Management Functions Flashcards
1
Q
Which of the followings are part of a manager’s job? (1) Planning (2) Organising (3) Leading (4) Controlling A. (1), (2) and (3) only B. (1), (3) and (4) only C. (2), (3) and (4) only D. (1), (2), (3) and (4)
A
Answer: D
2
Q
Efficiency is the ability to
A. choose suitable goals.
B. accomplish a task with the fewest resources.
C. achieve a goal.
D. accomplish a task as soon as possible.
A
Answer: B
3
Q
Managerial success
A. means making profit.
B. implies effectiveness in fulfilling goals only.
C. implies efficiency in using resources only.
D. includes both effectiveness in fulfilling goals and efficiency in using resources.
A
Answer: D
4
Q
\_\_\_\_\_\_\_\_\_\_ enables managers to distribute human and material resources in suitable combinations to carry out their plans. A. Planning B. Organising C. Leading D. Controlling
A
Answer: B
5
Q
Planning
A. creates a performance-oriented sense of direction.
B. helps managers set goals.
C. helps managers cope with ever-changing external environments by anticipating problems and opportunities.
D. All of the above.
A
Answer: D
6
Q
Which of the following shows the process of planning in a company?
(1) Establish objectives
(2) Develop and choose among alternative actions
(3) Develop forecasts and planning assumptions
(4) Implement the plan and evaluate results
A. (1)→(2)→(3)→(4)
B. (1)→(3)→(2)→(4)
C. (3)→(1)→(2)→(4)
D. (3)→(2)→(1)→(4)
A
Answer: C
7
Q
A strategic plan _______________, while an operational plan ________________.
A. is always a long-time plans …… is always a short-time plan
B. is comprehensive …… is simple
C. reflects the future direction of the organisation …… deals with the specific activities
D. is a standing-use plan …… is a single-use plan
A
Answer: C
8
Q
Which of the following position applies to a middle manager? A. Chief executive officer B. Division head C. Assistant manager D. Team leader
A
Answer: B
9
Q
Which of the following are the duties of a top manager? (1) Make sure the goals are set and fulfilled (2) Carry out the plans (3) Monitor the external environment A. (1) and (2) only B. (1) and (3) only C. (2) and (3) only D. (1), (2) and (3)
A
Answer: B
10
Q
The main difference between line authority and staff authority is that
A. line authority directly contributes to the organisation’s basic products or services but staff authority does not.
B. line authority has influence but staff authority does not.
C. line authority gives advice to the top manager but staff authority does not.
D. staff authority has direct authority over other employees but line authority does not.
A
Answer: A
11
Q
Which of the following are advantages of departmentalisation? (1) Simplifying the task of management (2) Enhancing the company’s reputation (3) Making the authority and responsibilities clearer A. (1) and (2) only B. (1) and (3) only C. (2) and (3) only D. (1), (2) and (3)
A
Answer: B
12
Q
A publishing company is divided into a finance department, marketing department and editorial department. This is an example of A. departmentalisation by function. B. departmentalisation by product. C. departmentalisation by location. D. departmentalisation by style.
A
Answer: A
13
Q
Which of the following sets of behaviour greatly affects leadership styles? (1) Concern for reputation (2) Concern for task (3) Concern for people A. (1) and (2) only B. (1) and (3) only C. (2) and (3) only D. (1), (2) and (3)
A
Answer: C
14
Q
Supportive leadership should be adopted when
A. the work needs a high degree of freedom.
B. the employees are competent and responsible.
C. the employees lack experience and the size of the company is small.
D. the task needs quick decision-making.
A
Answer: C
15
Q
\_\_\_\_\_\_\_\_\_\_\_\_\_ is the process of monitoring performance and taking action in order to achieve desired results. A. Leading B. Organising C. Planning D. Controlling
A
Answer: D
16
Q
Division of work can (1) make each task specialised. (2) develop assembly line production. (3) make employees feel bored. A. (1) and (2) only B. (1) and (3) only C. (2) and (3) only D. (1), (2) and (3)
A
Answer: D
17
Q
Management by objective
A. can improve the communication between management and employees.
B. allows employees to participate in setting goals.
C. may be time-consuming when implemented.
D. All of the above.
A
Answer: D
18
Q
Which of the following is an example of a firm demonstrating high efficiency and effectiveness?
A. A fashion company purchasing out-dated clothes at lower prices
B. A pharmaceutical firm developing new drug against Ebola by overspending on research and development
C. A real estate developer bidding for a piece of residential use land at highly inflated price
D. A watch and clock manufacturer utilising new technology to produce new watches to meet the needs of customers at low production cost
A
Answer: D
19
Q
Which of the following is the correct description of management functions?
A. Planning, organising, leading, controlling
B. Planning, organising, allocating, controlling
C. Planning, coordinating, leading, controlling
D. Planning, organising, leading, feedback
A
Answer: A
20
Q
Which of the following is part of the organizing function of the management?
