UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
DURATION: THREE (3) HOURS
TOTAL MARKS (100)
Internal Examiner: Dr W. Raubenheimer
External Examiner: Mr RHT Salisbury
NB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO
WRITE LEGIBLY AND IN INK.
INSTRUCTIONS:
1. THIS PAPER CONSISTS OF TWO (2) SECTIONS, SECTION A AND
SECTION B.
SECTION A:
 THIS SECTION COMPRISES OF 60 MULTPILE-CHOICE QUESTIONS.

THERE WILL BE ONE (1) MARK FOR A CORRECT ANSWER AND NO
NEGATIVE MARKING.

ANSWER ALL THE QUESTIONS USING THE ANSWER SHEET
PROVIDED.

FURNISH ONLY ONE (1) ANSWER FOR EACH QUESTION

YOU MAY USE A SOFT PENCIL TO FACILITATE ERASING
SECTION B:
 THIS SECTION COMPRISES THREE (3) SHORT ESSAY QUESTIONS.
ANSWER ANY TWO (2) QUESTIONS FROM THIS SECTION. USE ONE
ANSWER BOOK ONLY FOR THIS SECTION.
2. PLEASE WRITE LEGIBLY AND IN INK. ENSURE THAT YOUR STUDENT
NUMBER APPEARS ON THE ANSWER SHEET PROVIDED AND ON THE
ANSWER BOOK
3. YOU MAY RETAIN THIS QUESTION PAPER BUT BE SURE TO RETURN
YOUR MCQ ANSWER SHEET AND ANSWER BOOK
4. THIS EXAMINATION PAPER CONSISTS OF 14 PAGES (INCLUDING THIS
COVER PAGE). PLEASE ENSURE THAT YOU HAVE ALL OF THEM.
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UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
SECTION A
(60 MARKS)
1.
Groups of people who work together to achieve a set of goals are called a(n):
A) role.
B) empowerment.
C) organization.
D) global organization.
E) a competitive advantage.
2.
The process that managers use to design a structure of working relationships that
allows managers to work together to achieve organizational goals is called:
A) planning.
B) leading.
C) demonstrating.
D) controlling.
E) organizing.
3.
When an organization removes a layer of middle managers from the organization's
structure, this is called:
A) upsizing.
B) restructuring.
C) a low-cost strategy.
D) globalization.
E) departmentalizing.
4.
The process of creating new products that customers want to purchase is called:
A) increasing responsiveness.
B) TQM.
C) increasing quality.
D) increasing innovation.
E) restructuring.
5.
According to McClelland, the extent to which a manager has a strong desire to do
challenging tasks and to meet personal standards of excellence is known as:
A) the need for affiliation.
B) the need for achievement.
C) the need for power.
D) the need for self-esteem.
E) the need for conscientiousness.
2
UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
6.
The collection of feelings and beliefs that a manager has about his or her current job
is referred to as:
A) organizational citizenship.
B) job satisfaction.
C) internal locus of control.
D) external locus of control.
E) openness to experience.
7.
__________ are unwritten, informal rules or guidelines that prescribe appropriate
behaviors.
A) Terminal values
B) Personalities
C) Norms
D) Instrumental values
E) Cultures
8.
The moral principles and beliefs about what is "right" and "wrong" are known as:
A) reputation.
B) social responsibility.
C) ethics.
D) a social audit.
E) whistle-blowing.
9.
The utilitarian rule states that an ethical decision:
A) best protects the rights of people affected.
B) produces the greatest good for the greatest number of people.
C) distributes benefits and harms in a fair way.
D) is one that can be communicated with no reluctance.
E) is relevant to financial effectiveness of the organization.
10.
A person's confidence and faith in another person's goodwill is called:
A) trust
B) reputation
C) ethics
D) moral scruples
E) effectiveness
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UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
11.
The way a company's managers view their duty to make decisions that promote the
welfare of stakeholders and society as a whole is called:
A) Societal ethics
B) Organizational ethics
C) Social responsibility
D) Organizational responsibility
E) None of the above
12.
The approach most likely to be taken by the typical large U.S. company is the
__________ approach.
A) accommodative
B) proactive
C) defensive
D) obstructionist
E) offensive
13.
Who founded the early study of management thought that became known as scientific
management?
A) Elton Mayo
B) Frank Gilbreth
C) Max Weber
D) Henri Fayol
E) F.W. Taylor
14.
The idea that every worker should receive orders from only one superior is called:
A) line of authority.
B) unity of command.
C) centralization.
D) equity.
E) initiative.
15.
Which theory holds that, "Authority should go with knowledge...whether it is up the
line or down"?
A) scientific management theory
B) management science
C) behavioural management theory
D) contingency theory
E) none of the above
4
UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
16.
The aspect of management theory that analyzes production systems to increase
efficiency is:
A) contingency management
B) TQM
C) operations management
D) scientific management
E) human relations management
17.
