ANSWERS W 287

Answers
TOPIC 1: WHAT IS MANAGEMENT?

Exercise 1.1
Essay Question

Planning is to set and determine the objectives that need to be achieved in the
future and what should be done in order to achieve that objectives.

Organising is a group of activities, delegation of activities and arranging the

suitable authority to carry out the said activities.

Leading is an art in directing and channelling human conduct with the aim to
achieve all objectives that have been determined.

Controlling by performance evaluation for all the objectives set in order to

determine the reasons for deviation and taking appropriate action whenever
necessary.

Exercise 1.2
TRUE (T) or FALSE (F) Statements

1. F
2. F
3. T
4. T
5. T

Multiple Choice Questions

1. D
2. B
3. A
4. C
5 B
288 X ANSWERS

TOPIC 2: ORGANISATION ENVIRONMENT AND

CULTURE

Exercise 2.1
Essay Question

(a) To monitor the environment.

(b) To interpret the environmental factors.
(c) To react on opportunities and threats.

Exercise 2.2
TRUE (T) or FALSE (F) Statements

1. F
2. T
3. T
4. F
5. T

Multiple Choice Questions

1. C
2. A
3. C
4. D
5. D

TOPIC 3: MANAGING IN A GLOBAL ENVIRONMENT

Exercise 3.1
Essay Question

Regional trade agreements are regional country cooperation alliances and trading
blocks established with the purpose to improve the economic status of member
countries.

The main purpose of this union is to reduce trade sanctions between member
countries.
 ANSWERS W 289

Example: ASEAN - Association of South East Asian Nation

APEC - Asia Pacific Economic Corporation
EEC - European Economic Union
NAFTA - North American Free Trade Area

Exercise 3.2
TRUE (T) or FALSE (F) Statements

1. T
2. T
3. T
4. F
5. T

Multiple Choice Questions

1. C
2. B
3. A
4. A
5. D

TOPIC 4: ETHICS AND SOCIAL RESPONSIBILITY

Exercise 4.1
Essay Questions

1. (a) Ethical training

(b) Ethical work code
(c) Ethical environment

2. (a) Reaction strategy

(b) Defence strategy
(c) Accommodative strategy
(d) Proactive strategy
290 X ANSWERS

Exercise 4.2
TRUE (T) or FALSE (F) Statements

1. F
2. T
3. T
4. F
5. T

Multiple Choice Question

1. B
2. D
3. D
4. D
5. D

TOPIC 5: PLANNING

Exercise 5.1
Essay Question

One-time usage planning is a planning made to fulfil one particular purpose

only.

Fixed planning is a planning made for managing events that occurs repeatedly in
an organisation.

Exercise 5.2
Essay Question

The weaknesses of making plans are:

(a) It restricts changes and adaptations in an organisation

(b) An incorrect prediction of the future will result in the planning done
also being incorrect.
(c) Separation between the planner and the executor causes the planning
made to be ineffective.
 ANSWERS W 291

Multiple Choice Questions

1. C
2. C
3. D
4. C
5. B

TRUE (T) / FALSE (F) Statement

1. T
2. T
3. F
4. F

TOPIC 6: DECISION MAKING

Exercise 6.1
Essay Question

(a) Certainty condition ă where the decision maker has the complete
information in assisting him to make decisions. With this complete
information, the decision maker will be able to know for certain on the
results that will be generated by each decision alternatives, and later
choosing the alternative that will bring the most optimum result to be
executed.

(b) Uncertainty condition ă a condition where the decision maker does not has
any information to be used in assisting him to make decisions. Thus, the
decisions made depend most on the experience and consideration of the
decision maker.

(c) Risk condition ă in this condition, the decision maker has the information
needed to make decisions but the information is incomplete and
insufficient. Therefore, the results generated from each decision alternatives
are not able to be predicted for certain.
292 X ANSWERS

Exercise 6.2
Essay Question

Bounded rationality, that is, decision making is bounded by certain problems

such as limited resources, excess information, memory problem and expertise
problem of the decision maker.

