Principles and Practice of Management (Supplied Paper) — 2022

Additional theory revision paper supplied in the uploaded Supply Chain Management ZIP. The original paper code 2903/303 is retained. The supplied sheet has no cover confirming its module.

July 2022

Paper codes: 2903/303 (shared paper)
Time: Not shown in supplied scan
Instructions: Not shown in supplied scan

Question 1(a) — 10 marks

Describe five characteristics of management.

Model answer

  1. Goal-oriented: management directs people and resources towards stated organisational objectives.
  2. Continuous: planning, organising, directing and controlling recur throughout operations.
  3. Universal: every organisation needs management, although methods differ with size and purpose.
  4. Group-based: managers coordinate the efforts of people rather than achieve every result personally.
  5. Dynamic: decisions and methods must adapt to changes in technology, markets, resources and the working environment.

Question 1(b) — 10 marks

Explain five ways in which the principles of scientific management advocated by Fredrick W. Taylor are applied in modern organizations.

Model answer

  1. Work study: organisations measure tasks and analyse methods to identify efficient procedures rather than rely only on habit.
  2. Scientific selection: workers are matched to jobs using evidence about the skills and abilities the tasks require.
  3. Systematic training: staff are taught agreed methods and supported to reach the required competence.
  4. Planning and standardisation: managers specify work procedures, tools and expected outputs so operations can be coordinated and assessed.
  5. Cooperation and performance incentives: clear standards, feedback and fair rewards align employee effort with organisational goals, while maintaining quality and safety.

Question 2(a) — 10 marks

There are certain factors that may influence the nature of decisions made by a manager. Explain five such factors.

Model answer

  1. Organisational objectives and policy: decisions must support the intended results and stay within approved rules.
  2. Quality and availability of information: reliable, relevant data improves assessment of alternatives; missing data increases uncertainty.
  3. Resources: finance, staffing, equipment and available time limit what can feasibly be chosen.
  4. Risk and external conditions: competition, regulation and economic uncertainty affect the likely consequences of each option.
  5. Managerial experience and authority: knowledge, judgement and the level of delegated power influence how and where a decision is made.

Question 2(b) — 10 marks

Explain five measures that should be taken to ensure effective communication between supervisors and subordinates.

Model answer

  1. Use clear, specific language that the recipient understands and avoid unnecessary jargon.
  2. Select a channel suited to the message, such as a discussion for a sensitive issue or written instructions for a detailed procedure.
  3. Encourage two-way feedback and ask the recipient to confirm important instructions in their own words.
  4. Listen actively and maintain a respectful atmosphere in which staff can raise questions or problems.
  5. Send information at the right time and in manageable amounts, identifying priorities so important instructions are not lost in overload.

Question 3(a) — 10 marks

Explain five factors that should be considered when carrying out departmentation in an organization.

Model answer

  1. Objectives and strategy: the department structure should support the organisation’s priorities.
  2. Nature of activities: related work may be grouped by function, product, process, customer or territory as appropriate.
  3. Specialisation: grouping should make sensible use of scarce expertise without creating needless duplication.
  4. Coordination needs: highly interdependent activities require close communication and clear responsibility across boundaries.
  5. Size and managerial capacity: the number, location and complexity of operations must fit workable spans of control and available managers.

Question 3(b) — 10 marks

Kaza Enterprises has introduced an inventory control system in its operations. Explain five benefits that the enterprise may derive from taking this move.

Model answer

  1. Fewer stock-outs: reorder information helps ensure materials/products are available when needed.
  2. Lower holding costs: excess stock and unnecessary storage, insurance and financing costs can be reduced.
  3. Reduced losses: records and checks help detect theft, damage, expiry and unexplained differences.
  4. Better purchasing decisions: usage patterns and supplier lead times support planned quantities and ordering schedules.
  5. Improved working-capital use: less money is tied up in slow-moving stock, while accurate balances support reliable service and production.

Question 4(a) — 10 marks

Explain five reasons that may make it necessary for organizations to establish salary scales for their employees.

