management exam revision

8/6/2019 Management Exam Revision

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Management Revision

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Exam Date: 20th June 2011 (Monday)Time: 2:00pm 5:00pmDuration: 3 HrsClosed Book Exam

The Paper Consists of ONE Section Only.y 7 Questions

y Choose & Answer Only 5 Questions

y Approx. 35 mins Per Question

Topics:-

y Topic 1 & 2: One Question

y Topic 3 & 4: One Question

y Topic 5: One Question (Chapter 5 of Textbook)

y Topic 6: One Question (Chapter 7 of Textbook)

y

Topic 7: One Question (Chapter 10 of Textbook)y Topic 8: One Question (Chapter 11 of Textbook)

y Topic 9: One Question (Chapter 13 of Textbook)-------------------------------------------------------------------------------------------------------------------------------

Topic 1: Managers & Management

1) What is Management?

What is Management?Management is a process of getting things done effectively and efficiently,through and with other people.

What is Effectiveness?Effectiveness means Doing the Right Things, doing those tasks that help anorganization reach its goals.

What is Efficiency?Efficiency is a concern with means, efficient use of resources like people, moneyand equipment.

2) 4 Elements of Management Functions?

Planning:-

Implies that managers think through their goals and actions in advance. Actionsare based on some methods or plans rather than a hunch.

Organizing:-Allocate work among groups and persons determining their responsibilities andrelations to the extent of their delegation.


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Leading:-Describes how managers get their jobs done through directing and influencingtheir subordinates, by establishing the proper atmosphere.

Controlling:-

Managers attempt to ensure that plans have been carried out towards its goalsand attending to deviations.

Topic 2: The Management Environment

3) Socially Responsible Actions:

Actions Definitions ExamplesSocial Responsibility Beyond its legal and

economic obligations, todo the right things and

act in ways that aregood for society.

y One example is toprovidehandicapped

friendly facilities.y Companies can

give money to thearts, fund academicscholarships,support community-building initiatives,and so on.

y One example isreduce air pollution,anti-weaponbuildings, etc.

Social Obligations When a business firmengages in socialactions because of itsobligation to meetcertain economic andlegal responsibilities.

y One example is tosell ONLY itemsthat are approvedby the authority.

y Foreigners stay inSingapore ONLYbe approved by theICA.

Social Responsiveness When a business firmengages in socialactions in response tosome popular socialneed.

y One example is toprovide child carefacilities in theworkplace.

y Companies usingre-cycled papersfor packagingpurposes.


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4) Workforce Diversity (Pg.68 to pg.69) (1 to 2 marks) (Case Study)

Ways in which people in workforce are similar and different from one another in

terms of gender, age and culture.

Challenges of managers:-

- Language Barriers:Good cross-cultural communication and language skills.

- Cultural Differences:Flexibility and open-mindedness about other cultures.

- Communications:A willingness to communicate, form relationships with others, and try new

things.

Note: Workforce Diversity is a case study question. According to Dr. Sam, the above scenario

could be used and were told to read about it.

MANAGING DIVERSITY | The Paradox of Diversity

When organizations bring in diverse individuals and socialize them into culture, a paradox is created.

Managers want the new employees to accept the organizations core cultural values so they dont

have a difficult time fitting in or being accepted. At the same time, managers want to openly

acknowledge, embrace, and support the diverse perspectives and ideas that the new employees

bring to the workplace.

Strong organizational cultures pressure employees to conform, and the range of acceptable

values and behaviors is limited hence the paradox. Organizations hire diverse individuals because

of their unique strengths, yet their diverse behaviors and strengths are likely to diminish in strong

cultures as people attempt to fit in.

A managers challenge is to balance two conflicting goals: to encourage employees to accept

the organizations dominant values and to encourage employees to accept differences. As the

external environment changes and brings about change in an organization, managers need to

remember the importance of keeping diversity alive.


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Topic 3: Planning Foundations

1) Decision - Making Models (Pg. 90 to Pg. 92)

Rational Models:

The managers decision making will be rational logical and consistent choices to

maximize value.