A. Marketing manager formulates marketing plans for the next year.
B. Human resources manager assigns tasks for the recently recruited employees.
C. Information technology manager leads his team in repairing the computer system.
D. Production manager investigates if there are any errors within the production process.
A
Answer: B
21
Q
A toy manufacturer decides to automate its production process within five years. What types of plan that the above decision belong to? A. Short-term, operational B. Long-term, strategic C. Medium-term, operational D. Medium-term, strategic
A
Answer: C
22
Q
A general manager of a department store sets a goal for all staff: “We need to increase customers’ satisfaction in the second half of the year.” Which of the principles of SMART has been violated by the above goal? A. Specific B. Measurable C. Time-bound D. Attainable
A
Answer: B
23
Q
Which of the following positions refer to a top manager? A. Chief executive officer B. Accounting manager C. District manager D. Team leader of production line
A
Answer: A
24
Q
Which of the following are correct descriptions of a “tall” organisation structure? (1) Span of control is relatively wide (2) High administrative cost (3) More popular amongst large corporations A. (1) and (2) only B. (1) and (3) only C. (2) and (3) only D. (1), (2) and (3)
A
Answer: C
25
What does staff authority include?
A. directly contributing to the organisation’s basic products or services
B. giving advice and assistance to departments or line managers
C. making decision about company daily operations
D. having a large number of members in a team
Answer: B
26
```
What are the benefits brought by good departmentalisation to the company?
(1) simplifies management tasks
(2) provides clear authority and responsibility
(3) benefit from specialisation
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
```
Answer: D
27
```
A marketing manager is willing to listen to opinions from his subordinates when formulating marketing plans and invites them to get involved in the decision making process. What type of leadership style can be revealed by his action?
A. Participative
B. Autocratic
C. Laissez-faire
D. Supportive
```
Answer: A
28
Which of the following is an example of a travel agent comparing actual performance with standards?
A. Travel agent makes some amendments to the itinerary
B. Travel agent checks whether customers’ satisfaction met with the company standard
C. Travel agent sets the sales target for this year
D. Travel agent measures the attitude towards providing hospitality by its employees
Answer: B
29
Which of the following measures refer to concurrent control during the food production at Maxim’s Cakes?
A. Examining the facilities before production
B. Formulating safety rules and regulations for employees
C. Ceasing production when problematic food materials have been discovered
D. Recording the performance of employees
Answer: C
30
```
In a management meeting, the production manager emphasises product quality while the finance manager focuses on cost saving. Which of the principles of effective management has been violated by the above situation?
A. Unity of direction
B. Division of work
C. Unity of command
D. Balancing responsibility
```
Answer: A
31
```
Which of the following is a potential problem which may be encountered when implementing management by objectives?
(1) Improve the communication between management and employees
(2) Time consuming during the process
(3) Quantified goals have been ignored
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
```
Answer: C
32
Study the following structure and answer questions 1 and 2:
General manager -> HK Island
-> Kowloon East
-> Kowloon West
-> New Territories East
-> New Territories West
1. Referring to the organizational structure, which type of business could the company be involved in?
A. Electronics Commerce
B. Pharmaceuticals
C. Certification of products
D. Real estate
2. Referring to the organization structure, which of the following descriptions are correct?
(1) Span of control is relatively wide
(2) More effective communication within the company
(3) High administrative cost involved
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: 1.D 2.A
33
The sales director of an insurance company usually has excessive authority and does not follow orders from headquarters. Which principle of effective management has been violated?
A. Unity of command
B. Balancing responsibility with authority
C. Unity of direction
D. Division of work
Answer: B
34
A motorbike manufacturer announces the development blueprint of the company during a shareholders’ meeting.
Here is its recent announcement.
“The company will enter the overseas market within five years and develop assembly line production.”
```
What type of plan does this development blueprint refer to?
A. Long-range plan
B. Standing-use plan
C. Strategic plan
D. Operational plan
```
Answer: C
35
What are the benefits of effective management to a firm?
(1) Accomplishing organisational objectives
(2) Achieving effectiveness and efficiency
(3) Enhancing productivity and competitiveness of an organisation
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: D
36
(a) What is management? (2 marks)
| b) What is the importance of management? (4 marks
Answer:
(a) Management is the fulfilment of organisational objectives through people and other resources. (2)
(b) Importance
Accomplishing organisational goals (2)
Achieving effectiveness and efficiency (2)
37
Describe the management process briefly. (8 marks)
Answer:
The management process:
Planning: Setting objectives and deciding ways to achieve them (2)
Organising: Arranging resources to accomplish the work (2)
Leading: Directing human resources efforts to fulfil action plans (2)
Controlling: Monitoring progress and taking action to ensure desired results (2)
38
What is a SMART goal? (5 marks)
Answer:
A SMART goal is a goal that is specific (1), measurable (1), attainable (1), relevant (1), and has target dates / a time-bound (1).