When the external environment is changing rapidly and an organization responds to it
by decentralizing decisions to lower-level managers so that the organization can react
faster to these changes is said to be organized under:
A) a mechanistic structure.
B) a centralization structure.
C) a behavioural management structure.
D) a human relations structure.
E) an organic structure.
18.
Organizations which are not currently selling goods in a particular task environment
but which could choose to enter this environment if they wanted to are known as:
A) customers.
B) potential competitors.
C) distributors.
D) competitors.
E) suppliers.
19.
The collection of values that a society considers important and the norms of behavior
that are approved by the society are known as:
A) sociocultural forces.
B) economies of scale.
C) the national culture.
D) the task environment.
E) the general environment.
20.
What a society believes to be good and right is known as the __________ of that
society.
A) folkways
B) values
C) power distance
D) achievement orientation
E) short-term orientation
5
UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
21.
When workers in a society become wealthy and pass their wealth to their children,
thereby increasing the gap between the rich and the poor in that society, the society is
said to have:
A) high power distance.
B) medium power distance.
C) low power distance.
D) absolute power distance.
E) none of the above.
22.
Another name for the departmental level of the organization is the __________ level
of the organization.
A) functional
B) divisional
C) business
D) corporate
E) first-line
23.
Organizational plans that cover a time-span of one to five years are typically referred
to as _____________ plans.
A) Division-term plans
B) Short-term plans
C) Long-term plans
D) Corporate-term plans
E) Intermediate-term plans
24.
When Fayol pointed out that the planning process for an organization should be an
ongoing process in which managers refine previous plans and modify these plans at
all levels of the organization, this was another way of saying that the plans should
have:
A) continuity.
B) flexibility.
C) accuracy.
D) unity.
E) synergy.
6
UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
25.
When an organization decides to enter a new type of business for the organization in
order to create a competitive advantage in one of the organization's existing
businesses, this is known as which type of strategy?
A) Concentration on a single business.
B) Related diversification
C) Vertical integration
D) International expansion
E) None of the above
26.
A manager's ability to make a good decision based on past experience and "a gut
feeling" is known as:
A) a programmed decision.
B) a nonprogrammed decision.
C) a heuristically decision.
D) an intuitive decision.
E) the illusion of control.
27.
When managers know the possible outcomes of a decision and can assign
probabilities to each of these outcomes in terms of their likelihood of occurrence in
the future, this is known as:
A) uncertainty.
B) certainty.
C) risk.
D) bounded rationality.
E) dialectical inquiry.
28.
Based on March and Simon's Administrative Model, the last step in the managerial
decision-making process is to:
A) generate alternatives.
B) learn from feedback.
C) recognize the need for a decision.
D) implement the chosen alternative.
E) choose among alternatives.
29.
When a manager persists in a belief even when this manager is given information that
indicates that this belief is incorrect, this is called:
A) devil's advocacy.
B) groupthink.
C) prior hypothesis bias.
D) dialectical inquiry.
E) a satisficing decision.
7
UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
30.
The process through which managers attempt to improve the ability of subordinates
to understand and to manage the organization is known as:
A) dialectical inquiry.
B) devil's advocacy.
C) groupthink.
D) organizational learning.
E) intuition.
31.
__________ means producing goods and services that are reliable–they do the job
they were designed for and do it well.
A) Efficiency
B) Quality
C) Innovation
D) Flexibility
E) Responsiveness
32.
In a ___________, machines are organized so that each operation needed to
manufacture a product or process a patient is performed at workstations arranged in a
fixed sequence.
A) process layout
B) fixed-position layout
C) facilities layout
D) product layout
E) flexible manufacturing layout
33.
The degree to which an employee keeps trying when faced with obstacles to the
accomplishment of a goal is referred to as:
A) instrumentality.
B) equity.
C) valence.
D) effort.
E) persistence.
34.
According to Maslow's Hierarchy of Needs Theory, the highest level of needs of
workers is:
A) physiological needs.
B) safety needs.
C) self-actualization needs.
D) esteem needs.
E) belongingness needs.
8
UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
35.
Johanna perceives that her outcome/input ratio is greater than that of her coworker
Abdul. This is known as:
A) the valence effect.
B) extinction.
C) negative reinforcement.
D) underpayment inequity.
E) overpayment inequity.
36.
OB Modification is based on the principles of:
A) Learning Theory
B) Maslow's Hierarchy
C) Herzberg's Motivator-Hygiene Theory
D) Equity Theory
E) Operant Conditioning
37.
The person who inspires, motivates, and directs the activities of others so that they
work toward organizational goals is known as a(n):
A) follower.
B) leadership substitute.
C) coercive leader.
D) leader.
E) manager.
38.
The ability of a manager to punish subordinates is known as:
A) reward power.
B) legitimate power.
C) referent power.
D) expert power.
E) coercive power.
39.
According to Fiedler, the extent to which subordinates trust and are loyal to their
superior is known as:
A) empowerment relations.
B) task-oriented relations.
C) leader-member relations.
D) initiating structure relations.
E) position power relations.
9
UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
40.
