HIGHER EDUCATION PROGRAMMES

MEMORANDUM

Academic Year 2024: January – June

Formative Assessment 1: Business Management 1 (HBMN130-1)
NQF Level, Credits: 5, 16
Weighting: 20%
Assessment Type: Essay Questions
Educator: L.M. Gumbi
Examiner: L.M. Gumbi
Due date: 28 March 2024
Total: 100 Marks

Instructions:
• This assessment consists of three (3) questions.
• It is based on Units 1-6 of the prescribed textbook.
• All the questions are compulsory.
• Your assessment must be typed using:
o Font: Arial
o Font size: 12
o Line spacing: 1.5
• A Copyleaks Report will be issued via ColCampus once the assignment is
submitted. Please ensure that you follow the correct steps when uploading your
assignment, to ensure that the Copyleaks Report is correctly issued. You
should be working towards a similarity rating of 30% or less. Where a
Copyleaks Cheat Detection Report is issued, your submission will automatically
be treated as if you received a similarity rating in excess of 30%. Currently no
marks will be deducted for a similarity rating that exceeds 30%.

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Question 1: (34 Marks)

Refer to the fictitious scenario below and answer the following questions.

The roles of managers can be distinguished based on the behavioural expectations or

activities that they are expected to perform.

You are a student in the Business management program. You have been assigned to
do a presentation on the three major roles performed by managers in organisations.
Your goal is to show knowledge and understanding of the different roles performed by
managers.

*Developers’ views

Required:

Provide a well-researched response in which you:

1.1. Discuss the three (3) different levels and areas of management
(3x3 =9 marks)

Sample Solution: Units 1 (Chapter 2) pages 47-48)

Note to the grader:

Award three (3) marks for explaining each level of management. Discretionary
grading is advised as students are encouraged to make discussion in their own words.

Top management represents the relatively small group of managers who control the
organisation as a whole and with whom the final authority and responsibility for
executing the management process rests. Top management is usually responsible for
determining the organisation’s mission, goals and overall strategies. Top management
is concerned mainly with long-term planning, designing the organisational structure,
leading the organisation (through the top executive) and controlling it. Top
management also influences the corporate culture. Organisations' annual reports
usually depict their top management structure. This level of management usually
comprises the board of directors, partners, the managing director, chief executive
officers and management committees. √√ √

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Middle management is responsible for specific departments of the organisation and
is primarily concerned with implementing top management's policies, plans,and
strategies. It normally includes the functional beads, such as the marketing manager,
the purchasing manager, and the human resource manager. Middle management is
concerned with the near future and is therefore responsible for medium-term and
short-term planning and controlling the management activities of the middle managers'
own departments. Middle managers also continually monitor environmental influences
that may affect their own departments. The trend in recent years of corporate
restructuring, delayering, downsizing, and decentralisation of decision-making has
been responsible for many middle managers becoming redundant. Electronic
technology has reduced the need for middle management in some organisations. In
the area of information management, in particular, computers have replaced the
information-gathering tasks of middle managers. Middle managers are, however, still
necessary to link the organisation's upper and lower levels and implement the
strategies developed at the executive level. √√√

Lower-level management (also called first-line management) is responsible for even

smaller segments of the organisation, namely the different subsections. The
managerial functions of first-line managers are centred on the daily activities of the
departments or sections, on short-term planning, and on implementing the plans of
middle management. Their primary concern is applying policies, procedures and rules
to achieve a high level of productivity, providing technical assistance to motivate
subordinates and accomplish day-to-day goals. Typically, they spend a large portion
of their time supervising the work of subordinates. The managers hold the power to
increase or decrease the productivity and output of most organisations. These
managers hold the power to increase or decrease the productivity and output of most
organisations. They also maintain the crucial interface between management and the
major body of employees in the organisation. They also maintain the crucial interface
between management and the body of employees in the organisation. This level of
management usually comprises titles such as office manager, shift supervisor,
advertising manager, debtors’ clerk or section manager. √√√

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The following learning outcome is covered in the above question:
Differentiate between the different levels and areas of management in an
organisation.

1.2. Differentiate the three (3) roles played by managers in contemporary

organisations. Provide an example of each from your knowledge of South
African businesses. (4x4=16 marks)

Sample Solution: Unit 1 (Chapter 2) pages 51-52

Note to the grader:

Award two (2) marks for discussing each role and a further (2) marks for the example
of each role provided. Discretion is advised as students' examples will likely differ.

