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UNIVERSITI ISLA.IV\
ANTARABANGSA SELANGOR

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SELANGOR INTERNATIONAL ISLAN\'C UNIVERSITY COLLEGE

DIPLOMA IN ACCOUNTANCY, DIPLOMA IN BUSINESS MANAGEMENT,

DIPLOMA IN ISLAMIC BANKING, DIPLOMA IN HUMAN RESOURCE
MANAGEMENT, AND DIPLOMA IN ISLAMIC FINANCIAL PLANNING

FINAL EXAMINATION
SESSION ~, ACADEMIC YEAR 2009/2010

BMM 30231 BMM 30131 BMM 31031 BMM 31231 DMBM 30031 DMBM 3103
FUNDAMENTALS OF MANAGEMENT

INSTRUCTION TO CANDIDATES:

1. The time allotted for this paper is 3 HOURS.

2. This question paper consists of THREE sections.
SECTION A : 20 True/F alse Questions
SECTION B: 20 Multiple Choice Questions
SECTION C : 5 Essay Questions
3. Answer ALL questions in SECTION A and B and THREE questions in
SECTION C.
4. This examination pack consists of
i) The Question Paper
ii) A True/False Answer Sheet
iii) An Objective Answer Sheet
iv) An Answer Booklet

THIS QUESTION PAPER CONSISTS OF 10 PRINTED PAGES.

DO NOT OPEN UNTIL YOU ARE TOLD TO DO SO.

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SECTION A
Marks: 20

Answer TRUE or FALSE on the truelfalse answer sheet provided.

1. When decisions tend to be made at lower levels in an organization, the

organization is said to be decentralized.

2. An organic organization tends to be characterized by high specialization,

extensive departmentali~}iOn, narrow spans of control, high formalization, a
limited information netwo,*, and little partiCipation in decision making by low-
level employees.

3. In divisional structures, the parent corporation typically acts as an external

overseer to coordinate and control the various divisions.

4. The three key elements in the definition of motivation are energy, direction, and
achievement.

5. Herzberg believed that the data from his study suggested that the opposite of
satisfaction is dissatisfaction.

6. In the job characteristics model, skill variety refers to the degree to which a job
requires completion of a whole and identifiable piece of work.

7. According to expectancy theory, managers should reward employees with

those things that they value most positively.

8. The managerial grid only provides a framework for conceptualizing leadership

style.

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9. Fiedler's contingency model of leadership style proposed that effectiveness

depends on the ability and willingness of the subordinates.

10. Robert House's path-goal theory assumed that leadership style changes
depending on the situation.

11. A major drawback of written communication is a lack of precision.

12. Selective perception is a factor that can interfere with effective communication ..
between people from different backgrounds.

13. Feedback is more meaningful when it is general instead of overly specific.

14. Integrative bargaining operates under zero-sum conditions, in which any gain
made by one participant is at the direct expense of the second participant.

15. In taking managerial actions, managers must correct actual performance, as it

is the only choice.

16. Technical equipment cannot be programmed for concurrent controls.

17. An example of feedback control is management by walking around.

18. For them to be effective, control systems should be stable and unchanging.

19. Management by Shura is in accordance with the nature of man.

20. Masrui'ah is a legal document that must be referred to when making any
decision with regards to Islamic matters.

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SECTION B
Marks: 20

Answer ALL questions on the objective answer sheet provided.

1. In describing the degree to which tasks in an organization are divided into

separate jobs, managers use the term
A. span of control.
B. chain of command.
C. work specialization:
D. departmentalization!

2. Functional departmentalization groups jobs by

A. tasks they perform.
B. territories they serve.
C. type of customer they serve.
D. products or services they manufacture or produce.

3. The concept that defines the number of subordinates that report to a manager
and that indirectly specifies the number of levels of management in an
organization is called
A. span of control.
B. unity of command.
C. responsibility factor.
D. authorized line of responsibility.

4. When a young child emulates a professional sports star's behavior, the star has
what kind of power over the child?
A. Expert.
B. Coercive.
C. Referent.
D. Legitimate.

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5. The need for such factors as status, recognition, attention, self-respect,

autonomy, and achievement are examples of which of the following needs,
according to Maslow's hierarchy of needs?
A. Social.
B. Esteem.
C. Physiological.
D. Self-actualization.

