MAASAI MARA UNIVERSITY

UNIVERSITY EXAMINATIONS 2023/2024

EXAMINATIONS

SCHOOL OF BUSINESS AND ECONOMICS

MASTERS DEGREE IN BUSINESS ADMINISTRATION
COURSE CODE: MBA 8100
COURSE TITLE: MANAGEMENT THEORIES AND PRACTICES

DAY: TIME:

INSTRUCTIONS: Answer Question ONE and any other THREE questions

Page 1 of 7
MBA 8100: MANAGEMENT THEORES AND PRACTICES

Question 1:

a) Describe (5) basic management skills [10 Marks]

b) Evaluate, at least 3 theories of management: Stating the major contributors [6 marks]

 Theories of management are frameworks that explain how managers can effectively lead and
organize their teams and organizations. There are many different theories of management, but
some of the most influential ones are:
 Scientific management: This theory, developed by Frederick Taylor, focuses on improving
efficiency and productivity by applying scientific methods to analyze and optimize work
processes. It involves breaking down tasks into smaller parts, standardizing work methods and
tools, and providing incentives for workers based on their performance.
 Administrative management: This theory, pioneered by Henri Fayol, emphasizes the overall
management of organizations and the principles that guide managers. It includes concepts such as
unity of command, scalar chain, division of work, unity of direction, and span of control.
 Behavioral management: This theory, influenced by researchers such as Elton Mayo and
Abraham Maslow, examines the human and social aspects of management and how they affect
employee motivation, satisfaction, and performance. It considers factors such as leadership styles,
communication, group dynamics, and organizational culture.
 Systems management: This theory, based on the work of Ludwig von Bertalanffy and others,
views organizations as complex systems that consist of interrelated and interdependent parts that
function together to achieve a common goal. It emphasizes the importance of understanding the
external and internal environment, the interactions between different subsystems, and the
feedback mechanisms that regulate the system.
 Contingency management: This theory, proposed by various scholars such as Fred Fiedler and
Paul Lawrence, suggests that there is no one best way to manage, but rather, the optimal
management approach depends on the situation and the context. It considers variables such as the
task, the environment, the technology, the structure, and the people involved in the organization.

c) Describe the factors that determine the type of control a firm will put in place at a given
time [4 Marks]

Question 2: You are an inspirational speaker and have been invited to talk to managers at
Narok University College: Your title is: ‘Leadership, Power and authority at
the workplace’ Write a draft of your talk [15 marks]

 Leadership is the ability to influence and inspire others to achieve a common goal,
 power is the capacity to affect others’ behavior or decisions.
 Authority is the formal right to make decisions or give orders based on one’s position or role in
the organization.
 There are different types of power and authority that leaders can use in the workplace, such as:
 Legitimate power: This is the power that comes from having a formal position or title in the
organization, such as a manager, director, or CEO. Legitimate power gives leaders the authority
to assign tasks, allocate resources, reward or punish employees, and make decisions that affect
the organization.
MBA 8100: MANAGEMENT THEORES AND PRACTICES

 Expert power: This is the power that comes from having specialized knowledge, skills, or
experience in a certain domain, such as finance, marketing, or engineering. Expert power gives
leaders the authority to provide guidance, advice, or recommendations to others who need their
expertise.
 Referent power: This is the power that comes from having a positive and attractive personality,
charisma, or reputation that makes others admire, respect, or like them. Referent power gives
leaders the authority to influence others through their personal appeal, trust, or loyalty.
 Reward power: This is the power that comes from having the ability to provide or withhold
rewards, such as money, recognition, promotion, or feedback, to others based on their
performance or behavior. Reward power gives leaders the authority to motivate, encourage, or
reinforce others to achieve their goals.
 Coercive power: This is the power that comes from having the ability to impose or threaten
negative consequences, such as demotion, termination, or criticism, to others based on their
compliance or non-compliance. Coercive power gives leaders the authority to control, discipline,
or deter others from deviating from the norms or expectations.
 Leaders can use different combinations of power and authority depending on the situation, the
context, and the desired outcome. However, some general guidelines for effective and ethical use
of power and authority are:
 Balance power and authority with responsibility and accountability: Leaders should use their
power and authority to serve the best interests of the organization and its stakeholders, not to
abuse, exploit, or manipulate others for their own benefit. Leaders should also be accountable for
their actions and decisions and accept the consequences of their use of power and authority.
 Use power and authority to empower and enable others: Leaders should use their power and
authority to create a positive and supportive work environment where employees feel valued,
respected, and trusted. Leaders should also use their power and authority to delegate, coach,
mentor, and develop others to enhance their capabilities and potential.
 Use power and authority to foster collaboration and cooperation: Leaders should use their
power and authority to facilitate communication, coordination, and teamwork among employees
and across departments. Leaders should also use their power and authority to resolve conflicts,
build consensus, and promote diversity and inclusion.
 Use power and authority to drive change and innovation: Leaders should use their power and
authority to initiate, implement, and sustain change and innovation in the organization. Leaders
should also use their power and authority to encourage creativity, risk-taking, and learning among
employees and to overcome resistance and barriers to change and innovation.

