1 (a).

List and explain the four Basic Functions of Management (10 marks)

Functions of management is a systematic way of doing things. Management is a process to

emphasize that all managers, irrespective of their aptitude or skill, engage in some inter-related
functions to achieve their desired goals.

First, managers must set a plan, then organize resources according to the plan, lead employees to
work towards the plan, and finally, control everything by monitoring and measuring the
effectiveness of the plan.

Management process/functions involve 4 basic activities;

1. Planning and Decision Making - Determining Courses of Action,

2. Organizing - Coordinating Activities and Resources,
3. Leading - Managing, Motivating and Directing People,
4. Controlling - Monitoring and Evaluating activities.

Figure 1: Basic Function of Management

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1. Planning and Decision Making – Determining Courses of Action

Looking ahead into the future and predict possible trends or occurrences which are likely to
influence the working situation is the most vital quality as well as the job of a manager. Planning
means setting an organization’s goal and deciding how best to achieve them. Planning is decision
making, regarding the goals and setting the future course of action from a set of alternatives to
reach them.

The plan helps to maintain managerial effectiveness as it works as a guide for the personnel for
future activities. Selecting goals as well as the paths to achieve them is what planning involves.
Planning involves selecting missions and objectives and the actions to achieve them, it requires
decision-making or choosing future courses of action from among alternatives.

In short, planning means determining what the organization’s position and the situation should be in
the future, and decide how best to bring about that situation. Planning helps maintain managerial
effectiveness by guiding future activities. For a manager, planning and decision-making require an
ability to foresee, to visualize, and to look ahead purposefully.

2. Organizing – Coordinating Activities and Resources

Organizing can be defined as the process by which the established plans are moved closer to
realization. Once a manager set goals and develops plans, his next managerial function is
organizing human resource and other resources that are identified as necessary by the plan to
reach the goal. Organizing involves determining how activities and resources are to be assembled
and coordinated.

The organization can also be defined as an intentionally formalized structure of positions or roles for
people to fill in an organization. Organizing produces a structure of relationships in an
organization and it is through these structured relationships that plans are pursued. Organizing,
then, is that part of managing which involves: establishing an intentional structure of roles for
people to fill in the organization. It is intentional in the sense of making sure that all the tasks
necessary to accomplish goals are assigned to people who can do the best.

The purpose of an organization structure is to create an environment for the best human
performance. The structure must define the task to be done. The rules so established must also be
designed in light of the abilities and motivations of the people available.

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Staffing is related to organizing and it involves filling and keeping filled, the positions in the
organization structure. This can be done by determining the positions to be filled, identifying the
requirement of manpower, filling the vacancies and training employees so that the assigned tasks
are accomplished effectively and efficiently.

The managerial functions of promotion, demotion, discharge, dismissal, transfer, etc. Are also
included with the broad task “staffing.” staffing ensures the placement of the right person in the right
position. Organizing is deciding where decisions will be made, who will do what jobs and tasks, who
will work for whom, and how resources will assemble.

3. Leading – Managing, Motivating and Directing People

The third basic managerial function is leading it is the skills of influencing people for a particular
purpose or reason. Leading is considered to be the most important and challenging of all
managerial activities. Leading is influencing or prompting the member of the organization to work
together with the interest of the organization.

Creating a positive attitude towards the work and goals among the members of the organization is
called leading. It is required as it helps to serve the objective of effectiveness and efficiency by
changing the behaviour of the employees. Leading involves several deferment processes and
activates.

The functions of direction, motivation, communication, and coordination are considered a part of the
leading processor system. Coordinating is also essential in leading. Most authors do not consider it
a separate function of management. Rather they regard coordinating as the essence of
managership for achieving harmony among individual efforts towards accomplishing group targets.

Motivating is an essential quality for leading. Motivating is the function of the management process
of influencing people’s behaviour based on the knowledge of what cause and channel sustain
human behaviour in a particular committed direction. Efficient managers need to be effective
leaders.

Since leadership implies fellowship and people tend to follow those who offer a means of satisfying
their own needs, hopes and aspirations, understandably, leading involves motivation leadership
styles and approaches and communication.

