RICHFIELD GRADUATE INSTITUTE OF TECHNOLOGY (PTY) LTD

HIGHER EDUCATION AND TRAINING

FACULTY OF BUSINESS LEADERSHIP
BUSINESS MANAGEMENT 621

1ST SEMESTER FINAL NATIONAL EXAMINATION

DURATION: 2 HOURS MARKS: 100 DATE: 03 JULY 2019

EXAMINER: MS. MELINI NAIDOO INTERNAL MODERATOR: MR. EDWARD HLENGWA

EXTERNAL MODERATOR: DR R. I. MORGAN
This paper consists of 5 questions of 9 pages including this page.
PLEASE NOTE THE FOLLOWING:
1. Ensure that you are writing the correct examination paper, and that there are no missing pages.
2. You are obliged to enter your student details on the answer sheet. The answer sheet provided are
the property of Richfield Graduate Institute of Technology (Pty) Ltd and all extra sheets must be
handed to the invigilator before you leave the examination room.
3. If you are found copying or if there are any documents / study material in your possession, or writing
on parts of your body, tissue, pencil case, desk etc. your answer sheet will be taken away from you
and endorsed accordingly. Appropriate disciplinary measures will be taken against you for violating
the code of conduct of Richfield Graduate Institute of Technology (Pty) Ltd Examinations Board.
Therefore, if any of these materials are in your possession you are requested to hand these over to
the invigilator before the official commencement of this paper.
4. The question paper consists of 3 sections.
4.1. Sections A and B are compulsory.
4.2. Section C comprises of 3 questions; you are required to answer any 2 questions.

SUGGESTED TIME REQUIRED TO ANSWER THIS QUESTION PAPER

NUMBERS QUESTIONS MARKS TIME IN MINUTES
SECTION A: MULTIPLE CHOICE QUESTIONS COMPULSORY
1 Question One 30 35
SECTION B: SHORT QUESTIONS COMPULSORY
2 Question Two 30 35
SECTION C: ANSWER ANY TWO QUESTIONS
3 Question Three 20 25
4 Question Four 20 25
5 Question Five 20 25
TOTAL 100 120

Initiated By Academic Director Dr Muni Kooblal Document No Exams /01/2019

Authorised By Group Chief Executive Officer Mr J Ramnundlall Revision No 01/2015
Issuing Office Head Office – Main Campus CONTROLLED COPY Revision Date 03/06/2019
Document BM 621 Issue Date 03/06/2019

Page 1 of 9
SECTION A: ANSWER ALL QUESTIONS

QUESTION ONE (30 MARKS)

Four (4) alternatives are provided for each of the following questions. Choose the correct alternative
for each of the questions/statements and write down the alphabet corresponding to your choice next
to the question number in the answer sheet provided.

1.1 A retail store applies the queuing theory for analysing the costs of clients waiting in queues in their
different branches. By applying the queuing theory, the retail store is trying to achieve an optimal
balance between the_________ and the________. (1)
A. cost preventing individuals from waiting for services; bank’s return on investment
B. productivity of their tellers; satisfaction of their clients
C. cost of increasing service; amount t of time individuals must wait for service
D. number of individuals waiting for service; capacity of their clients

1.2 An information system utilizes _________to perform the basic activities of___________. (1)
A. hardware, software and human resources; input, processing, output, feedback, control and
storage
B. data and information planning
C. information technology; operational efficiency
D. computers; input, processing and output

1.3 When a company needs a computer network that links the company with its employees, suppliers,
clients and other stakeholders electronically, they should use the__________. (1)
A. world wide web
B. intranet
C. extranet
D. internet

1.4 The first item to be reviewed during a structured walkthrough is the documentation that was
developed as part of the ____ phase of the systems development life cycle. (1)
A. design
B. planning
C. analysis
D. Implementation

Initiated By Academic Director Dr Muni Kooblal Document No Exams /01/2019

Authorised By Group Chief Executive Officer Mr J Ramnundlall Revision No 01/2015
Issuing Office Head Office – Main Campus CONTROLLED COPY Revision Date 03/06/2019
Document BM 621 Issue Date 03/06/2019

Page 2 of 9
1.5 Rainbow Chickens used to own their own fleet of trucks. This was costly for the business as it was not
their core competency. As a result, they decided to outsource that function and sold all their trucks,
allowing them to allocate funds that were received in product development. What kind of a role was
taken by the CEO of Rainbow chickens? (1)
A. Interpersonal role
B. Decision-making role
C. Information role
D. Tactical

1.6 Walton’s has been manufacturing staplers of high quality standard thus creating value for their
customers, meaning that the company is being _________. (1)
A. efficient
B. effective
C. accurate
D. sufficient

1.7 OLX has experienced a no demand state for its newly developed face wash products during the past
few months. The company is then not being ________ with its scarce resources. (1)
A. effective
B. efficient
C. resourceful
D. sufficient

1.8 Who was recognised as the greatest European pioneer and was interested in the administrative side
of operations. (1)
A. Max weber
B. Mayo
C. Henri Fayol
D. Fredrick W. Taylor