Question 3: Structure is the basis for organizational strategy: Discuss the various types of
organizational structures that that you know of [15 marks]

 Organizational structurdres are the ways that companies arrange their employees, departments,
and functions to achieve their goals and objectives. There are many types of organizational
structures, but some of the most common ones are:
 Functional structure: This is a type of organizational structure where employees are grouped
based on their skills, expertise, or roles, such as marketing, finance, human resources, etc. This
structure allows for specialization, efficiency, and coordination within each function, but it may
also create silos, communication barriers, and lack of flexibility across functions.
MBA 8100: MANAGEMENT THEORES AND PRACTICES

 Divisional structure: This is a type of organizational structure where employees are grouped
based on the products, services, markets, or regions that they serve, such as laptops, smartphones,
Europe, Asia, etc. This structure allows for customization, responsiveness, and accountability
within each division, but it may also cause duplication, competition, and conflict across divisions.

 Matrix structure: This is a type of organizational structure where employees are grouped based
on both their functions and their divisions, such as marketing-laptops, finance-smartphones, etc.
This structure allows for collaboration, innovation, and resource sharing across functions and
MBA 8100: MANAGEMENT THEORES AND PRACTICES

divisions, but it may also create confusion, complexity, and power struggles among managers and
employees.

 Team structure: This is a type of organizational structure where employees are grouped based
on the projects, tasks, or goals that they work on, such as new product development, customer
service, quality improvement, etc. This structure allows for flexibility, empowerment, and
learning within each team, but it may also require more coordination, supervision, and support
from the top management.

Question 4: Managers have different decisions – making styles and solving problems:
Evaluate the decision-making models that managers can use to make decisions.
[15
marks]
MBA 8100: MANAGEMENT THEORES AND PRACTICES

 Decision-making models are frameworks that help managers to make effective

and ethical choices in different situations. There are many types of decision-
making models, but some of the most common ones are:
 Rational decision model: This model focuses on using logical steps to analyze
and compare multiple alternatives based on relevant criteria and evidence. It is
suitable for situations where there is enough time and information to conduct a
thorough evaluation of the problem and the possible solutions.
 Intuitive decision model: This model relies on using instinct, gut feeling, or
intuition to make quick and confident decisions. It is suitable for situations
where there is limited time or information, or where the problem is complex or
ambiguous.
 Creative decision model: This model emphasizes generating novel and
innovative solutions by using techniques such as brainstorming, mind mapping,
or lateral thinking. It is suitable for situations where there is a need for
originality, diversity, or change.
 Ethical decision model: This model considers the moral values, principles, and
consequences of the decision on the stakeholders and the society. It is suitable
for situations where there is a potential conflict between personal,
organizational, or social interests.

Question 5:

a) Discuss exhaustively their contributions to today’s management practice. [7½ marks]

b) Assess the Social Responsiveness of a company of your choice [7½ marks]

 Social responsiveness is the process of how organizations and their
stakeholders dynamically interact and care for the environment1. It is different
from social responsibility, which refers to a company’s moral obligation to
society. Social responsiveness emphasizes actions and activities that respond to
social pressures and expectations2.
 Use the following criteria:
 Stakeholder engagement: This criterion measures how well the company
identifies, communicates, and collaborates with its stakeholders, such as
customers, employees, suppliers, investors, communities, regulators, etc. A
socially responsive company would seek to understand the needs, interests, and
concerns of its stakeholders and involve them in decision-making and problem-
solving processes3.
 Environmental impact: This criterion evaluates how the company minimizes
its negative impact and maximizes its positive impact on the natural
environment, such as by reducing emissions, waste, and resource consumption,
and by promoting renewable energy, recycling, and conservation. A socially
MBA 8100: MANAGEMENT THEORES AND PRACTICES

responsive company would adopt eco-friendly practices and policies and

disclose its environmental performance and goals4.
 Social innovation: This criterion assesses how the company creates and
implements new products, services, processes, or models that address social or
environmental problems, such as poverty, inequality, health, education, etc. A
socially responsive company would leverage its core competencies and
resources to generate social value and benefit the society.
 Ethical culture: This criterion examines how the company fosters a culture of
integrity, honesty, fairness, and respect among its employees, managers, and
leaders. A socially responsive company would establish and enforce a code of
conduct, provide ethics training and education, and reward ethical behavior and
whistleblowing.
 Using these criteria, candidate to choose a company that I am familiar with or
interested in and research its social responsiveness practices and performance.

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