FACULTY/COLLEGE College of Business and Economics SCHOOL Johannesburg Business School DEPARTMENT Business Management CAMPUS APB MODULE NAME Business Management 3A. CEP Programmes MODULE CODE ADBM03A SEMESTER First ASSESSMENT OPPORTUNITY, MONTH AND YEAR Supplementary Final Assessment – New Format July 2020 ASSESSMENT DATE 6 July 2020 SESSION ASSESSOR Mr J Venter MODERATOR Ms L Louw (Unisa) DURATION 2 Hours TOTAL MARKS NUMBER OF PAGES OF QUESTION PAPER (Including cover page) 1 100 25 INFORMATION/INSTRUCTIONS: ___________________________________________________________________ • This is an open-book assessment. • Read the questions carefully and answer only what is asked. • Answer all the questions on Blackboard. • The general University of Johannesburg policies, procedures and rules pertaining to written assessments apply to this assessment. Page 1 of 25 Supplementary Final assessment: 6 July 2020 TOTAL MARKS ADBM03A [100 MARKS] QUESTION 1 When McDonald’s develops a fat fryer machine that reduces the amount of oil used to cook French fries by 30% over its current cookers, this is an example of which one of the following attempts to improve the organisation’s __________. A B C D effectiveness efficiency planning organising QUESTION 2 A manager who makes a high-quality product, which customers do not want to purchase, is said to have which one of the following? A B C D High efficiency/low effectiveness High efficiency/high effectiveness Low efficiency/high effectiveness Low efficiency/low effectiveness QUESTION 3 When the CEO reviews the performance of the organisation in the past month’s Profit & Loss Statement to determine if the organisation is “on track” in terms of its sales and profitability goals, this CEO is engaged in which one of the following functions? A B C D Planning Organising Performance management Controlling QUESTION 4 In taking corrective action when the organisation faces unexpected disruptions and crises, the manager is fulfilling which one of the following roles? A B C D Control Negotiator Disturbance handler Leader Page 2 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 5 The ability to work in a team relates to the __________ skills of a manager. A B C D technical negotiating conceptual human QUESTION 6 In order to build a sustainable environment, which one the following components will help the manager? A B C D Proper planning Good leadership Innovation and responsiveness Customisation QUESTION 7 The ultimate purpose of the organisation is to __________. A B C D achieve the goals as efficiently and effectively as possible create a nice work experience for employees create an excellent organisation structure make the highest possible profit QUESTION 8 Which one of the following can be considered as common characteristics of organisations? (i) (ii) (iii) Each organisation has a distinct purpose. Each organisation has its own buildings. Each organisation is composed of people. Choose the correct answer: A B C D (i), (ii) and (iii) (ii) and (iii) (i) and (iii) (i) and (ii) Page 3 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 9 Which one of the following can be considered as three important components of the management process? A B C D Planning, organising and leadership Planning, leading and control Planning, organising and control Inputs, transformation and outputs QUESTION 10 Which of the following will the management of a diverse workforce emphasise? (i) (ii) (iii) (iv) Building a culture that supports diversity. Putting the necessary structures, policies and systems in place that support human resource management. Compliance with the law regarding equity. Providing training for employees. Choose the correct answer: A B C D (i), (ii), (iii) and (iv) (i), (iii) and (iv) (ii), (iii) and (iv) (iii) and (iv) QUESTION 11 Which of the following can be considered as approaches to classical management theory? (i) (ii) (iii) (iv) Human resources approach Administrative approach Scientific approach Bureaucratic approach Choose the correct answer: A B C D (i), (ii), (iii) and (iv) (i), (iii) and (iv) (ii), (iii) and (iv) (iii) and (iv) Page 4 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 12 Taylor’s four principles of scientific management advocate which of the following? (i) (ii) (iii) (iv) Develop a science for each element of a man’s work. Reward both teacher and worker when the worker is successful. Scientifically select, train, teach, and develop the workman. Cooperate with the workmen to ensure that work is being done according to set principles. Choose the correct answer: A B C D (i), (iii) and (iv) (i), (ii), (iii) and (iv) (ii), (iii) and (iv) (iii) and (iv) QUESTION 13 The benefits of using motion studies include which of the following? (i) (ii) (iii) (iv) Simplify work Improve productivity Plan, coordinate and track specific tasks Reduce the level of effort required to perform a job safely Choose the correct answer: A B C D (i), (ii), (iii) and (iv) (i), (ii) and (iv) (ii), (iii) and (iv) (iii) and (iv) QUESTION 14 The main focus of the bureaucratic approach is which one of the following? A B C D Establishing quota