END-OF-SEMESTER EXAMINATION

SEMESTER 2,2,2015/2016
2014/2015 SESSION

ENM/HS/KENGG/KICT/ 1-4
KOS
9.00 a.m. – 12.00 noon 27/5/2016

MGT 2010/K 1-6

Principles and Practice of Management

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A MULTIPLE CHOICE QUESTIONS (40 MARKS)

Answer ALL the questions in the multiple choice answer sheet provided.

B ESSAYS (40 MARKS)

Answer any TWO out of THREE questions in the answer booklet provided.

C CASE STUDY (20 MARKS)

Answer ALL questions in the answer booklet provided.
 PART A: MULTIPLE CHOICE QUESTIONS (40 MARKS)

Answer ALL the questions in the multiple choice answer sheet provided.

1. In the integration-responsiveness grid the:

a) vertical axis measures pressures for global integration and the horizontal axis
measures pressures for local responsiveness.
b) horizontal axis measures pressures for local interaction and the vertical axis measures
pressures for global responsiveness.
c) horizontal axis measures financial viability and the vertical axis measures employee
satisfaction.
d) vertical axis measures employee satisfaction and the horizontal axis measures
management credibility.
e) vertical axis measures pressures for global systems capacity and the horizontal axis
measures pressures for local financial success.

2. The global strategy model that uses subsidiaries in each country and provides each a
great deal of discretion to respond to local conditions is the _______________ model.
a) international
b) multinational
c) global
d) transnational
e) domestic

3. When a company sets up its own overseas operations, independent of foreign partners or
governments, it has established a(n):
a) purely global strategy
b) competitive venture.
c) wholly owned subsidiary.
d) independent venture.
e) multinational contract.

4. Which of the following is a reason why some companies prefer to use expatriates at their
overseas operations?
a) It can cost three to four times as much to use host-country nationals, compared to
expatriates.
b) Expatriates often tend to transfer the corporate culture and best practices to other
countries.
c) The personal security of host-country nationals may be an issue in some developing
countries.
d) Governments may provide incentives to employ expatriates.
e) Expatriates tend to be more available than the local employees.

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5. _______________ is the tendency to judge others by the standards of one's group or
culture, which are seen as superior.
a) Individualism
b) Centralism
c) Uncertainty avoidance
d) Ethnocentrism
e) Hypocrism

6. _______________ exists for an employee when his or her manager has an expectation
that the job will be performed and has the right to take corrective action if it is not.
a) Corporate governance
b) Accountability
c) Strategic control
d) Coordination
e) Span of control

7. Mason Engineering is run in a very traditional way, with experienced top managers
making all the decisions and passing them down to lower levels for implementation.
Mason can be described as a(n) _______________ organization.
a) integrated
b) differentiated
c) centralized
d) decentralized
e) horizontal

8. Sports International began its business by making athletic shoes. Its departments are
structured based on products sold to professional athletes, products sold to novice
athletes, and products sold to non-athletes. In this case, the company uses
_______________ departmentalization.
a) geographic
b) customer
c) functional
d) matrix
e) vertical

9. Which of the following is a disadvantage of the matrix design?

a) Decision making is decentralized
b) Resource utilization is inefficient.
c) There is low flexibility.
d) A single head has to overlook multiple divisions.
e) Additional time is required for meetings and coordination.

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10. Investing in information systems and creating horizontal relationships most likely results
in:
a) a reduced need for information.
b) an increased availability of resources.
c) a reduced need to share information across units.
d) an organization's ability to process more information.
e) the creation of slack resources.

11. Companies can create a competitive advantage when human resources are
_______________.
a) rare
b) trainable
c) imitable
d) unorganized
e) submissive

12. A job _______________ refers to the essential tasks, duties, and responsibilities involved
in performing a job.
a) specification
b) description
c) design
d) title
e) validation

13. Lana and Jacqueline met for lunch after each of them had been interviewed for a position
with Locus Construction Corp. The two of them discussed their interview experience and
found that they had been asked the exact same questions. The selection technique utilized
by LC Corp. is an example of a(n) ________________ interview.
a) exit
b) nondirective
c) cognitive
d) structured
e) informal

14. The consistency of test scores over time and across alternative measurements is known
as:
a) integrity.
b) reliability.
c) factuality.
d) content validity.
e) criterion-related validity.

