand for, and supply of, labour in terms of number, type and quality of people that the organisation should employ to meet planned requirements and cover expected turnover. The planning stage involves policies to recruit, train and develop the labour force indicated in the forecast. The controlling stage involves measuring the effective use of the human resources and their contribution towards the achievement of the organisation’s objectives. In addition to auditing, forecasting, planning and controlling resources – the following aspects of human resource planning can also be important: recruiting, training and development, promotion planning and also retention and succession planning.

2

(a)

Managers can assess the significance of information by monitoring and measuring against some baseline and most management reports are made more meaningful by the use of comparison. (Three only required) (i) Comparisons with previous periods. The most common comparison of a previous period is of one year’s final figures against the previous year’s. A business’s statutory financial accounts contain comparative figures for the previous year as well as the figures for the actual year. Some companies’ financial accounts contain figures for the last five years. Comparing the figures for five years may be more valuable than comparing the figures for two years, as long term trends become more apparent over five years.

If the comparison is only over two years, one or other year might be unusual for various reasons and this will distort the comparison. For management accounting purposes year-on-year comparisons are insufficient by themselves; management will wish to pick up problems a lot sooner than the end of the financial year. Hence comparisons are often made for management accounting purposes month-by-month or quarter-by-quarter. Comparisons with corresponding periods. Making comparisons month-by-month or quarter-by-quarter is most useful when you expect figures to be reasonably even over time. However, demand for many products fluctuates season-byseason. In this case, the most useful comparison would be to compare with the same season last year. This is the corresponding period.

(ii)

(iii) Comparison with forecasts. Businesses make forecasts for a number of purposes. A very common type of forecasting is a cash flow forecast. The purpose of making this forecast is for the business to be able to see how likely it is to have problems maintaining a positive cash balance. If the cash balance becomes negative, the business will have to obtain a loan or overdraft which will involve interest costs. At the end of the period, management will compare the actual figures with the forecast figures and try to assess why they differ. Differences are likely to be a sign that some of the assumptions made when drawing up the original forecast were incorrect and so when making forecasts for future periods management may wish to change the assumptions that are made. (iv) Comparisons with budgets. A budget is an organisation’s plan for a forthcoming period, expressed in monetary terms. Budgets can be used to check that the plan is working by comparing the planned results for the day, week, month or year to date with the actual results. (v) Comparisons within organisations. Organisations may also wish to compare the performance of different departments, sales regions or product type.

(vi) Comparisons with other organisations. An obvious way of assessing how a business is performing in its chosen market is to compare its results and financial position with those of its main competitors. The main information that will be generally available will be the competitor’s annual statutory financial accounts. Comparisons are generally made on an annual basis.


(b)

You might expect the following to be included in a production and material control report: (i) (ii) (iii) (iv) (v) (vi) Forward loading plans for production cycles, both forecast and actual. Machine capacity forecast and actual. Departmental operating statements. Stock and work-in-progress reports. Wastage reports. Labour utilisation report, both forecast and actual.

You might expect to see the following in a marketing and distribution report: (i) (ii) (iii) (iv) (v) (vi) Market surveys. Order reports by product and geographical area, both forecast and actual. Discount trends. Transport and warehouse cost statements, both budgeted and actual. Sales personnel performance, both forecast and actual. Product service and support costs, both forecast and actual.

3

(a)