systems and bonuses. Simplifying work and improving productivity. Establishing organisational structures through hierarchies and levels of authority. Improving economic efficiency and maximising productivity. Page 5 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 15 Which of the following are among Fayol’s fourteen principles of management? (i) (ii) (iii) (iv) Remuneration Written rules Division of labour Discipline Choose the correct answer: A B C D (i), (ii), (iii) and (iv) (i), (ii) and (iv) (i), (iii) and (iv) (iii) and (iv) QUESTION 16 Behavioural theories of management are concerned with which of the following? (i) (ii) (iii) (iv) The social and group interactions that occur in the workplace. Understanding human needs and attitudes. Establishing quota systems and bonuses. Establishing hierarchies and levels of authority. Choose the correct answer: A B C D (i), (ii), (iii) and (iv) (i), (ii) and (iv) (i), (iii) and (iv) (i) and (ii) QUESTION 17 Which one of the following management theorists defined management as “getting things done by other people”? A B C D Lillian Gilbreth Douglas McGregor Mary Parker Follet Henri Fayol Page 6 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 18 Why are the Hawthorne studies important in management theory? A B C D They investigated the effects of changes in the work environment on the productivity and performance of factory workers. They investigated the human relations between workers and supervisors. They investigated the physiological needs of employees. They investigated how employees prefer to be directed and carry out their work. QUESTION 19 The use of quantitative and mathematical techniques to find ways to increase productivity, reduce costly inventory, and improve quality is known as which one of the following? A B C D Total quality management (TQM) Operations management Information management Systems management QUESTION 20 The assumption that workers dislike work and will attempt to avoid responsibility, if possible, is known as __________. A B C D Theory Z Theory Y Theory X Theory W QUESTION 21 When Apple decided to launch its new product – the iPad, into the market, it created a need for this new technology among consumers. Which of the following does this illustrate? (i) (ii) The impact of the micro-environment on the market environment The impact of the macro-environment on the market environment Choose the correct answer: A B C (i) and (ii) (i) (ii) Page 7 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 22 The type of competition between Mr Price and Steers is __________. A B C D product competition need competition brand competition generic competition QUESTION 23 Clover has decided to introduce a “Breakfast on the go”-container with cereal and yogurt for the health, time-conscious consumer. Which one of the following environments has been considered by Clover? A B C D Natural/physical environment Technological environment Economic environment Socio-cultural environment QUESTION 24 With the increase in petrol prices upsetting most consumers, Mango Airline has decided to introduce a new campaign, “We pay the petrol, you fly for less”. This has been introduced in order to encourage consumers to fly to their holiday destinations, instead of driving there. Which of the following macroenvironmental factors were considered by Mango? A B C D International factors Natural/physical factors Economic factors Political factors Page 8 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 25 I&J has discovered that women are juggling work and family priorities and have less time to prepare healthy food. They have decided to introduce a new healthy family meal pack, with fresh veggies and fish that can be baked. I&J has therefore considered which of the following environmental factors? (i) (ii) (iii) Economic environment – inflation Socio-cultural environment – changing role of women Socio-cultural environment – healthier lifestyles Choose the correct answer: A B C D (i), (ii) and (iii) (ii) and (iii) (i) and (iii) (i) and (ii) QUESTION 26 Fluctuating tax and interest rates directly affect which one of the following business functions within an organisation? A B C D Human Resource function Administrative function Public Relations function Financial function QUESTION 27 Aramex, the Logistics and Transportation Organisation, is used by “Sparkling Bride”, an online business, to deliver goods to consumers who purchase products via their website. Aramex can therefore be classified as a(n) __________ for the “Sparkling Bride” organisation. A B C D agent merchant facilitator competitor Page 9 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 28 On which one of the following do the organisation’s vision and mission have a direct impact? A B C Micro-environment Market-environment Macro-environment QUESTION 29 Statistics show that 11 000 Millennial drivers (individuals born during 19791994) are entering the car buying market every day. The Ford Fiesta was redesigned to target this ever-growing Millennial Market. Which macroenvironmental factor did Ford take into consideration for this redesign