BHMH2004 Managing Organisations Examination Skills Workshop

Topic 7 Foundation of planning (2021/21, S1)

1. Leo Poon is the new CEO of Sunrise logistics company. He knows that there are several
important elements for making management by objectives (MBO) programme successful.
They are ____________.

(I) clear nature of goals

(II) ad hoc review of performance feedback
(III) participative decision making culture
(IV) definite time frame of plans
(V) minimal discretion and say from front line staff

(a) (I), (II) and (V) only

(b) (I), (III) and (IV) only
(c) (II), (III) and (V) only
(d) (I) and (IV) only

2. KK would like to adopt one of the two approaches to setting goals. Which of the
following is an assumption associated with traditional goal setting?

(a) Employees will be more motivated to try to attain goals that they help set.
(b) Organisational goals must not be communicated to lower level employees as they are
incapable to process them.
(c) Top managers understand what is best because they see the "big picture of the
organisations”.
(d) Organisational goals can always be perceived consistently by lower level of
management as they are broken down into individual goals.

3. Which of the following is/are NOT the determinant(s) of well-written goals?

(I) Communicated to all necessary organisational members
(II) Implication of time flexibility
(III) Idealistic with challenges
(IV) Measurable and quantifiable

(a) (II) only

(b) (I) and (III) only
(c) (II) and (III) only
(d) (I) and (IV) only

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4. As the 5-year plan of Excellent logistics company needs HK$ 2 billion, the CEO expects all
employees support and participate in the plan to make it the most successful one. Which of the
following can best help Best Deal achieve its goals?

(a) Management by objectives

(b) Traditional goal setting
(c) Means ends chain
(d) Competitor intelligence

5. One of the goals of a newspaper company is “To be a champion for free speech and for the
development of the community”. This goal constitutes the __________ goal of the company.

(a) informal
(b) strategic
(c) operational
(d) financial

6. Strategic plans are usually ____________.

(a) long term, directional and single use

(b) short term, specific, and standing
(c) short term, directional, and standing
(d) long term, specific, and standing

7. The CEO of a retail company, Mr. Punty, wants to formulate a plan that lays out general
guidelines for his employees and leaves room for interpretation. Which of the following types of
plans would best suit his requirement?

(a) Informal
(b) Standing
(c) Directional
(d) Specific

8. ____________ planning dominates managers' planning efforts at lower levels of the organisation.

(a) Operational
(b) Directional
(c) Strategic
(d) Organisation-wide

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9. Which of the following are reasons for planning?

(I) To minimise waste and redundancy
(II) To reduce uncertainty
(III) To become a socially responsible enterprise
(IV) To provide direction for the company

(a) (I) and (II) only

(b) (II) and (III) only
(c) (I), (II) and (IV) only
(d) (II), (III) and (IV) only

10. Formal planning is associated with which of the following?

(I) The quality of planning and implementation affects performance more than the extent
of planning
(II) Negative financial results
(III) The external environment has no impact on planning
(IV) The shorter the time needed for planning the better the performance

(a) (I) only

(b) (II) and (III) only
(c) (III) and (IV) only
(d) All of the above

Topic 8 Strategic Management

Read the scenario of Procter & Gamble and answer Questions 1 to 2

Procter & Gamble (P&G) is one of the largest consumer products companies in the world. P&G
has operations in more than 80 countries, with more than 300 brands on markets in 160 countries.
These include beauty care, household care and Gillette products. Each of these single businesses
forms its own competitive strategies and goals, and operates independently.

1. Procter & Gamble has several __________ to manage its massive number of businesses.
Simultaneously, it has used the __________ Matrix to help establish priorities for allocating
resources effectively so that it has become one of the largest consumer products
companies in the world.

(a) strategic alliances; BMG

(b) strategic business units; BCG
(c) strategic business units; BMG
(d) strategic alliances; BCG

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2. Suppose Plasty is one of the suppliers of plastic containers for P&G, which accounts for 40% of
its business and revenue. Plasty usually takes thorough consideration whenever there is a pressing
need for price increment to P&G. Recently, a few new manufacturers which supply both plastic
containers and green containers made with recyclable materials announced publicly that it will
come into the market early next month. Which of the following related to Plasty is FALSE?