39
General Manager: Our target is increasing sales by 5%.
| Explain whether this is a SMART goal. (2 marks)
Answer:
| No, there is no target date or deadline for fulfilling the goal. (2)
40
Give two reasons why employees do not want the company to adopt division of work? (4 marks)
Answer:
Employees would feel bored because they have to repeat the same task over and over again. (2)
It is difficult for employees to change their occupation as their skills are too specialised. (2)
41
What is the problem if an organisation violates the unity of command? (4 marks)
Answer:
Employees would be confused when managers’ decisions conflict with each other. (2)
An employee might have difficulties in deciding the priority of work. (2)
42
State three advantages of adopting Management by objective (MBO) in an organisation. (6 marks)
Answer:
Improving the communication between management and employees
Encouraging planning and goal setting
Informing employees about how well they are doing their jobs
Helping to monitor employees’ performance
Allowing employees to participate in setting goals, which is good for morale and motivation
(2 marks for each relevant advantage, max. 6 marks)
43
What type of organisations would be appropriate for autocratic leadership? Explain. (3 marks)
Answer:
Military forces, Army or disciplined services (1)
Reason:
Subordinates need to follow orders when completing the mission.
Prompt action is necessary when completing the mission.
(2 marks for each relevant reason, max. 2 marks)
44
The diagram illustrates the organization chart for the prefect body of a secondary school:
Head prefect -> Prefect Leader -> Prefect
-> Prefect Leader -> Prefect
-> Prefect Leader -> Prefect
Which principle of effective management has been demonstrated by the organisation chart? Explain your answer. (4 marks)
Answer:
Unity of command (1)
Each subordinate has only one supervisor, for example, supervisor of prefect is prefect leader while supervisor of prefect leader is head prefect. (2)
Such management style can avoid the conflict of contradicting commands. (1)
45
Recommend and explain a type of departmentalisation for a multinational corporation which produces health drinks and has a global market. (4 marks)
Answer:
By location (1)
For example, Asia Pacific, Americans, Europe regions (1)
As the corporation has global presence, each manager can specialise in managing one specific region (2)
46
What is staff authority? List two staff managers in an investment bank. (4 marks)
Answer:
Managers with staff authority assist and give advice to departments or line managers. (2)
Examples of staff authority include the manager of the legal department and the economic analyst. (2)
47
Compare the difference between a top manager and front-line manager in terms of staff numbers and duties.
(4 marks)
Answer:
Top manager Front-line manager
Staff number Relatively small (1) Relatively large (1)
Duty Formulates and Carries out the plans
achieves the and orders of the middle
corporate and top management
objectives (1) in daily operations (1)
48
Explain two benefits which are brought by division of work for a manufacturing firm. (4 marks)
Answer:
Improving production efficiency: Practice makes perfect. Workers doing the same production process repeatedly improve efficiency. (2)
Automation of the production process: Complicated production process can be broken down into simplified process so that the simplified process can be more easily automated. (2)
49
New Star Electronics is a multinational corporation specialising in the production of audio-visual electronic products of high quality. The organisation structure is listed as follows:
```
General manager -> Legal Advisory
-> Television and Family Theatre
-> Digital Equipment
-> Electronic Entertainment
-> Mobile Devices
Electronic products are always associated with patents and copyrights and the corporation has set up a legal advisory department to deal with all legal matters. As the electronic products are ever changing, the general manager invites all members of staff to be actively involved in decision making and provide all necessary support. The corporation emphasises the quality of the electronic products and provide s a quality guarantee in its after-sale service.
```
(a) What type of departmentalisation structure has New Star Electronics got? Why is this type of departmentalisation suitable for an electronics manufacturer? (6 marks)
(b) What is the role of legal advisory department within the organisation? What is the relationship of the legal advisory department to the other departments? (4 marks)
(c) What is the leadership style of the top management in the corporation? How does this leadership style facilitate the production of electronic products? (5 marks)
(d) Recommend two measures of post-action control to ensure the quality of electronic products. (4 marks)
Answer:
(a) By product (2)
Reasons that are suitable for an electronics manufacturer:
Each department can specialise in the production of its own products and make use of division of work management principle. (2)
Each department can handle the administrate matters on its own and does not need to spend time on coordinating with other departments. (2)
(b) The legal advisory department provides legal advice and support to the heads of department or line managers. (2)
The legal advisory department needs to cooperate with other departments but does not have a subordinate relationship between line managers. (2)
(c) Participative / democratic (1)
Each department can make use of their own creativity to develop new products after receiving supports from headquarters. (2)
The corporation can formulate strategies that cater for the needs of the market after receiving suggestions from different departments. (2)
(d) Measures:
Examine the quality of products through sampling and ensure the stability of product quality. (2)
Conduct surveys to collect opinions from users of the company products and ensure customers’ satisfaction. (2)
50
Citizen Bank is a local bank which for years has been providing a wide range of financial services to the general public, ranging from mortgages, loans, foreign exchange and securities trading. Based on the rapid growth of the personal loan market, the bank is now investigating the business development of personal loans. The conversation of a recent management meeting is listed as below:
Marketing director: “The bank should launch a low interest rate loan and carry out a series of marketing activities in order to capture market share.”
