MGT101 Final Revision Areas

1. Describe the main activities in the human resource management (HRM).

Answer:
 Identify & select competent employees  HRP, recruitment and
selection.
 Provide employees with necessary KSA  orientation & training
 Retain competent and high-performing employees  performance
management, compensation and benefits & career development.
Specific details:
(a) HRP
 Forecast organisation human resources needs (right number of people
with the right KSA); why? Avoid liability [cost]; avoid poor
performance; avoid poor reputation.
(b) Recruitment announcing a vacancy
 Locate & attract suitable applicants
 Job analysis [defines jobs & behaviour needed to do the job]; job
description [summary of duties and responsibilities for specific job]
& job specification [person specification; attributes  qualifications
a person must have to do the job]
 Various sources for recruitment
1. Internet: reach to a vast pool of potential workers [+large number
of people; - many unqualified candidates]
2. Employee referrals: current employees in organisation
recommend prospective employees [+generate strong candidates
 recommended], - may not increase diversity mix of employees]
3. Company website: company is used to announce vacancy [+wide
distribution; + target specific groups; - many unqualified
candidates]
4. Professional recruiting organisations: professional companies
assist in getting employees for the organisation [+good industry
knowledge  know challenges & requirements; - limited
commitment to specific organisation]
5. College recruiting: career fairs in universities  company makes
itself available in universities [+large body of candidates; - limited
to entry level positions]

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 (c) Selection
 Filtering of job applicants  ensure appropriate candidates are
selected.
 Selection Measures:
1. Application form = collect valuable info about the applicant
(education; previous work experience & other background
characteristics)
2. Written tests = aptitude test (IQ test); personality test (behaviour
analysis  MBTI [how one deals with the world] & OCEAN
[openness to experience, diligence, sociability, ability to get along
with people & emotional stability)
3. Performance simulation tests = examine actual job behaviour i.t.o
work sampling [task related to the job]; assessment center [work
simulation]
4. Interviews = allow applicants to express  types of interview:
structured interview [standardised questions for every applicants];
unstructured interviews [open-ended questions probing]; panel
interviews [several interviewers take turns asking questions]
5. Background investigations = verify application data

(d) Orientation & Training

 Orientation = induction  introduce the organisation, introduce
organisation culture; introduce organisational processes, SOPs;
introduce to co-workers duration : 1 week
 Training = upgrade the employees KSA
1. On Job Training (OJT)  workers experience hands-on approach
and learn through job rotations; mentoring; trial-error
2. On site but not OJT = computer-based training & Webinars
3. Off Job Training = involve formal classroom training,
simulations, outdoor training.

2. What is the difference between leaders and managers?

Answer:
 Leaders: focus on people; define the purpose of the organisation;
promote innovation (change) in organisation
 Managers: focus on organisation; assign task to workers; maintain
stability

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3. Elaborate behaviour of effective leader.
Answer:
 Ability to direct subordinate work (leader demonstrates task oriented
behaviour)  University of Michigan [work centered]; Ohio State
University (OSU) [initiate structure]; University of Texas [concern for
production]
 Ability to provide support to employees (like respect and care for
workers)  University of Michigan [employee centered]; Ohio State
University (OSU) [consideration]; University of Texas [concern for
people]

4. What are the main leadership theories. Explain

Answer: (TBS)
 Traits  GREAT MAN THEORY  qualities eg drive [effort];
honesty & integrity [build trusting relationship]; intelligence [ability
to analyse information, solve problems and make appropriate
decisions]; job relevant knowledge; extroversion [sociable]
 Behavioural: ability of the leader to get work done & ability of the
leader to manage people  University of Michigan [work
centered/employee centered]; Ohio State University [initiate
structure/consideration]; University of Texas [concern for
production/concern for people]
 Situational: leader abilities to understand the circumstances [readiness
of workers; nature of task, leaders relationship with members, leaders
position power; goal settings] and leaders ability to change the
leadership style [ telling, selling, participating, delegating]

5. Identify and clarify the different sources of power leader use in organisation?
Answer:
 Power is to leverage influence.
 Position power =power that comes from the organisation = eg
legitimate power (formal position and authority); reward power
(ability to bestow rewards); coercive power (punish/recommend
punishment)
 Personal power = refers to unique traits of the leader = eg expert
power (special knowledge & skills); referent power (personality)
 Other sources of power = multitude factors eg effort; relationships;
control and share information.