strategy? (i) (ii) (iii) Demographic Political/Legal Natural/Physical Choose the correct answer: A B C D (i), (ii) and (iii) (ii) and (iii) (i) and (iii) (i) and (ii) QUESTION 30 Organisations can make use of __________ to better manage the organisational environment. (i) (ii) (iii) SWOT analysis & environmental scanning ad hoc scanning periodical scanning Choose the correct answer: A B C D (i) and (iii) (ii) and (iii) (i), (ii) and (iii) (i) and (ii) Page 10 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 31 Which of the following can be considered as the internal factors that influence an individual’s perspective of right and wrong? (i) (ii) (iii) Value system and morals Integrity Character Choose the correct answer: A B C D (i) and (iii) (ii) and (iii) (i), (ii) and (iii) (i) and (ii) QUESTION 32 Ethics and ethical behaviour apply mostly to which of the following management levels? (i) (ii) (iii) Top-level managers Middle-level managers First-line managers Choose the correct answer: A B C D (i) and (iii) (ii) and (iii) (i), (ii) and (iii) (i) and (ii) QUESTION 33 Determine which of the four forces of ethical conduct influenced the following unethical behaviour: • A B C D Taking credit for work done by someone else, calling in sick in order to go to the beach, sabotaging the work of another person and, in sales, misrepresenting the product or service to get the sale. Individual perspective Societal norms and culture Laws and regulations Organisational practices and culture Page 11 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 34 Which one of the four managerial guidelines to manage ethics is the manager following in the next scenario? • Make front-line managers responsible for encouraging ethical conduct during day-to-day activities. A B C D Understand the existing ethical culture of the organisation and society. Communicate the ethical standards to all role-players. Use the reward system to enhance ethical behaviour. Promote ethical leadership throughout the organisation. QUESTION 35 Organisation ABC has nearly 1 000 employees who are just months away from retirement. Due to the costs involved, Organisation ABC’s managers have decided to pay full benefits ONLY after employees have put in thirty years of work. Identify which one of the following type of approaches to ethical decision making is organisation ABC following? A B C D Long-term self-interest Personal virtue Religious injunction Utilitarian benefits QUESTION 36 Which one of the following approaches to ethical decision making does the following statement refer to? • A B C D Whatever one decides, the outcome must increase the happiness or decrease the misery of the greatest number of people over the long term. Long-term self-interest Personal virtue Religious injunction Utilitarian benefits Page 12 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 37 Pharmaceutical organisations in South Africa have invested considerable resources to carry out research as part of their CSR, into medicines that control HIV infection and prevent it from developing into AIDS. Which of the following two approaches do they follow? (i) (ii) Shareholder approach Stakeholder approach Choose the correct answer: A B C (i) and (ii) (i) (ii) QUESTION 38 __________ is behaviour that matches society’s accepted principles of right and wrong. A B C D Corporate Social Responsibility Culture Code of Conduct Ethical Behaviour QUESTION 39 Which one of the following criteria is used to evaluate corporate social responsibility (CSR)? A B C D Economic, legal, ethical and discretionary Political, legal and economic Legal and ethical Triple bottom line Page 13 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 40 Which of the following approaches to ethical decision making does the following statement refer to? • A B C D A decision should be in line with the rights of the society as set out in the South African Constitution. Long-term self-interest Moral rights Personal virtue Religious injunction QUESTION 41 Which of the following can be considered as main reasons why planning is important? (i) (ii) (iii) (iv) (v) Planning gives direction. Planning reduces the impact of uncertainty. Planning increases the income of the organisation. Planning minimises lost time and wasted resources. Planning is necessary for control. Choose the correct answer: A B C D (i), (ii), (iii), (iv) and (v) (i), (ii), (iv) and (v) (ii), (iii), (iv) and (v) (iii), (iv) and (v) QUESTION 42 To increase market share with 4.7% by 2020 is an example of which one of the following? A B C D marketing goal tactical goal strategic goal mission Page 14 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 43 Official statements of an organisation, and what it wants its various stakeholders to believe, refer to its __________. A B C D real goals strategic goals mission stated goals QUESTION 44 The responsibility to develop strategic goals lies with which one of the following? A B C D All management levels Top-level management Middle-level management Lower-level management QUESTION 45 A procedure can be described as __________. A B C D a general guideline a specific action to