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ITB Final Papers SS

DIB 2004 Introduction to Business | Final Examination
Section A: Answer ALL questions in this section.
Question 1
You lead the administrative team in the Research and Development Department of Hilger
Scientific Instruments. An important contract is due to be completed very shortly. However, there
have been problems within the team. The team feel they are not being listened to and motivation
amongst team members is low.
Answer the questions below:
a) State THREE (3) reasons why it is important to take the ideas and opinions of the team
into account during discussions.
3 marks
b) Describe THREE (3) strategies you could use to motivate the team.
12 marks
15 marks
Answer Scheme
Question 1 (a): THREE (3) reasons why it is important to take the ideas and opinions of the team
into account during discussions. (any 3 answers below)
Award 1 mark for each reason
a range of ideas will add value to the discussion and may result in more innovative
solutions, which is important for a hi-tech business
each member of the team will have different experiences/expertise (both personal and
professional) which can be drawn on to solve problems/generate ideas
if staff feel they are being listened to they are more likely to contribute ideas, which will
result in a greater range of ideas to choose from
team members will feel more valued (1) and therefore be more motivated
Question 1 (b): THREE (3) strategies you could use to motivate the team.
Award 1 mark for each strategy plus 3 marks for the expansion of each strategy.
recognize effort and achievements by giving staff members more opportunity to use their
own initiative , which will make them feel more valued
provide a positive, open environment where you are available to listen to staff problems
and are able to suggest solutions
work with the team to set clear, realistic goals and expectations which are clearly
communicated so that the team has ownership
provide necessary resources in terms of equipment/training/support and coaching so that
the team knows they are able to meet goals set
hold regular team meetings to provide positive feedback, encourage contributions and
highlight successes
Question 2
By defining human resource management, explain FOUR (4) functions of human resource in an
15 marks
Answer Scheme
Human Resource Management is the process of recruiting, selecting, inducting employees,
providing orientation, imparting training and development, appraising the performance of
employees, deciding compensation and providing benefits, motivating employees, maintaining
proper relations with employees and their trade unions, ensuring employees safety, welfare and
health measures in compliance with labour laws of the land.
Functions of human resource in an organization.
One of the primary functions of the human resources department is to oversee hiring and recruiting
within an organization. The department actively recruits, screens, interviews and hires qualified
candidates for open positions.
Training and Development
The human resources department handles the training and development of staff within an
organization. It creates training programs and conducts training for new hires and existing
employees. The human resources department also works in conjunction with department managers
and supervisors to determine the training needs of employees.
Handling Compensation
The human resources department is responsible for various aspects of employee compensation.
The department typically handles employee payroll and ensures employees are paid accurately and
on time, with the correct deductions made.
Employee Benefits
The human resources department manages all aspects of employee benefits, including health and
dental insurance, long-term care or disability programs as well as employee assistance and
wellness programs. The department keeps track of employee absences and job-protected leave,
such as family medical leave.
Employee Relations
The human resources department handles employee relations matters within an organization.
Employee relations involves employee participation in different aspects of organizational
activities. The department maintains the relationship between employees and management by
promoting communication and fairness within the company.
Mark Allocation:
Each main point 1 mark x 4 points
: 4 mark
Explanation 2 marks for each point
: 8 marks
: 3 mark
Total marks
: 15 marks
Question 3
Identify and describe THREE (3) factors that influencing ethical behavior in an organization.
15 marks
Answer Scheme
Cultural difference
Culture describes a collective way of life, or way of doing things. It is the sum of attitudes, values,
goals, and practices shared by individuals in a group, organization, or society. Cultures vary over
time periods, between countries and geographic regions, and among groups and organizations.
Culture reflects the moral and ethical beliefs and standards that speak to how people should behave
and interact with others.
Organizational behavior
The policies of the company also influence the determination of ethical conduct. Standards of
behavior in an industry are often influenced greatly by the dominant firms in that industry. The
authors of the company policy obviously have an effect that is decisive.
Mark Allocation:
Each main point 1 mark x 4 points
: 4 mark
Explanation 2 marks for each point
: 8 marks
: 3 mark
Total marks
: 15 marks
Question 4
Johnson has started his new business by developing his own women make-up products. Identify
and discuss THREE (3) best choice of pricing strategies for his products.
15 marks
Answer Scheme (choose any 3 answers)
Premium Pricing.
Use a high price where there is a unique brand. This approach is used where a substantial
competitive advantage exists and the marketer is safe in the knowledge that they can charge a
relatively higher price. Such high prices are charged for luxuries such as Cunard Cruises, Savoy
Hotel rooms, and first class air travel
Value Pricing.
This approach is used where external factors such as recession or increased competition force
companies to provide value products and services to retain sales e.g. value meals at McDonalds
and other fast-food restaurants.
Promotional Pricing.
Pricing to promote a product is a very common application. There are many examples of
promotional pricing including approaches such as BOGOF (Buy One Get One Free), money off
vouchers and discounts. Promotional pricing is often the subject of controversy.
Captive Product Pricing
Where products have complements, companies will charge a premium price since the consumer
has no choice. For example a razor manufacturer will charge a low price for the first plastic razor
and recoup its margin (and more) from the sale of the blades that fit the razor.
Optional Product Pricing.
Companies will attempt to increase the amount customers spend once they start to buy. Optional
‘extras’ increase the overall price of the product or service. For example airlines will charge for
optional extras such as guaranteeing a window seat or reserving a row of seats next to each other.
Penetration Pricing.
The price charged for products and services is set artificially low in order to gain market share.
Once this is achieved, the price is increased. This approach was used by France Telecom and Sky
TV. These companies need to land grab large numbers of consumers to make it worth their while,
so they offer free telephones or satellite dishes at discounted rates in order to get people to sign up
for their services.
Price Skimming.
Price skimming sees a company charge a higher price because it has a substantial competitive
advantage. However, the advantage tends not to be sustainable. The high price attracts new
competitors into the market, and the price inevitably falls due to increased supply.
Mark Allocation:
Each main point 1 mark x 3 points
: 3 marks
Explanation 4 marks for each point
: 12 marks
: 0 marks
Total marks
: 15 marks