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4. Controlling – Monitoring and Evaluating Activities

Monitoring the organizational progress toward goal fulfilment is called controlling. Monitoring
progress is essential to ensure the achievement of organizational goals.

Controlling is measuring, comparing, finding deviation and correcting the organizational activities
which are performed for achieving the goals or objectives. Controlling consists of activities, like;
measuring the performance, comparing with the existing standard and finding the deviations, and
correcting the deviations. Control activities generally relate to the measurement of achievement or
results of actions that were taken to attain the goal.

Some means of controlling, like the budget for expenses, inspection records, and the record of
labor hours lost, are generally familiar. Each measure also shows whether plans are working out. If
deviations persist, correction is indicated. Whenever results are found to differ from the planned
action, persons responsible are to be identified and necessary actions are to be taken to improve
performance.

Thus, outcomes are controlled by controlling what people do. Controlling is the last but not the least
important management function process. It is rightly said, “planning without controlling is
useless”. In short, we can say the controlling enables the accomplishment of the plan. All the
management functions of its process are inter-related and cannot be skipped. The management
process designs and maintains an environment in which personnel’s, working together in groups,
accomplish efficiently selected aims. All managers carry out the main functions of management;
planning, organizing, staffing, leading and controlling. But depending on the skills and position on
an organizational level, the time and labour spent in each function will differ. Planning, organizing,
leading, and controlling are the 4 functions of management which work as a continuous process.

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1.(b) List and explain the 3 levels of managers in an organization (10 marks)

Levels of Management are a term referred to line of differentiation among various administrative
positions in a company. The levels may increase as and when the size of the business increases
and vice versa. Level of Management determines the chain of control and the quantity of power and
position that is given to any management role to an individual in an organization. Levels of
Management are broadly classified into three:

1. Managerial or the Top-Level Management

This level consists of the board of directors and managing director. It is the supreme source of
power since it manages the policies and procedures of an entity. Their main responsibility lies in
planning and coordinating. The roles and responsibilities of this ‘creamy’ level can be summed up
as below.

It is at this level that all the objectives and major policies are laid down. Instructions are given for
preparing the necessary budgets for various departments, schedules and policies. Preparation of
premeditated plans and policies are done at this level. Appointment of executives at central level or
departmental heads. Since it consists of Board of Director the top administration is accountable
towards the shareholders for performance of the organization. Harmonization and control are the
two major roles played by the top management. It guides the organization in the right direction
towards achieving the goals and objectives.

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2. Executive or Middle Level Management

The line and departmental managers form this level of management. These people are directly
accountable to the top management for functioning of their respective departments. Their main role
comes under the directional and managerial functions of an organization. The roles of managers at
this level are as below.

The main role lies in the implementation of policies and plans as per the directives of the top
management. Preparing plans for the sub units of their respective departments. Actively contribute
in guidance and employment of supervisory level of management. Their duty is to understand and
elucidate the policies of the top management to the lower management. Bringing together the
activities within the department is another role at this level of management. Assessment of
performance of junior managers. Timely and important reports or data to be sent to the top
management. Motivation of supervisory managers is a vital role of this level of management.

3. First – line managers - Supervisory

This level constitutes mostly of supervisors, foremen and first line managers. The main role of these
people is handing over jobs or responsibilities to a variety of workers. Guidance towards day to day
activities of the organization. These managers are directly responsible for quality and amount of
production. They act as mediators in communicating the problems of workers and also undertake
recommending solutions to higher level of organization. They take stock of the machines and
material required for the work to be done. They are the role models for the workers as they are
directly and constantly in touch them. It is their duty to uphold discipline and decorum in the
organization.

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2. (a) What is decision making? Explain 3 types of decision making. (10 marks)

Decision making can be defined as the act of choosing one alternative from among a set of
alternatives. Decision making is a choice or a judgement of what we need to do achieve a certain
objective. Decision making therefore involve planning a course of action and setting controls to
check if the plan is proceeding towards the objectives. The quality of decisions made has a direct
effect on the success of failure of a business. It requires information of past experience and
predictions of future events.

