Essentials of Management

4 June 2015

Examination Paper
Section A You must answer this question, using the case
study where instructed.
Section B Answer any TWO (2) questions from this section.

Clearly cross out surplus answers.

Failure to do this will result in only the first
TWO (2) answers being marked.

Time: 3 hours

The maximum mark for this paper is 100.

Any reference material brought into the examination room must be

handed to the invigilator before the start of the examination.
 Section A
You must answer this question
Marks
Question 1

You work for a business that provides a range of services aimed at helping local
organisations respond to the threats of climate change. The mission of the organisation is
to help organisations reduce global warming by cutting down their carbon emissions.

The services include the following:

 Providing a range of consultancy services that offer guidance on adopting

renewable energy solutions;
 Developing publications on environmental issues for sale to organisations;
 Running training courses and seminars to both educate and sell-on other offerings.

In addition to the above, a range of new, innovative products and services are currently
being developed.

Currently the business has 55 staff in total, made up of managers, consultants, trainers,
sales and marketing staff, and administrators. However, the levels of enquires and
invitations to submit proposals for new work are increasing quickly and it has become clear
that if the business wishes to take advantage of these new opportunities, it will have to
increase the number of staff within the business.

The current options open to the business in order to achieve this are:

 To grow the business in an organic way by taking on new full time staff as and
when new business is secured;
 To plan for growth and recruit new full time staff in anticipation of winning new
business;
 To initially use contract staff on short term agreements until the level of new
business increases sufficiently to justify recruiting new full time staff.

There are attractions and risks to each of the above options and the owner of the business
has asked you to provide an appropriate recommendation based upon your own
knowledge and judgement.

The owner has also asked you to consider which organisational strategy should be
adopted by the business to enable it to grow successfully over the next few years.

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Essentials of Management © NCC Education Limited 2015
 Marks
Where instructed, you should apply your answers in Question 1 to the case
study.

a) Effective decision-making is ensuring that the business arrives at the correct

conclusions when deciding on how to plan for future staffing levels.

i) List the EIGHT (8) steps in the effective decision-making process. 8

ii) Risk and uncertainty are two decision making conditions. Explain why these 6
TWO (2) conditions will be particularly important to the business as it seeks
to arrive at a suitable decision on its approach to future staffing levels. Make
sure you link risk and uncertainty to the given case study.

iii) Assume that you are responsible for making the decision on the most 8
suitable approach for the staffing levels of the business in the future. Give
your recommendation on the preferred approach and briefly list THREE (3)
key reasons for why you arrived at your decision. Make sure you link risk and
uncertainty to the given case study.

b) i) Explain which corporate-level strategy you believe is the correct one for the 8
business to adopt, giving THREE (3) reasons for your selection. Make sure
you connect your answer to the case study.

ii) Cost leadership and differentiation are two common types of competitive 6
strategy. Briefly describe each of these strategies and select the ONE (1)
that you believe is the most applicable for this business, giving the key
reason for your selection.

iii) Explain briefly why an organisation might wish to be a first mover within a 4
particular market.

c) A SWOT analysis plays a key role in the strategic management process.

i) Define the term strategic management process. 2

ii) Explain the purpose of undertaking a SWOT analysis. 6

iii) Why would an organisation develop a mission statement? 2

Total 50 Marks

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Essentials of Management © NCC Education Limited 2015
 Section B
Answer any TWO (2) questions from this section

Please note: these questions should not be answered in connection to the case
study.

Question 2

a) List and briefly describe the FIVE (5) needs contained within Maslow’s Hierarchy 10
of Needs.

b) What are the names of the two researchers who were responsible for developing 2
the Leader Participation Model?

c) There are a number of different sources of power that enable leaders to influence 6
the work actions of their staff. Briefly describe each of the following sources of
such power:

 Legitimate power
 Coercive power
 Referent power

d) What are the THREE (3) main activities undertaken by a manager as part of the 3
Controlling function?

e) Why are Conceptual Skills commonly required to perform the duties and activities 4
of a manager?

Total 25 Marks

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Essentials of Management © NCC Education Limited 2015
 Marks
Question 3

a) There are different examples of formal groups. What are the key differences 4
between a Command Group and a Task Group?

b) List TWO (2) potential advantages and TWO (2) potential disadvantages of using 4
a group for decision making purposes.

c) Give examples of TWO (2) liquidity ratios. Briefly explain the purpose of each of 6
these ratios.

d) Why do organisations use benchmarking? 3

e) Increasing use of technology and increasing competitiveness are frequently 8

mentioned as two of the primary reasons why a manager’s job is changing in
today’s business world. Explain why this might be the case.

Total 25 Marks

Question 4

a) Job involvement and organisational commitment are both types of job-related 8

attitudes. Define each of these terms and briefly explain the potential benefits to
an organisation with employees who display these attitudes.

b) List FOUR (4) popular contingency variables that are commonly found in the 4
contingency approach to management.

c) Give TWO (2) examples of how the principles of Scientific Management can be 2
used to today’s business world.

d) Briefly describe the main characteristics of each of the following personality traits 9
found in the Big Five Model:

 Extraversion
 Agreeableness
 Conscientiousness

e) Why is control important in the context of a business? 2

Total 25 Marks

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Essentials of Management © NCC Education Limited 2015