(a) The bargaining power of Procter & Gamble is stronger than Plasty.
(b) Plasty needs to tackle the threat from the suppliers providing green containers made with
recyclable materials.
(c) Plasty’s position is relatively strong as the current rivalry in the industry has reduced since
the demand is falling.
(d) Plasty needs to cope with the threat imposed by new competitors.

3. LV is one of the world’s famous brand name and they make most expensive leather bags.
It does not conduct advertising and the small group of very rich customers has to wait at
least two years to be able to take delivery of their custom-made hand bags, wallets and key
holders. Which of the following strategy is LV using?

(a) Low-cost strategy

(b) Differentiation
(c) Focused low-cost
(d) Focused differentiation

4. Natural Beauty aims to be the lowest cost organization among its organic skincare
competitors. It has just produced a new organic face cream targeted at teenagers who have
eczema, sensitive skin and pimples, and prefers 100% handmade skin products that are
preservative free, fragrance free and mineral oil free. Which of the following strategy is
Natural Beauty using?

(a) Low-cost strategy

(b) Differentiation
(c) Focused low-cost
(d) Focused differentiation

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5. The RSS Marketing Group conducted an annual review of its operations. It found that
customers praised its company for its excellent marketing ideas and resourcefulness. However,
the report also highlighted the increasing number of similar companies in the industry which
have potential to take away the company’s marketing share.

According to SWOT analysis, which of the following have been identified in the above
scenario?
(I) Strengths
(II) Weaknesses
(III) Opportunities
(IV) Threats

(a) (I) and (IV) only

(b) (II) and (III) only
(c) (I) and (II) only
(d) (II) and (IV) only

6. Which of the following strategies is developed by lower-level managers?

(a) Stability
(b) Functional
(c) Corporate
(d) Growth

7. In an environment analysis, managers need to pinpoint the ____________ trends that the
organisation can exploit and the ____________ trends that it must counteract or buffer against.

(a) small; big

(b) internal; external
(c) fast; slow
(d) positive; negative

8. There are many flour suppliers available in the market therefore it is very easy for A+Bakery to
purchase flour from any flour supplier. This example shows that the ____________ is
____________ which poses a ____________ force to A+Bakery.

(a) bargaining power of suppliers; low; positive

(b) current rivalry; high; negative
(c) bargaining power of buyers; high; negative
(d) threat of new entrants; low; positive

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9. According to Boston Consulting Group matrix, managers should "milk" cash cows by
generating strong cash flow from cash cows for as much as they can, limit any new investment
in them, and use the large amounts of cash generated to invest in ____________ and
____________.

(a) dogs; stars

(b) question marks; cash cows
(c) stars; question marks
(d) cash cows; dogs

10. Which of the following are NOT the forces in the Porter’s Five Forces Model?
(I) demographical and technological factors
(II) bargaining power of suppliers
(III) future rivalry
(IV) threat of new entrants

(a) (I) and (III) only

(b) (II) and (III) only
(c) (III) and (IV) only
(d) (I) and (IV) only

Topic 9 Organizing

1. ____________ would be in place in a government organisation where different public service

responsibilities are divided into activities for employees, children, and the disabled.

(a) Product departmentalisation

(b) Geographic departmentalisation
(c) Process departmentalisation
(d) Customer departmentalisation

2. Which of the following is a weakness of the simple structure?

(a) Duplication of activities and resources increases costs and reduces efficiency.
(b) Specialists become insulated and have little understanding of what other units are doing.
(c) Pursuit of functional goals causes managers to lose sight of what is best for the overall
organisation.
(d) It relies too much on one person which is very risky.

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3. The ____________ structure assigns specialists from different functional departments to work
on projects being led by a project manager.