Bounded Rationale:

Due to limited ability to process information, managers satisfice (accepting

solutions that are good enough), rather than maximize.

Intuition:

Its making a decision on the basis of experience, feelings, and accumulated

judgment.

2) Group Decision Making: How? (Pg. 96)

Decision Making Groups are experts in their field of work, who will represent the

people mostly affected by the decisions being made. They spend a large portion

of their time in defining problems, arriving at solutions to those problems, and

determining the means for implementing the solutions.

How Can You Improve Group Decision Making? (Pg.99) (Scenario Question)

Brainstorming:-

An idea-generating process that encourages alternatives while withholding

criticism.

Nominal Group Technique:

A decision-making technique in which group members are physically present but

operate independently.

Electronic Meeting:

Participants linked by computer (Delphi Decision Making). In short, Nominal

Group Technique + Computer Technology = Electronic Meeting.

3) Advantages and Disadvantages of Group Decision Making (Pg. 97 Pg. 98)(List 2 Advantages and 2 Disadvantages)


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- 8

Group Decision Making

Advantages Group decisions provide

more complete

information

Diversityofexperiences

and perspectives are

higher

Groups generate more

alternatives

Group decisionsincrease

acceptance ofa solution

Disadvantages Group decisions are time

consuming

May be subjectto

minority domination

Subjecttopressure to

conform

Responsibilityis

ambiguous

SubjecttoGroupthink

which underminescriticalthinking

Cop

right 2011 Pearson Education

Diagram from PowerPoint Slide 18 of Management week 3.

Topic 4: Foundations of Planning

4) Strategic Management (Pg. 112)

Strategic Management is what managers do to develop an organizations

strategies.

Competitive Strategy (Pg. 118)

Competitive Strategy is a strategy for how an organization will compete in its

business(es).

Strategic Management and types of Strategies Popularized by Michael Porter:

Cost Leadership Strategy

Differentiation Strategy Definitions & Examples.

Focus Strategy


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-19

Types ofCompetitive trategies

Cost L

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Comp

ting onth

b sisofh ving th

lowestcostsintheindustry (eg W l- rt)

ifferenti

tionStr

tegy

Competing onthe b sisofh ving uniqueproductsth t rewidely v lued bycustomers (eg Hero Hond , Asi n P ints,HLL, Nike thleticshoes, Perstorp BioProducts, AppleComputer, nd Mercedes-Benz utomobiles.)

FocusStr

tegy

Competing in n rrowsegmentornichewith either costfocusor differenti tionfocus (eg Southwest Airlines)

Copyright 2011 Pearson Education

Diagram from slide 19 of Management week.4 with added examples of each

strategies.

Topic 5: Organizational Structure

1) List and Define the 6 Key Elements in the Organizational Design: (Pg.152)

Work Specialization:It means dividing work activities into separate job tasks also called division of

labor.

Departmentalization:

It means how jobs are grouped together.

Authority and Responsibility

- Chain of Command:

The line of authority extending from upper organizational levels to lower

levels, which clarifies who reports to whom.

- Authority:

The rights inherent in a managerial position to give orders and expect the

orders to be obeyed.


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- Responsibility:

An obligation to perform assigned duties.

Span of Control:

The number of employees a manager can efficiently and effectively supervise.

Centralization & De-Centralization:

- Centralization:

The degree to which decision making takes place at upper levels of the

organization.

- De-Centralization:

The degree to which lower-level managers provide input or actually make

decisions.

Formalization:

- How standardized an organizations jobs are and the extent to which

employee behavior is guided by rules and procedures.

2) Generic Organization Structure (Pg.160)

5-16

Whatfactorsaffectstructural

choice?

Mechanistic Or anization A bureaucraticor anization;astructurethats hi h

inspecialization, formalization, and centralization

E amplesareMilitary, Government-Aided Schools,McDonalds.

Or anic Or anization

A structurethatslowinspecialization,formalization, andcentralization

E amplesare Salvation Army, Goo le,Sin apore

EnvironmentCouncil.

