ANSWERS W 197

Answers
TOPIC 1: WHAT IS MANAGEMENT?

Exercise 1.1
1. Planning is to set and determine the objectives that need to be achieved in
the future and what should be done in order to achieve that objectives.

Organising is a group of activities, delegation of activities and arranging the

suitable authority to carry out the said activities.

Leading is an art in directing and channelling human conduct with the aim
to achieve all objectives that have been determined.

Controlling by performance evaluation for all the objectives set in order to

determine the reasons for deviation and taking appropriate action
whenever necessary.

Exercise 1.2
TRUE (T) or FALSE (F) Statements

1. F
2. F
3. T
4. T
5. T

Multiple Choice Questions

1. D
2. B
3. A
4. C
5 B
198 X ANSWERS

TOPIC 2: PLANNING

Exercise 2.1
Essay Question

1. One-time usage planning is a planning made to fulfil one particular

purpose only

Fixed planning is a planning made for managing events that occurs

repeatedly in an organisation.

Exercise 2.2
Essay Question

1. The disadvantages of making plans are:

(a) it restricts changes and adaptations in an organisation
(b) an incorrect prediction of the future will result in the planning done
also being incorrect.
(c) separation between the planner and the executor causes the planning
made to be ineffective.

Exercise 2.3
Multiple Choice Questions

1. C
2. C
3. D
4. C
5. B

TRUE (T) / FALSE (F) Statement

1. T
2. T
3. F
4. F
5. F
 ANSWERS W 199

TOPIC 3: DECISION MAKING

Exercise 3.1
1. Certainty condition ă where the decision maker has the complete
information in assisting him to make decisions. With this complete
information, the decision maker will be able to know for certain on the
results that will be generated by each decision alternatives, and later
choosing the alternative that will bring the most optimum result to be
executed.

Uncertainty condition ă a condition where the decision maker does not has
any information to be used in assisting him to make decisions. Thus, the
decisions made depend most on the experience and consideration of the
decision maker.

Risk condition ă in this condition, the decision maker has the information
needed to make decisions but the information is incomplete and
insufficient. Therefore, the results generated from each decision alternatives
are not able to be predicted for certain.

Exercise 3.2
1. Bounded rationality, that is, decision making is bounded by certain
problems such as limited resources, excess information, memory problem
and expertise problem of the decision maker.

The general mistakes in decision making are: making biased decisions or

making decisions purely based on intuition alone without taking into
consideration the available facts.
Decision making in risk environment also will limit the rational decision
making. This is because incomplete information can result in not making
the best decision.

Exercise 3.3
1. Decision making can be improved through these methods in the process of
making decisions:
(a) Implementing the rules of decision making namely the law of priority
and rule of minimum condition;
(b) Conducting the test of variable; and
(c) Making decision in groups.
200 X ANSWERS

Exercise 3.4
1. There are two advantages of electronic brainstorming compared to face-to-
face brainstorming:
(a) Group members are able to state their respective ideas at any times
without having to wait for their turns to give out the opinions.
(b) Able to avoid the feeling of shame or low self-esteem if the
suggestions were rejected since the identity of the contributor is not
featured on the computer screen.

Exercise 3.5
Multiple Choice Questions

1. A
2. C
3. D
4. C
5. C

TRUE (T) or FALSE (F) Statements

1. F
2. T
3. F
4. F
5. T

TOPIC 4: ORGANISATION STRUCTURE

Exercise 4.1
The factors that can influence the structure of an organisation are:
(a) Organisation strategy
(b) Organisation size
(c) Technology
(d) Environment
 ANSWERS W 201

Exercise 4.2
1. (a) Functional Departmentalisation
The type of departmentalisation where all jobs and employees are
divided into separated units that are responsible towards a particular
function of business or area of expertise.

Advantage
Functional departmentalisation is able to avoid multiplication of work
and resource usage in organisation.

Disadvantage
Functional departmentalisation can delay the process of decision
making and produce managers and employees with limited
experience and expertise.

(b) Geographic Departmentalisation

The type of departmentalisation that coordinates the job and
employee into separated units responsible in conducting business
activities in certain geographical area.

Advantage
The advantage of geographic based department is that it can help the
organisation to act faster and more efficiently towards demand from
certain markets within the responsibility of the particular department.

Disadvantage
The disadvantage of this type of departmentalisation is that it can
cause multiplication of work and resource usage in organisation.