There are Three (3) Types of Decision Making

1. Organization vs. Personal Decisions

2. Programmed vs. Unprogrammed Decisions
3. Strategic vs. Tactical Decisions

1. Organization vs. Personal Decisions

Organizational Decisions are made by managers whereby the interests of the organization must be
of the highest priority.

Whereas Personal Decision are those personal choice or preference which do not affect the
organization.

2. Programmed vs. Unprogrammed Decisions

Programmed Decisions are low risk, often made and can be standardized into procedures. These
decisions are easy to make and do not take a long time to be decided.

Unprogrammed Decisions are non-routine and carry high risks. These types of decisions must be
thoroughly studied and analyzed in terms of the cost vs. benefits before a decision is reached. The
level of difficulty is a key reason why it takes longer to make the decision.

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 3. Strategic vs. Tactical Decisions

Strategic decisions affect the long-term survival, development, growth, competitiveness and
endurance of the organization. They are top-level decisions and carry great risks on the
organization.

Tactical decisions are operational decisions and can be made by low-level executives. Even though
these decisions still carry certain risks, they do not give great impact to the organization.

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2.(b) List and explain the steps in the decision-making process. (10 marks)

Recognize the problem and the need for a decision

Identify the objectives of the decision

Gather and evaluate data and diagnose the situation

List and evaluate alternatives

Select the best course of action

Implement the decision

Gather feedback

Follow up

Figure 2: The Process of Decision Making

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 1. Recognize a problem and need for a decision

The first step in making the right decision is recognizing the problem or opportunity and deciding to
address it. Determine why this decision will make a difference to your customers or fellow
employees.

2. Identify the objectives of the decision

The second step is to identify the objectives of the decision. This is very important to make sure the
objective or goals to be reached or achieved.

3. Gather and evaluate data and diagnose the situation

It’s time to gather information so that can make a decision based on facts and data. This requires
making a value judgment, determining what information is relevant to the decision at hand, along
with how you can get it.

4. List and evaluate alternatives

Once you have a clear understanding of the issue, it’s time to identify the various solutions at your
disposal. It’s likely that you have many different options when it comes to making your decision, so
it is important to come up with a range of options. This helps you determine which course of action
is the best way to achieve the objective.

5. Select the best course of action

Next, select the best course of action to be taken. This involves identifying what resources are
required and gaining support from employees and stakeholders. Getting others onboard with your
decision is a key component of executing your plan effectively, so be prepared to address any
questions or concerns that may arise.

6. Implement the decision

Implement the decision on the plan or alternatives that have been choose.

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 7. Gather feedback

An often-overlooked but important step in the decision-making process is gather feedback and
evaluating your decision for effectiveness. Ask yourself what you did well and what can be
improved next time.

8. Follow up
Always follow up the plan and ensure the plan is on the right decision. Follow up may raise
satisfaction.

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3.(a) Explain the steps in the control process? (10 marks)

1. Establish Standards 2. Measure Performance

4. Determine Need for 3. Compare Performance

Corrective Action against Standards

Figure 3(a): Step in the Control Process

Determine Need for Corrective Action

Maintain the Correct the Change the

status quo deviation standards

Figure 3(b): Need for the Corrective Action

The control process is the functional process for organizational control that arises from the goals
and strategic plans of the organization.

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1. Establishing Standards and Methods for Measuring Performance

Standards are, by definition, simply the criteria of performance. They are the selected points in an
entire planning program at which performance is measured so that managers can receive signals
about how things are going and thus do not have to watch every step in the execution of plans.
Standard elements form precisely worded, measurable objectives and are especially important for
control.
In an industrial enterprise, standards could include sales and production targets, work attendance
goals, safety records, etc. In service industries, on the other hand, standards might include several
time customers have to wait in the queue at a bank or the number of new clients attracted by a
revamped advertising campaign.

2. Measuring the Performance

The measurement of performance against standards should be done on a forward-looking basis so

that deviations may be detected in advance of their occurrence and avoided by appropriate actions.

Several methods are used for measuring the performance of the organization. If standards are
appropriately drawn and if means are available for determining exactly what subordinates are
doing, appraisal of actual or expected performance is fairly easy. But there are many activities for
which it is difficult to develop accurate standards, and there are many activities that are hard to
measure.