The general mistakes in decision making are: making biased decisions or making
decisions purely based on intuition alone without taking into consideration the
available facts.

Decision making in risk environment also will limit the rational decision making.
This is because incomplete information can result in not making the best
decision.

Exercise 6.3
Essay Question

Decision making can be improved through these methods in the process of

making decisions:

(a) Implementing the rules of decision making namely the law of priority and
rule of minimum condition;
(b) Conducting the test of variable; and
(c) Making decision in groups.

Exercise 6.4
Essay Question

There are two advantages of electronic brainstorming compared to face-to-face

brainstorming:

(a) Group members are able to state their respective ideas at any times without
having to wait for their turns to give out the opinions.
(b) Able to avoid the feeling of shame or low self-esteem if the suggestions
were rejected since the identity of the contributor is not featured on the
computer screen.
 ANSWERS W 293

Exercise 6.5
Multiple Choice Questions

1. A
2. C
3. D
4. C
5. C

TRUE (T) or FALSE (F) Statements

1. F
2. T
3. F
4. F
5. T

TOPIC 7: ORGANISATIONAL STRATEGY

Exercise 7.1
Essay Question

SWOT Analysis is an analysis towards the organisation environment. SWOT is

the abbreviation for Strength, Weakness, Opportunity and Threat. The purpose
of this analysis is to identify the strength and weakness of an organisation, and
also the opportunity and threat from the external environment that can affect the
organisation.

Exercise 7.2
Essay Question

(a) Growth strategy ă it is implemented for the purpose of expanding the

business. Expansion is either in terms of increase of organisation revenue,
number of branches or product lines.

(b) Stability strategy ă is a strategy used in retaining the current position of the
organisation. In this strategy, organisation will normally improve the
existing working style in order for it to become better and more efficient.
294 X ANSWERS

(c) Retrenchment strategy ă implemented for the purpose of restoring the

declined performance of the organisation to a better condition through the
reduction of certain expenditures. The methods that are normally used are
such as employee termination, closing of branches and others.

Exercise 7.3
Essay Question

The threat of entry of new firm is a measurement towards the barriers in entering
a particular industry whether it is difficult or easy for the new firm to enter and
conduct business in that particular industry. If there are too many rules and
procedures that need to be followed hence it will be difficult for the new firm to
enter the industry. Therefore, it is said that the threat of entry of new firm is low.

Bargaining power of supplier refers to how far supplier is able to control the
price of raw materials that are sold to the organisation. If the supplier has the
power in determining the price of raw materials sold hence it is said that
bargaining power of supplier is high.

Exercise 7.4
Essay Question

Direct competition is a competition between two organisations that happens

directly. The action normally taken in direct competition is either the
organisations involved will attack or counter-attack the opposite party.

Multiple Choice Questions

1. A
2. D
3. A
4. C
5. A

TRUE (T) or FALSE (F) Statements

1. F
2. T
3. F
4. T
5. T
 ANSWERS W 295

TOPIC 8: ORGANISATION DESIGN

Exercise 8.1
Essay Question

The factors that can influence the structure of an organisation are:

(a) Organisation strategy

(b) Organisation size
(c) Technology
(d) Environment

Exercise 8.2
Essay Question

(a) Functional Departmentalisation

The type of departmentalisation where all jobs and employees are divided
into separated units that are responsible towards a particular function of
business or area of expertise.

Advantage
Functional departmentalisation is able to avoid multiplication of work and
resource usage in organisation.

Disadvantage
Functional departmentalisation can delay the process of decision making
and produce managers and employees with limited experience and
expertise.

(b) Geographic Departmentalisation

The type of departmentalisation that coordinates the job and employee into
separated units responsible in conducting business activities in certain
geographical area.

Advantage
The advantage of geographic based department is that it can help the
organisation to act faster and more efficiently towards demand from certain
markets within the responsibility of the particular department.

