Principles and Practice of Management — 2022

KNEC Diploma in Supply Chain Management, Module III. Original examination questions with explained answers for revision. Answers are independently prepared for study and are not an official KNEC marking scheme.

July 2022

Paper codes: 2903/303; 3182 (shared Management paper)
Time: Not shown in supplied scan
Instructions: Cover instructions not included in supplied scan.

Question 1(a) — 10 marks

Describe five characteristics of management.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

November 2022

Paper codes: 2903/303; 3182 (shared Management paper)
Time: Not shown in supplied scan
Instructions: Cover instructions not included in supplied scan.

Question 1(a) — 10 marks

Outline five differences between a leader and a manager.

Answer

  1. A leader emphasises influence and commitment, while a manager also relies on formal positional authority.
  2. A leader often stresses direction and vision, while a manager translates objectives into plans and organised work.
  3. A leader encourages change and inspiration, while a manager also maintains coordination and operational stability.
  4. A leader builds followers through trust and example, while a manager allocates duties through an established structure.
  5. A leader focuses strongly on people and shared purpose, while a manager balances people with budgets, processes and controls; one person can perform both roles.

Question 1(b) — 10 marks

Highlight five conclusions of the Hawthorne experiments conducted by Elton Mayo.

Answer

  1. Social relationships influence employee behaviour and output.
  2. Informal work groups develop norms that can strongly affect individual effort.
  3. Recognition and attention can influence morale and participation.
  4. Employees have social and psychological needs as well as financial needs.
  5. Supportive supervision and communication can improve cooperation; the studies’ findings should not be treated as proof that attention always increases productivity.

Question 2(a) — 10 marks

Outline five benefits of strategic planning to an organization.

Answer

  1. Clarifies long-term direction and the results the organisation intends to achieve.
  2. Aligns departments and resources around common priorities.
  3. Encourages early assessment of external opportunities and threats.
  4. Provides a basis for budgeting and major investment decisions.
  5. Establishes objectives against which progress and managerial performance can be reviewed.

Question 2(b) — 10 marks

Explain five principles that can help in ensuring effective delegation.

Answer

  1. Define the task and expected results clearly before assigning responsibility.
  2. Choose a person with suitable competence and provide necessary training or support.
  3. Delegate sufficient authority and access to resources for the responsibility assigned.
  4. Establish reporting arrangements and appropriate checks without unnecessary interference.
  5. Retain overall managerial accountability while allowing the delegate to exercise the agreed discretion.

Question 3(a) — 10 marks

There are certain financial incentives that an organization may give to its employees in order to enhance their productivity. Explain five such incentives.

Answer

  1. Performance bonuses reward achievement of agreed individual or team targets.
  2. Piece-rate payments link earnings to acceptable units produced.
  3. Sales commissions reward employees for eligible sales or collected revenue.
  4. Profit-sharing gives staff an agreed share of organisational profits.
  5. Gain-sharing rewards measurable savings or productivity improvements, subject to quality and safety requirements.

Question 3(b) — 10 marks

Outline five objectives of budgetary control in an organization.

Answer

  1. Translate plans into agreed financial and operating targets.
  2. Coordinate departmental spending and resource requirements.
  3. Compare actual results with budgets and identify material variances.
  4. Assign responsibility for resource use and corrective action.
  5. Improve future planning by learning from the causes of budget differences.

Question 4(a) — 10 marks

Explain five factors that may limit the freedom of a manager when recruiting employees.

Answer

  1. Budget limits can restrict the number, grade and remuneration of staff recruited.
  2. Employment requirements and equal-opportunity obligations constrain unlawful or discriminatory choices.
  3. Organisational staffing policies, approval limits and establishment rules restrict managerial discretion.
  4. Shortages of suitably qualified applicants reduce the available choice.
  5. Time pressure, location and labour-market competition may prevent the preferred candidate from being secured.

Question 4(b) — 10 marks

Outline five phases of the disaster management cycle.

Answer

  1. Prevention: avoid hazards or activities that could create a disaster where practicable.
  2. Mitigation: reduce exposure and likely damage through protective measures.
  3. Preparedness: establish plans, training, supplies and warning arrangements before an incident.
  4. Response: protect life, provide immediate assistance and control the incident.
  5. Recovery: restore services and livelihoods and rebuild with lessons that reduce future risk.

Question 5(a) — 10 marks

Organizations find it necessary to continuously monitor the environment in which they operate. Explain five reasons for this necessity.

Answer

  1. Identify emerging customer needs and opportunities before competitors respond.
  2. Detect threats such as new competition, supply disruption or economic decline.
  3. Recognise changes in technology that affect products and work methods.
  4. Anticipate regulatory and social changes that require operational adjustment.
  5. Test planning assumptions and revise strategy when the external conditions no longer support them.

Question 5(b) — 10 marks

Outline five advantages of the group decision making technique.

Answer

  1. Members contribute different information and specialist knowledge, improving problem analysis.
  2. Several viewpoints generate more alternatives than one person may identify.
  3. Discussion allows assumptions and errors to be challenged before a choice is made.
  4. Participation can increase acceptance and commitment to the chosen decision.
  5. Shared problem-solving develops members’ understanding and decision-making skills.

Question 6(a) — 10 marks

Explain five ways in which a manager can ensure efficient stock control in an organization.

Answer

  1. Maintain accurate receipts, issues and balance records for every controlled item.
  2. Set justified reorder levels, order quantities and safety stocks based on demand and lead time.
  3. Perform regular stock counts and investigate discrepancies promptly.
  4. Apply suitable storage, access control and rotation to prevent loss, damage and obsolescence.
  5. Monitor slow-moving items and coordinate purchasing with actual operating requirements.

Question 6(b) — 10 marks

Organizations usually carry out interviews during employee selection. Explain five reasons why this is done.

Answer

  1. Clarify information and gaps in the applicant’s written application.
  2. Assess job-related communication and interpersonal abilities through relevant questions.
  3. Explore evidence of skills, judgement and experience needed for the role.
  4. Explain job expectations and allow the candidate to ask informed questions.
  5. Compare applicants using a structured and consistently applied selection framework.

Question 7(a) — 10 marks

Outline five benefits that may accrue to an organization from establishing an effective co-ordination function.

Answer

  1. Reduces duplicated activities and conflicting departmental priorities.
  2. Improves the timing of interdependent tasks and reduces avoidable delays.
  3. Promotes efficient use of shared staff, equipment and finance.
  4. Improves communication and resolution of cross-department problems.
  5. Aligns collective effort with organisational objectives and service commitments.

Question 7(b) — 10 marks

Zamala Enterprises is in the process of developing a mission statement. Explain five ways in which this statement would be useful to the enterprise.

Answer

  1. Clarifies the enterprise’s fundamental purpose and the needs it serves.
  2. Defines the main business scope and guides choices about activities to pursue.
  3. Provides a common reference for departmental and individual objectives.
  4. Communicates the organisation’s identity and values to stakeholders.
  5. Helps assess whether proposed strategies and resource commitments fit its core purpose.
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