Principles and Practice of Management — 2024

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.

November 2024

Paper codes: 2903/303; 3182 (shared Management paper)
Time: 3 hours
Instructions: Answer any FIVE questions. All questions carry equal marks. Answer the questions in English.

Question 1(a) — 10 marks

Explain five functions that a lower-level manager may undertake in an organization.

Answer

  1. Assign daily work and organise staff and materials to meet the operating schedule.
  2. Explain instructions and coach employees in the required work methods.
  3. Supervise performance and check output against quality and time standards.
  4. Maintain workplace discipline, safety and sound working relationships.
  5. Report operating problems and results to higher management and arrange corrective action within delegated authority.

Question 1(b) — 10 marks

Describe five features of the systems approach to management.

Answer

  1. The organisation consists of interdependent subsystems, such as production, finance and purchasing.
  2. It is an open system that exchanges resources and information with its external environment.
  3. Inputs are transformed through organisational processes into outputs for customers and other users.
  4. Feedback on results helps managers correct operations and adapt to environmental change.
  5. Overall performance depends on coordinated relationships and synergy, rather than optimising each department in isolation.

Question 2(a) — 10 marks

Co-ordination of functions among various departments in an organization is a key function of a manager. Explain five ways in which this function can be carried out.

Answer

  1. Agree shared objectives and plans so departments work towards compatible results.
  2. Establish clear responsibilities and interfaces to prevent omissions and duplicated work.
  3. Hold coordination meetings and use liaison roles to resolve interdepartmental dependencies.
  4. Maintain timely information systems so changes in one department reach affected colleagues.
  5. Use common schedules, budgets and performance reviews to align resources and correct conflicting actions.

Question 2(b) — 10 marks

Explain five circumstances under which free-reign leadership style may be successfully applied in an organization.

Answer

  1. Employees are skilled and experienced enough to make sound decisions without close supervision.
  2. Staff are self-motivated and committed to clearly understood objectives.
  3. Creative or research work benefits from professional freedom in choosing methods.
  4. Team members have reliable information, tools and authority to complete their tasks.
  5. Effective feedback and accountability exist, allowing the manager to intervene when agreed limits are exceeded.

Question 3(a) — 10 marks

Describe five items that may be contained in a strategic plan of an organization.

Answer

  1. Mission and vision state the organisation’s purpose and intended future position.
  2. Environmental analysis identifies relevant strengths, weaknesses, opportunities and threats.
  3. Long-term objectives define the measurable results to be achieved.
  4. Strategies and action programmes explain how resources and responsibilities will deliver the objectives.
  5. Budgets, implementation schedules and review measures support execution and progress control.

Question 3(b) — 10 marks

Explain five ways in which a manager can apply the positive reinforcement theory of B.F. Skinner to motivate employees.

Answer

  1. Identify specific desirable behaviours, such as accurate work or meeting agreed service standards.
  2. Provide valued rewards, such as recognition or suitable incentives, after the desired behaviour occurs.
  3. Give reinforcement promptly so employees associate the reward with the relevant action.
  4. Apply reward criteria consistently and fairly to strengthen trust in the system.
  5. Review whether the reinforcement improves behaviour and adjust the reward or schedule when it no longer works.

Question 4(a) — 10 marks

Kazaku Enterprises has decided to adopt the line and staff organization structure. Explain five benefits that the firm will derive from this move.

Answer

  1. Specialist staff provide technical advice that improves line managers’ decisions.
  2. Line authority remains clear, preserving responsibility for operational results.
  3. Specialists relieve line managers of detailed research and advisory work.
  4. Expert support improves handling of complex areas such as finance, legal matters and human resources.
  5. Combining operational experience with specialist advice can improve coordination and the quality of organisational plans.

Question 4(b) — 10 marks

Outline five characteristics of an efficient control system.

Answer

  1. Relevant: it measures activities that materially affect the organisation’s objectives.
  2. Timely: it reports deviations early enough for corrective action.
  3. Accurate: it uses reliable information and clearly defined performance standards.
  4. Economical: its control benefit justifies the resources spent operating it.
  5. Flexible and understandable: users can apply it and adapt it when conditions change.

Question 5(a) — 10 marks

Explain five considerations that should be made when designing a wages and salary scheme.

Answer

  1. Internal equity: comparable jobs should receive fair rewards based on responsibility, skill and effort.
  2. External competitiveness: market rates affect the ability to attract and retain suitable staff.
  3. Affordability: the wage bill must be sustainable within the organisation’s financial resources.
  4. Legal and contractual requirements: the scheme must respect applicable minimum terms and agreed employment obligations.
  5. Motivation and transparency: understandable progression and performance rules encourage effort and reduce disputes.

Question 5(b) — 10 marks

Explain five ways in which cultural differences may negatively influence the performance of a manager in a foreign country.

Answer

  1. Language differences can cause instructions and feedback to be misunderstood.
  2. Different attitudes to authority can make a familiar leadership style ineffective.
  3. Different communication customs may cause unintended offence or conceal disagreement.
  4. Different expectations about time, negotiation and work relationships can delay coordination.
  5. Unfamiliar values and workplace practices can make motivation, appraisal and conflict resolution less effective.

Question 6(a) — 10 marks

Many organizations are embracing corporate social responsibility in their operations. Explain five reasons that may account for this move.

Answer

  1. Responsible conduct builds trust and reputation with customers, communities and employees.
  2. Addressing social and environmental impacts can reduce conflict and disruption to operations.
  3. Supporting employee and community welfare can improve motivation and retention.
  4. Efficient resource use and prevention of harm can reduce long-term operating and remedial costs.
  5. Responsible relationships support long-term legitimacy and the organisation’s ability to continue operating.

Question 6(b) — 10 marks

Explain five reasons why it is important to carry out succession planning in an organization.

Answer

  1. Continuity: prepared replacements reduce disruption when key employees leave.
  2. Leadership development: promising staff receive experience and training for future responsibilities.
  3. Reduced vacancy risk: internal candidates can fill important roles more quickly.
  4. Knowledge retention: planned handovers preserve relationships and institutional expertise.
  5. Motivation and retention: visible career opportunities encourage capable employees to remain and develop.

Question 7(a) — 10 marks

Explain five limitations of internal audit as a tool of control in an organization.

Answer

  1. Internal auditors are part of the organisation, so management influence can impair perceived or actual independence.
  2. Sampling and limited resources mean not every transaction or control weakness is examined.
  3. Reviews often identify problems after transactions have occurred, so losses may already exist.
  4. Incomplete records, collusion or concealed information can prevent detection of irregularities.
  5. Recommendations improve control only if responsible managers implement and follow up corrective action.

Question 7(b) — 10 marks

Outline five factors that may limit the freedom of a manager to recruit effectively.

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.
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