(a) traditional
(b) virtual
(c) network
(d) matrix

4. Which of the following best describe the mechanistic organisational structure?

(I) Wide spans of control

(II) Centralisation
(III) High specialisation
(IV) Clear chains of command

(a) (I) and (II) only

(b) (II) and (III) only
(c) (II), (III) and (IV) only
(d) (I), (III) and (IV) only

5. Which of the following is NOT part of the key elements when considering designing an
organisational structure?

(a) Direction of organisation

(b) Chain of command
(c) Span of control
(d) Formalisation

6. When the Hong Kong Police organises its forces according to the different regions of Hong
Kong in which the forces work, this is an example of which type of organisational structure?

(a) Market structure

(b) Customer structure
(c) Product structure
(d) Geographic structure

7. The Catholic Church is famous for its very flat structure. One way organisations can keep their
hierarchy flat is to __________.

(a) decrease the span of control

(b) increase the numbers of levels of management
(c) decentralise decision making
(d) enlarge jobs

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8. Employee empowerment is a crucial aspect of ________.

(a) team structures

(b) simple structures
(c) bureaucratic organisations
(d) functional structures

9. Which of the following is an advantage of a team structure?

(a) It empowers employees and makes them more involved.

(b) It reduces the pressure on teams to perform.
(c) It separates different functional groups.
(d) It establishes a clear line of managerial authority.

10. Which of the following is a disadvantage of a matrix structure?

(a) It leads to lower morale among team members.

(b) It slows down the decision-making process.
(c) It reduces organisational responsiveness
(d) It increases the stress on the workers.

Topic 10 Motivation

1. In the expectancy theory, ________ is the importance that the individual places on the
potential outcome or reward that can be achieved on the job.

(a) expectancy
(b) valence
(c) instrumentality
(d) salience

2. __________ refers to the horizontal expansion of a job by increasing job scope, or the number of
different asks required in a job and the frequency with which those tasks are repeated.

(a) Job enrichment

(b) Job scope
(c) Job depth
(d) Job enlargement

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Read the following scenario, and answer Questions 3 and 4

Sandra is the manager of an editing company with a small team of writers and clerical staff. She
realises that her subordinates are not performing well due to low motivation and lack of team spirit.
Her supervisor suggested her to use the Job Characteristics Model to redesign jobs for her small
team of writers.

3. Sandra would like to increase the task identity of the writers. Therefore, she can __________.

(a) add marketing and sales duties to existing work of the writers
(b) allow the writers to take on different part-time jobs for more income
(c) allow the writers to choose their own working time schedule
(d) let writers be responsible for executing a piece of work from start to finish

4. After carefully analysing their jobs, Sandra realises that some writers receive little feedback about
their work. Which of the following step will enable her to improve this aspect of their jobs?

(a) Adding editing and proof-reading duties to the writers’ existing work.
(b) Allowing the writers to directly conduct business with their clients.
(c) Allowing writers to choose their topics and assignments.
(d) Providing opportunity for writers to acquire new skills such as interior design.

5. Johnny realises that most of his subordinates perform well as they obtained a strong sense of
accomplishment from the work itself. This is about __________.

(a) extrinsically motivated behaviour

(b) an external locus of causality
(c) intrinsically motivated behaviour
(d) equity behaviour

6. Hilda sent an email to her subordinates and encouraged them to provide streamlined production
process ideas in the clock manufacturing plant. By stating clearly that employees could receive
$1,000 for each accepted idea, Hilda was promoting ____________.

(a) valence
(b) instrumentality
(c) expectancy
(d) effort

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7. Kowloon Community College attempts to promote good interpersonal relations among teachers
by monthly birthday parties and picnics. Thus, Kowloon Community College puts emphasis on
__________ needs.

(a) safety
(b) physiological
(c) social
(d) esteem

8. You are acting as manager and mentor to Melanie, an employee who has been identified as a
high achiever. Going by McClelland’s three-needs theory, which of the following measures
would best help you motivate Melanie to do her best?