perform a precise series of steps to follow a guideline for a unique situation QUESTION 46 A standing plan refers to __________. A B C D a plan to meet the needs of a unique situation defining what a department must do to implement the strategic plan the official statement of what the organisation wants its stakeholders to believe guidelines for activities that are performed repeatedly Page 15 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 47 The second step in the planning process is to __________. A B C D establish goals identify the problem identify why planning is necessary identify the future desirable state QUESTION 48 A rule can be described as __________. A B C D a general guideline a specific action to perform a precise series of steps to follow a guideline for a unique situation QUESTION 49 The implementation of the plan is the __________ step in the planning process. A B C D last sixth fifth seventh QUESTION 50 When decision makers construct simplified models that extract the essential features from a problem without capturing all the complexities of a problem, they are acting under which one of the following? A B C D Bounded rationality Unbounded rationality Uncertainty Heuristics Page 16 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 51 A(n) __________ decision made by the __________ manager for Bernard’s Bakery would be whether to order more coffee for next week. Stock and sales data will show when it needs to order more supplies. A B C D strategic; top tactical; middle operational; first-line tactical; first-line Read the scenario and then answer Questions 52 to 54 Decision making Josef has noticed that the people within his organisation make decisions in very different ways. Kintlo is rational and has a low tolerance for ambiguity. She is efficient and generally makes decisions that are applicable to the short term. Baphile tends to be very broad in his outlook and considers many alternatives before making a decision. He generally focuses on the long term. Regine thinks intuitively and works well with others. She is open to suggestions and concerned about her co-workers. Josef himself wants to have complete information before making a decision and always carefully considers many alternatives. QUESTION 52 Josef’s decision-making style can be characterised as __________. A B C D analytical directive conceptual behavioural QUESTION 53 The directive style of decision-making is used by __________. A B C D Josef Kintlo Regine Baphile Page 17 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 54 The conceptual style of decision making is used by __________. A B C D Josef Kintlo Regine Baphile QUESTION 55 The following __________ decision, are made by the __________ level management of Bernard’s Bakery: The decision whether to open earlier in the morning or on Saturdays to attract new customers. Managers would want research data on potential customer numbers to help them decide if opening hours should be extended. A B C D strategic; top tactical; middle operational; first-line operational; middle QUESTION 56 When the decision-making condition changes from certainty to risk, the type of decision a manager must make changes from __________ to __________. A B C D adaptive; innovative routine; innovative routine; adaptive. adaptive; routine QUESTION 57 In the decision-making process known as bounded rationality __________. A B C D the final choice maximises economic payoff the final choice minimises economic payoff the first choice that is “good enough” is chosen all “good enough” choices are selected Page 18 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 58 If the problem and alternative solutions are known and well defined, the condition under which it is made is ___________ and the type of decision is a(n) _________ decision. A B C D uncertainty; adaptive risk; innovative risk; adaptive certainty; routine QUESTION 59 A manager is researching a potential product and thinks that the market is growing, and, as part of the manager’s research, he/she finds information that supports this belief. Which one of the following types of biases may have influenced the manager’s decision? A B C D Confirmation bias Availability bias Representation bias Self-serving bias QUESTION 60 Jozi Bafana uses a decision-making style characterised by low tolerance for ambiguity and a rational way of thinking. They generally turn out to be fast decisions of a short run nature. Which one of the following styles does Karen use? A B C D Analytic Conceptual Directive Behavioural QUESTION 61 Effective and efficient planning, specifically in a dynamic environment, means developing plans that are specific and __________. A B C D significant economical legal flexible Page 19 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 62 Which one of the following is a dysfunctional aspect of planning? A B C D Plans can be developed for a dynamic environment Planning is a good replacement for intuition Formal planning can lead to a success groove that may lead to failure Planning is only focused on the immediate competition QUESTION 63 To develop commitment as a step in