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15. Leaders who emphasize quality, accuracy, quantity of output, and following the rules are
most likely to be ______________.
a) employee-centered
b) customer-centered
c) task-oriented
d) maintenance-oriented
e) relationship-oriented

16. Which of the following situational approaches to leadership postulates that effectiveness
depends on the personal style of the leader and the degree to which the situation gives the
leader power, control, and influence over the situation?
a) The Vroom model
b) Hersey and Blanchard's situational theory
c) Path-goal theory
d) Leadership Grid
e) Fiedler's contingency model

17. Anina, an operations manager at Sedap Grocers, has a high need for achievement, is
constantly striving for improvement, and shows ambition and energy. This describes her
______________.
a) leadership motivation
b) integrity
c) self-confidence
d) drive
e) knowledge of the business

18. In Hersey and Blanchard's situational theory, which of the following is referred to as a
follower's self-confidence and self-respect?
a) Job maturity
b) Personal security
c) Psychological maturity
d) Cognitive dissonance
e) Emotional intelligence

19. The theory that examines follower and environmental characteristics such as locus of
control, ability, and formal authority system is the ______________ theory.
a) contingency plan
b) path-goal
c) Hersey and Blanchard's
d) leader-member exchange
e) Fiedler's contingency

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20. Rizal is a hardworking employee who has never received a reward for his good work
from his boss. As a result, Rizal never expects his good work to be rewarded. According
to the expectancy theory, Rizal's lack of expectation of being rewarded reveals:
a) low valence for the outcome.
b) low instrumentality.
c) high instrumentality.
d) high valence for the outcome.
e) high expectancy.

21. Which of the following psychological states does the Hackman and Oldham model link
with the core job dimensions of skill variety, task identity, and task significance?
a) Knowledge of the actual results of the work activity
b) Experienced responsibility for the outcome of work
c) Experiencing high satisfaction with the work
d) Learning about how well the job was performed
e) Experienced meaningfulness of the work

22. According to Herzberg's theory, hygiene factors are the:

a) rewards that employees directly derive from performing the job itself.
b) attributes of a job that makes it more rewarding and motivating.
c) rewards a person derives from the company or boss.
d) workplace characteristics like working conditions, pay, and supervision.
e) components that link an employee's performance and work outcome.

23. Which of the following statements is supported by the equity theory?

a) Inequity causes dissatisfaction.
b) Equity will result in an effort to restore balance.
c) If the ratios of outcomes/inputs are equivalent, people will be dissatisfied.
d) Assessments of equity are usually made objectively.
e) Equity causes people to be dissatisfied with their treatment.

24. Khairul just joined a team of people from different units in his organization. The team's
primary task is to recommend to the top management valuable uses for the waste
materials generated in the manufacturing processes. The team meets twice per week;
otherwise, members work within the usual organizational structure. The temporary team
that Khairul has joined is a ______________.
a) work team
b) working group
c) project group
d) project team
e) parallel team

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25. In the context of the processes of group development, hostilities and conflict arise, and
people jockey for positions of power and status in _______________.
a) forming
b) storming
c) norming
d) performing
e) achieving

26. Prior to hiring a consultant to assist with a departmental reorganization, the department
manager was required to get the project and its budget approved by two other
departments: accounting and human resources. This type of requirement facilitates
_______________ relationships in the organization.
a) service
b) advisory
c) technical
d) stabilization
e) liaison

Questions 27 and 28 ONLY are based on the scenario below:

Three coworkers are heatedly discussing what to get for the department lunch for the day.
Hashim wants to have Kelantanese food, while Jamal wants Penang spicy food. Faiez says
that he wants to eat something healthy such as food from a salad bar. Jamal says it doesn't
matter and walks away frustrated with the situation. Hashim suggests to Faiez that there is a
Kelantanese fast food restaurant that has salad on the menu, so they can both get some of
what they want. Faiez, concerned for Jamal's feelings, says that they should get Penang spicy
food.

27. Which of the following approaches to conflict does Jamal use?

a) Avoidance
b) Collaboration
c) Accommodation
d) Compromise
e) Competition

28. Which of the following approaches to conflict does Faiez use?

a) Avoidance
b) Collaboration
c) Accommodation
d) Assertiveness
e) Competition

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29. Hassan has been working from home for the past six months. He receives his projects via
the company e-mail website. This is as example of a(n):
a) private office.
b) floating office.
c) virtual office.
d) grapevine office.
e) roaming office.

30. The degree to which a communication channel conveys information is referred to as:
a) media richness.
b) instrumentality.
c) valence.
d) channel structuration.
e) perception.

31. Shakir is the marketing head of an organization situated in Malaysia. The company
decides to do business with Thailand. In this case, to successfully conduct business in the
other country, Shakir should:
a) try and influence them to use his country jargon.
b) use jargon as much as possible to avoid misunderstandings.
c) form a common jargon to be used between them.
d) learn something about the country's language and culture.
e) not hire any employees from the neighboring country.

32. The process by which a person states what he or she believes the other person is saying is
referred to as:
a) affiliation.
b) filtering.
c) reflection.
d) introspection.
e) perception.

