THE UNIVERSITY OF THE SOUTH PACIFIC

Faculty of Business and Economics

School of Management and Public Administration

Final Examination Model Solution – Semester 1, 2015

(F2F and DFL – Print Mode)

MG101: INTRODUCTION TO MANAGEMENT

Time Allowed 3 hours and 10 minutes reading

This examination is worth 100 marks and 50% of the

total course marks
INSTRUCTIONS
1. Please write your surname, name and ID number on the space provided in
your answer sheet.
2. This examination consists of FOUR SECTIONS;
2.1 Section A consists of ten multiple choice questions. Answer ALL TEN
questions (10).
2.2 Section B consists of ten True & False questions. Answer ALL TEN
questions (10).
2.3 Section C consists of ten short answer based questions. Answer ALL
TEN questions. All questions carry equal marks (10 x 6 = 60).
2.4 Section D consists of a case study. Answer ALL the questions that
follow (20).
3. Read the questions carefully before answering all parts (in full). Follow the
instructions carefully.
4. For Sections C, start answering each question on a new page and use a new
paragraph for each new idea or point.

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Section A: Multiple Choices – answer all the questions (1 mark each x 10 = 10)

1. Organizing is the process of arranging people and other resources to work

together to accomplish a goal that involves the following:
A. Divide up the work
B. Arrange resources
C. Coordinate activities
D. All of the above
E. None of the above

2. Organization that are shifting networks of strategic alliances, linked by

technology, with very little infrastructure, that are engaged as needed is
commonly known as:
A. Organization Development
B. Organization Transformation
C. Virtual Organization
D. All of the above
E. None of the above

3. _____________ is defined as the extent to which an individual is dedicated to

a job.
A. Job design
B. Job Satisfaction
C. Job Involvement
D. Job rotation
E. Job specification

4. Which of the following team is convened for a specific purpose and expected
to disband when the purpose is achieved?
A. Committee
B. Cross-functional Teams
C. Task force
D. Employee involvement teams

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 E. Virtual Teams

5. In Hierarchy needs theory of motivation, which level of needs focuses on job

flexibility and autonomy?
A. Self-actualization needs
B. Esteem Needs
C. Social needs
D. Safety needs
E. Physiological needs

6. Another term for ‘formal organization structure’ is called;

A. Organization system
B. Organization behavior
C. Organization chart
D. All of the above
E. None of the above

7. Which of the following is a win-win conflict management style?

A. Competition
B. Compromise
C. Collaboration
D. All of the above
E. None of the above

8. Which of the following is the characteristic or qualities of a transformational

leader?
A. Vision
B. Intellectual stimulation
C. Symbolism
D. All of the above
E. None of the above

9. Mechanistic designs of the organizations are those that are;

A. Decentralized

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 B. Little or no rules and procedures
C. Complex division of labor
D. All of the above
E. None of the above

10. ___________ arises when actions must be taken but there is no clear ‘ethically
right’ option.
A. Ethical imperialism
B. Ethics training
C. Ethical Behavior
D. Ethical Dilemma
E. Ethics

Section B: True and False – answer all the questions (1 mark each x 10 = 10)

1. Organizing involves creation of division of labor for task performance and

coordinating results to achieve a common purpose. (T)

2. Whistleblower never exposes the misdeeds of others in the organization. (F)

3. Charismatic leadership brings to the situation a sense of the future and an

understanding of how to get there. (T)

4. Ethnocentrism is the tendency to consider your culture superior to others. (T)

5. Informal structure of the organization is a shadow organization made up of the

unofficial, but often critical, working relationship between organizational
members. (T)

6. The reinforcement theory of motivation focuses attention on the environment

as a major source of rewards and influence of human behavior. (T)

7. Psychological contract is the set of expectations held by an individual about

working relationship with the organization. (T)

8. Job contributions describe the quality of human experiences in the workplace.

(T)