the planning process, involves which of the following? (i) (ii) (iii) Understanding the necessity of goals Allowing employees to participate in goal setting Identifying the necessity of planning Choose the correct answer: A B C D (i) and (iii) (ii) and (iii) (i), (ii) and (iii) (i) and (ii) QUESTION 64 Jean Mboya tends to always look at the broad picture and likes to look at many alternatives. He focuses on the long term and looks for creative solutions. Which one of the following decision–making styles does he prefer? A B C D Analytic Conceptual Directive Behavioural QUESTION 65 Which one of the following can be regarded as three important components of the management process? A B C D Inputs, transformation and outputs Planning, organising and leadership Planning, leading and control Planning, organising and control Page 20 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 66 Office managers can also be referred to as which one of the following? (i) (ii) (iii) (iv) Middle managers First-line managers Top managers Supervisors Choose the correct answer: A B C D (i), (ii), (iii) and (iv) (i), (ii) and (iii) (i), (iii) and (iv) (ii) and (iv) QUESTION 67 Which of the following can be regarded as Mintzberg’s managerial roles? (i) (ii) (iii) (iv) Figurehead Liaison Resource allocator Intrapreneur Choose the correct answer: A B C D (i), (ii), (iii) and (iv) (i), (ii) and (iii) (ii), (iii) and (iv) (ii) and (iv) QUESTION 68 Which of the following can be regarded as Mintzberg’s informational role? (i) (ii) (iii) (iv) Liaison Monitor Spokesperson Disseminator Choose the correct answer: A B C D (i), (ii), (iii) and (iv) (i), (ii) and (iii) (ii), (iii) and (iv) (ii) and (iv) Page 21 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 69 The ability to analyse and diagnose a problem situation in distinguishing between cause and effect is called __________. A B C D human skill negotiating skill technical skill conceptual skill QUESTION 70 By which of the following was the foundation of the development management theory characterised? (i) (ii) (iii) (iv) Trade by barter The industrial revolution The establishment of factories Mass production of goods Choose the correct answer: A B C D (i), (ii), (iii) and (iv) (i), (ii) and (iii) (ii), (iii) and (iv) (ii) and (iv) QUESTION 71 Who is considered to be the mother of modern management? A B C D Mary Parker Follet Elaine Whitney Lillian Gilbreth Dorothy McGregor QUESTION 72 How did the industrial revolution change organisations and jobs? A B C D It improved trade by barter. It made people form trade guilds. It brought about small, close-knit, and self-organised work groups. It brought about the establishment of factories that housed unskilled workers who operated sophisticated machines. Page 22 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 73 Henri Fayol is famous for which of the following? (i) (ii) (iii) (iv) Developing scientific management Establishing quota systems and bonuses Developing the fourteen principles of management Developing administrative management Choose the correct answer: A B C D (i), (ii), (iii) and (iv) (i), (iii) and (iv) (i), (ii) and (iii) (iii) and (iv) QUESTION 74 The micro-environment incorporates which of the following? (i) (ii) (iii) The mission and goals of the business The business functions and resources The staff Choose the correct answer: A B C D (i), (ii) and (iii) (i) and (iii) (ii) and (iii) (i) and (ii) QUESTION 75 The market environment comprises of different market types. The CANSA association can be classified as which one of the following markets? A B C D Consumer market Industrial market Resale market Institutional market Page 23 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 76 Approximately __________% of every rand spent by an organisation, goes towards supplier purchases. A B C D 30 70 60 20 QUESTION 77 Which of the following can be regarded as functional departments within an organisation? (i) (ii) (iii) (iv) Purchasing function General Management Intermediary function Administrative function Choose the correct answer: A B C D (i), (ii), (iii) and (iv) (i), (ii) and (iv) (i), (ii) and (iii) (iii) and (iv) QUESTION 78 Hi-Fi Corporation decides to simplify their product packaging, by minimising all plastic material and, instead, using recyclable cardboard to protect and transport their products. Which macro-environmental variable triggered this strategy? A B C D Economic Socio-cultural Physical/Natural Technological Page 24 of 25 Supplementary Final assessment: 6 July 2020 ADBM03A QUESTION 79 A SWOT Analysis can be used to __________. (i) (ii) (iii) Identify external opportunities and threats Identify internal strengths and weaknesses Control the macro-environment Choose the correct answer: A B C D (i), (ii) and (iii) (i) and (iii) (ii) and (iii) (i) and (ii) QUESTION 80 The characteristics of the business environment include which one of the following? A B C D Uncertainty, interrelatedness and stability Interrelatedness, simplicity and certainty Unpredictability, uncertainty and instability Unpredictability, certainty and stability END OF ASSESSMENT Page 25 of 25