1.9 Select the BEST alternative that describes an organisational principle associated with grouping
related activities together. (1)
A. Delayering
B. Standardisation
C. Departmentalisation
D. Decentralised authority

Initiated By Academic Director Dr Muni Kooblal Document No Exams /01/2019

Authorised By Group Chief Executive Officer Mr J Ramnundlall Revision No 01/2015
Issuing Office Head Office – Main Campus CONTROLLED COPY Revision Date 03/06/2019
Document BM 621 Issue Date 03/06/2019

Page 3 of 9
1.10 Select the option that BEST describes the relationship between quality management and product
strategy. (1)
A. Product strategy is set by top management; quality management is an independent activity
B. Quality management is important to the low-cost product strategy, but not to the response or
differentiation strategies
C. High quality is important to all three strategies, but it is not a critical success factor
D. Managing quality helps build successful product strategies

1.11 Nhlanhla Shange has been experiencing bullying at work by his colleague. He then decided to go to
his manager because she has the skill to deal with people effectively. What kind of a skill does
Nhlanhla’s manager have? (1)
A. Technical
B. Interpersonal
C. Conceptual
D. Tactical

1.12 The unwritten, common rules and perceptions about relationships among people and between
people and organizations are called ________. (1)
A. political contracts
B. social contracts
C. human relations perspective
D. systems viewpoint

1.13 _______is the process of taking a creative idea and turning it into a useful product, service, or method
of operation. (1)
A. Innovation
B. Imagination
C. Team building
D. Uncertainty

1.14 What OD technique involves changing the attitudes, stereotypes, and perceptions that work groups
have about each other? (1)
A. team building
B. intergroup development
C. survey feedback
D. sensitivity training

Initiated By Academic Director Dr Muni Kooblal Document No Exams /01/2019

Authorised By Group Chief Executive Officer Mr J Ramnundlall Revision No 01/2015
Issuing Office Head Office – Main Campus CONTROLLED COPY Revision Date 03/06/2019
Document BM 621 Issue Date 03/06/2019

Page 4 of 9
1.15 Before using the same OD techniques to implement behavioural changes, especially across different
countries, managers need to be sure that they’ve taken into account _______________. (1)
A. cultural characteristics
B. organizational differences
C. employee attitudes
D. societal differences

1.16 An individual is likely to resist change because of all of the following reasons except _______. (1)
A. uncertainty
B. increased productivity
C. concern over personal loss
D. belief that the change is not in the organization’s best interest

1.17 To cope with the complexity of life, individuals rely on habits or _______________. (1)
A. programmed responses
B. the status quo
C. beliefs
D. certainties

1.18 Which of the reasons for resistance to change expressed by an employee may be beneficial to the
organization? (1)
A. uncertainty
B. freezing
C. change is incompatible with the interests of the organization
D. refreezing

1.19 All of the following are mentioned as actions that managers can use to deal with resistance to change
except ______________. (1)
A. education and communication
B. diversification
C. participation
D. facilitation and support

Initiated By Academic Director Dr Muni Kooblal Document No Exams /01/2019

Authorised By Group Chief Executive Officer Mr J Ramnundlall Revision No 01/2015
Issuing Office Head Office – Main Campus CONTROLLED COPY Revision Date 03/06/2019
Document BM 621 Issue Date 03/06/2019

Page 5 of 9
1.20 _________ refers to an organisation’s ability to meet it short-term obligations. (1)
A. Leverage
B. Liquidity
C. Activity
D. Profitability

1.21 For ________ to be effective, there must be mutual trust and credibility between managers and
employees. (1)
A. education
B. coercion
C. negotiation
D. participation

1.22 The Ford Motor Company has the ability to assemble a car and deliver it straight to its customers.
What kind of an activity is being performed by The Ford Motor company? (1)
A. Primary activities
B. Secondary activities
C. Manufacturing activities
D. Logistical activities

1.23 The purchasing manager at Toyota Durban has recently purchased a new assembling machine but
none of the shop floor workers are able to operate it. Thus a supervisor was hired to train workers.
What kind of a skill was missing from the workers? (1)
A. Tactical
B. Technical
C. Knowledge
D. Conceptual

1.24 Falling interest rates are an example of what external force? (1)
A. Marketplace
B. Government laws and regulations
C. Labour markets
D. Economic changes

Initiated By Academic Director Dr Muni Kooblal Document No Exams /01/2019

Authorised By Group Chief Executive Officer Mr J Ramnundlall Revision No 01/2015
Issuing Office Head Office – Main Campus CONTROLLED COPY Revision Date 03/06/2019
Document BM 621 Issue Date 03/06/2019

Page 6 of 9
1.25 A graphic planning and control method in which a project is broken into separate parts. Select the
BEST option. (1)
A. Entity-relationship diagram (ERD)
B. Gantt chart
C. work breakdown structure
D. context diagram

1.26 Traditionally, a span of management of about _________ has been recommended. (1)
A. three
B. five
C. fifteen
D. seven

1.27 Which of the following organizations have a flat structure compared to others? (1)
A. Organization A with eleven hierarchical levels
B. Organization B with three hierarchical levels
C. Organization C with eight hierarchical levels
D. Organization D with six hierarchical levels

1.28 Which of the following factors is NOT associated with larger span of control? (1)
A. Work performed by subordinates in stable and routine.
B. Subordinates perform similar work tasks.
C. Subordinates are located at various different locations.
D. Subordinates are highly trained and need little direction.

