P MACQUARIE

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FORMAL EXAMINATION PERIOD: SESSION 1, JUNE 2017

Unit Code: BBA 102

Unit Name: Principles of Management

Duration of Exam 2 Hours + 10 minutes reading time
(including reading time if applicable):
Fifty-eight (58) questions in total:
Total No. of Questions: - Fifty (50) multiple choice questions
- Eight (8) short answer questions
Total No. of Pages
(including this cover sheet):
12

GENERAL INSTRUCTIONS TO STUDENTS:

• Students are required to follow directions given by the Final Examination Supervisor and must refrain from communicating in any way with another student once they have entered
the final examination venue.
• Students may not write or mark the exam materials in any way during reading time.
• Students may only access authorised materials during this examination. A list of authorised material is available on this cover sheet.
• All watches must be removed and placed at the top of the exam desk and must remain there for the duration of the exam. All alarms, notifications and alerts must be switched off.
• Students are not permitted to leave the exam room during the first hour (excluding reading time) and during the last 15 minutes of the examination.
• If it is alleged you have breached these rules at any time during the examination, the matter may be reported to a University Discipline Committee for determination.

EXAMINATION INSTRUCTIONS:

Part A consists of fifty (50) multiple choice questions. Students should answer all of the questions in Part A
on the multiple choice answer sheet provided. Each question is worth half a mark (0.5).

Part B consists of eight (8) short answer questions. Students should answer five (5) questions only. Answer
the questions in the space provided on the examination paper. Each question is worth three (3) marks.

AIDS AND MATERIALS PERMITTED/NOT PERMITTED:

This is a CLOSED BOOK examination. No notes or other materials are permitted.

Dictionaries: No dictionaries permitted

Calculators: No calculators permitted
Other: Closed book - No notes or textbooks permitted
Part A - Multiple Choice Questions

Choose the one alternative that best completes the statement or answers the question. Mark
your answer on the answer sheet provided. Each question is worth 0.5 marks (total 25 marks).

1. The ability of an organisation to outperform others by producing goods or services more effectively than its
competitors is called its:
A. competitive advantage.
B. quality.
C. efficiency.
D. innovation.
E. effectiveness

2. As a sales manager, you would have to decide how much leeway to give your subordinates in giving gifts
to prospective clients in foreign countries. This is an example of the challenge of managing for:
A. your own happiness.
B. globalisation.
C. ethical standards.
D. sustainability.
E. diversity.

3. Setting goals and deciding how to achieve them is called:

A. controlling.
B. managing.
C. planning.
D. organising.
E. leading.

4. A general manager at a department store is giving an important presentation to several departments to

engage the whole staff in a new customer retention effort beginning this month. This is an example of:
A. planning.
B. organising.
C. leading.
D. controlling.
E. marketing.

5. Aziz immediately halted production at his facility after seeing a report indicating the last batch had a high
level of product defects and restarted work only when the problem was discovered and fixed. Aziz is engaged
in which management function?
A. Repairing
B. Organising
C. Monitoring
D. Controlling
E. Executing

6. Managers who are future oriented, dealing with uncertain, highly competitive conditions and who stay alert
to long-run opportunities and problems are most likely to be:
A. first-line managers.
B. functional managers.
C. middle managers.
D. general managers.
E. top managers.

7. Managers who implement the policies and plans determined at the highest levels and coordinate the
activities of lowest level managers are called:
A. executional managers.
B. first-line managers.
C. middle managers.
D. functional managers.
E. general managers.

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8. Managers who make short-term operating decisions and direct the daily tasks of the non-managerial
employees are called:
A. first-line managers.
B. middle managers.
C. general managers.
D. functional managers.
E. initial managers.

9. A_____ manager is responsible for just one organisational activity.

A. specialist
B. first-line
C. singular
D. functional
E. top-level

10. The Smith Family and The Nature Conservancy Australia are examples of which type of organisation?
A. For-profit
B. Nonprofit
C. Administrative
D. Mutual-benefit
E. Aid-based

11. The primary measure of success of a nonprofit organisation is typically:

A. the total revenue.
B. ROI.
C. the effectiveness of the services delivered.
D. the market share.
E. the number of services available.

12. Which of the following statements about a manager's worklife is not among the findings of management
scholar Henry Mintzberg?
A. Managers work long hours.
B. Most managerial tasks require lengthy periods of time for completion.
C. Managers rely more on verbal than on written communication.
D. Managers work at an intense pace.
E. Managers don’t do any work.