9. Groupthink is a tendency for highly cohesive teams to attain their evaluative

capabilities. (F)

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 10. Learning organizations continuously change and improve using the lessons of
experience. (T)

Section C: Short Answers

Answer ALL the TEN questions from the TEN provided and each
question carry equal (6) marks. Each short answer must not be more
than half page. (10 x 6 = 60)
1. Discuss, (with examples from any Pacific Island Country), why classical
viewpoint is seen negatively these days? (6 marks)

The classical viewpoint of management emphasizes efficiency in the management of

work and organizations. It considers the worker as an economic person who is
primarily motivated by monetary gains. This viewpoint comprises three different
approaches: Scientific management, Administrative management and Bureaucratic
management (Schermerhorn et al., 2014). In our contemporary workplace,
organizations need to motivate workers to improve work performance rather than treat
them like tools for monetary gains.

 Human rights issues!!

2. Discuss the similarities and differences between transactional leaders and

transformational leaders with relevant examples? (6 marks)
(Chap 13: 376)
 Transformational leadership
o Inspirational leadership that gets people to do more in achieving high
performance.
 Transactional leader
o Leadership that directs the efforts of others through tasks, reward and
structures.
o Can be seen as a ‘building block’ that supports transformational
leadership.
 Transformational leaders have vision, charisma and integrity, use symbolism,
and provide empowerment and intellectual stimulation that can be built from
transactional leaders.

3. Explain, with relevant example, what constitute an ethical dilemma? (6 marks)

 Action/decision must be taken in a controversial situation and the good
example is the train example shown during lecture
o 5 children playing along the train line (used)
o 1 child playing along the bad train line
o The train came and you must make a choice/decision to save the 5
children (who chose to play in the used train line) or the child that
chose to play in the bad (unused) train line?

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 o The choice is yours and in doing so MUST also consider the travelers
boarding the train, so the lives of innocent people is in your hand …

4. Discuss any one of the behavioral theory of leadership and discuss the
implication with an example? (6 marks)

McGregor’s theory X and theory Y

McGregor proposed that leadership strategies are influenced by a leader’s
assumptions about human nature. According to this theory, type “X” managers
assume that the average human dislikes work and will try to avoid it if possible. Thus
they have to be coerced and forced to perform at work. Type “X” managers also
assume that the human has little ambition, wishes to avoid responsibility and prefers
to be directed. You will note that type “X” managers tend to view the worker in a very
negative manner.

On the other hand, type “Y” managers assume that the worker has the capability to be
creative in solving problems at work and that this capability is only partly utilized in
organizations. They also assume that workers will naturally exert physical and mental
effort at work and that they learn to accept and seek responsibility at work over time.

Ouchi’s theory Z This theory of leadership emphasizes consensus decisionmaking,

long-range planning, and strong worker-employer bonds. Productivity is improved by
using self-managing work teams, developing inter-personal skills, and broadening
workers’ career path opportunities and development. This theory resulted from an
attempt to identify distinguishing features of Japanese-style management. It showed
that there is a difference in organization structure of Japanese firms. Japanese firms
usually have a flatter structure which tends to suggest a more relaxed leadership style
compared to Western style of leadership.

5. Discuss the four characteristics of highly innovative organizations as part of

managing change in organizations? (6 marks)
(Chap 18:
In highly innovative organisations:
 corporate strategy and culture support innovation
 organisation structures support innovation
 top management supports innovation
 the organisation’s staffing supports innovation.

6. Discuss, with an example, why it is important for organizations to have good

communication skills? (6 marks)

 Stronger decision-making and problem-solving

 Upturn in productivity
 Convincing and compelling corporate materials
 Clearer, more streamlined workflow

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  Enhanced professional image
 Sound business relationships
 Successful response ensured

7. Discuss the difference between ‘intrinsic’ and ‘extrinsic’ reward? Give an

example of each. (6 marks)

Intrinsic rewards actually fulfills employee’s intrinsic factors or motivators and thus
motivates him. Examples include; giving challenging task, involving in decision
making process, giving a higher rank in hierarchy etc all these rewards do not
required to have increased salary as well and employee may be working at higher
management rank without an increase in the salary and still more motivated.