Exercise 4.3
1. (a) Chain of Command
Chain of command explains who needs to report to whom, that is,
individuals who are at the top level are more powerful compared to
the individuals at the lower level. Chain of directives also shows the
flow of directive path or authority in organisation.

(b) Difference between Line Authority and Line Function

Line authority is related to the rights of making decision and giving
directives to employees who are in the chain of directives of a
particular manager. Meanwhile, line function means the activities that
202 X ANSWERS

directly contribute in the aspect of invention and sales of

organisationÊs products and services to the customers.

(c) Span of Control

Span of control gives details on the number of employees placed
under the supervision of a manager.

Exercise 4.4
1. (a) Job Enlargement
Job enlargement means addition of activities or tasks into a particular
area of work.
(b) Job Enrichment
Job enrichment means increasing the depth of job; not only there is an
addition in the number of tasks in a particular area but employees are
also given the authority and control to make decisions on their job.
(c) Job Rotation
Job rotation means employees shifted from one area of job
specification to another area of job specification either periodically or
non-periodically.

Exercise 4.5
1. Mechanistic organisation is an organisation that has a high level of job
specification, high level of formality, a rigid chain of directives, practices
centralisation of control and vertical or upwards communication.
Meanwhile, an organic organisation is an organisation that has a chain of
directives that is not rigid, a low formality level, a low level of job
specification, practices decentralisation of control and horizontal
communication.

Multiple Choice Questions

1. C
2. A
3. B
4. A
5. B
 ANSWERS W 203

TRUE (T) or FALSE (F) Statements

1. F
2. T
3. T
4. T
5. F

TOPIC 5: HUMAN RESOURCE MANAGEMENT

Exercise 5.1
1. Human resource management is a process of obtaining, developing and
retaining qualified employees sufficiently towards achieving goals that
have been set.

2. Stages involved in the process of human resource management are as

follows:
(a) Determining the needs of human resource
(b) Attracting the interest of qualified candidates
(c) Development of qualified employees
(d) Retaining qualified employees

Exercise 5.2
Job analysis is a process of detailed study regarding tasks related to a particular
work area and human qualities needed in performing the particular job. The
result of study will form the job description and job specification. Job description
is a written statement that clearly explains the job, duties, responsibilities,
activities and performance result required from the job holder. Meanwhile, job
specification is a written statement regarding qualifications such as level of
academic achievement, work experiences and other skills required from the job
holder.

Exercise 5.3
The two types of forecasting of the total number and types of employee are
external forecasting of organisation and internal forecasting of organisation.
204 X ANSWERS

Exercise 5.4
Organisation can implement two methods of recruitment: internal recruitment
and external recruitment.

Exercise 5.5
In the process of selecting qualified candidates, organisation must perform two
main processes, which are the process of gathering information to be evaluated
and the process of selecting the best candidate for the position offered.

Exercise 5.6
Training methods that can be implemented by an organisation are as follows:
(a) On-the-job training
(b) Vestibule training
(c) Apprentice training
(d) Off-the-job training

Exercise 5.7
1. The following are the individuals or groups having potential in becoming
the job performance evaluator for an employee:
(a) Supervisors/managers
(b) Colleagues
(c) Subordinates
(d) Other parties who are related to the particular employee such as
customers, suppliers and others.

Exercise 5.8
Essay Question

Financial rewards are rewards in terms of money such as pay of wage,

commission, bonus, share ownership, and dividend payment given to employees
as a return for their contribution of energy and effort towards the organisation.
Meanwhile, employeesÊ benefits are non-financial rewards given to the
 ANSWERS W 205

employees such as medical facilities, travelling, life insurance, discounts on

products and services of the company, paid leaves and sick leaves.