Disadvantage
The disadvantage of this type of departmentalisation is that it can cause
multiplication of work and resource usage in organisation.
296 X ANSWERS

Exercise 8.3
Essay Question

(a) Chain of Command

Chain of command explains who needs to report to whom, that is,
individuals who are at the top level are more powerful compared to the
individuals at the lower level. Chain of command also shows the flow of
directive path or authority in organisation.

(b) Difference between Line Authority and Line Function

Line authority is related to the rights of making decision and giving
directives to employees who are in the chain of directives of a particular
manager. Meanwhile, line function means the activities that directly
contribute in the aspect of invention and sales of organisationÊs products
and services to the customers.

(c) Span of Control

Span of control gives details on the number of employees placed under the
supervision of a manager.

Exercise 8.4
Essay Question

(a) Job Enlargement

Job enlargement means addition of activities or tasks into a particular area
of work.

(b) Job Enrichment

Job enrichment means increasing the depth of job; not only there is an
addition in the number of tasks in a particular area but employees are also
given the authority and control to make decisions on their job.

(c) Job Rotation

Job rotation means employees shifted from one area of job specification to
another area of job specification either periodically or non-periodically.

Exercise 8.5
Essay Question

Mechanistic organisation is an organisation that has a high level of job

specification, high level of formality, a rigid chain of directives, practices
 ANSWERS W 297

centralisation of control and vertical or upwards communication. Meanwhile, an

organic organisation is an organisation that has a chain of directives that is not
rigid, a low formality level, a low level of job specification, practices
decentralisation of control and horizontal communication.

Multiple Choice Questions

1. C
2. A
3. B
4. A
5. B

TRUE (T) or FALSE (F) Statements

1. F
2. T
3. T
4. T
5. F

TOPIC 9: MANAGING INDIVIDUALS AND HUMAN

RESOURCE DIVERSITY

Exercise 9.1
Essay Question

(a) The act of agreement is a conduct taken to create employment opportunity

for the minority groups and women. It is conducted by organisation in
fulfilling the needs of legislation.

(b) The act of work force diversity is a voluntary conduct because organisation
tries to obtain the benefits from the advantage of diversifying the work
force

Exercise 9.2
Essay Question

According to Williams (2000), diversity on the surface level means the differences
between the age aspect, gender, race or ethnic and the ability to see, which
cannot be changed and can be easily measured. The discriminations that exist are
298 X ANSWERS

the discrimination of age, sex, race, and discrimination of mentally and

physically impaired.

Exercise 9.3
Essay Question

(a) Extrovert
(b) Emotional stability
(c) Compatibility
(d) Openness towards experiences
(e) Diligence

Exercise 9.4
Essay Question

Authoritarianism refers to how far an individual believes on the needs of having

differences in power and status in organisation. Employee having this
personality dimension believes that the difference between one individual to
another is from the aspect of power and status of a person in the organisation.
This group of people prefers to work under the supervision of a manager having
a directive style of leadership. They are not able to perform well when working
under a manager who likes to hand over control and who encourages the use of
initiative and the employeesÊ own consideration in performing their job.

Locus of control is a level where an individual believes that whatever happened

to them is the result of their own actions. Locus of control can be divided into
two: internal locus of control and external locus of control.

(a) Individuals having internal locus of control believes that whatever

happened to them is the result of their own actions. Individuals with
internal locus of control will not blame other people if something bad
happens to them.

(b) Meanwhile, individuals having external locus of control believes that

whatever happened to them is caused by factors beyond their control such
as fate and others. Individuals having external locus of control will put the
blame on other people when something bad happen to them.

Individuals classified in type-A personality are individuals who try to

complete as many matters as possible in a short period of time, diligent,
impatient, emphasise on perfection and are not able to sit still without
working. Meanwhile, individuals classified in type-B personality are
 ANSWERS W 299

individuals who are easy-going, patient and can be involved in

entertainment and social activities without thinking about work and do not
emphasise much on perfection.