Risk management manager: “Aggressive development in personal loan may increase the risk of bad debt for the bank.”
Information technology manager: “The bank should invest more capital in purchasing computer equipment to develop online personal loans.”
Finance director: “The rise in expenditure was astonishing last year and we need to cut our expenditure.”
(a) Based on the above discussion on the business development of personal loans, which of the effective management principles may Citizen Bank violate? (4 marks)
(b) According to the process of management by objectives, formulate a solution to get consensus from the different views of management. (6 marks)
(c) List four objectives to measure the performance based on the characteristics of personal loans.
(4 marks)
(d) Provided that the bank sets up a goal of 10% increase in sales for personal loans, design relevant measures to achieve the goal in accordance with the steps of control process. (6 marks)
Answer:
(a) Unity of direction (1)
Different departments have their own objectives and these objectives cannot be achieved at the same time. For example, purchasing computer equipment will increase the expenditure. Inconsistent direction cannot lead to achievement of corporate objective as a whole. (3)
(b) General Manager of the bank can set up the corporate objective for the bank as a whole at the beginning. (2)
General Manager can discuss with the head of department and formulate the departmental goal so as to ensure the departmental goal is fully in line with the corporate objective. (2)
Head of department will develop strategies to achieve the departmental goal and then the corporate objective. (2)
(c) Growth in applications for personal loan (1)
Market share of the bank in the personal loan market (1)
Customers’ satisfaction toward the service level of the loan officer (1)
Number of bad debt cases at the bank resulting from personal loans (1)
(d) Measure actual performance: Measures the sales from personal loans in the middle of the year. (2)
Compare actual performance with objectives: Compare the sales from personal loans with the goal set by the bank and identify if there is any discrepancy. For example, whether the sales have been increased by 10% compared with the same period in the previous year. (2)
Take corrective actions: Evaluate the process and provide remedies if the sales target have not been reached. For example, check whether there is a need to reinforce the promotion of personal loans to customers. (2)
51
The process of allocating work and arranging a company's human resources for contributing to its objectives is known as:
A. controlling
B. directing
C. organizing
D. planning
Answer: C
52
Effective management can
(1) improve staff morale.
(2) guarantee company profits.
(3) enhance operational efficiency.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: B
53
Arrange the following procedures of Management by Objectives.
(1) formulate the action plan
(2) evaluate the result of the action plan
(3) set objectives for the action plan
(4) implement the action plan
A. (1)、(2)、(3)、(4)
B. (1)、(4)、(3)、(2)
C. (3)、(1)、(4)、(2)
D. (3)、(2)、(1)、(4)
Answer: C
54
The planning process includes
(1) deciding the objectives of the enterprise.
(2) maximising the profitability of the enterprise.
(3) completing different tasks in order to achieve the objectives of the enterprise.
A. (1) only
B. (1) and (2) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: A
55
Which of the following are performance indicators for property agents?
(1) number of customer complaints
(2) volume of transactions
(3) appreciation of property values
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: A
56
A bookshop plans to hire sales assistants. Which of the following management functions contribute to deciding their salary?
(1) human resources management
(2) financial management
(3) information management
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: D
57
A convenience store chain is looking for a shop supervisor for one of its stores. Which of the following will not be a task for the new supervisor?
A. monitor the daily operations of the shop
B. coach shop assistants
C. handle disputes between staff and customers
D. decide on the development strategies for the chain
Answer: D
58
Which of the following is not within the process of controlling in a sales department of a business?
A. set sales targets
B. assign salespersons to different sales teams
C. record sales of each salesperson
D. adjust sales targets
Answer: B
59
Which of the following are benefits of applying Management by Objectives in a business?
(1) improved communication between management and staff
(2) better staff morale
(3) enhanced monitoring of staff performance
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: D
60
Which of the following statements are correct?
(1) Authority can be assigned to subordinates.
(2) Authority is the right to direct and make decisions.
(3) Front-line staff do not need authority to perform their duties.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: A
61
Mr Chan is the general manager of a large supermarket chain. He sets a target for the chain: "We will increase the sales volume of the Kowloon area by 10% as soon as possible." Which of the following criteria for setting good objectives is/are NOT met in this target?
(1) specific
(2) time-bound
(3) measurable
A. (1) only
B. (2) only
C. (1) and (3) only
D. (2) and (3) only
Answer: B
62
Which of the following are advantages of management by objectives (MBO)?
(1) It reduces paper work.
(2) It enables better control of subordinates' work progress.
(3) It helps to enhance coordination between different levels.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: C
63
Susan is the supervisor of a group of fashion designers in a garment firm. She only gives broad directions to the designers, allowing them to complete the assigned tasks in their own ways.