Douglas McGregor put forward two suppositions that US managers appeared to subscribe to about human nature and behaviour at work. He argued that the style of management adopted is a function of the manager’s attitudes towards people and assumptions about human nature and behaviour. The two suppositions are called Theory X and Theory Y and are based on opposing assumptions about people and work. Theory X represents the ‘carrot and stick’ assumptions believing that the average human being has an inherent dislike of work and will avoid it if possible. He or she also prefers to be directed, wishes to avoid responsibility, has relatively little ambition and wants security above all. Because of the human characteristic of disliking work, most people must be coerced, controlled, directed and/or threatened with punishment to get them to put in adequate effort towards the achievement of organisational objectives. Managers who operate according to these assumptions will tend to supervise closely, apply detailed rules and controls and use ‘carrot and stick’ motivations. At the other end of the extreme to Theory X is Theory Y. The central principle of Theory Y is the integration of individual and organisational goals. Theory Y suggests that physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work, which can be a source of satisfaction. External control and the threat of punishment are not the only means of bringing about effort towards organisational objectives. People can exercise self-direction and self-control to achieve objectives to which they are committed. Theory Y also assumes that the average human being learns, under proper conditions, not only to accept, but also to seek responsibility. Avoidance of responsibility, emphasis on security and low ambition are the results of experience and are not inherent in human nature. Under conditions of modern industrial life, the intellectual potential of the average human being is only partially utilised. McGregor was of the view that Theory Y assumptions provided a better explanation of human nature and indicated the need for a different managerial strategy in dealing with people if they were to be correctly motivated. Managers who hold Theory Y assumptions about people are likely to be more democratic and consultative. Both Theory X and Theory Y are intended to be extreme sets of assumptions – not descriptions of actual types of people. However, they also tend to be self-fulfilling prophecies since people tend to behave in the way expected of them. William Ouchi provided a comparison of management style and practice in different cultural settings. Profiling American management culture as Theory A and typical Japanese management as Theory J, he sought to synthesise the two to propose a form of Japanese-style management that could be applied successfully in a Western context. Ouchi called these methods Theory Z. The characteristics of a Theory Z organisation are as follows (three only required): (i) (ii) (iii) (iv) Long-term employment – not necessarily lifetime, but longer than the average in American and European companies. Slow-progressing managerial career paths (as in the Japanese system, but with a more Western specialisation of skills). Moderately specialised careers – which may not change.

Collective consensus decision-making processes (Japanese), but with individual retention of ultimate responsibility for defined areas of accountability (Western). (v) Industrial relations characterised by trust, co-operation and mutual adjustment. (vi) Concern for the employee – close to the paternalistic attitudes of the old Quaker companies in the UK, such as Cadbury’s. (vii) Implicit informal controls (such as guiding values) alongside explicit, formal controls.

(b)

4

(a)

All levels of management are involved in work planning. At the top level, decisions are made on what to do, and as you come down the hierarchy the plan is developed to incorporate how it is to be done, when and by whom. The basic steps in work planning for a department include the following: (i) The establishment of departmental priorities, for example making decisions around which tasks and activities are important and/or urgent. (ii) Scheduling or timetabling tasks and allocating them to different individuals within appropriate timescales (e.g. continuous routine work and arrangements for priority work with short-term deadlines), to achieve work deadlines and attain departmental goals. (iii) Coordinating individual tasks within the duties of single employees or within the activities of groups or individuals so that both individuals and teams can work as effectively as possible within a department.


(iv) Establishing checks and controls to ensure that priority deadlines are being met and that work is not falling behind, and that routine tasks are achieving their objectives. (v) Agreeing the mechanism and means to reschedule ordinary work within the department to facilitate and accommodate new, additional or emergency work by drawing up contingency plans for unscheduled events. (b) Personal work planning aids include lists and checklists, bar charts, precedence networks, action plans, timetables, diaries, and personal organisers. (Four only required) (i) Lists. Lists are a useful way of identifying and remembering what needs to be done and of monitoring how you have got on. Lists can be used to plan a coming week and can also be generated on a daily basis. You can prioritise items on a list in order of priority or in an order in which you intend to deal with the items on the list. Lists can help to keep you focused if you stick to what is on the list and don’t do anything that is not on your list for the day/week. At the end of each day/week it can be useful to take all of the items on the list and transfer them to the list for the following day/week. The physical act of writing tasks down on paper is an important part of the process and helps fix them in your mind. A checklist is a particular type of list that allows ticking or checking off each task as it is completed. Checklists can be helpful if you need to indicate when you start and finish an activity, or even for the stages of an activity (for example where a particular document is at a given date) – or elements of all of these.

(ii)

(iii) Bar charts. A bar chart has two main purposes: firstly to show the time needed for a personal work activity, and secondly to display the time relationship between one activity and another. Bar charts can be especially useful for checking the time schedules for a number of individual activities that are interdependent. A bar chart can show the overall progress of a project or a piece of work to date, thus assisting in monitoring the progress attained at an individual stage of a multistage process. (iv) Precedence networks or time schedules. These are helpful if you are having difficulty converting your list or checklist into a workable sequence of personal actions. A simple precedence network shows which activities need to be completed before others. A major advantage of this approach is that it allows you to show when a number of activities need to be done at roughly the same time. (v) Timetables and diaries. These are useful to remind you of key times and dates, to remind you to undertake advance preparations or follow up actions and to help you to allocate and coordinate your time effectively.