Extrinsic rewards actually fulfills employees extrinsic factors or hygiene factors and
thus do not let him start thinking about leaving the company. Examples include; pay
rise, bonuses, paid leaves, annual recreational plans etc.

8. Discuss the advantages and disadvantages of group work with relevant

examples? (6 marks)
Advantages

 Break complex tasks into parts and steps

 Plan and manage time
 Refine understanding through discussion and explanation
 Give and receive feedback on performance
 Challenge assumptions
 Develop stronger communication skills.

Disadvantages

 Different Perspectives
 Inefficiency in Decisions
 Varying Attitudes

9. Explain, with a relevant example of, psychological contract? (6 marks)

A psychological contract represents the mutual beliefs, perceptions, and informal

obligations between an employer and an employee. It sets the dynamics for the
relationship and defines the detailed practicality of the work to be done. It is
distinguishable from the formal written contract of employment which, for the most
part, only identifies mutual duties and responsibilities in a generalized form.

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 10. Discuss the two techniques that are particularly helpful for creativity in
team/group decision-making? (6 marks)

 Brain storming
o All critics ruled out
o Freewheeling is welcomed
o Quantity is important
o Building on others ideas is encouraged
 Nominal team technique
o Participants asked to work alone and respond in writing with possible
solution to a situated problem.

Section D: Case Study

Answer ALL the questions that worth 20 mark.

Case Study 1 (20 marks)

Prevent Social Loafing

By Bob Whipple, MBA, CPLP

Social loafing is a name given to the phenomenon where one or more people fail to
pull their fair share of the load. We see evidence of it in every aspect of our lives from
family slackers who leave messes for others to clean up; to sports teams where some
players like to skip practice, to hospitals where some staff works at their own pace
even when resources are stretched to the maximum. We see it in church groups where
one person will gladly take credit, even though she/he was not present at any of the
events or meetings.

In a work setting, social loafing is the single biggest reason for team stress. I contend
it is a rare team that does not experience some form of social loafing, and it creates ill
will among the group every time. The reason for the ubiquitous nature of this
problem is that the work is never equally accomplished by all members of the
team. Some people will have issues that prevent them from contributing as much as
others. The issues may be legitimate, like a death in the family, or a chronic health
condition, or they may be fabricated. Since the load is never completely equal, those
who pull more than their fair share become resentful of those who get equal credit but
fail to do equal work.

A variation of the work setting is in the area of volunteer groups. It gets trickier in
these groups because people are stepping up to volunteer their time and talent for a
cause. In the commercial business arena, if a person slacks off, then he or she can be
punished or even terminated, but in the volunteer world, there is much less leverage

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because the time is donated or services is offered. In this case, some other form of
inducement, usually peer pressure, is the only leverage that can help reduce social
loafing.

Since this problem is debilitating to teams and is universal, is there a simple cure for
the disease? I believe there is, but I also think it is not often used very well. The trick
is to create an agreement at the start that everyone will pull his or her share of the
load. People usually buy into the concept at the start of a team: after all, fair is fair. It
is only after the team gets going that life happens and the slackers are revealed. Good
intentions at the start of an activity are necessary but not sufficient to prevent social
loafing.

What is needed is an agreed-upon penalty or consequence that will befall a person

who does not perform as previously stated. Let me share two examples of how this
works and how the concept really does nip the problem of social loafing in the bud. I
will use one example in an online university setting and a second example in a
volunteer organization.