Susan is adopting the ________ style of leadership.
A. autocratic
B. centralized
C. laissez faire
D. participative
Answer: C
64
Which of the following show the importance of management?
(1) enhance the efficient use of resources of the business
(2) help staff achieve the goal of the business effectively
(3) prevent the business from being affected by external factors
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: A
65
Which of the following are the characteristics of a flat organisation as opposed to a tall organisation?
(1) wider span of control
(2) fewer levels of management
(3) shorter decision-making process
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: D
66
In a company with departmentalisation by geographical location,
A. departmental offices are set up in the regions which the department oversees.
B. departmental managers are responsible for business operations in the regions which the department oversees.
C. departmental outlets only sell goods produced in the regions which the department oversees.
D. departmental staff is only recruited from the regions which the department oversees.
Answer: B
67
Under which of the following circumstances should autocratic leadership be adopted by management?
(1) Subordinates are only responsible for repetitive and simple jobs.
(2) Subordinates are willing to take responsibility.
(3) The company always needs to make quick decisions.
A. (1) only
B. (1) and (2) only
C. (1) and (3) only
D. (2) and (3) only
Answer: C
68
The front-line manager is responsible for
(1) making strategic decisions.
(2) monitoring the daily operations of the business.
(3) formulating corporate policies and directions.
A. (1) only
B. (2) only
C. (1) and (3) only
D. (2) and (3) only
Answer: B
69
Which of the following statements about “division of work” are correct?
(1) It facilitates automation of production.
(2) It makes it easier for managers to supervise the production process.
(3) It makes it easier for workers to master the production process they are responsible for.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: D
70
Which of the following are the benefits of defining the goal of a project?
(1) provide clear directions to employees
(2) help control the progress of work and monitor the performance of employees
(3) reduce employees' workload
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: A
71
Which of the following statements about "unity of command" is correct?
A. Each manager takes up one project only.
B. Each subordinate directly reports to one supervisor only.
C. All employees are working towards the same goals.
D. All employees receive the same instructions when assigned the same tasks.
Answer: B
72
Which of the following statements about business management are correct?
(1) Under the unity of command principle, each employee only receives orders from one superior.
(2) A tall organisation has more layers than a flat organisation.
(3) Communication between superiors and subordinates can be improved by adopting Management by Objectives.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: D
73
Which of the following statements about 'unity of direction is correct?
A. Each supervisor is responsible for one project at a time.
B. Each employee works towards one goal in each period.
C. Employees working on the same project have the same goal.
D. The goals of a business should be accomplished within a reasonable timeframe.
Answer: C
74
Which of the following is not an advantage of adopting democratic leadership for a business?
A. enhance operational efficiency
B. widen managers' exposure
C. strengthen staff support for business policies
D. improve mutual understanding between management and staff
Answer: A
75
A trading firm is departmentalised by function. At the beginning of every year, the General Manager and the department managers discuss and formulate the departmental objectives together so as to achieve the overall target of the firm. Regular reviews are conducted by them to see whether the departmental objectives have been achieved as planned.
Based on the above information, which of the following principles of effective management are used by the firm?
(1) balancing authority and responsibility
(2) management by objectives
(3) division of work
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: C
76
Which of the following are the advantages of adopting 'management by objectives' by a business?
(1) enhance the subordinates' job satisfaction
(2) lower the administrative cost
(3) reduce work delays
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: B
77
A car retailer sets the following sales target for its new car model:
'50% of Hong Kong drivers will buy our new car model in 2019.'
Which of the following criteria for setting good objectives is/are fulfilled in this sales target?
(1) specific
(2) measurable
(3) attainable
A. (2) only
B. (3) only
C. (1) and (2) only
D. (1) and (3) only
Answer: C
78
Which of the following statements about 'authority' is/are correct?
(1) An operations manager has staff authority over his/her subordinates.
(2) A human resources manager has line authority over the plant manager.
(3) An accounting manager has line authority over his/her subordinates.
A. (2) only
B. (3) only
C. (1) and (2) only
D. (1), (2) and (3)
Answer: B
79
Which of the following statements about ‘management by objectives’ are correct?
(1) It can enhance staff morale.
(2) It can facilitate communication between superiors and subordinates.
(3) It allows superiors to focus on more important tasks.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: A
80
A manager compares the actual performance of the staff with the performance standard. Which of the following management functions does the task belong to?
A. leading
B. organizing
C. planning
D. controlling
Answer: D
81
The organization chart of a company is as follows:
General Manager -> Marketing Manager -> Officer 1
- > Officer 2
- > Accounting and Finance Manager
- > Officer 3
- > Officer 4
- > Human Resources Manager
- > Officer 5
- > Officer 6
Which of the following statements are correct?
(1) The company is departmentalised by function.
(2) The span of control of the General Manager is nine.
