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Question 1

The Axiom Company has more than 100 sales representatives who sell a line of complex industrial
products. Sales of these products require close work with buyers to determine their product needs,
so nearly all sales representatives are university graduates in engineering and science. Recently, the
firm established a new companywide control and report system using larger computer. The system
doubles the amount of time the sales representatives spend filling out forms and supplying
information that can be fed into the computer. The sales representatives estimate that they now
have inadequate time for sales effort. A sales manager commented, Morale has declined as a result
of these new controls and reports. Sales is a rewarding, gratifying profession that is based on
individual effort. Sales representatives are happy when they are making sales, since this directly
affects their income and self-recognition. The more time they spend with reports, the less time they
have to make sales. As a result, they can see their income and recognition declining, and thus they
find themselves resisting changes.

(1) What are two OB issues highlighted in the scenario above? Give reasons. (10 marks)
(2) What should the sales manager do in order to deal with the situation? (10 marks)

Question 2

Melissa was night supervisor for an airline company. One evening, at about 11 P.M. she was asked to
deal with an angry passenger who approached her with the comment, Your incompetent staff have
lost my luggage bag again, and your X?#*!! baggage attendant isnt helping me at all. Is everybody
incompetent around here? Common, I want some service. I have an important document in the bag
and if I dont get it by 9 A.M., I will sue this airline for sure!

(1) How should Melissa respond to the passenger? (10 marks)


(2) What two trainings you would recommend that can help Melissa handle the situation
effectively? Justify. (10 marks)

Question 3

Michael supervised eleven accounting clerks in the budget and planning department of a large
computer manufacturer. None of the clerks had accounting degrees, but all were skilled in handling
records and figures. They primarily prepared budgetary plans and analyses for operating
departments. Michael assigned projects to the clerks on the basis of their interests and skills. Some
projects were more desirable than others because of prestige, challenge, or the contacts required;
thus, there were occasional conflicts over which clerk was to receive a desirable project. One clerk
who seemed especially sensitive and regularly complained about this issue was Sonia. On one
occasion Michael received a desirable project and assigned it to a clerk by the name of Jenny. Sonia
was particularly distressed because she felt she should have had the assignment. She was so
distressed that she announced in a voice loud enough to be heard by Michael and all the others,
Nobody around here ever gives me a good assignment. Michael was angered but he sat at his desk
for five minutes wondering what to do.

(1) What leadership issues are raised by this incident? (10 marks)
(2) Consider the path-goal model of leadership and the contingency approaches to leadership
and offer your advice on what actions Michael should take. (10 marks)
Question 4

One of your subordinates is working on an important project. He is an engineer who has good
technical skills and strong work ethics. He stops by your office and appears to be quite stressed and
frustrated. He says, This project is turning out to be a mess. Im supposed to be working with four
other people from four other departments, but they cant seem to get along with each other. The
worst part is they hardly notice Im at the meeting and never listen to my ideas.

(1) Can you identify some of the challenges that project teams often face? (10 marks)
(2) How do you think these challenges can be overcome so that the team can be effective? (10
marks

Question 5

Organization A
This organization is a manufacturing firm. Managers are expected to fully document all decisions,
and good managers are those who can provide detailed data to support their
recommendations. Creative decisions that incur significant change or risk are not encouraged.
Because managers of failed projects are openly criticized and penalized, managers try not to
implement ideas that deviate much from the status quo. One lower-level manager quoted an
often-used phrase in the company: If it aint broke, dont fix it.

There are extensive rules and regulation in this firm that employees are required to follow.
Managers supervise employees closely to ensure there are no deviations. Management is
concerned with high productivity, regardless of the impact on employee morale or turnover.

Work activities are designed around individuals. There are distinct departments and lines of
authority, and employees are expected to minimize formal contact with other employees outside
their functional area or line of command. Performance evaluations and rewards emphasize
individual effort, although seniority tends to be the primary factor in the determination of pay
raises and promotions.
Organization B
This organization is also a manufacturing firm. Here, however, management encourages and
rewards risk taking and change. Decisions based on intuition are valued as much as those that are
well rationalized. Management prides itself on its history of experimenting with new technologies
and its success in regularly introducing innovative products. Managers or employees who have a
good idea are encouraged to run with it. And failures are treated as learning experiences. The
company prides itself on being market driven and responds to the changing needs of its
customers rapidly.

There are few rules and regulations for employees to follow, and supervision is loose because
management believes that its employees are hardworking and trustworthy. Management is
concerned with high productivity but believes that this comes through treating its people right.
The company is proud of its reputation as being a good place to work.

Job activities are designed around work teams, and team members are encouraged to interact
with people across functions and authority levels. Employees talk positively about the competition
between teams. Individuals and teams have goals, and bonuses are based on achievement of
these outcomes. Employees are given considerable autonomy in choosing the means by which the
goals are attained.
Answer the following questions based on descriptions of Organization A and Organization B
presented above.

(1) Describe the type of organization structure suited to Organization A and Organization B and
explain why it is appropriate. (10 marks)
(2) Which organization do you prefer to work in and why? (5 marks)
(3) Draw a project-based matrix structure of either Organization A or Organization B. (5 marks)

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