Model answer

  1. Internal fairness: job grades provide a consistent basis for paying work with comparable responsibility and skill.
  2. Recruitment and retention: competitive ranges help attract suitable staff and reduce avoidable turnover.
  3. Motivation and progression: employees can see how increased skills, responsibility or performance may lead to higher pay.
  4. Budget control: defined ranges make payroll costs easier to forecast and approve.
  5. Consistent administration: scales support transparent decisions and help implement applicable pay rules and collective agreements consistently.

Question 4(b) — 10 marks

Explain five challenges that a manager of an international business may face when carrying out managerial functions.

Model answer

  1. Cultural and language differences can cause misunderstandings and require adaptation of leadership and communication.
  2. Different laws and political conditions complicate staffing, contracts and operating procedures across countries.
  3. Exchange-rate and economic changes can alter costs, revenues and the reliability of budgets.
  4. Distance, time zones and uneven infrastructure make supervision and supply-chain coordination more difficult.
  5. Local market differences and international competition require different products, pricing and customer-service approaches.

Question 5(a) — 10 marks

The directors of Kazi Moto Enterprises are not convinced as to why they should spend money to develop corporate strategic plans. Explain five ways in which such plans would be useful to them.

Model answer

  1. Provide direction: agreed long-term goals guide major decisions and prevent departments pulling in incompatible directions.
  2. Allocate resources: priorities help direct finance, staff and equipment to the most important activities.
  3. Anticipate change: analysis of opportunities, threats and internal capabilities improves preparation for future conditions.
  4. Coordinate stakeholders: a shared plan clarifies responsibilities and communicates intentions to managers, staff and other stakeholders.
  5. Support control: measurable objectives and milestones allow the directors to review performance and correct departures from the intended direction.

Question 5(b) — 10 marks

Explain five benefits that may accrue to a firm from regular training of its employees.

Model answer

  1. Higher productivity and quality as employees gain the skills needed to perform tasks correctly.
  2. Fewer errors and accidents through better understanding of procedures and safe working methods.
  3. Greater adaptability when new technology, products or processes are introduced.
  4. Better morale and retention because employees see investment in their development and career prospects.
  5. Stronger succession and internal promotion because more employees are prepared for additional responsibilities.

Question 6(a) — 10 marks

Outline five responsibilities of the internal audit team in an organization.

Model answer

  1. Evaluate whether internal controls are suitably designed and operate effectively.
  2. Review safeguards over assets and investigate relevant control weaknesses or suspected irregularities within the audit mandate.
  3. Check compliance with organisational policies and applicable requirements.
  4. Assess the reliability of financial and operational records and the effectiveness/efficiency of selected processes.
  5. Report independent findings and recommendations to the appropriate governance body and follow up agreed corrective action.

Question 6(b) — 10 marks

Explain five ways in which effective leadership facilitates achievement of organizational goals.

Model answer

  1. Clarifies direction so employees understand the goals and their contribution to them.
  2. Motivates people through recognition, support and fair expectations, increasing commitment to the work.
  3. Coordinates teamwork and communication so departments can resolve problems and avoid conflicting effort.
  4. Develops and empowers employees by coaching them and assigning suitable responsibility.
  5. Guides change and manages conflict constructively while reviewing results and correcting performance gaps.

Question 7(a) — 10 marks

Highlight five guidelines that should be followed to ensure effective delegation of tasks in an organization.

Model answer

  1. Define the task, expected result, quality standard and completion deadline clearly.
  2. Select a person with suitable ability and provide any training needed.
  3. Delegate enough authority to match the responsibility while stating decision limits.
  4. Provide the information, resources and access needed to perform the task.
  5. Agree feedback/checkpoints and monitor results without unnecessary interference; the manager retains overall accountability.

Question 7(b) — 10 marks

Explain five benefits that may accrue to an organization that practices division of labour as advocated by Adam smith.

Model answer

  1. Greater skill: repeatedly performing a specialised task helps workers develop dexterity and expertise.
  2. Time saving: workers lose less time switching between unrelated tasks and rearranging tools.
  3. Mechanisation: breaking work into repeatable operations makes it easier to design and use specialised equipment.
  4. Consistent output: focused practice and standard methods can improve uniformity and reduce errors.
  5. Easier training and lower unit cost: a limited task can often be taught more quickly, supporting efficient larger-scale production when the work is well coordinated.
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