(3) The General Manager has line authority over the Marketing Manager.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: B
82
What is the importance of management to a business?
(1) optimise utilisation of organisational resources
(2) establish sound organisational structure
(3) achieve organisational goals effectively
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: D
83
Which of the following descriptions of a SMART goal are correct?
(1) It should be quantified.
(2) There should be an expected completion time.
(3) The methods of achieving the goal should be stated clearly.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: A
84
There are different departments in a company. One of the goals of the company is to improve the service quality of its salespersons. For this reason, the human resources manager of the company assigned her subordinate, Tim, to design training programmes for the salespersons. Tim reports to the human resources manager only. Which of the following principles of effective management are illustrated in this scenario?
(1) Unity of direction
(2) Unity of command
(3) Division of work
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: D
85
A bank has the following departments: deposit, loan, credit card, investment and personal financial planning. Under the personal financial planning department, there are Hong Kong Island, Kowloon and New Territories divisions. State the forms of departmentalisation adopted by the bank.
(1) by product
(2) by function
(3) by location
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: B
86
Which of the following statements about authority and responsibility are correct?
(1) For a job position, responsibility should be balanced with authority.
(2) Authority and responsibility of managers increase progressively from low-level to top-level.
(3) Delegation is the assigning of authority and responsibility of work from the superior to the subordinates.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: D
87
The number of staff in Firm A and Firm B are the same. Firm A has a flat organisational structure while Firm B has a tall organisational structure. Which of the following statements is/are correct?
(1) Firm A is more responsive to market changes.
(2) There are more levels of management in Firm A.
(3) There are more managers in Firm A.
A. (1) only
B. (2) only
C. (1) and (3) only
D. (2) and (3) only
Answer: A
88
Under which of the following circumstances should laissez-faire leadership be adopted by a superior?
(1) the work requires a high level of creativity
(2) subordinates are young and energetic
(3) superior-subordinate relationship is good
A. (1) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
Answer: A
89
Product departmentalisation means _________________________________.
A. different departments serve customers of different countries
B. different product lines are developed for different markets
C. workers are divided according to the stage of production
D. the production, marketing and other related tasks of a product are grouped under a manager
Answer: D
90
Which of the following is not a benefit of delegation?
A. increases subordinates' job satisfaction
B. improves the relationship between superior and subordinates
C. provides training opportunities for subordinates
D. allows superiors to focus on important tasks
Answer: B
91
Which of the following is a benefit brought about by the respective principle of effective management?
(i) Principle
(ii) Benefit
A. (i) balancing authority and responsibility
(ii) improve communication between employees
B. (i) division of work
(ii) reduce production delays
C. (i) unity of command
(ii) less confusions in work
D. (i) management by objectives
reduce administrative work
Answer: C
92
A newly-established electric car manufacturer sets the following target:
‘We shall become the leader in the electric car market next year.'
Which of the following criteria for good objectives is/are fulfilled in the target?
(1) specific
(2) time-bound
(3) measurable
A. (1) only
B. (2) only
C. (3) only
D. (1) and (2) only
Answer: B
93
The production manager of a factory decided to produce 1 000 units of products by the end of 2021. He has arranged the production schedule and deployed the necessary resources and manpower. Which step in the planning process will be undergone next?
A. evaluate alternatives
B. formulate the action plan
C. implement the action plan
D. set the goal
Answer: C
94
Ms Lo owns three small boutiques. In order to enhance the operations and internal communication of her company, she seeks advice from a management consultant. The consultant recommends Mş Lo to adopt a ‘flat-type' organisational structure and use electronic means of communication to improve the situation.
(a) Compare the difference between a 'tall-type' and a 'flat-type' organisational structure in terms of
(1) organisational layers (1 mark)
(2) span of control (1 mark)
(b) Give two reasons why Ms Lo should adopt a 'flat-type' organisational structure. (4 marks)
Answer:
(a) (1) layers less more wider
(2) span of control narrower
(b) Reasons:
-speed up decision-making
-increase management flexibility improve communication
(2 marks for each relevant reason, max. 4 marks)
95
Mary is an experienced designer who has a wide customer network. She is considering setting up a small interior design firm on her own. At the same time, another designer, Paul, invites her to form a partnership.
(b) Mary finally sets up the interior design firm on her own. List two criteria for setting good business goals for her, Explain each with an example. (4 marks)
Answer:
(b) Criteria and its examples:
- specific: e.g. earn a definite amount of profit
- time-based: e.g. earn a certain amount of profit in the first year of operations
- measurable: e.g. achieve a 10% increase in profit
- challenging but attainable: e.g. earn a reasonable amount of profit (2 marks for each relevant point, max. 4 marks)
96
Explain three ways in which division of work could enhance the efficiency of a manufacturing company. (6 marks)
Answer: Ways:
-facilitate automation: e.g. use of specialised equipment
-facilitate supervision: e.g. each worker only concentrates on a specialised task
-practice makes perfect: e.g. work faster and make fewer mistakes
-save time: e.g. change from one position to another
(2 marks for each relevant way, max. 6 marks)
97
In the sales department of a firm, the manager and the sales representatives discussed and agreed on the sales target for a quarter. Throughout the quarter, the manager met the sales representatives regularly to discuss problems encountered and gave appropriate support. At the end of the quarter, the manager reviewed the performance of the sales representatives and gave them rewards and feedback.