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6. Explain, Maslow content theory, of motivation.
Answer:
 Needs of workers – arranged from LON  HON; step-like
progression towards motivation.
1. Physiological = basic needs eg rest; appropriate break time; fair
basic salary in commensurate to inflation levels; amenities
2. Safety = protection from physical and emotional harm
3. Social = belongingness; friendly work climate
4. Esteem = confidence building for employees
5. Self-actualisation = make workers to be best in their job

7. Explain equity theory.

Answer:
 Process (thinking)
 Deals with aspect of fairness; one compares their ratio of
input/outcomes with others ratio of input/outcomes in the
organisation.
 Input = effort, education, experiences  capital one invests in their
work
 Outcomes = pay, recognition, benefits provided by the organisation
(sweeteners provided by the organisation to worker’s input)
 Correct inequity (unfairness)  balance ELVN
1. Change work effort (input)[ >; <; neglect]
2. Change outcomes (voice)
3. Leave the job (exit)

8. What is the difference between job enrichment, job enlargement and empowerment?
Answer:
 Job enrichment (vertical loading) = high level motivators are included
in the job eg more responsibilities; more recognition; more
opportunities to grow and learn; more opportunities to achieve
 Job enlargement (horizontal loading) = job scope is widened; more
work activities
 Empowerment = employees are given freedom to achieve
organisational goals; some of the ways to empower employees is to
provide them Information; Training, Decision Making, Rewards:
1. Information = share important and strategic information (financial,
operational) with employees, so that they can make better
decisions.
2. Training = provide workers with appropriate KSA so that workers

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 can carry put their work efficiently for the organisation
3. Decision making = allow workers to make important decisions eg
in terms of quality management through quality circles; create self-
directed teams
4. Rewards = reward workers for their contributions/efforts, as this
will encourage them to repeat their behaviour.

9. Describe the difference between upward, downward, horizontal (lateral) and

informal communication
Answer:
 Upward communication = communication flows from workers to
managers  purpose to interpret work environment and provide
suggestions for improvements; report problems; provide financial
and accounting information
 Downward communication = communication flows from managers
to workers  purpose to influence workers by providing work
instructions; SOPs and performance feedback
 Horizontal (lateral) communication = communication flow between
departments (inter-departmental) and communication flow within
department (intra-departmental)  purpose to coordinate to solve
problems and do changes in the organisation
 Informal communication = involves grapevine (gossip);
management by wandering around (MBWA); and nonverbal
communication (impression management, gestures and verbal
intonation)

10. Examine nonverbal communication and its benefits to the organisation.

Answer:
 Nonverbal communication = wordless; communication based on
behaviour (action)
 Eg: facial expression; voice intonation; mannerisms; posture, dress
and even office arrangement (office layout, furniture)
 Benefits:
a. When there is a contradiction between verbal and non-verbal
messages; a receiver will give more weight to the non-verbal.
b. By understanding non-verbal, managers can coordinate their
verbal and non-verbal messages accordingly
c. By understanding non-verbal messages, managers can reduce
conflict in organisation

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11. What is the feedback control model?
Answer:
 Purpose of feedback control model is to know whether organisational
goals are being met
 Several steps in the feedback control model:
Step 1: Establish standards of performance (target) i.t.o quality;
financial, budgetary, information
Step 2: Measure actual performance i.t.o. quantitative measurements
Step 3: Compare actual performance to standards  deviations, reason
behind the deviations.
Step 4: take corrective action

12. What are the different types of control used in organisation?

Answer:
 Budgetary control  set targets for expenditure; examine
anticipated/actual expense; anticipated/actual revenue; planned
investments; justifications for every line item in the budget.
 Financial controls  so that profits and other sources of revenue are
sufficient to cover cost and routine business operations.
 Manage total quality  refers to culture, attitude and organising of
company’s products and services that satisfy customer expectations.
 Information control = refers to conclusions derived from analysis of
data that relate to the operation of the organisation  information is
valuable to an organisation when the information is appropriate
(useful in carrying out task in a workplace); information has quality
(when the information shows what is happening in reality);
information timeliness (allows decisions and actions to be taken
immediately); information quantity (sufficiency of information =
complete and necessary).

13. What are the factors in the external environment (general environment & task
environment) of the organisation?
Answer:
a.General environment surrounding the firm. The general environment will
encompass an understanding of the political/legal, economic, social and
technology and they influence the firm indirectly.
=Political/Legal =government regulations at local and federal level  impact of
legislation on business strategies.
=Economic considerations would be consumers purchasing power, unemployment
rates, inflation, exchange rate.