Interpersonal role

More than anything else, management jobs are people-intensive. Evidence shows that
managers spend most of their time communicating face-to-face with others. In fulfilling
the interpersonal role of management, managers perform three-sub roles. All
managers have to perform duties that are ceremonial and symbolic in nature. √√

Example: managers may have to appear at community functions, attend social events
or host luncheons for important customers. In doing so, managers fulfill their roles as
figureheads. Secondly, all managers have a role as a leader. In this capacity
managers work with and through their employees to ensure that organisational goals
are met. The third sub-role within the interpersonal role is liason, which aims to
maintain good relations within and outside the organisation. Managers must be
politically sensitive to important organisational issues to develop relationships and
networks within and beyond their organisations. √√

Information role

A manager’s information role enables him or her to obtain information from colleagues,
subordinates and departmental heads, as well as outside individuals and
organisations. √ √

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Example: They can use this information to make decisions. The information role of a
manager involves monitoring or gathering information on trends and passing on
relevant data or information to their superiors and subordinates. The manager is,
therefore a vital link in the organisation’s communication process. The manager’s
information role also entails acting as a spokesperson for the department or for the
whole organisation. √√

Decision-making role

The third set of managerial roles is grouped into what is known as the decision-making
role. A manager is regarded as an entrepreneur. As an entrepreneur, the manager
initiates projects that capitalise on opportunities that have been identified in the
monitoring role. This may involve developing new products, services or processes. A
second decisional role that managers play is that of a problem solver. √√

Example: Things do not always run smoothly regardless of how well an organisation
is managed. Managers must also make decisions about the resources available to the
organisation. Resource allocation or deciding to whom resources such as money,
people and equipment are to be assigned. Is often a critical management decision. As
a negotiator, a manager frequently engages in negotiations with various individuals,
other departments or organisations, and trade unions about goals, performance
standards and resources. √√

The following learning outcome is covered in the above question:

Differentiate between the various roles played by managers in contemporary
organisations.

1.3. Expound on the various skills needed by managers in contemporary

organisation. (3x3= 9 marks)

Sample Solution: Unit 1 (Chapter 2) pages 53-54

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Note to the grader: Award three (3) marks for explaining each managerial skill
category.

Technical skills

Technical skills refer to the managers ability to apply his or her education, training and
experience to effectively and efficiently organise a task, job or project. The first branch
of technical skills is technical expertise, which refers to the skills acquired by a
manager through education and/ or actual experience of the task at hand. A
knowledge of accountancy or logistics are examples of technical expertise that can be
used to perform a task. A manager should be able to determine what activities need
to be performed to meet established targets. These activities should then be organised
and scheduled. The third branch of technical skills is problem-solving, which refers to
the manager’s ability to resolve issues confronted within his or her day-to-day work
and develop team collaboration. Lastly, technical skills also involve a manager’s ability
to use imagination and creativity. This is the ability to originate ideas and correct and
develop ways to improve the organisation's overall productivity. √√√

Teambuilding

Teambuilding refers to the ability or skill of a manager to listen carefully to others, to

communicate effectively with others and to develop and co-ordinate an effective group
or team. The first batch of team building is listening for insights. The second batch is
directing and coaching. Directing refers to the manager’s ability to work through and
with team members to achieve organisational goals and objectives. A directive
manager lets team members know what is expected of them and gives specific
guidance as to how the work should be done. Coaching focuses on the improved
performance of a less experienced individual and imparts skills that this individual
needs to accept new responsibilities. Coaching in a business sense is very similar to
that in sport, where a tennis coach will direct the learning of his or her pupil. The third
branch of teambuilding is solving problems as teams. An efficient manager should be
able to help his or her team contribute ideas and solutions to improve their
performance in the organisation. Lastly, teambuilding branches into co-ordinating and
co-operating. Co-ordination is an important principle in organising. Co-ordination
means that all departments, sections, and individuals within an organisation should

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work together to accomplish the organisation's strategic, tactical, and operational
goals and objectives. √√√

Drive

The third category of skills needed by managers is drive. Having the skill to drive the
organisation, team or unit successfully means that a manager should be able to set
goals, maintain standards and evaluate performance to achieve effective outcomes.
In this sense, outcomes refer to costs, output, product quality and customer service.
The first batch of the skills to drive is setting standards of performance. Managers
should have the skill to keep that part of the organisation for which they are responsible
moving and aiming towards new accomplishments. This second batch refers to control
of details which refers to the ability to oversee the performance of work in detail in
order to meet overall goals and objectives. The third branch of this category of
managerial skills is exerting pressure. This refers to the manager's ability to urge
others to perform without dominating. √√√

The following learning outcome is covered in the above question:

Expound on the various skills needed by managers in contemporary organisations.