(a) Name the principle of effective management applied in the above sales department. (1 mark)
(b) From the sales department's point of view, explain two advantages of applying the principle of effective management named in (a). (4 marks)
Answer:
(a) Management by objectives
(b) Advantages:
-subordinates are more committed to objectives
-subordinates have a better understanding of the objectives
-improved communication between manager and subordinates
-better motivation to subordinates better control on subordinates' progress
(2 marks for each relevant advantage, max. 4 marks)
98
Two managers of the same rank, David and Ellen, together supervise all the shop assistants. One day, an assistant in the sportswear section took sick leave and David assigned a newly employed assistant to take her place. He asked her to serve customers in the section for the rest of the day. At noon, Ellen asked this assistant to deliver a document to a supplier.
(a) (i) What principle of effective management has been violated in the above case? (1 mark)
(ii) Suggest two problems that might arise when the principle in (i) is violated. (4 marks)
Answer:
(a) (i) Unity of command
(ii) Problems:
-contradictory instructions will cause confusion to the subordinates
-unclear chain-of-command line of authority will cause conflicts between the managers
(2 marks for each relevant problem, max. 4 marks)
99
Annie operates a small guest house on Lamma Island for foreign travellers. She sets up an Internet booking system for the guest house, with the following goal:
"To increase the number of Internet bookings substantially in the near future"
(a) Briefly explain two characteristics of a SMART goal that are missing from the above goal. (4 marks)
Answer:
(a) Characteristics:
-measurable: the goal does not specify a quantified amount of increase
-time-bound: the goal does not specify the targeted time frame
-specific: the number of Internet bookings may refer to the log-in times of customers, successful bookings or the bookings that lead to actual rental
-realistic/attainable: the goal may not be achievable, e.g. due to the shrinking tourism business around the world
(2 marks for each relevant characteristic, max. 4 marks)
100
Peter plans to expand the business and set up three departments to take care of the garment business in Hong Kong, Macau and Shenzhen respectively business consultant reminds him that other forms of departmentalisation may also be considered.
(b) State the form of departmentalisation planned by Peter. (1 mark)
(c) Briefly describe two other forms of departmentalisation that could be adopted by Peter's business.
(4 marks)
Answer:
(b) Departmentalisation by location
(c) Other forms:
By product: e.g. set up different departments to take care of the garment business for men's, women's and kids' wears respectively
By function: e.g. set up different departments to take care of production, marketing, human resource and finance respectively (2 marks for each relevant form of departmentalisation, max. 4 marks)
101
(c) A business consultant advises John to adopt Management by Objectives in his supermarket.
(i) How are objectives set under Management by Objectives in John's supermarket? (1 mark)
(ii) Explain one advantage and one disadvantage of adopting Management by Objectives in John's supermarket. (4 marks)
Answer:
(c) (i) Management by Objectives: the superiors and the subordinates set the firm's objectives together
(ii) Advantages:
- subordinates are more committed as they have better understanding of the firm's objectives
- facilitates control on subordinates' progress
(2 marks for each relevant advantage, max. 2 marks)
Disadvantages:
- time-consuming
- increased workloads of superiors and subordinates
(2 marks for each relevant disadvantage, max. 2 marks)
102
(c) A business consultant advises John to improve the controlling functions of his supermarket.
(i) What is the purpose of controlling in management? (1 mark)
(ii) List the steps in the controlling process. (4 marks)
Answer:
(c) (i) Controlling: ensures that activities are in line with the plan
(ii) Step 1: set performance standards
Step 2: measure actual performance
Step 3: compare actual performance with the standards
Step 4: take corrective actions (1 mark for each correct step in sequence, max. 4 marks)
103
A business consultant advised John to set goals for his firm.
(b) State the management function that the task of setting goals for John's firm belongs to. (1 mark)
(c) Explain two reasons why John should set goals for his firm. (4 marks)
Answer:
(b) Management function: planning
(c) Reasons:
- to help capture opportunities and deal with challenges
- to provide direction to his staff
- to provide standards for monitoring work progress (2 marks for each relevant reason, maximum 4 marks)
104
The staff of the research and development department in the firm may freely design different computer software products, but the selection of the new product designs is done by Mandy alone, without involving any other staff.