13. According to Jim Collins, undisciplined pursuit of more and grasping for salvation are stages of
organisational______.
A. innovation
B. change
C. intervention
D. resistance
E. decline

14. A change that is made in response to arising problems or opportunities is called:

A. reactive change.
B. incremental change.
C. proactive change.
D. radical change.
E. process change

15. Which of the following is an example of a proactive change?

A. Ciara's staff is unhappy about the long hours they have been working and several of them quit before she
knows there is a problem.
B. Ciara cannot get permission to hire another person until her group misses several deadlines.
C. Ciara's group sent a product that was nearing its launch date back to the drawing board based on a
competitor's superior new offering.
D. Ciara explores improvements in bonus structures with her staff and begins to implement them despite the
fact that her employees are generally content.
E. Ciara is constantly 'putting out fires', responding to daily crises in her group.

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16. Which of the following is an example of a force for change originating outside the organisation?
A. Productivity issues
B. Conflict management
C. Structural reorganisation
D. Absenteeism
E. Social pressures

17. The invention of a machine to make plastic corks for wine bottles has severely affected companies that
produce traditional cork. This is an example of a(n) force for change.
A. market
B. social and political
C. demographic
D. technological
E. economic

18. Which of the following is not an inside force that indicates organisational change might be needed?
A. High turnover
B. Excessive conflict between managers and employees
C. Job dissatisfaction
D. High levels of stress among employees
E. Increased competition

19. The reintroduction of a familiar practice within the same organisation is called a(n):
A. practical change.
B. adaptive change.
C. reactive change.
D. innovative change.
E. radically innovative change.

20. Which of the following is not a leading reason that employees resist change?
A. Individual predisposition toward change
B. Climate of mistrust
C. Fear of failure
D. Lack of personal ethics
E. Non-reinforcing reward systems

21. Lewin's change model consists of:

A. three types: adaptive, innovative and radically innovative.
B. three forces: employee characteristics, change agent characteristics and change agent-employee
relationships.
C. four steps: recognise problems, gain allies, overcome resistance and execute.
D. three stages: unfreezing, changing and refreezing.
E. three steps: diagnosis, intervention and evaluation.

22. The process by which a company compares its performance with that of high-performing organisations is
called______.
A. reference innovation
B. competitive change
C. benchmarking
D. continuous improvement.
E. radical innovation

23. Which of the following is not one of the reasons that control is needed in an organisation?
A. To adapt to change and uncertainty.
B. To eliminate the need for teamwork.
C. To detect opportunities.
D. To deal with complexity.
E. To decentralise decision making.

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24. Jimmy's supervisor noticed that he was struggling with the computerised setup for production runs at his
new job. The supervisor sat next to him while he tried it again and gave suggestions for improvement. The
supervisor is doing which step of the control process?
A. Compare performance to standards.
B. Establish standards.
C. Take corrective action.
D. Measure performance.
E. Control productivity.

25. Monitoring performance to ensure that day-to-day goals are being implemented and taking corrective
action as needed is known as control.
A. strategic
B. functional
C. tactical
D. operational
E. managerial

26. Eileen manages employees at Maui Tours and Lodging. She has noticed that one of her employees
submits via the computer system the same suggestions for continuous improvement multiple times, knowing
that performance is evaluated on the number of suggestions only. This problem is typical of control.
A. clan
B. market
C. decentralised
D. bureaucratic
E. functional

27. Some managers use_____ , which provides four indicators with which organisations can set goals and
measure performance.
A. the balanced scorecard
B. a strategic map
C. measurement management
D. a strategic scorecard
E. evidence-based management

28. The economic or productive potential of employee knowledge and actions is called:
A. human capital.
B. labour capital.
C. social capital.
D. potential capital.
E. productivity capital.

29. A summarises what the holder of the job does and how and why he or she does it.
A. job specification
B. realistic job preview
C. job description
D. job analysis
E. performance appraisal

30. After being referred by a friend, Hasina attended a job interview. She didn't feel it went well but was
surprised when her friend told her the boss didn't like that she had worn her hijab, a traditional headscarf.
The boss told a co-worker after the interview, 'Our customers prefer working with Christians'. This is an
example of:
A. affirmative action.
B. quid pro quo.
C. discrimination.
D. hostile work environment.
E. favouritism.