(a) setting goals that are just out of her reach

(b) giving her a managerial position that requires her to help others accomplish their goals
(c) giving her a job that holds her personally responsible for finding solution to problems
(d) promising her a promotion and a raise if she reaches her targets

9. Which of the following is NOT true about the two-factory theory?

(a) A job becomes satisfying when the dissatisfying characteristics are removed.
(b) Intrinsic factors are motivators.
(c) Working conditions are characterised as hygiene factors.
(d) Responsibility is a satisfier.

10. The equity theory proposes that ____________.

(a) an employee compares his or her job’s input-outcomes ratio with that of relevant others and
then corrects any inequity
(b) employees are more likely to show initiative at work if they are more involved in decisions
that affect their work
(c) offering employees part of the company’s shares, or equity, motivates them to do their best
because their performance directly ties in with the company’s
(d) employees expect that exerting a given amount of effort will lead to a certain level of
performance and will be demotivated if that does not happen

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BHMH2004 Managing Organisations Examination Skills Workshop

Topic 11 Leadership

1. Early researches on leadership concentrate on traits theories which__________ .

(a) sought to prove that charisma was an essential trait of leadership

(b) focused entirely on behavioural traits rather than physical traits of a leader
(c) found consistent and unique traits that would make leaders efficient in all situations
(d) focused on characteristics that might differentiate leaders from non-leaders

2. Theodore Roosevelt once said "The best executive is the one who has sense enough to pick
good men to do what he wants done, and self-restraint to keep from meddling with them
while they do it." This implies a directive leadership is irrelevant but only if
_____________.

(a) the subordinates are experienced and independent

(b) there is substantial conflict among the group members
(c) the subordinates have an external locus of control
(d) the tasks the subordinates are selected to do are unstructured

3. Rachel's colleagues and subordinates have a very high regard for her. They know that no
one can get high-quality work done the way Rachel can. She inspires her team to excel in
their work, even exceeding their own expectations. What her subordinates like best about
Rachel is that they can even question her if they are not sure about her strategy. Which of
the following best describes Rachel's leadership style?

(a) Transactional
(b) Transformational
(c) Trait
(d) All of the above

4. Brad is the shop manager of a convenience store. He is perceived as a directive leader as he

__________.

(a) usually expresses his concerns and care for the need of his shop assistants as such they
can have a balance between work and life
(b) sets a challenging sales goal with his subordinates and requires everyone to work hard
(c) provides his shop assistants with clear work procedures and duty shift roster as such they
can follow accordingly
(d) allows shop assistants to give him ideas, opinions and suggestions to improve the work
procedures in the convenience store in order to improve efficiency

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5. To cope with needs of the fast changing tastes and preference of customers in the environment,
Lam requires his staff to create new product ideas and complete tasks on time. Hence, he
focuses on organising and empowering daily work to his staff. Lam is a / an ____________
leader based on Ohio State Study?

(a) task-oriented
(b) production-oriented
(c) initiating structure
(d) reward oriented

6. The ____________ model proposed that effective group performance depended upon the proper
match between the leader’s style of interacting with his or her followers and the degree to which
the situation allowed the leader to control and influence.

(a) path-goal
(b) situational leadership
(c) Fiedler contingency
(d) leader participation

7. At Falcons Inc., Jeremy is the head of the marketing department. However, he is not in the habit
of deciding everything on his own. He involves his team in the decision-making process as much
as possible. He believes in communicating and uses his team’s suggestions before finalizing a
decision. Jeremy’s leadership style will be classified as ____________.

(a) participative
(b) path-goal
(c) directive
(d) achievement-orientated

8. Robert is a chief engineer in Can-do Engineering Corporation. He has accumulated vast

experience and knowledge over the years and has won many awards for engineering projects. He
is well-respected by other engineers in the company. Whenever there is dispute about engineering
issues, people would like to seek advice and direction from him. Which of the following
managing power does Robert have?

