BENARD ODHIAMBO OKOTH

TX202/0310/2022
CAT 3
Kenya School of Revenue Administration

Diploma in Tax and Customs Administration

Management Practice and Ethics

---------------------------------------------------------------------------------------------------------------------

---------------------

INSTRUCTIONS:

Answer all questions.

QUESTION ONEA

a) EXPLAIN WHAT YOU UNDERSTAND BY THE TERM CONTROL.

Management involves directing the activities of others, control function thus, ensures people do

what should be done. It checks whether actual activities conform to plans adopted, instructions

issued and principles issued. Those Unable are trained and informed and those unwilling are

compelled to act in the organizations best interest.

b) EXPLAIN THE IMPORTANCE OF CONTROLLING IN AN ORGANIZATION

(1) Accomplishing Organizational Goals:

The controlling function measures progress towards the organizational goals and brings to light the
deviations, if any, and indicates corrective measures. It simply guides the organization and keeps it on
the right track so that organizational goals might be achieved.

(2) Judging Accuracy of Standards:

 BENARD ODHIAMBO OKOTH
TX202/0310/2022
CAT 3
A good control system enables management to verify whether the standards set are accurate and
objective. An efficient control system keeps a careful check on the changes taking place in the
organization and in the environment and helps review and revise the standards in light of such changes.

(3)Making Efficient/Economical Use of Resources:

By exercising control, the management or a manager seeks to reduce wastage and spoilage of resources.
Each activity is performed is performed in accordance with predetermined standards and norms. This
ensures that resources are used in the most effective and efficient manner.
(4) Improving employee motivation
With a good control system, employees understand in advance what they are expected to do and
standards of performance on the basis of which they will be appraised. It, thus, motivates them and
helps them to give better performance.
(5) Ensuring order and discipline
The close check on employees’ activities minimize dishonest behaviour among employees.
(6) Facilitating coordination in action
Each department and employee is governed by predetermined standards which are well coordinated
with one another. This proves that controlling provides direction to all activities and efforts for
achieving organizational goals.

c) DISCUSS THE FOUR STEPS YOU WOULD FOLLOW AS A MANAGER IN

CONTROLLING PROCESS.

 Setting Performance Standards

First step in the controlling process is setting up of performance standards. Standards are the

criteria against which actual performance would be measured. Standards can be set in both

quantitative as well as qualitative terms.

 Measurement of Actual Performance

Performance ought to be measured in an objective and reliable manner. Techniques for

measuring performance include personal observation, sample checking, performance reports etc.
 BENARD ODHIAMBO OKOTH
TX202/0310/2022
CAT 3
 Comparing Actual Performance with Standards

This step involves comparison of actual performance with the standard. Such comparison will

reveal the deviation between actual and desired results. Comparison becomes easier when

standards are set in quantitative terms. Setting standards in quantitative terms is however,

considered the most difficult task.

 Analyzing Deviations

Some deviation in performance can be expected in all activities. It is important to determine the

acceptable range of deviations. Deviations in key areas areas of business need to be attended

more urgently as compared to deviations in certain insignificant areas.

 Taking Corrective Action

The final step in controlling process is taking corrective action. No corrective action is required

when the deviations are within acceptable limits. Otherwise, it demands immediate managerial

attention so that deviation do not occur again and standards are accomplished.

D) DESCRIBE LIMITATIONS THAT ORGANIZATIONS ENCOUNTER WHEN

CARRYING OUT CONTROL FUNCTION.

a) Difficulty in setting quantitative standards

Control system losses some of its effectiveness when standards cannot be defined in quantitative

terms. This makes measurement of performance and their comparison with standards a difficult

task. Employee morale, job satisfaction and human behaviour are among areas where this

problem might arise.

 BENARD ODHIAMBO OKOTH
TX202/0310/2022
CAT 3
(b) Little Control on External Factors

Generally, an enterprise cannot control external factors such as government policies,

technological changes, competition etc.

Nevertheless, in Kenya, both political and economic power rests with nearly the same people

who uses these power to lobby, corrupt and influence government policies and to harass their

competitors. Defacto, they control the Competition Authority of Kenya, Capital Markets

Authority, other regulatory Authorities as well as parliament.

(c) Resistance from employees

Control is normally seen as restriction of freedom thus, often resisted by employees.