I do a lot of teaching in the online environment. Students have individual assignments

and team assignments (usually papers to write) where there is a lot of work to be done
by several remote individuals. Students come into the team environment with all
good intentions where all students will do their fair share of the work, but inevitably
one or two people will fall behind the pace and hold the team back. This results in the
other members having to scramble to get the paper finished at the last minute because
one student did not do the assigned part. That infuriates the other students because
their grade on the team paper is dependent on everyone pulling a fair share of the
load. In every single team there is this same problem to some degree. Occasionally it
is hard to detect due to a particular set of individuals, but even there I see signs of
stress when one student procrastinates a bit and leaves the others waiting and
wondering.

The cure is so simple. If the penalty for goofing off is spelled out specifically at the
start, then the stress goes away and performance improves. Suppose the team agrees
that all team members will submit their part of the paper three days before it is due, to
allow time for editing and clean up. Now comes the critical element. The team
agrees that if one member does not comply with the agreed timing, his name will be
left off the team paper, and he will receive no points for the weekly assignment. That
is a very stiff penalty because it will immediately lower the final grade for a course
for that student by one letter grade.

By insisting on a specific consequence to be agreed upon at the start of the course

(when everyone has good intentions) then the social loafing rarely occurs. The reason
being that ‘the would-be slacker has already agreed to accept the dreaded
consequence, so there is no doubt about what will happen to him/her if he/she fails to
meet expectations. If he/she tests the system and finds he/she got no points for the
assignment, he/she cannot cry foul. He/She already signed off on the
consequence. The result is that he/she never does it again.

A second example is from a volunteer organization. Here we cannot specify leaving

the person's name off a paper because there is none. Instead we need to get more

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creative with a penalty. The time to brainstorm possible consequences for social
loafing is at the start when the team is forming. The team should brainstorm
acceptable behaviors and then the group needs to identify what will happen to an
individual if he/she does not abide by the established rules. Let's take a specific
example of a group that is planning an event. Each volunteer has a specific role to
play, and they identify that any individual member not doing the job will be
responsible for providing refreshments at the next meeting or washing the dishes after
the meeting. This penalty is not debilitating, but the embarrassment factor of having
to bring in goodies for the rest of the team should be a strong deterrent against social
loafing. You can come up with any specific penalty as long as it has two elements 1)
the penalty is specified before the slacking occurs, and 2) everyone agrees to enforce
the penalty.

Having a specific penalty associated with failure to perform up to good intentions is

the most effective way to prevent social loafing or deal with it when it happens. Try it
in your group and see how this simple step is like a miracle for better teamwork.

(Source: http://www.leadergrow.com/articles/391-prevent-social-loafing on
22/4/2015)

Questions

1. Describe in your own words the term ‘social loafer’? (3 marks)

Social loafing is the phenomenon of people exerting less effort to achieve a goal when
they work in a group than when they work alone. A person who engages in such type
of behavior is called a social loafer.

2. Describe a situation where you have come across in any of your group about
the problem of social loafing and how did your group manage it? (3 marks)

 Counseling;
 Setting the goals and objectives of the team and identifying what each member
is required to do;
 Recognizing the efforts of those members who contribute

3. What term does the case study use when referring to social loafers in the
society such as in families? (3)
 Family slackers

4. What term does organizations used when they refer to social loafers? (2
marks)

 Free riders

5. Describe some side effects of social loafing in organizations or workplace as

stated in the case study. Clearly identify the paragraph(s) and the sentence(s)
or line(s) that you are referring to argue your points? (3 marks)

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  Team stress para 2, page 8

 Poor quality of output page 9 first paragraph.

6. Can social loafing be managed? How? (Base your arguments from the case
study). (3 marks)

 The team should brainstorm acceptable behaviors and then the group
needs to identify what will happen to an individual if he/she does not
abide by the established rules.

 leaving the person's name off a paper

7. Paragraph 5, line 3 refer to “… nip the problem of social loafing in the bud.”
Discuss this statement or what does the statement meant? (3 marks)

 Direct solution to the social loafing problem at the initial stage.

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