Copyri

ht 2011 Pearson Education


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3) Organizational Culture (Pg. 171)

The shared values, principles, traditions, and ways of doing things that influence

the way organizational members act.

How do employees learn the culture? (Pg. 172) (Scenario Question) Culture is represented in a groups:

- Stories:

Narrative of events / people like the organizations founders, reactions to

past events.

- Rituals (Daily Work Practices):

Repetitive sequence of activities.

- Material Symbols:

To create an organizations personality.

- Language:

To identify and unite members.

Topic 6: Managing Change and Innovation

1) Categories of Organizational Change (Pg. 218)

What is Organizational Change?

It is any alteration of an organizations people, structure or technology.

Exhibit 7-1 as shown in Management Slide 4 week.6

Exhibit 7-1 | Categories of Organizational Change


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Structure:

Change in authority relationships, degree of centralization. (eg. Increase work

specialization)

Technology (Process-Oriented):Change in technology and how work is done. (eg. Decision to use statistical tools

in decision-making)

People:

Change in persons attitude and expectations. (eg. Decision to link performance

to pay)

2) Calm Waters Metaphor: The Kurt Lewins Process (Pg. 222)

Kurt Lewins 3-Step Change Process:

Step 1: Unfreezing the status quo (eg. Gaining acceptance for change)

Step 2 Changing to a new state (eg. Adopting new attitudes, modifying

behavior usually requires a change agent)

Step 3: Freezing the new change to make it permanent (eg. Re-enforce

new patterns of thinking/working)

Describe Lewins 3-Step Change (Calm Waters) Process. (6 marks)

The driving forces, which direct behavior away from the status quo, can be increased. Unfreezing is necessary to move from the current equilibrium.

The new situation needs to be re-frozen so that it can be sustained overtime. Unless this

is done, there is a strong chance that the change will be short-lived.

The objective of the re-freezing is to stabilize the new situation by balancing the driving

and restraining forces.

3) Why Employees Resist Change? There are 4 reasons: (Pg. 225)

Change replaces the known with uncertainty.

We do things out of habit.

Fear of losing something already possessed.

Change is not compatible with the goals and interests of the organization.


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How to Reduce Resistance? There are 6 techniques. (Pg. 226) (Exhibit 7-3)

Education and Communication.

Participation.

Facilitation and Support.

Negotiation. Manipulation and Co-optation.

Coercion

For Exhibit 7-3, only name the 6 technique to reduce resistance.

Topic 7: Motivating and Rewarding Employees

1) Herzbergs 2-Factor Theory (Motivation-Hygiene Theory):

Fredrick Herzbergs 2-factor Theory proposes that:

- Intrinsic Factors (matters within itself) are related to job satisfaction.

- Extrinsic Factors (matters depending on circumstances) are associated

with job dissatisfaction.

Motivators (Intrinsic):

Factors that increase job satisfaction and motivation (e.g., challenging work,

recognition, responsibility).

Hygiene Factors (Extrinsic):

Factors that eliminate job dissatisfaction but do not motivate (e.g. status, job

security, salary, fringe benefits, work conditions).

Exhibit 10-2 Herzbergs 2-Factor Theory (Pg.295) (Scenario Question)

Motivators Hygiene Factors

Extremel Satisfied Neutral Extremel Dissatisfied

Supervision

Company Policy

Relationship with Supervisor

Working Conditions

Salary

Relationship with Peers

Personal Life

Relationship with Employees

Status

Security

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Implications for Managers:

- To increase satisfaction, focus on Motivators.

- To reduce dissatisfaction, focus on Hygiene Factors.

Paying Higher Salaries Reduces Dissatisfaction, But Does Not Increase Satisfaction Hygiene Factor.

2) Equity Theory (Pg. 300)

10-21

What Is Equity Theory?