Exercise 5.9
1. The four ways of employee separation that are usually faced by employees
and organisations are:
(a) Employee termination
(b) Organisation downsizing
(c) Retirement
(d) Employee turnover

Exercise 5.10
Multiple Choice Questions

1. A
2. B
3. A
4. C
5. D

TRUE (T) or FALSE (F) Statements

1. F
2. F
3. T
4. F
5. T

Essay Question

There are four basic to the decision of reward granting which are levelled
payment, variable payment and payment structure and employment benefits.
The decision of levelled payment means determining the decision in making
payment to employee at the level higher or lower or at the same level with the
wage payment tier in the labour market. Variable payment is the payment
decision made in variable from one individual to another based on the individual
performance and the organisation. Meanwhile, payment structure refers to how
far employees in the organisation receive different levels of payment.
Employment benefits cover rewards other than the direct salary given to the
employees.
206 X ANSWERS

TOPIC 6: COMMUNICATION IN ORGANISATIONS

Exercise 6.1
Among them is to motivate, inform, control and to fulfil social needs.
Communication in the form of motivation has the purpose of influencing the
behaviour of the members of an organisation. Communication also has the role of
a control function. Communication will coordinate and unite work and tasks.
Managers need to communicate to fulfil social needs. Communication has a role
in fulfilling social needs through interactions that are not related to work and
emotions.

Exercise 6.2
Communication is an act of sending or spreading information. Communication is
a dynamic and complex process and involves many factors. There are eight
elements involved in the communication process which are, sender, encoding,
message, channel, decoding, receiver, feed back and disruption/Noise.

Exercise 6.3
TRUE (T) or FALSE (F) Statements

1. F
2. T
3. T
4. F
5. T

Multiple Choice Questions

1. B
2. A
3. D
4. B
5. D
 ANSWERS W 207

TOPIC 7: MOTIVATION

Exercise 7.1
Need-based models are motivation models that emphasise on the specific needs
of human and internal factors that give the power to direct and stop actions.
Need-based models explain motivation as a phenomenon that takes place
internally. Process-based models are motivation models that focus on the
understanding of thinking or cognitive process in the mind of individuals and
affect behaviour.

Exercise 7.2
Motivation factors are factors related to the work being carried out and it is
related to the positive feeling towards the work. Motivation factors consist of the
work itself, achievement, career growth and responsibilities. Hygiene factors
refer to the context of work and the environment where the work is being carried
out. These factors are supervision, workplace condition, individual relationship,
salary, safety and administration and policies of the company.

Exercise 7.3
Expectancy model has the purpose of predicting and describing the relations
between task and effort. It suggests that work motivation is determined by
perception and beliefs of individuals towards the relationship between effort and
performance and beliefs towards result expectation related to the different levels
of performance. The equity model focuses on the feelings of individual regarding
equality in the treatment given compared to other people. This model suggests
that individuals will try to reduce the inequalities felt if it exists.

Exercise 7.4
Two types of reinforcements used are elimination and punishment. Elimination
involves the absence of positive outcome or effect, or drawing back the positive
outcome that affects the desired behaviour. Punishment is the giving of negative
effect as the result of the occurrence of undesired matters. As an example, an
employee who is always late for work can be suspended or have his pay
confiscated. Both forms of elimination reinforcement and punishment can be
used to reduce the frequency of undesired behaviour. There are many studies
conducted had shown that rewards can increase the level of satisfaction and
motivation compared to punishment.
208 X ANSWERS

TRUE (T) or FALSE (F) Statements

1. T
2. F
3. F
4. T
5. T

Multiple Choice Questions

1. C
2. C
3. D
4. D
5. A

TOPIC 8: LEADERSHIP

Exercise 8.1
From both studies, the results achieved are quite similar. Both have given two
main dimensions which are task dimension and relation dimension.

Exercise 8.2
Favourable situations occur when leaders are able to influence their followers
and this is determined by leader-subordinate relations, task structures and
position power. Generally, a leader with relations orientation and a high LPC
grade are considered as better leaders in intermediate favourable situations.
Leaders that are task-oriented with low LPC grade are better leaders in very
highly favourable situations or in unfavourable situations.

Exercise 8.3
Transformational leaders will motivate their employees to perform more than
what have been expected by initiating the feelings of importance and value of the
task in each individual. This can be done by creating interest in employees to
perform every matter for the sake of the interest of the group and the
organisation besides fulfilling their own needs of self-achievement. Transactional
leadership is based on the process of exchange, where subordinates are given
rewards for good achievement and punished for unsatisfying achievement.
 ANSWERS W 209

TRUE (T) or FALSE (F) Statements

1. F
2. T
3. F
4. T
5. T

Multiple Choice Questions

1. C
2. D
3. D
4. D
5. B

TOPIC 9: CONTROL

Exercise 9.1
Control is a process in ensuring that organisational activities are running
according to the plan. This process can be carried out by comparing the true
performance with the standard that had been established and taking corrective
actions in order to rectify any distortion that does not comply with the standard.