Question 2: (36 marks)

Refer to the fictitious scenario below and answer the questions following.

The Fourth Industrial Revolution (4IR) is a term used to describe the current era of
technological advancements and their impact on various aspects of society, including
business, manufacturing, and daily life. The 4IR builds upon the foundations laid by
the previous three industrial revolutions, with a focus on the fusion of the physical,
digital, and biological worlds.

As a business management student, provide a presentation on how these

technologies will lead to radical changes in people's social and economic life.

*Developer’s piece

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Required:
2.1. Write a letter to the president of South Africa, the Honouraable President Cyril
Ramaphosa regarding 4IR. The letter should address the following:

(i) The five (5) key components driving the Fourth Industrial Revolution (5 marks)

(ii) How are they impacting various aspects of the society? (13 marks)

Sample Solution: Unit 2 (Chapter 3) page 67

Note to Grader: Use the rubric below

Task Rating Scale/ Performance Criteria

Identification of 5 4-3 2-1 0
the Fourth
Industrial Accurately Accurately Identifies fewer No
Components identifies and identifies and than four identification of
describes all five describes four components or components
-Artificial key components components, contains provided.
intelligence (AI) of the Fourth with minor significant
-Augmented Industrial omissions or inaccuracies.
reality Revolution. inaccuracies.

-Blockchains
-Drones
-The Internet of
Things
-Robotics
-Virtual Reality
-3D printing

Analysing the 13-11 10-6 5-1 0

impact to the
society Provides a Demonstrate a Shows a limited No analysis of
comprehensive good or unclear the impact
-Brick of and insightful understanding understanding of provided.
Technological analysis of how of the impacts, the impacts,
Revolution each 4IR with some with minimal or
-Industries component areas lacking no specific
affected by impacts various depth or examples.
technological aspects of specificity.
advancement society, including
specific
-Scientific examples.
discipline

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-Technological
advancements

The following learning outcome is covered in the above question:

Identify variables in the business environment of contemporary organisations that
cause them to change.

Sample Solution: Unit 2 (Chapter 3) page 68

2.2. With the ‘developer’s view’ in mind, discuss the impact of the Fourth Industrial
Revolution on the job market, and further explain what skills you think will be in
demand in the future? (18 marks)

Note to grader:
Use the rubric provided. Award two (5) marks for the introduction. Award additional
marks for highlighting each point to a maximum of thirteen (10) marks for discussing
the impact of the Forth Industrial Revolution in the job market, and what skills will be
in demand in the future and three (3) marks for the conclusion.

Sample answer:
Contemporary organisations operate in a world of changing markets, technologies,
customers and products. Economists call it a secular shift -a big and broad increase
in uncertainty and volatility resulting from globalisation, the information revolution and
the digital economy it creates.

The COVID-19 pandemic added another layer of complexity to the transformation of

the world of work. Organisations have transformed from focusing on reducing defects
and streamlining business processes to concentrating on managing continuous and
radical change. They focus and organise around what they do best, by structuring
according to core competencies, using work teams, forming strategic alliance with
other organisations and outsourcing work that is not part of their core work. They
unbundle production operations to countries where labour is cheaper and conditions

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are more favourable than in their own countries. Key resources of contemporary
organisations include knowledge, information and ideas.

A new trend in the world of work is that organisations focus less on job titles and more
on the underlying skills of people and on ways to develop and use those skills of people
and on ways to develop and use those skills. The Covid-19 crisis augmented this trend
as organisations reconsidered their physical workplaces, the nature of work, how it is
perfomed and by whom, as well as the anticipated effect of digitisation, automation
and AI on work in the future. This trend will continue and influence the workplace of
the future.

During the pandemic, many workers were forced to work from home and organisations
had the unique opportunity to observe the benefits and challenges associated with a
remote workforce. Yet another variable that influences the transformation of the world
of work is the explosion of mobile and other network-dependent devices that affect
how people use media, organise data, and communicate with each other and within
organisations.

Furthermore, digital transformation is driving complexity and the pace of change in

orgnaisations. One crucial area where this is evident is the loss of individual power
and authority and the emergence of collective power, enabled by social media. In the
traditional organisation the organisational structure and the hierarchy it creates
determine positions of power and authority. In contemporary organisations social
networks such as Twitter, Instagram and Facebook are eroding eroding traditional
power bases. Informal networks within organisations become as powerful as
traditional hierarchies and sometimes even more powerful.