It may be quite simple, for example, to establish labour-hour standards for the production of a
mass-produced item and it may be equally simple to measure performance against these
standards, but in the less technical kinds of work. For example, controlling the work of the industrial
relations manager is not easy because definite standards cannot be easily developed.

The superior of this type of manager often rely on vague standards, such as the attitude of labour
unions, the enthusiasm, and loyalty of subordinates, the index of labour turnover and/or industrial
disputes, etc. In such cases, the superior’s measurements are often equally vague.

3. Determining whether Performance Matches the Standard

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Determining whether performance matches the standard is an easy but important step in the control
process. It involves comparing the measured results with the standards already set. If performance
matches the standard, managers may assume that “everything is under control”. In such a case the
managers do not have to intervene in the organization’s operations.

4. Taking Corrective Action

This step becomes essential if performance falls short of standards and the analysis indicates that
corrective action is required. The corrective action could involve a change in one or more activities
of the organization’s operations. For example, the branch manager of a bank might discover that
more counter clerks are needed to meet the five-minute customer-waiting standard set earlier.

Control can also reveal inappropriate standards and in that case, the corrective action could involve
a change in the original standards rather than a change in performance. It needs to be mentioned
that, unless managers see the control process through to its conclusion, they are merely monitoring
performance rather than exercising control. The emphasis should always be on devising
constructive ways to bring performance up to a standard rather than merely identifying a past
failure.

3.(b) What is delegation? Give examples of 5 barriers to delegation. (10 marks)

Delegation is the assignment of responsibilities together with appropriate authority to carry out a
job. It is a process of empowering employees to carry out assigned tasks. In effect some part of
management is entrusted to subordinates. The process by which managers assign a portion of their
total workload to others.

The Fives (5) Barriers to Delegation:

1. Failure to provide employees with sufficient training to carry out the task.
2. Poor planning by some managers.
3. Some managers feel that only they can do a job properly.
4. Fear that employees will make mistakes
5. Fear that employees will do well and be promoted ahead of the manager

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4.(a) What is leadership? (2 marks)

Leadership is the ability to influence a group toward the achievement of goals.

Notice key elements of this definition:

 Leadership stems from social influence, not authority or power

 Leadership requires others, and that implies they don’t need to be “direct reports”
 No mention of personality traits, attributes, or even a title; there are many styles, many
paths, to effective leadership
 It includes a goal, not influence with no intended outcome

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4.(b) Explain the difference between leaders and managers. (8 marks)

The different between the managers and leaders are explain as below.
Managers Leaders
1.Maintain 1.Visionary
 The main purpose of a managerial  Leaders think ahead to develop a vision
position is to maintain the current best for the team as well as goals to be
practices in an organization. reached by the team.
2.Implement 2.Make Plans
 Managers take plans from higher  Leaders figure out what the best course
bosses and implement plans and of action and delegate tasks to team
strategies for their team. members.
3.Reactive 3.Proactive
 Managers are in place to look at what’s  Leaders are expected to look ahead
going on the business and choose the and change direction to navigate
best response from their training and around any incoming obstacles.
guidance.
4.Report 4.Problem Solve
 Managers are more likely to be the  Leaders adopt and adjust to the
ones who are reporting issues. They dynamic environment around them in
are seeing and asking for a way to order to find the absolute best way to
continue forward with solving the solve a problem.
problem.
5.Choose 5.Create
 Managers choose the best strategy to  Leaders create new business
use and taught about which responses strategies. They study the ins and outs
are most appropriate for different of the business and decide on the
situations. direction.
6.Specialize 6.Knowledgeable
 Managers specialize in one or two  Leaders need a broader knowledge in
areas as they are mainly responsible for all aspects of the teams, organization
a few specific functions of the team. and the industry.

Table 4: Manager vs Leaders

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4.(c) Explain any five competencies required of a leader. (10 marks)

1. Authoritarian or Autocratic
 Get others to do things for him through the use of fear, threats, and punishments.
 Using the authority for decision-making, determining policies and procedures.
 Described in McGregor’s Theory X

2. Bureaucratic Leadership
 Bureaucratic leaders work “by the book”, ensuring that their staff follow procedures exactly.
 Very rigid and uncompromising in discipline.
 This is a very appropriate style for work involving serious safety risks (such as working with
machinery, with toxic substances or at heights) or where large sums of money are involved
(such as cash-handling).