Exercise 9.5
Essay Question

1. (a) Paradigm of justice and discrimination

(b) Paradigm of achieve and rationale
(c) Paradigm of effectiveness and learning

2. Sensitivity training and skill-based diversity training.

Multiple Choice Questions

1. A
2. B
3. C
4. D
5. A

TRUE (T) or FALSE (F) Statement

1. F
2. T
3. F
4. T
5. T

TOPIC 10: MANAGING TEAMS

Exercise 10.1
Essay Question

Team work is the task performed through coordinated effort among team
members where team members contribute towards the implementation of the
same objective. Meanwhile, group work is a task performed without coordinated
effort.
300 X ANSWERS

Exercise 10.2
Essay Question

Team strengths are the ability to increase customer satisfaction, increase the
quality of products and services of the organisation, and also the ability to
increase job satisfaction.

Team weaknesses are such as a high level of turnover during the initial stage of
team formation, social loitering and behaviour of self-restriction.

Exercise 10.3
Essay Question

Team does not need to be formed when the job performed does not involve
combination or coordinated effort among the employees; rewards towards
performance are only based on individual effort and performance; and resources
needed are unavailable.

Exercise 10.4
Essay Question

(a) Self-designed team

(b) Virtual team

Exercise 10.5
Essay Question

Team will undergo development phases:

(a) Forming
(b) Storming
(c) Norming
(d) Performing
(e) De-norming
(f) De-storming
(g) De-forming
 ANSWERS W 301

Exercise 10.6
Essay Question

1. A small number of team members are necessary in order to avoid the

situations of social loitering and behaviour of self-restriction. Besides that, a
small number of team members will strengthen the interaction among the
members and speed up the process of decision making.

2. Team work consists of a small number of team members with skills that are
complimentary to each other, being responsible and had agreed in
achieving the same goals. Team work is becoming more popular because it
can help the organisation to react fast and properly towards a certain
problem and challenge, and able to increase the performance of the
organisation compared to the traditional approach.

Multiple Choice Questions

1. A
2. A
3. A
4. B
5. B

TRUE (T) or FALSE (F) Statements

1. T
2. F
3. T
4. F
5. F

TOPIC 11: HUMAN RESOURCE MANAGEMENT

Exercise 11.1
Essay Question

Human resource management is a process of obtaining, developing and retaining

qualified employees sufficiently towards achieving goals that have been set.
302 X ANSWERS

Exercise 11.2
Essay Question

Methods involved in the process of human resource management are as follows:

(a) Determining the needs of human resource

(b) Attracting the interest of qualified candidates
(c) Development of qualified employees
(d) Retaining qualified employees

Exercise 11.3
Essay Question

Job analysis is a process of detailed study regarding tasks related to a particular

work area and human qualities needed in performing the particular job. The
result of study will form the job description and job specification. Job description
is a written statement that clearly explains the job, duties, responsibilities,
activities and performance result required from the job holder. Meanwhile, job
specification is a written statement regarding qualifications such as level of
academic achievement, work experiences and other skills required from the job
holder.

Exercise 11.4
Essay Question

The two types of forecasting of the total number and types of employee are
external forecasting of organisation and internal forecasting of organisation.

Exercise 11.5
Essay Question

Organisation can implement two methods of recruitment: internal recruitment

and external recruitment.
 ANSWERS W 303

Exercise 11.6
Essay Question
In the process of selecting qualified candidates, organisation must perform two
main processes, which are the process of gathering information to be evaluated
and the process of selecting the best candidate for the position offered.

Exercise 11.7
Essay Question

Training methods that can be implemented by an organisation are as follows:

(a) On-the-job training

(b) Vestibule training
(c) Apprentice training
(d) Off-the-job training

Exercise 11.8
Essay Question

The following are the individuals or groups having potential in becoming the job
performance evaluator for an employee:

(a) Supervisors/managers.
(b) Colleagues.
(c) Subordinates.
(d) Other parties who are related to the particular employee such as customers,
suppliers and others.