Equity Theory

Developed by J.Stacey Adams, a Psychologist, in

1963. The theorythat an employee compares hisor her

jobsinput-outcomesratiowith thatofrelevant

others and thencorrects anyinequity

Referent

The persons, systems, orselves againstwhich

individualscompare themselvesto assess equity

Copyright 2011 Pearson Education

Management Slide 21 week 7.

Implications for Managers:

- Share info with employees on how allocation decisions are made.

- Procedure must be consistent and unbiased.


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Management Slide 23 week.7 (pg.301)

Refer to Exhibit 10-7, what would you do if:

Outcomes A Outcomes B

---------------- < ----------------

Inputs A Inputs B

1) Increase Outcome A aka Work Harder

2) Cut Input A aka Less Commitment / Lazy

3) Quit aka Resign.

Table 8: Leadership and Trust

1) Path-Goal Theory (Pg.329)

A leadership theory that says the leaders job is to assist followers in attaining

their goals and to provide direction or support needed to ensure that their goals

are compatible with the organizations or groups goals.

OR

Path-goal theory is about how leaders motivate subordinates to accomplish

designated goals.

Roles of Leaders:

Leadership Behaviors (4 types):

- Directive Leader:

Lets subordinates know whats expected of them, schedules work to be

done, and gives specific guidance on how to accomplish tasks. (The


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theory argues that this behaviorhas the most positive effect when the

subordinates' role and task demands are ambiguous and intrinsically

satisfying.)

- Supportive Leader:Shows concern for the needs of followers and is friendly. (The leader

shows concern for the followers psychologicalwellbeing. This behavior

is especially needed in situations in which tasks or relationships are

psychologically or physically distressing.)

- Participative Leader:

Consults with the group members and uses their suggestion before

making a decision. (This behavior is predominant when subordinates are

highly personally involved in their work.)

- Achievement-Oriented Leader:

Sets challenging goals and expects followers to perform at their highest

level. (Occupations in which the achievement motive were most

predominant were technical jobs, sales persons, scientists, engineers,

and entrepreneurs.)

Management Slide 23 week.8 (Scenario Question read its predictions below dia. on pg.330)


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2) Contemporary Views of Leadership (Pg.331)

Transactional Leaders:

- Leaders who lead primarily by using social exchanges (or transactions).

- Transactional Leaders guide or motivate followers to work towards

established goals by exchanging rewards for their productivity.

Transformational Leaders:

- Leaders who stimulate and inspire (transform) followers to achieve

extraordinary outcomes.

- Transformational Leaders conform to network and coworkers in the best

fashion in order to benefit the organization while still sharing ideas.

Topic 9: Foundations of Control

1) Why Is Control Important? (Pg.376 - Pg.377)

To know whether organizational goals are being met and if not, the reasons why.

Control is important because of employee empowerment where managers fear

something will go wrong for which they would be held responsible.

To protect the organization and its asset.

2) Balanced Scorecard: (Pg.388)

It is a performance measurement tool that looks at more than just the financial

perspective.

4 areas of Control / Perspective:- Financial: encourages the identification of a few relevant high-level

financial measures. In particular, designers were encouraged to choose

measures that helped inform the answer to the question "How do we look

to shareholders?"

- Customer: encourages the identification of measures that answer the

question "How do customers see us?"

- Internal Business Processes: encourages the identification of measures

that answer the question "What must we excel at?"

- Learning and Growth: encourages the identification of measures that

answer the question "Can we continue to improve and create value?".

3) When does Control take place? (Pg.383)

Feedforward Control:

- Control that takes place before a work activity is done.


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Concurrent Control:

- Control that takes place while a work activity is in progress.

Feedback Control:

- Control that takes place after a work activity is done.

Examples at Pg.391 Pg.393 (Application / Scenario)

Exhibit 13-8 Controlling Workplace Violence (Pg.393) Management Slide 24 week.9

NB: Pls read Exhibit 13-7 Controlling Employee Theft (Pg.391). Question will be asked to list

down and define the applications of Feedforward, Concurrent and Feedback control.

-----------------------------------------------------All The Best----------------------------------------------------------

management exam revision

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