3. Charismatic Leadership
 A charismatic leadership style can appear similar to a transformational leadership style, in
that the leader injects huge doses of enthusiasm into his or her team, and is very energetic
in driving others forward.
 In the eyes of their followers, success is tied up with the presence of the charismatic leader.
 As such, charismatic leadership carries great responsibility, and needs long term
commitment from the leader.

 Democratic or Participate Leadership

 Encourage the subordinate participation in decision making, determination of policies and
implementation of procedures.
 Invites other members of the team to contribute to the decision-making process.
 Employees and team members feel in control of their own destiny
 Reflects McGregor’s Theory Y

4. Laissez -faire Leadership

This French phrase means “leave it be” and is used to describe a leader who leaves his or her
colleagues to get on with their work.
Most often, laissez-faire leadership works for teams in which the individuals are very experienced
and skilled self-starters
5.(a) Draft the organization structure and reporting systems of your organization.

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 (10 marks)

Figure 5: The Organization Chart

.
Once an organization has set its structure, it can represent that structure in an organization chart: a
diagram delineating the interrelationships of positions within the organization. Having decided on a
functional structure, a company create the organization chart shown in Figure 5.

With reference to the organization chart as above, at the top of the chart, as the company’s
president. Below level is the positions of the people who work directly under the presidents. Its
divided into accounting, marketing, operations and human resource managers.

The next level identifies the people who work for the managers. In this situation, because the
company started out small, neither accounting managers nor human resource manager manage
department or area directly.

If the marketing manager, however, oversees one person in advertising and a sales supervisor
(who, in turn, oversees the sales staff). The operation manager oversees two individual – one to
supervise notetakers and one to supervise people responsible for making copies.

Reporting Relationship / System

With these relationships in mind, can draw lines to denote reporting relationships, or patterns of
formal communication. Because four managers’ report to president, the president will be connected

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to four positions; that is, will have four direct “reports.” The marketing and operations managers will
each be connected to two positions and their supervisors to one position each. The organization
chart shows that if a member of the sales staff has a problem, he or she will report it to the sales
supervisor. If the sales supervisor believes that the problem should be addressed at a higher level,
then he or she will report it to the marketing manager.

Theoretically, the president will communicate only with the four direct reports, but this isn’t the way
things normally work. Behind every formal communication network there lies a network of informal
communications which unofficial relationships among members of an organization. The president
will receive communications directly from members of the sales staff; in fact, the president might
encourage this line of communication.

5.(b) Explain your organization chart . (10 marks)

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Managers coordinate the activities identified in the planning process among individuals,
departments, or other units and allocate the resources needed to perform them. Typically, there are
three levels of management: top managers, who are responsible for overall performance; middle
managers, who report to top managers and oversee lower-level managers; and first-line managers,
who supervise employees to make sure that work is performed correctly and on time.

Management must develop an organizational structure, or arrangement of people within the

organization, that will best achieve company goals. The process begins with specialization - dividing
necessary tasks into jobs; the principle of grouping jobs into units is called departmentalization.
Units are then grouped into an appropriate organizational structure.

Functional organization groups people with comparable skills and tasks; divisional organization
creates a structure composed of self-contained units based on product, customer, process, or
geographical division. Forms of organizational division are often combined. An organization’s
structure is represented in an organization chart - a diagram showing the interrelationships of its
position.

References

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3. Retrieved on 7th September 2020 from
https://www.yourarticlelibrary.com/difference/programmed-and-non-programmed-decisions-
difference/53211
4. Retrieved on 7th September 2020 from
https://www.forbes.com/sites/kevinkruse/2013/04/09/what-is-leadership/#23d9d7dc5b90
5. Retrieved on 7th September 2020 from https://b.online.csp.edu/resources/article/decision-
making-process/
6. Retrieved on 7th September 2020 from https://www.iedunote.com/control-process-steps

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