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 =technology developments that could influence business. Like the use of online
shopping
=Social = refers to values, beliefs, attitudes, and lifestyle. Eg: consumption of halal
food.
b. Task (operational) environment of the firm refers to factors that affect
organisation directly. This includes customers (acquire good and services from
the organisation); competitors (organisation in the same type of business that
provide goods and services to the same set of customers – collaboration; early
mover strategy), suppliers (people and organisation that provide raw materials
that the organisation uses to produce its output – online seminars/discussion),
business partners (trade partners – strategic alliance (joint-venture), and
regulators (impact business through rules and regulations).
 An understanding of external environment allows the organisation to predict
environmental changes, increase successful innovation, increase trust among
stakeholders & increase greater organisational flexibility.

14. What is Organisational Culture?

Answer:
 Organisational culture is the organisation’s personality.
It relates to organisational values, principles and ways of doing things

15. What is the difference between Clan culture and Adhocracy culture.
Answer:
 Clan culture emphasises on collaboration. Family oriented and employee
involvement and engagement is seen as being of significance. Clan culture
emphasises on internal focus and is flexible and adaptable.
 Adhocracy culture is based on creation. Organisations take risk and innovate.
Motivated to adapt. Emphasise teamwork; multi-skilled and multi-tasking. Thrive
in uncertainty. Adhocracy culture emphasises external focus and is flexible and
adaptable (Simple structure/no structure).

16. What is exporting; importing; licensing/franchising; joint-ventures & foreign

subsidiaries?
Answer:
Answer:
 They are all market entry modes of MNCs.
 Exporting = making products domestically and selling them abroad.
(+no need to invest for facilities, mass production in one place; - transportation
cost, - face risk of accidents, - cost in terms of tariff barriers).
 Importing = acquiring products made abroad and selling them domestically.
 Licensing/franchising =one organisation giving another organisation the right to
use its brand name, technology or product specifications in return for a lump sum
payment or annual fee based on sales (+quick way for expanding, lack capital to
expand internationally, - licensor stress; imitation by licensee).
 Joint-ventures = partners agree to form separate, independent organisation for
some business purpose (+foreign companies can learn and adapt; + share risk of
venturing; - partners exploit business venture; conflict regarding control of
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 resources).
 Foreign subsidiary = directly investing in a foreign country by setting up a
separate and independent production facility/office (+ full DM authority; retain
profit; -cost/losses born fully by the company)

17. Why is there a need for foreign investment and what are challenges?
Answer:
 To reduce/eliminate high transportation cost.
 Participate in the rapid expansion of a market abroad.
 Provide services, skills [technical, designing & marketing].
 Earn higher profits.
 Challenges = political instability; groups in host country prevent company from
achieving desirable outcomes.

18. What are the different categories of organisations that do business at international
level?
Answer:
 The different categories of organisations refer to the different type of
organisations that are involved in doing business at the international level.
 Domestic organizations operate within a single country. Acquire necessary
resources within a single country but also sell their goods or services within that
same country.
 International company = take products produced in home country and sell them
internationally with minimal local customisation  e.g. R&D centralised in home
country; duplicate manufacturing & marketing in host country. They are more
extensively involved in the international arena than are domestic organizations,
but less so than transnational organizations.
 Multi-domestic corporation = company decentralises management & other
decisions to the local country  polycentric attitude  local employees hired to
manage business & marketing strategies tailored to country’s unique
characteristics.
 Global company = centralizes its management and other decisions in the home
country. Focus on the need for global efficiency & cost savings = reflects
ethnocentric attitude [management decisions made from HQs in home country];
subsidiaries dependent to home country for knowledge, facilities & financial
resources.
 Transnational company (borderless organisation) = balances the need to reduce
cost & localise products; operations and assets dispersed worldwide. =
subsidiaries rely on each other in terms of knowledge and resources; reflects a
geocentric attitude. takes the entire world as its business arena. It transcends any
single home country, with ownership, control, and management being from many
different countries.
 In summary, domestic organisations representing the least and transnational
organisations the most international involvement.

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19. Why is ethics important to business?
Answer:

20. What is CSR?

Answer:

21. What is the difference between utilitarian view, rights view and integrative social
contracts theory?
Answer:

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