(a) Charismatic power

(b) Expert power
(c) Technical power
(d) Job power

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9. Susan is the sales manager at the New York office of Delta Inc. She has a reputation of being
helpful, and understanding. Laura, one of her subordinates, recalled how Susan had even helped
her overcome a personal problem such as health crisis. Which of the following dimensions of
leadership is Susan displaying here?

(a) task orientation

(b) initiating structure
(c) employee orientation
(d) consideration

10. Sam Meyers is the manager of a department store. He has 20 employees working under him who
are mostly unhappy and discontented with the way he threatens to punish them for even minor
errors. Which of the following statements is likely to be true about Sam?

(a) Sam is using coercive power to get the job done.

(b) Sam is using reward power.
(c) Sam is a charismatic leader.
(d) Sam is using decentralisation to get the job done.

Topic 12 Control

1. A successful businessman once said that controlling was the most important part of business
operation. Control is important because it ____________.

(I) lets managers know whether their goals are on target

(II) provides managers with information and feedback on employee performance
(III) increases the power and prestige of managers
(IV) helps minimise workplace disruptions

(a) (I) and (III) only

(b) (II) and (IV) only
(c) (I), (II) and (IV) only
(d) All of the above

2. The boss of Super Steak House was very concerned about the quality of the steak served in
his company. He told his staff that each piece of steak should weigh 250 grams. However, as
long as the weight of the steak is heavier than 245 grams but no more than 255 grams, the
steak can be served to the customers. The standard of control in this case is ___________.

(a) 5 grammes
(b) 10 grammes
(c) 250 grammes
(d) None of the above

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3. KCC issued very detailed instructions on how its teachers should prepare their examination
papers before they need to actually prepare the papers. This is an example of ____________
control.

(a) feedback
(b) feedforward
(c) multiple
(d) None of the above

4. Which of the following is / are NOT example(s) of concurrent control?

(I) The alarm at the exit of the library will sound if the book is not properly checked
out.
(II) The computer will show a red line under a misspelled word.
(III) The buyers of an apartment will check the apartment before they accept the
apartment from the builder.
(IV) A safety switch will stop the lift if the lift is moving too fast.

(a) (I) only

(b) (III) only
(c) (II) and (IV) only
(d) None of the above

5. The owners of the Big Company want to measure the profitability of its operation. Which of
the ratio(s) can they use?

(I) Times interest earned

(II) Return on investment
(III) Total asset turnover
(IV) Profit margin on sales

(a) (I) and (II) only

(b) (II) and (III) only
(c) (I) and (IV) only
(d) (II) and (IV) only

6. According to our textbook by Robbins and Coulter, the control process involves
____________.

(I) taking managerial action to correct deviations

(II) setting up the rewarding standard of performance
(III) comparing actual performance against a standard
(IV) measuring actual performance

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(a) (I) and (III) only

(b) (I), (II) and (III) only
(c) (I), (III) and (IV) only
(d) All of the above

7. __________ is the search for the best practices among competitors or noncompetitors that lead to
their superior performance.

(a) Factor analysis

(b) Total quality management
(c) Market positioning
(d) Benchmarking

8. In the control process, managers could choose to do nothing when __________.

(a) an employee fails to attain the standard because of internal problems

(b) the difference between actual performance and standard performance is low and acceptable
(c) performance standards are acceptable, though the employees have not attained it
(d) the variance observed from the expected performance is caused due to poor motivation.

9. Which of the following is one of the main advantages of using statistical reports as the source of
information for measuring performance in the control process?

(a) Statistical reports allow verbal and non-verbal feedback.

(b) Unfiltered information can be obtained using statistical reports.
(c) Statistical reports are effective for showing relationships.
(d) Statistical reports can be used to obtain first-hand knowledge.

10 Leung is very serious in monitoring and controlling work. The comparing step in the control
process determines __________.

(a) a company’s relative position in the industry in terms of performance variances

(b) the ideal standard to be used in measuring organisational performance
(c) a company’s relative position in the industry in terms of the standards used
(d) the variation between actual performance and the standard

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