ABDM 3513 BUSINESS ORGANISATION & MANAGEMENT

TUTORIAL 3

Brainstorming Session:

“We all actually perform managerial functions at home too.”

Share your thoughts about the above statement.

Past Exam Question:

a) Describe first-line, middle, and top managers. Provide examples.

First-line - Responsible for day-to-day operations. Supervise people performing
activities required to make the good or service. For example , supervisor

Middle managers - Supervise first-line managers. Are responsible to find the best
way to use departmental resources to achieve goals. For example , district manager

Top managers - Responsible for the performance of all departments and have
cross-departmental responsibility. For example , CEO

b) Discuss the difference between efficiency and effectiveness. Give a specific example to
support each concept.
Efficiency
- Efficiency is about doing things in an optimal way. For example, doing it the fastest or
in the least expensive way. It could be the wrong thing, but it was done optimally. For
example,

Effectiveness
- Effectiveness is about doing the right task, completing activities and achieving goals.
For example,

c) List and explain FOUR (4) functions of management.

Planning - Identifying goals and resources for future organization performance.

Organizing - Assigning tasks, delegating authority and allocating resources.

Leading – The use of influence to motivate employees to achieve goals.

 Controlling – Monitoring activities and talking corrective action when needed.

[Total: 25 marks]

Past Exam Question:

(a) Define management. (4 marks)

-The planning, organizing, leading, and controlling of human and other
resources to achieve organizational goals effectively and efficiently.

(b) Describe FOUR (4) major functions of management. (12 marks)

Planning - Identifying goals and resources for future organization

performance.

Organizing - Assigning tasks, delegating authority and allocating

resources.

Leading – The use of influence to motivate employees to achieve

goals.

Controlling – Monitoring activities and talking corrective action when

needed.

(c) Describe Mintzberg’s managerial roles below:

(i) Figurehead
- You're expected to be a source of inspiration. People look up
to you as a person with authority, and as a figurehead.

(ii) Spokesperson (3 marks)

-.In this role, you're responsible for transmitting information
about your organization and its goals to the people outside it.

(iii) Resource allocator (3 marks)

- Need to determine where organizational resources are best
applied. This involves allocating funding, as well as assigning
staff and other organizational resources..
True/False Questions:

1. The planning, organizing, leading, and controlling of resources in order to achieve

organizational goals both effectively and efficiently is known as management.
True

2. An organization's people are not considered one of its resources because they are not
permanent, that is, they have the freedom to quit and move to another organization.
False

3. Increases in a firm's effectiveness will increase its performance, but increases in

efficiency will have no predictable effect on performance.
False

4. A measure of how well or productively a firm uses its resources to achieve a goal is
called its effectiveness.
False

5. McDonald's developed a fat fryer that decreases the amount of oil used in cooking, and
reduced the amount of time to cook fries. This is an example of increased efficiency.
True

6. A measure of the appropriateness of goals selected by managers for the organization and
the degree to which the organization achieves these goals is known as the effectiveness
of the organization.
True

7. When managers select appropriate goals for their organization and then the organization
achieves these goals, we say that the organization is efficient.
False

8. The process that managers use to select the goals for the organization is known as
organizing.
False

9. An organization's strategy is an outcome of its planning processes.

True

10. A desired future outcome which a firm hopes to achieve is called a goal.
True
11. Grouping people into the various departments of an organization is known as
organizing.
True

12. Managers who monitor the performance of subordinates are using the organizing
function of management.
False

13. An outcome of the controlling function should be the ability to measure the
organization's performance accurately.
True

14. Managers who supervise first-line managers are typically called middle managers.
True

15. The amount of time that managers spend planning and organizing resources decreases
with the higher the level of the manager within the organization.
False

16. The lower the manager's position in the organization's hierarchy, the less time this
manager will spend leading and controlling first-line managers of the organization.
False

17. A manager sends a memo to all members of her department explaining a new company
policy. This manager is acting in the role of resource allocator.
False

18. Planning and organizing require a high level of conceptual skill by the manager.
True

19. Human skills can be learned through education and training, but they cannot be
developed through work experience.
False

20. Organizations decrease their efficiency when they reduce the amount of resources they
use to produce goods and services.
False