1.29 The _________ is a sequence of tasks that cannot be delayed without causing the project to be
completed late. (1)
A. float
B. critical path
C. payback period
D. milestone

1.30 Select the correct statement in the context of management. (1)

A. Planning is done by top management only
B. Top management relies primarily on their technical skills when planning for the future
C. Supervisors are responsible for tactical planning in an organisation
D. Strategic plans are translated into tactical and operational plans

Initiated By Academic Director Dr Muni Kooblal Document No Exams /01/2019

Authorised By Group Chief Executive Officer Mr J Ramnundlall Revision No 01/2015
Issuing Office Head Office – Main Campus CONTROLLED COPY Revision Date 03/06/2019
Document BM 621 Issue Date 03/06/2019

Page 7 of 9
SECTION B: COMPULSORY (30 MARKS)

QUESTION TWO (30 MARKS)

Read the following case study and answer the questions that follow:

Sappi Limited

The following excerpt comes from Sappi Annual Report for 2015.

Sappi is a global company focused on providing dissolving wood pulp, paper pulp and paper-based
solutions to its direct and indirect customer base across more than 160 countries. Our dissolving wood
pulp products are used worldwide by converters to create viscose fibre for fashionable clothing and
textiles, acetate tow, pharmaceutical products as well as a wide range of consumer and household
products.

Our market-leading range of paper products includes coated fine papers used by printers, publishers and
corporate end users in the production of books, brochures, magazines, catalogues, direct mail and many
other print applications, casting release papers used by suppliers to the fashion, textiles, automobile and
household industries, newsprint, uncoated graphic and business papers premium papers and premium
quality packaging papers and tissue products in the Southern Africa region. The wood and pulp needed
for our products are either produced within Sappi or brought from accredited suppliers.

Sappi has a tradition of innovating and developing new products to meet local demand. As part of our
strategy to rationalize declining business, focus on business where we have a competitive advantage and
strengthen our balance sheet, we entered into agreements to sell both our Enstra and Cape Kraft Mills.
After the end of the financial year, we received approval from the Competition Commission and both
transactions were realized in October and November 2015 respectively.

Source: Sappi.2015. Sappi Annual Report. Available at https://cdn-s3.sappi.com/s3fs-

public/slices/downloads/2014-Sappi-Integrated-Report.pdf(Assessed: 9 September 2016)

Questions:

2.1 Expound the internal growth strategies that the case study refers to. (15)
2.2 Based on the information provided on Sappi in the case study, Analyse why did the company decide
to sell some of its businesses? (15)

Initiated By Academic Director Dr Muni Kooblal Document No Exams /01/2019

Authorised By Group Chief Executive Officer Mr J Ramnundlall Revision No 01/2015
Issuing Office Head Office – Main Campus CONTROLLED COPY Revision Date 03/06/2019
Document BM 621 Issue Date 03/06/2019

Page 8 of 9
SECTION C: ANSWER ANY TWO QUESTIONS (40 MARKS)

QUESTION THREE (20 MARKS)

Delegation is assigning responsibility and authority to someone in order to complete a clearly defined and
agreed upon task while you retain ultimate responsibility for its success. Delegation incorporates
empowering your teammates through effective leadership, and may be directed in any direction and used
in any organization.

Expound the delegation process and guidelines that managers should follow when delegating tasks to
subordinates. (20)

QUESTION FOUR (20 MARKS)

Change management is a structured approach to moving an organisation from the current state to the
desired future state. Recommend ways in which management can prepare for change in the business
environment. Provide practical examples to enhance your analysis. (20)

QUESTION FIVE (20 MARKS)

Read the mini case study and answer the questions that follow:

ABC Traders has a notorious reputation of ill-treating, underpaying and overworking their employees. In
further to such ABC Traders has a staff of 150 employees; however, there is no Human Resources
Department. In addition to such there is no pay structure and it has been discovered that employees are
being paid different wages for performing similar work activities.

The flow of communication between management and employees is downward, in which unilateral
decisions are made without employee buy in, in terms of decision making. As such there is no staff morale.
Aggravated by such there is also no room for employee’s growth.

Management is under qualified and therefore lacks insight. Strategic formulation is conducted
independently in which management sets the policy and shop floor workers must comply. The vision and
mission of the company is not in keeping with the company’s resources and potential

Question:

Assume you have been appointed as an Independent Management Consultant by ABC Traders, advise the
Top Management how to address and solve the current challenges facing the organisation. (20)

END OF PAPER – ALL THE BEST!!!

Initiated By Academic Director Dr Muni Kooblal Document No Exams /01/2019

Authorised By Group Chief Executive Officer Mr J Ramnundlall Revision No 01/2015
Issuing Office Head Office – Main Campus CONTROLLED COPY Revision Date 03/06/2019
Document BM 621 Issue Date 03/06/2019

Page 9 of 9