(d) Costly affair

Control involves a lot of expenditure, time and effort thus expensive. A small enterprise cannot

afford to install an expensive control system. Management and managers must ensure that the

costs of installing and operating a control system should not exceed the benefits derived from it.

QUESTION TWO

a) EXPLAIN STAFFING FUNCTION OF MANAGEMENT.

Staffing is the function of management which begins with workforce planning and includes

different other function like recruitment, selection, training, development, promotion,

 BENARD ODHIAMBO OKOTH
TX202/0310/2022
CAT 3
compensation and performance appraisal of workforce. It may also be defined as managerial

function of filing and keeping filled the positions in the organization structure. This is achieved

by first, identifying requirement of workforce, followed by recruitment, selection, proper

placement, promotion, appraisal and development of personnel to fill the roles designed into the

organization structure.

b) DESCRIBE THE STAFFING PROCESS CLEARLY EXPLAINING THE ELEMENTS

OR COMPONENTS OF STAFFING.

i. Estimating the manpower requirements

Involves forecasting and determining the number and kind of manpower required by the

organization in future. It involves workload and workforce analysis. Workload analysis-assess

the number and type of human resources necessary to perform various jobs in the organization.

Whereas, workforce analyses number and type of existing human resource.

ii. Recruitment

Process of searching for prospective employees and stimulating them to apply for jobs in the

organization.

iii. Selection

Choosing the right candidate for the right job from the pool of candidates obtained through

recruitment. This process ensures the organization gets best among available and it enhances the

self-esteem and prestige of those who are selected.

iv. Placement and orientation

 BENARD ODHIAMBO OKOTH
TX202/0310/2022
CAT 3
Placement refers to occupying the post or position for which the person has been selected.

Orientation/induction implies introducing the selected employee to other employees and

familiarizing him/her with rules and policies of the organization, by giving an employee a brief

presentation about the company, the superiors, subordinates and colleagues.

v. Training and development

These involve improving job knowledge, skills and attitudes of employees on a regular basis so

that they may perform their jobs efficiently. Training also helps in career building and

increasing motivation of employees.

vi. Performance Appraisal

Is evaluating of employee’s past or current performance against the predetermined standards.

vii. Promotion and career planning

This increases employee satisfaction and productivity which would serve long-term interests of

the organization. It is better planned for through drafting of succession plan.

viii. Compensation

Refers to all forms of pay or rewards given to an employee. May be in form of direct financial

payment or indirect payments.

c) DISCUSS THE IMPORTANCE OF STAFFING IN ORGANIZATIONS.

1) Obtaining competent personnel

 BENARD ODHIAMBO OKOTH
TX202/0310/2022
CAT 3
Staffing function helps in discovering and obtaining competent personnel for various jobs.

2) Survival and growth

By appointing an efficient staff, staffing ensures the continuous survival and growth of an

enterprise. An organization grows with the sincere efforts of its employees only.

3) Higher performance

Staffing finds the right person for the right job. It ensures higher performance of the employees

as work is assigned according to their capabilities and at the same time, organizational objectives

are achieved in the most efficient and effective.

4) Motivation and morale

Staffing as separate function, is needed to motivate employees for better performance, incentive

plans, staff welfare and for other personnel activities. If there is a separate personnel department

in the organization, it motivates employees and develop higher morale in them.

5) Optimum utilization of human resources

Through manpower planning and job analysis, we can find out the number and types of

employees required in the organization. Therefore, there are no chances of overmanning,

shortage or under-utilization of personnel.

d) IDENTIFY AND ELABORATE THE FEATURES OR NATURE OF STAFFING

FUNCTION.

The following are the features or nature or characteristics of the staffing function:
 BENARD ODHIAMBO OKOTH
TX202/0310/2022
CAT 3
1. It is a universal function. It is the responsibility of every manager.

2. It is a continuous function performed by every manager to ensure successful functioning of

his department and to develop his successors. Since staffing is a continuous function, it will

be effective in realizing its goals.

3. It is a dynamic and never ending process. With changes in the size and environment of the

organization, changes take place in personnel.

4. Human resources expects and deserves dignity. So the success of the staffing function lies

in involving every individual in the organization in the task of achieving organizational goals.

5. It is a difficult function with problems of social, philosophical and psychological nature.

6. Staffing is a management function.

7. It in an integral part of management process.

8. Staffing is concerned with the optimum utilization of human resources.