(vi) Personal organisers (including electronic ones) are often a combination of timetables and diaries with additional features such as the ability to store contact details, notepad and file management facilities. (vii) Software packages such as Microsoft Project and Outlook, which ease the task of planning by enabling changes, updates and projections to be produced quickly. Once data has been entered, bar charts, networks and reports can be produced.

5

(a)

There will be several elements to a health and safety policy, whatever the specific needs and hazards of a particular workplace. Some of the key components are as follows (five only required): (i) Risk assessment. This is part of continuing risk management and includes: (a) (b) (c) (d) (ii) Identifying risks, Controlling risks, Sharing information, Providing training as appropriate.

Having appropriate systems and procedures. This will include having safety procedures, procedures for the reporting of incidents, the removal of hazards and appropriate checking procedures. Emergency and evacuation procedures may also be included.

(iii) Minimising hazards associated with equipment. This will include the provision of any protective clothing, ergonomic design of work areas, soundproofing, safety equipment and appropriate maintenance of machinery and equipment. (iv) The provision of information. This includes any warning signs, instructions about location and use of fire extinguishers, updating safety manuals and ensuring that everyone is aware of their location. (v) Training provision. This includes training in safety procedures and the use of equipment. It includes induction training, training when moving to a different department and regular updates on any new policies or information.

(vi) Responsibilities. This includes employee duties and the appointment of health and safety officers and representatives. (vii) On-going monitoring to ensure policies and procedures are being adhered to. Making changes to systems and procedures as appropriate. (b) The typical steps that a health and safety manager might take in order to ensure on-going risk management are as follows: (i) (ii) (iii) (iv) Carry out a risk assessment, generally in writing, of all work hazards on a continuous basis. Introduce controls to avoid/reduce risks and plan contingency measures to minimise impact. Assess the risks to anyone else affected by their work activities (such as suppliers, customers or visitors). Share hazard and risk information with other employers, including those on adjoining premises, other site occupiers and all subcontractors coming on to the premises.


(v) (vi) (vii) (viii) (ix)

Revise safety policies in the light of the above – or initiate safety policies if none were in place previously. Identify employees who are especially at risk (such as pregnant women or night shift workers). Provide up-to-date and appropriate training in safety matters. Provide information to employees (including part-time and temporary workers) about health and safety. Employ/appoint competent health and safety advisors in all key areas.



December 2008 Marking Scheme

12 marks for a full explanation to include reference to meeting overall strategic objectives and departmental objectives, resource issues, workflows and avoidance of duplication of effort. 12 marks 2 marks for each of the stages (or aspects) identified and explained – in the context of planning – up to a maximum of 8 marks. 1 mark only to be awarded for a stage (or aspect) which is identified, but not explained in the context of planning. 8 marks Total 20 marks

(b)

2

(a)

4 marks for each type of comparison (maximum of three types) explained, up to a maximum of 12 marks. 1 mark only per type to be awarded if there is no explanation. 12 marks 2 marks for each item outlined, up to a maximum of 8 marks. 8 marks Total 20 marks

(b)

3

(a)

5 marks for a full discussion of Theory X. 5 marks for a full discussion of Theory Y. 2 further marks for reference to management style, self-fulfilling prophecy, implications etc. 12 marks 2 marks for a brief explanation which includes reference to the different cultural settings. 2 marks for each characteristic given, up to a maximum of 6 marks. 8 marks Total 20 marks

(b)

4

(a)

2 marks for each step described up to a maximum of 8 marks. Only 1 mark to be awarded if no description is offered. OR 1 mark for each step identified up to a maximum of 8 marks. 8 marks 3 marks for each planning aid explained, up to a maximum of 12 marks. Only 1 mark to be awarded per aid if the planning aid is just identified or listed with no explanation. 12 marks Total 20 marks

(b)

5

(a)

2 marks for each component explained, up to a maximum of 10 marks. 1 mark only to be awarded if a component is listed but not explained. 10 marks 1 mark for each step listed up to a maximum of 9 and 1 further mark for listing them in a sensible order. 10 marks Total 20 marks

(b)

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