Task Rating Scale/ Performance Criteria

Introduction 5 4-3 2-1 0

Excellent Good Fair introduction No introduction

introduction that introduction that pre-empts included
pre-empts the that pre-empts the contents of
contents of the the contents of the discussion
discussion the discussion

10-9 8-6 5-1 0

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Impact of 4IR on Provides a Provides a Shows a limited No discussion
the job market & comprehensive good or unclear on job market
Skills needed for and insightful discussion on understanding of and the skills
the future. discussion on job job market and Provides a needed for the
market and the the skills comprehensive future.
-Radical change
skills needed for needed for the and insightful
-Digitisation the future. future. discussion on job
- Automation market and the
skills needed for
-Use of Artificial the future.
intelligence
-Digital
transformation

Conclusion 5 4-3 2-1 0

Excellent Good Fair conclusion No conclsuion

conclusion that conclusion that that pre-empts included
pre-empts the pre-empts the the contents of
contents of the contents of the the discussion
discussion discussion inaccuracies.

The following learning outcome is covered in the above question:

Identify variables in the business environment of contemporary organisations that
cause them to change.

Question 3: (30 marks)

Background:

A market environment refers to all the internal and external factors that influence an
organisation's marketing activities. Marketing managers need to be aware of the
market environment to maintain success and tackle any threats or opportunities that
may affect their work. Suppose you have a keen interest in the food and beverage
industry and have always dreamt of starting your own coffee shop. Before embarking
on this entrepreneurial journey in the coffee industry, it’s important to understand your
market environment.

Fictitious scenario*

Required:

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3.1. Discuss the impact of inflation on the market environment (25 marks)

Sample Solution: Unit 3 (Chapter 4) page 97-103

Note to Grader: Use the rubric below

Task Rating Scale/ Performance Criteria

Introduction 5 4-3 2-1 0

A clear and Adequate Limited or No explanation

comprehensive explanation of inaccurate of inflation
explanation of the market explanation of provided.
the market environment the market
environment, with some environment,
demonstrating a minor gaps in indicating a need
deep understanding for further
understanding of understanding.
its economic
implications.

Analysis of the 5 4-3 2-1 0

impact of the
market Thorough and Good analysis Superficial or No analysis
insightful analysis of the market unclear analysis provided.
-Customers of how inflation impact, though of market
-Competition affects various some areas impact,
sectors of the may lack depth demonstrating a
-Labour market market, providing or specificity. need for a more
-Intermediaries specific examples detailed
and considering explanation.
-Suppliers short-term and
long-term
impacts.

Identification of 5 4-3 2-1 0

key factors
Clear Adequate Limited or No
-Government identification and identification inappropriate identification of
policies discussion of the of key factors, examples, key factors
-High Interest key factors with some detracting from provided.
rates influencing omissions or the overall
market dynamics less detailed understanding.
- Supply and under conditions discussion.
Demand of inflation.
-Investor
confidence
-Economic growth
Presentation of 5 4-3 2-1 0
examples
Effective use of Adequate use Limited or No
relevant and of relevant inappropriate presentation of
illustrative examples, use of examples,

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 examples to though some detracting from examples
support points may lack the overall provided.
and enhance relevance or understanding.
understanding. specificity.

Conclusion and 5 4-3 2-1 0

Insight
Strong conclusion Adequate Weak or No conclusion
that effectively conclusion, nonexistent and insight
summarizes key though some conclusion, provided.
insights and key insights indicating a need
implications in may be missing for better
the market. or less clearly summarization
articulated. of key points.

The following learning outcome is covered in the above question:

Understand the structure and dynamics of management environment.

3.2. Explain the significance of market research in understanding consumer needs

and market trends (5 marks)

Sample Solution: Unit 3 (Chapter 4) page 98

Note to the grader: *Grader’s discretion advised.

Award five (5) marks for discussion.

The market for the organisation’s product and/or service consists of people who have
needs to be satisfied and the financial means with which to satisfy their needs. √ The
customer and the market for an organisation’s product and/or service is the main
reason why an organisation exists. This is true for both private and public sector
entities. √

Customers also portray buyer behaviour, which is influenced by variables in the

macro-environment. For example, demographic trends affect the number of
customers, economic trends influence the purchasing power of consumers and
cultural values can influence the purchasing power of consumers and cultural values
can influence the buying behaviour of most customers. √ Customers for products and
services try to force prices down, they obtain they obtain more or higher quality
products and they increase competition among sellers by playing the one seller
against the other. √ √

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The following learning outcome is covered in the above question:
Understand the structure and dynamics of management environment.

[Total: 100 Marks]

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