Exercise 9.2
Control process consists of three basic methods which are future control which is
also known as prevention control, concurrent or present control, and feedback
control. There are five forms of control that can be used by managers in
implementing control process; bureaucratic control, objective control, normative
control, concertive control and self control.

Exercise 9.3
One of the important areas that need to be controlled is the area of finance. There
are times when financial performance does not reach the standard or not as
expected. If this condition remains undetected and relevant actions are not taken,
the existence of the company might be in jeopardy.
210 X ANSWERS

Exercise 9.4
TRUE (T) or FALSE (F) Statements

1. T
2. F
3. T
4. T
5. T

Multiple Choice Questions

1. B
2. A
3. A
4. C
5. B

TOPIC 10: MANAGING TEAMS

Exercise 10.1
Team work is the task performed through coordinated effort among team
members where team members contribute towards the implementation of the
same objective. Meanwhile, group work is a task performed without coordinated
effort.

Exercise 10.2
Team strengths are the ability to increase customer satisfaction, increase the
quality of products and services of the organisation, and also the ability to
increase job satisfaction.

Team weaknesses are such as a high level of turnover during the initial stage of
team formation, social loitering and behaviour of self-restriction.

Exercise 10.3
Team does not need to be formed when the job performed does not involve
combination or coordinated effort among the employees; rewards towards
performance are only based on individual effort and performance; and resources
needed are unavailable.
 ANSWERS W 211

Exercise 10.4
1. (a) Self-designed team
(b) Virtual team

Exercise 10.5
1. Team will undergo development phases:
(a) Forming
(b) Storming
(c) Norming
(d) Performing
(e) De-norming
(f) De-storming
(g) De-forming

Exercise 10.6
1. A small number of team members are necessary in order to avoid the
situations of social loitering and behaviour of self-restriction. Besides that, a
small number of team members will strengthen the interaction among the
members and speed up the process of decision making.

2. Team work consists of a small number of team members with skills that are
complimentary to each other, being responsible and had agreed in
achieving the same goals. Team work is becoming more popular because it
can help the organisation to react fast and properly towards a certain
problem and challenge, and able to increase the performance of the
organisation compared to the traditional approach.

Multiple Choice Questions

1. A
2. A
3. A
4. B
5. B
212 X ANSWERS

TRUE (T) or FALSE (F) Statements

1. T
2. F
3. T
4. F
5. F

TOPIC 11: INNOVATION AND CHANGE

Exercise 11.1
The life-cycle of technology will undergo the phases of birth, increase in
development and maturity before it is substituted by a new technology.

Exercise 11.2
1. (a) Innovation is good ideas that begin with creativity.
(b) Technology is the knowledge, tools, equipment and techniques and
methods used to change input into output.
(c) Creative work environment means workplace culture where
employees believe that new ideas are valued, appreciated and
encouraged.

Exercise 11.3
Try to think of the examples and discuss them with your friends or tutor.

Exercise 11.4
There are two types of change in organisations: first order change that is linear in
nature, slow and happens in stages; and second order change that is radical in
nature, multidimensional and multilevel.

Exercise 11.5
1. Aspects that can be changed by change agents are:
(a) Organisation structure
(b) Technology in organisations
 ANSWERS W 213

(c) Physical layout in organisations

(d) Employees within the organisation

Exercise 11.6
Negotiation is an approach that fulfils the wants of those who are causing
barriers by granting those rewards in exchange for the cooperation given.

Co-optation is the approach of ÂbuyingÊ the leader of group who is a barrier

towards change so that this leader will influence his followers to change their
minds and then cooperating towards the change.

Force is an approach using threat to instill fear to the parties causing barriers in
order for them to cooperate.

Exercise 11.7
Kurt Lewin proposed a theory related to the management of organisation
change. This theory involves the process of liquidation, change intervention and
freezing. Liquidation refers to getting individuals who are affected by the
changes in believing the needs towards changes. This process tries to liquidate
the culture or other matters that can bring obstruction towards changes. Change
intervention means the processes used towards employees and managers in
order to change their behaviour and work practices (that had been liquidated).
Meanwhile, freezing refers to supporting and strengthening the change that was
successfully carried out in order for it to prolong.

Exercise 11.8
Multiple Choice Questions

1. C
2. B
3. D
4. C
5. C