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31. The process of locating and attracting qualified applicants for jobs open in the organisation is called

A. enlisting
B. selection
C. hiring
D. recruiting.
E. job posting.

32. Placing information about job vacancies and qualifications in places where employees can see them such
as on bulletin boards or the company's intranet is called______.
A. job analysis
B. realistic job previewing
C. position advertising
D. recruiting
E. job posting

33. When Jake became one of three final candidates for a managerial position with a large medical supply
company, the director of the department scheduled a special meeting with him. There, the two talked about
the stressful deadlines and heavy travel required of the position, as well as the great compensation and
multiple perks. Jake appreciated that the director took time to conduct a(n)
A. behavioural-description interview.
B. realistic job preview.
C. unstructured interview.
D. situational interview.
E. performance appraisal.

34. Which of the following is not a description of organisational culture?

A. A system of shared beliefs and values.
B. 'Social glue' binding members together.
C. A system of reporting relationships.
D. An organisation's personality.
E. A system that guides the behaviour of organisational members

35. The activities and ceremonies, planned and unplanned, that celebrate important occasions and
accomplishments in the organisation's life are known as______.
A. myths
B. stories
C. conventions
D. rites and rituals
E. values

36. Another term for the chain of command within an organisation, as represented on an organisational chart,
is:
A. reporting linkage.
B. span of control.
C. horizontal specialisation.
D. vertical hierarchy.
E. network structure

37. The arrangement of having discrete parts of a task done by different people is called an organisation's

A. coordinated effort
B. division of labour
C. span of control
D. chain of command
E. matrix structure

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38. An organisation's_ is a control mechanism for making sure the right people do the right things at
the right time.
A. central command
B. division of labour
C. hierarchy of authority
D. span of control
E. strategic plan

39. When managers must be closely involved with their subordinates, they should have a span of
control.
A. flexible
B. wide
C. flat
D. narrow
E. lean

40. means that managers must report and justify work results to managers above them.
A. Liability
B. Accountability
C. Delegation
D. Hierarchical control
E. Position power

41. Good job design requires matching the level of responsibility to the level of
A. liability
B. dependability
C. delegation
D. authority
E. position power

42. Jennifer's staff enjoy working for her but think she is a perfectionist. She often thinks that she is the only
one who can handle her division's difficult clients or handle some of the most sensitive issues, so she
frequently has problems with______.
A. responsibility
B. allocation
C. accountability
D. authority
E. delegation

43. At Caldwell Organic Grocers, all purchasing, hiring and production decisions are made by top
management. Caldwell has authority.
A. classical
B. wide
C. centralised
D. for-profit
E. matrix

44. The constant feedback loop of the is designed to ensure plans stay headed in the right direction.
A. means-end chain
B. planning-control cycle
C. control system
D. project management method
E. project planning sequence

45. If you do not have all of the information for a complete plan, you should:
A. make decisions based on what you have, since perfect information is rare.
B. wait until you can get that information to take action you know will be appropriate.
C. implement two or more courses of action simultaneously.
D. shrink the plan to limit its scope to only areas where you have good information.
E. disregard the plan and go with your intuition.

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46. Which of the following is a benefit of planning?
A. Planning allows you to spend little time preparing for the future.
B. Planning allows you to make all decisions without consulting superiors.
C. Planning helps you compare your results to your competitors'.
D. Planning helps the company to be spontaneous.
E. Planning helps you cope with uncertainty.

47. A manager who is directing her subordinate about work tasks is communicating
A. vertically
B. horizontally
C. externally
D. through the grapevine
E. informally

48. A person's characteristic speaking patterns, such as the use of pacing, pausing, questions and stories, is
known as a:
A. linguistics style.
B. communication device.
C. nonverbal model.
D. horizontal communication.
E. multicommunication.

49. Top-down reading strategies include which of the following?

A. Read everything you can that is related to your industry.
B. Formulate specific questions you want the reading to answer.
C. Summarise findings for your subordinates.
D. Get deeply into the details, where the meat of most writing is.
E. Test yourself on what you've read.

50. Which of the following is a ‘do' when attempting to improve communication?

A. Close your eyes.
B. Smile.
C. Look away from the speaker.
D. Speak very slowly.
E. Turn away from the speaker.

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Part B - Short Answer Questions

Answer five (5) from the following eight (8) questions in the space provided. Each question
is worth 3 marks (total 15 marks).

51/- Outline 3 ways management can encourage ethical behaviour.

52/-Briefly outline the steps in the planning-control cycle.

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53/-Explain the concept of bounded rationality.

54/-What are Edgar Schein’s four common elements of organisations.

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55/- Identify one strength and one weakness that can arise from devolving HR responsibilities to line
managers.

56/-. Describe three reasons why control is needed.

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57/- Outline three common barriers to effective communication.

58/-Briefly outline three ways an organisation might deal with resistance to change.

This is the last page of the exam

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