6. Theory Y assumes that people inherently

A. wort< to satisfy hygiene factors.
B. want to belong more than anything else.
C. want to work and can exercise self-direction.
D. avoid responsibility and need to be closely controlled.

7. According to Herzberg's Motivation-Hygiene theory. which of the following is

considered a motivator?
A. Pay.
B. Responsibility .
C. Hygiene factors.
D. Working conditions.

8. Equity theory recognizes that individuals are concerned with

A. only absolute rewards.
B. their compensation package.
C. whether others perceive equity.
D. their rewards relative to others' rewards.

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9. Which of the following describes the leadership style in which a leader tends to
centralize authority, dictate work met~ods, make unilateral decisions, and limit
employee participation?
A. Cultural style.
B. Autocratic style.
C. Democratic style.
D. Laissez-faire style.

10. According to the Univer~ity of Michigan studies, leaders who are _ _ __

".
are associated with higher'group productivity and higher job satisfaction.
A. initiating
B. considerate
C. employee-oriented
D. production-oriented

11. Blake and Mouton's managerial grid identifies the style as

characterized by a belief that efficiency in operations results from arranging
conditions of work in such a way that human elements interfere to a minimum
degree.
A. Task Management
B. Team Management
C. Country Club Management
D. Impoverished Management

12. Fiedler's dimension termed _ _ _ _ _ _ is the degree of confidence, trust,

and respect subordinates had for their leader.
A. authority
B. task structure
C. power relationship
D. leader-member relations

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13. For communication to be successful. the receiver must

A. listen actively.
B. suppress noise.
C. decode the message.
D. have access to a formal channel.

14. During the communication process. the message is converted to a symbolic

form. called
A. decoding.
B. encoding.
C. expanding.
D. deciphering.

15. When a person tells his or her manager what the manager wants to hear. that
individual is using which of the following barriers to effective interpersonal
communication?
A. Filtering.
B. Feedback.
C. Defensiveness.
D. Selective perception.

16. Neil listens to his friends without interrupting. He avoids premature judgments
and tries not to formulate his responses while listening. Neil is
A. using feedback.
B. listening actively.
C. simplifying language.
D. constraining emotions.

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17. An effective control system ensures that activities are completed in ways that
A. maximize profits.
B. minimize conflict.
C. motivate employees.
D. lead to attainment of the organization's goals.

18. Market control relies upon

A. traditions and beliefs.
B. establishing and ~intaining dominant market share.
C. market forces to set standards used in the control system.
D. government regulators to set standards that guarantee fair competition.

19. Financial statements are an example of _ _ control.

A. feedback
B. concurrent
C. feedforward
D. management

20. Which of the following is FALSE concerning the Islamic management?

A. Long term objective is to success in this world and the hereafter.
B. Constructive criticism is not allowed as it may degrade one's self
esteem.
C. Islamic management practices planning, organizing, leading, and
controlling.
D. Organizing is the structure of projects and structure of roles to be
undertaken by human efforts.

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SECTION C
Marks: 60

Answer any THREE questions In the answer booklet provided.

Question 1

a. list and discuss the five common forms of departmentalization.

(10 marks)

b. Discuss the characteristics of mechanistic and organic organizations.

(10 marks)

Question 2

a. Define motivation and discuss the three key elements that can be seen in this
definition.
(10 marks)

b. List and discuss six of the eight specific recommendations that should be
followed when motivating employees.
(10 marks)

Question 3

a. Identify and discuss six traits associated with leadership.

(10 marks)

b. Define shura and list any three implications of shura involved in management
and organization.
(10 marks)

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Question 4

a. List and discuss four of the seven barriers to effective communication that
managers face. Include a specific example of each barrier to support your
answer.
(10 marks)

b. Define negotiation and identify the two major bargaining strategies.

(4 marks)

c. Describe and compare the two strategies identified in (b).

(6 marks)

Question 5

a. List and briefly explain the steps in the control process, and best practices
managers typically utilize in the process.
(10 marks)

b. List and discuss the three main types of control used for monitoring and
measuring organizational performance. Include a specific example of each
type to support your answer.
(10 marks)

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