(b) State the leadership style adopted by Mandy. (1 mark)
(c) Explain two disadvantages of the leadership style adopted by Mandy. (4 marks)
Answer:
(b) Autocratic leadership
(c) Disadvantages:
- employees' job satisfaction and commitment would be lowered/greater resistance from employees
- Mandy has a heavier workload/quality of decision-making depends on Mandy's capabilities
(2 marks for each relevant disadvantage, max. 4 marks)
105
During the year, Vincent's firm aims to reduce costs. However, the marketing manager wants to launch a large-scale sales promotion campaign. The budgeted cost of the campaign is 50% of last year's sales.
(b) State the principle of effective management that has been violated in the above case. (1 mark)
(c) Explain two reasons for adopting the principle of effective management in (b) above. (4 marks)
Answer:
(b) Unity of direction
(c) Reasons:
- create coherence among employees to achieve the same objectives
- avoid management confusions/conflicts among different departments
- help to build up team spirit (2 marks for each relevant reason, max. 4 marks)
106
(b) In 2019, Johnny established a firm selling cooking utensils in Hong Kong, with the following goal:
‘All Hong Kong people will know our brand name by the end of 2020.’
The above goal is not a SMART goal. Explain two SMART goal characteristics that are not demonstrated by this goal. (4 marks)
Answer:
(b) Characteristics:
- specific: e.g. does not define 'all Hong Kong people' and 'know' clearly
- measurable: e.g. the goal is vague and not expressed in numerical form; there is no means to measure whether 'all Hong Kong people' know the brand name
- realistic/attainable: the goal may not be achievable
(2 marks for each relevant characteristic, max. 4 marks)
107
In the production department of Au s firm, the garment manufacturing process involves many tasks, including cutting, sewing and packaging. Each worker is responsible for one task only.
(c) State the principle of effective management adopted in the production department. (1 mark)
(d) Explain two advantages for the production department of adopting the principle of effective management in (c) above. (4 marks)
Answer:
(c) Division of work
(d) Advantages:
- higher productivity and efficiency/practice makes perfect
- facilitates automation: e.g. use of machines and equipment
- time-saving: e.g. simplified training, saves time in switching from task to task
(2 marks for each relevant advantage, max. 4 marks)
108
Ken is the accountant at Au's firm. One day, he asked an accounting clerk, Ming, to prepare a cost analysis and report to him in the afternoon. At the same time, the office manager instructed Ming to compile a filing index in that afternoon.
(c) State the principle of effective management violated in the above case. (1 mark)
(d) If the principle of effective management in (c) above was adopted, explain two advantages for Au s firm. (4 marks)
Answer:
(c) Unity of command
(d) Advantages:
- avoid conflicting instructions causing confusion to subordinates: e.g. avoid work assignments being given by different managers
- facilitate supervision of subordinates: e.g. clearly define lines of authority, responsibility and accountability to avoid conflicts between managers
(2 marks for each relevant advantage, max. 4 marks)
109
High-Tech Company is a small and medium enterprise (SME) which specialises in developing data processing systems for businesses in Hong Kong. At the commencement of each quarter, the project manager and the programmers discuss and decide on the work plan of the quarter. Throughout the quarter, they review the work progress regularly and identify the difficulties encountered. Support is provided to the programmers based on their feedback.
(b) (i) State the principle of effective management adopted by High-Tech Company in the above scenario. (1 mark)
(ii) Explain two advantages for High-Tech Company of adopting the principle of effective management in (b)(i) above. (4 marks)
Answer:
(b) (i) Management by Objectives: the superiors and the subordinates set the firm's objectives together
(ii) Advantages:
- subordinates are more committed as they have better understanding of the firm's objectives
- facilitates control on subordinates' progress
(2 marks for each relevant advantage, max. 2 marks)
110
(B) Fancy Company sells computers and accessories. At the beginning of 2021, the General Manager of the company announced its goal to cut its overall costs by 30% in one year. To achieve the goal, the marketing department reduced the budgeted promotion expenses by 25%; the operations department sourced cheaper suppliers in order to reduce the total purchase cost by 15%; and the human resources department planned to streamline the company's structure to save 20% of the labour costs.
(c) (i) Apart from division of work, state the principle of effective management that has been applied in the above case.. (1 mark)
(ii) Explain two advantages for Fancy Company of applying the principle of effective management in (c)(i) above. (4 marks)
Answer:
(b) Unity of direction
(c) Advantages:
- create coherence among employees to achieve the same objectives
- avoid management confusions/conflicts among different departments
- help to build up team spirit (2 marks for each relevant reason, max. 4 marks)
111
(B) Lucky Company is a small and medium enterprise with three departments: human resources department, marketing department and production department.
(d) (i) Which department manager in Lucky Company possesses both line authority and staff authority? (1 mark)
(ii) Explain how the manager mentioned in (d)(i) above exercises line authority and staff authority. (2 marks)
Answer:
(d) (i) human resources department
(ii) This manager has line authority over his subordinates and can give instructions about hiring decisions to them.
With staff authority, this manager assist and give advice to other departments or line managers by providing advice or proposals on hiring levels, budgets and qualifications for new employees.
