Business, Accounting and Financial Studies for Secondary Schools(Compulsory Part) 1(b) Introduction to Management Business, Accounting and Financial Studies for Secondary Schools (Compulsory Part) 1(b) Introduction to Management 2. Effective Management Answers P.2 Business Perspective 1. Manager, captain, vice captain, waiter, cashier (5) 2. Need to direct subordinates: manager, captain, vice captain (3) Need to follow tasks: waiter, cashier (2) 3. Manager: needs to make strategic, long-term plans. Needs analytical power to understand the market trend. Interpersonal skills are important, as he needs to lead subordinates. (4) Captain: needs strong interpersonal skills as he needs to communicate superior's orders to subordinates. He should know the daily operations of the restaurant in order to lead the subordinates. Therefore he needs to have technical skills. (4) P.26 Managers at all levels need to cooperate with other staff. For example, top management needs to inform the subordinates of company's policies or guidelines. Middle management needs to give instructions to subordinates according to top management's order. Frontline management needs to receive orders and lead the subordinates. Therefore, communications are inevitable in all levels of management. P.27 Business Perspective 1. It is suggested that students can guess the possible duties and jobs first, and then they are encouraged to find out more from the Hospital Authority's website (http://www.ha.org.hk) 2. Division of work can be made easier as each director is in charge of a specific area. (2) 1 1(b)Introduction to Management 2. Effective Management Business, Accounting and Financial Studies for Secondary Schools(Compulsory Part) 1(b) Introduction to Management P.29 Discussion Corner Some jobs cannot be easily broken down into tasks (e.g. artistic work), while the tasks involved in some jobs are highly integrated. (2) A high level of division of labour will not be useful for increasing the effectiveness of such jobs. (1) For example, the job of teacher involves planning for teaching, delivering the prepared teaching, assessing students' learning, counseling etc. They should only be handled well together through professional teachers. While teachers may be responsible for different subjects, tasks within the subject teaching can better be handled by the same person. (3) P.30 Business Perspective 1. There were conflicting instructions from the two supervisors to the same subordinates which caused confusion to the subordinates and probably conflicts between the two supervisors. (3) 2. The problem existed because there no clear line of authority. (1) Although Linda's is Nancy's own supervisor, another supervisor, Frankie, has tried to exert her authority to Nancy by giving her instruction. (2) 3. A possible way is that the manager of the retail branch shall make clearer about the authority of the supervisors is exerted to his/her own subordinates only. (1) Or the manager shall decide an appropriate selling tactic that both teams shall follow. (1) P.32 Discussion Corner 1. It shows (1) different levels of hierarchy from top management to the operational level staff; (2) the reporting relationship among the supervisors and subordinates; and (3) the chains of commands from the top management to the operational level staff. (3 marks) 2. Top Management - General Manager (1) Middle Management - Branch Managers (1) Frontline Management - Sales Supervisors (1) 3. Division of work allows employees to focus their effort into specialised tasks or portions of tasks. (1) The unity of command helps to link employees together into the complete job. (1) 2 1(b)Introduction to Management 2. Effective Management Business, Accounting and Financial Studies for Secondary Schools(Compulsory Part) 1(b) Introduction to Management P.36 Discussion Corner 1. Mr. Cheung should adjust the level of delegation when subordinates' performance is unsatisfactory. (1) Managers have the responsibilities to monitor the work progress after delegation. (1) Therefore, Mr. Cheung is not a competent manager. (1) 2. No. (1) Mr. Cheung should decide the level of delegation according to factors like subordinates' abilities and performance. (1) There should be control after delegation. (1) The manager should be ultimately responsible. (1) 3. Assigning job activities and associated authority to specific individuals within the organisation. (1) Although the subordinates have responsibilities to finish the task, the manager should be ultimately responsible. (2) P.39 Discussion Corner Although subordinates are allowed to take part in setting objectives, the objectives should serve the company's overall goals. In this way, the company will not go in different directions. (1) While it may take a longer time in formulating an MBO plan, the execution may be more effective if it is properly plan. (1) P.41-42 Revision Exercise (8 marks) 1. B 2. D 3. B 4. B 5. B 6. B 7. C 8. D P.43 Practical Exercises 1. Large number of staff, large number of operational staff, many subordinates under one superior, more hierarchical levels (4) 2. Advantages: (1) time is saved as workers do not have to rush from on position to another; (2) workers can become more skillful in their specialised tasks; (3) standardised tasks allow the design of specialised equipments to further boost up employee's productivity; (4) less time will be needed for training. (4 marks) Disadvantages: (1) repetitive tasks easily lead to boredom and lack of sense of satisfaction; (2) the skills of the employees may become so inflexible that they are not able to handle other tasks when necessary, thus affecting the whole operation. (2 marks) 3 1(b)Introduction to Management 2. Effective Management Business, Accounting and Financial Studies for Secondary Schools(Compulsory Part) 1(b) Introduction to Management 3. (a) Delegation is the process of assigning job activities and corresponding authority to specific individuals within the organisation. (1 mark) The necessary steps for an effective delegation process include: (1) decide the types of duties to be delegated; (2) choose the right person for delegation; (3) open communication; (4) define the new responsibilities; (5) grant appropriate authority; (6) exercise proper control. (6 marks) (b) Successful delegation depends on: (1) whether work of appropriate level of importance are chosen for delegation; (2) the quality of the management; (3) ability of the subordinates; (4) reluctance of subordinates; (5) effectiveness of control tools; and (6) scales of the enterprise. The question of whether delegation is a good idea depends on a combined consideration of these six factors. (6 marks) 4. Managers at all levels should make sure that efforts of all staff follow the company's direction. (1) Without a unity of direction for an organisation's actions, people will loss their focus about what to do and what resources to use, resulting in not only ineffectiveness but also inefficiency. (2) 5. It means that each employee in an organisation should only receive orders from one supervisor only. (1) If it is not enforced, there will be confusions, contradictory directions and frustration to an employee if he or she has to receive order from two or more supervisors. (1) 6. If a manager has lots of responsibilities but little authority, it is very difficult to him or her to do anything with the assigned duties. (1) On the contrary, if a manager is given too much authority in relation to his or her responsibilities, abusing use of such authority might happen. (1) 7. MBO is a management approach in which subordinates are allowed to take part in setting goals, developing action plans and setting control standards. (1 mark) The whole process is supervised by the manager. The reason for its ineffectiveness can be (1) goals wrongly set; (2) unwilling to participate and take up responsibilities; (3) unskillful implementation; and (4) lack of evaluation and feedback (4 marks) P.49 Case Studies 1. (1) lack of unity of command between departments; (2) lack of unity of direction for the whole company. (2 marks) 4 1(b)Introduction to Management 2. Effective Management Business, Accounting and Financial Studies for Secondary Schools(Compulsory Part) 1(b) Introduction to Management 2. Students will refer the proper implementation of the relevant principles of management (unity of command, unity of direction, authority, responsibility and delegation) to find out how to implement them properly. Specific applications to the case scenario are expected. 5 1(b)Introduction to Management 2. Effective Management