Research and development (R&D) teams are a common practice in which of the
following industries?
A) High-tech
B) Electronic imaging
C) Computers
D) Electronics
E) All of the above
41.
The degree to which the work of one member of the group affects the work
performed by other members of the group is known as:
A) task interdependence.
B) synergy.
C) virtual teamwork.
D) group cohesiveness.
E) role making.
42.
The members of a task force have disagreements because some members do not want
to do what some of the other members want them to do. This stage of group
development is known as:
A) forming.
B) norming.
C) performing.
D) storming.
E) adjourning.
43.
Which of the following is a benefit that a manager could apply to group members
when their group performs at a high level?
A) Computer software
B) A desirable work assignment
C) A cash bonus
D) Stock options
E) All of the above
44.
Information is shared between two or more people in which stage of the
communication process?
A) Transmission
B) Encoding
C) Filtering
D) Sending
E) None of the above
10
UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
45.
The sharing of information through facial expressions and body language is known
as:
A) verbal communication.
B) nonverbal communication.
C) information richness.
D) noise.
E) none of the above.
46.
When managers in different locations communicate with one another over TV screens
so that they can see and hear each other, this is known as:
A) voice mail.
B) participating in a chat room.
C) e-mail.
D) video conferencing.
E) on-line courseware.
47.
The paths along which information flows within the organization are called:
A) noise.
B) communication networks.
C) filtering paths.
D) information richness.
E) jargon.
48.
The specialized language and words that members of an organization develop to
facilitate communication among one another are referred to as:
A) body language.
B) noise.
C) organizational culture.
D) clichés.
E) jargon.
49.
A manager's characteristic way of speaking in terms of his tone of voice, use of
questions, and choice of words is an example of this manager's:
A) noise.
B) linguistic style.
C) nonverbal communication.
D) information richness.
E) information distortion.
11
UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
50.
The extent to which a job requires the worker to use a wide variety of knowledge and
skills is known as:
A) task identity.
B) task significance.
C) autonomy.
D) skill variety.
E) feedback.
51.
In the design of an organization, another name for "market structure" is:
A) product structure.
B) geographic structure.
C) customer structure.
D) functional structure.
E) divisional structure.
52.
The formal monitoring, evaluation, and feedback systems that allow managers to
determine if the organization's strategy and structure are working according to plans
are known as:
A) organizational socialization.
B) clan control.
C) control systems.
D) concurrent systems.
E) none of the above.
53.
The workers of an organization perform the same activities in the same way over and
over again based on rules that managers have developed. We say that the behavior of
these workers has been:
A) compromised.
B) standardized.
C) maximized.
D) minimized.
E) none of the above.
54.
In the U.S., which of the following laws requires male and female employees to be
paid equally if they perform "equal work?"
A) Title VII of the Civil Rights Act
B) Age Discrimination in Employment Act
C) Americans with Disabilities Act
D) Equal Pay Act
E) None of the above
12
UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
55.
The process of identifying the job descriptions and the job specifications for all of the
jobs within an organization is known as:
A) training.
B) development.
C) job analysis.
D) selection.
E) performance appraisal.
56.
Tests that assess the skills of a job applicant that are necessary for the successful
performance of the job are known as:
A) paper-and-pencil tests.
B) personality tests.
C) structured interview tests.
D) performance tests.
E) ability tests.
57.
A manager evaluates a subordinate's job performance and his or her contributions to
the organization. This is known as the process of:
A) recruitment.
B) selection.
C) performance appraisal.
D) training.
E) development.
58.
The law that made it legal for workers to organize into unions was passed in:
A) 1900
B) 1935
C) 1950
D) 1972
E) 1966
59.
In which stage of the product life cycle does the product have minimal demand
because the product has not yet gained wide acceptance by consumers?
A) Decline
B) Mature
C) Embryonic
D) Growth
E) Stage-gate
13
UNIVERSITY OF KWA-ZULU NATAL, PIETERMARITZBURG
SCHOOL OF MANAGEMENT
SUPPLEMENTARY EXAMINATIONS: NOVEMBER 2009
Course & Code : MANAGEMENT 120 (MGNT102)
60.
Which of the following specifies the relevant information that managers need in order
to make a decision as to whether or not to proceed with a serious product
development effort?
A) Product development plan
B) Stage-gate development funnel
C) Incremental product innovation plan
D) Quantum product innovation plan
E) Skunkworks plan
End
SECTION B:
(40 MARKS)
ANSWER ANY TWO OF THE FOLLOWING QUESTIONS ONLY. PLEASE USE
ONE ANSWSER BOOK ONLY
QUESTION 1
(20 MARKS)
It has been said that: "Managing diversity makes good business sense." Do you agree or
disagree with this statement? Defend the merits of your argument.
QUESTION 2
(20 MARKS)
Discuss why managers who have different types of personalities can be equally effective and
successful.
QUESTION 3
(20 MARKS)
What is the relationship between corporate, business, and functional level strategies, and how
do they create value for an organization.
14