33. The types of information sent in downward communication in an organization might

include:
a) an employee's idea for improving a business process.
b) instructions about one's job.
c) employees expressing grievances.
d) a focus group's feedback to management.
e) an update on the current status from a foreign branch.

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34. Amy had just joined as a waitress at a popular restaurant. The restaurant manager
explained to her everything that she needed to do, how the tables were numbered, and
that she had to memorize the menu and its contents. He also went on to explain what she
should say to diners and how she should talk. She was also given details about her co-
workers' responsibilities. Amy wasn't able to remember the important points that he had
given her even though she was paying complete attention to everything he said. In this
case, Amy's inability to remember the points is most likely to be caused by:
a) misperception.
b) filtering.
c) information overload.
d) low instrumentality.
e) a lack of openness.

35. The practice of sharing with employees at all levels of the organization vital information
previously meant for management's eyes only is known as:
a) open-book management.
b) vertical communication.
c) bureaucratic management.
d) centralized management.
e) horizontal communication.

36. Which of the following statements about six sigma is true?

a) The system was developed at Ford during the 1970s.
b) The lower the sigma number, the lower the level of defects.
c) It is designed merely to reduce product defects.
d) It indicates how often defects in a process are likely to occur.
e) Six sigma always improves the bottom line.

37. An evaluation of the effectiveness and efficiency of various systems within an

organization is called a(n) _____ audit.
a) human resource
b) management
c) activity-based
d) budget
e) six-sigma

38. External audits are generally used for:

a) assessing what the company has done for itself.
b) evaluating production efficiency.
c) evaluating sales effectiveness.
d) investigating possible targets for mergers or acquisitions.
e) assessing what the company has done for its customers.

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39. The process of investigating what is being done and comparing the results with the
corresponding budget data to verify accomplishments or remedy differences is referred to
as ____.
a) activity-based costing
b) budgetary auditing
c) budgeting
d) financial audits
e) budget planning

40. A company's balance sheet shows its:

a) areas of improvement.
b) projected profit.
c) strengths, weaknesses, and threats.
d) financial picture at a given time.
e) performance over time.

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 PART B: ESSAYS (40 MARKS)

Answer any TWO out of THREE questions in the answer booklet provided.

QUESTION 1

With the help of a diagram, explain the three steps in the Human Resource Management
Planning process.
(20 marks)

QUESTION 2

a) Compare and contrast job enlargement and job enrichment. Give an example for each.

(8 marks)

b) Identify and discuss the important features of Maslow's need hierarchy. Draw a diagram
to illustrate the hierarchy.
(12 marks)

QUESTION 3

Identify and describe the THREE types of control. Provide one example for each type.

(20 marks)

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 PART C: CASE STUDY (20 MARKS)

Answer ALL questions in the answer booklet provided.

LEARNING TO LOVE GLOBALISATION

Leo Apotheker is what you would call a true global manager. He speaks German, French, and
English fluently and can converse in a few other languages. As the second-in-command at
German software giant SAP, Leo spent 19 years in the company’s Paris office and helped turn
SAP into a dominant global player. However, his apparent ease and familiarity with different
global settings is not shared elsewhere throughout the company, especially at the company
headquarters in Walldorf, Germany. There, a global perspective has not been easily embraced.

In 2002, SAP executives decided they needed to make the company more global and did
several things to make that happen. First, they hired thousands of programmers in various
foreign locations, e.g. in the United States, China, and India. By 2005, the company had eight
global software labs, each with different areas of expertise. Large software projects are split
up and sent to units around the world. In addition, English became the official language for
corporate meetings, even at the headquarters in Germany. Finally, SAP began recruiting
hundreds of foreign managers, and the non-Germans now make up half of the company’s top
positions.

The changes have not been easy. According to one German executive, “The newcomers began
to initiate faster pace and open SAP’s limited culture to more outside influences. The resulting
tensions show how the challenge of globalization goes far beyond managing within different
languages and time zones”.

In the headquarters in Germany, many long-time employees felt the company was changing
too quickly and too much. Veteran software developers objected to the loss of autonomy at
the company, with one developer who has worked with SAP for 25 years commenting that
“We used to be kings here”. However, employees at the recently added foreign locations
worried that the company was not changing enough. Top executives at SAP state, “What
we’re doing to globalize Research & Development is the right thing and we will continue”.

~ Adapted from Robbins, S. P. & Coulter, M. (2009). Management, Pearson.

CASE QUESTION 1

Discuss THREE things that SAP managers could do to support, promote, and encourage
cultural awareness among the various global locations.
(12 marks)

CASE QUESTION 2

Explain TWO things that other managers might learn from SAP’s experiences in going
global.
(8 marks)

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