Exercise 11.9
Essay Question

Financial rewards are rewards in terms of money such as pay of wage,

commission, bonus, share ownership, and dividend payment given to employees
as a return for their contribution of energy and effort towards the organisation.
Meanwhile, employeesÊ benefits are non-financial rewards given to the
employees such as medical facilities, travelling, life insurance, discounts on
products and services of the company, paid leaves and sick leaves.
304 X ANSWERS

Exercise 11.10
Essay Question

1. The four methods of employee separation that are usually faced by

employees and organisations are:

(a) Employee termination

(b) Organisation downsizing
(c) Retirement
(d) Employee turnover

2. There are four bases to the decision of reward granting which are levelled
payment, variable payment and payment structure and employment
benefits. The decision of levelled payment means determining the decision
in making payment to employee at the level higher or lower or at the same
level with the wage payment tier in the labour market. Variable payment is
the payment decision made in variable from one individual to another
based on the individual performance and the organisation. Meanwhile,
payment structure refers to how far employees in the organisation receive
different levels of payment. Employment benefits cover rewards other than
the direct salary given to the employees.

Multiple Choice Questions

1. A
2. B
3. A
4. C
5. D

TRUE (T) or FALSE (F) Statements

1. F
2. F
3. T
4. F
5. T
 ANSWERS W 305

TOPIC 12: COMMUNICATION IN ORGANISATIONS

Exercise 12.1
Essay Question

Among them is to motivate, inform, control and to fulfil social needs.

Communication in the form of motivation has the purpose of influencing the
behaviour of the members of an organisation. Communication also has the role of
a control function. Communication will coordinate and unite work and tasks.
Managers need to communicate to fulfil social needs. Communication has a role
in fulfilling social needs through interactions that are not related to work and
emotions.

Exercise 12.2
Essay Question

Communication is an act of sending or spreading information. Communication is

a dynamic and complex process and involves many factors. There are eight
elements involved in the communication process which are, sender, encoding,
message, channel, decoding, receiver, feed back and disruption/Noise.

Exercise 12.4
TRUE (T) or FALSE (F) Statements

1. F
2. T
3. T
4. F
5. T

Multiple Choice Questions

1. B
2. A
3. D
4. B
5. D
306 X ANSWERS

TOPIC 13: MOTIVATION

Exercise 13.1
Essay Question

Need-based models are motivation models that emphasise on the specific needs
of human and internal factors that give the power to direct and stop actions.
Need-based models explain motivation as a phenomenon that takes place
internally. Process-based models are motivation models that focus on the
understanding of thinking or cognitive process in the mind of individuals and
affect behaviour.

Exercise 13.2
Essay Question

Motivation factors are factors related to the work being carried out and it is
related to the positive feeling towards the work. Motivation factors consist of the
work itself, achievement, career growth and responsibilities. Hygiene factors
refer to the context of work and the environment where the work is being carried
out. These factors are supervision, workplace condition, individual relationship,
salary, safety and administration and policies of the company.

Exercise 13.3
Essay Question

Expectancy model has the purpose of predicting and describing the relations
between task and effort. It suggests that work motivation is determined by
perception and beliefs of individuals towards the relationship between effort and
performance and beliefs towards result expectation related to the different levels
of performance. The equity model focuses on the feelings of individual regarding
equality in the treatment given compared to other people. This model suggests
that individuals will try to reduce the inequalities felt if it exists.

Exercise 13.4
Essay Question

Two types of reinforcements used are elimination and punishment. Elimination

involves the absence of positive outcome or effect, or drawing back the positive
outcome that affects the desired behaviour. Punishment is the giving of negative
 ANSWERS W 307

effect as the result of the occurrence of undesired matters. As an example, an

employee who is always late for work can be suspended or have his pay
confiscated. Both forms of elimination reinforcement and punishment can be
used to reduce the frequency of undesired behaviour. There are many studies
conducted had shown that rewards can increase the level of satisfaction and
motivation compared to punishment.

TRUE (T) or FALSE (F) Statements

1. T
2. F
3. F
4. T
5. T

Multiple Choice Questions

1. C
2. C
3. D
4. D
5. A

TOPIC 14: LEADERSHIP

Exercise 14.1
Essay Question

From both studies, the results achieved are quite similar. Both have given two
main dimensions which are task dimension and relation dimension.

Exercise 14.2
Essay Question

Favourable situations occur when leaders are able to influence their followers
and this is determined by leader-subordinate relations, task structures and
position power. Generally, a leader with relations orientation and a high LPC
grade are considered as better leaders in intermediate favourable situations.
Leaders that are task-oriented with low LPC grade are better leaders in very
highly favourable situations or in unfavourable situations.
308 X ANSWERS

Exercise 14.3
Essay Question

Transformational leaders will motivate their employees to perform more than

what have been expected by initiating the feelings of importance and value of the
task in each individual. This can be done by creating interest in employees to
perform every matter for the sake of the interest of the group and the
organisation besides fulfilling their own needs of self-achievement. Transactional
leadership is based on the process of exchange, where subordinates are given
rewards for good achievement and punished for unsatisfying achievement.

TRUE (T) or FALSE (F) Statements

1. F
2. T
3. F
4. T
5. T

Multiple Choice Questions

1. C
2. D
3. D
4. D
5. B

TOPIC 15: INNOVATION AND CHANGE

Exercise 15.1
Essay Question

The life-cycle of technology will undergo the phases of birth, increase in

development and maturity before it is substituted by a new technology.
 ANSWERS W 309

Exercise 15.2
Essay Question

(a) Innovation is good ideas that begin with creativity.

(b) Technology is the knowledge, tools, equipment and techniques and
methods used to change input into output.
(c) Creative work environment means workplace culture where employees
believe that new ideas are valued, appreciated and encouraged.

Exercise 15.3
Essay Question

Try to think of the examples and discuss them with your friends or tutor.

Exercise 15.4
Essay Question

There are two types of change in organisations: first order change that is linear in
nature, slow and happens in stages; and second order change that is radical in
nature, multidimensional and multilevel.

Exercise 15.5
Essay Question

Aspects that can be changed by change agents are:

(a) Organisation structure

(b) Technology in organisations
(c) Physical layout in organisations
(d) Employees within the organisation

Exercise 15.6
Essay Question

Negotiation is an approach that fulfils the wants of those who are causing
barriers by granting those rewards in exchange for the cooperation given.
310 X ANSWERS

Co-optation is the approach of ÂbuyingÊ the leader of group who is a barrier

towards change so that this leader will influence his followers to change their
minds and then cooperating towards the change.

Force is an approach using threat to instill fear to the parties causing barriers in
order for them to cooperate.

Exercise 15.7
Essay Question

Kurt Lewin proposed a theory related to the management of organisation

change. This theory involves the process of liquidation, change intervention and
freezing. Liquidation refers to getting individuals who are affected by the
changes in believing the needs towards changes. This process tries to liquidate
the culture or other matters that can bring obstruction towards changes. Change
intervention means the processes used towards employees and managers in
order to change their behaviour and work practices (that had been liquidated).
Meanwhile, freezing refers to supporting and strengthening the change that was
successfully carried out in order for it to prolong.

Exercise 15.8
Multiple Choice Questions

1. C
2. B
3. D
4. C
5. C

TOPIC 16: CONTROLLING

Exercise 16.1
Essay Question

Control is a process in ensuring that organisational activities are running

according to the plan. This process can be carried out by comparing the true
performance with the standard that had been established and taking corrective
actions in order to rectify any distortion that does not comply with the standard.
 ANSWERS W 311

Exercise 16.2
Essay Question

Control process consists of three basic methods which are future control which is
also known as prevention control, concurrent or present control, and feedback
control. There are five forms of control that can be used by managers in
implementing control process; bureaucratic control, objective control, normative
control, concertive control and self control.

Exercise 16.3
Essay Question

One of the important areas that need to be controlled is the area of finance. There
are times when financial performance does not reach the standard or not as
expected. If this condition remains undetected and relevant actions are not taken,
the existence of the company might be in jeopardy.

TRUE (T) or FALSE (F) Statements

1. T
2. F
3. T
4. T
5. T

Multiple Choice Questions

1. B
2. A
3. A
4. C
5. B