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Template (B) Rev.

1: March 2008

Tun Abdul Razak

MAY 2009


1. This Question Booklet consists of FOUR (4) Sections, Section A, B, C and D.
2. Write all information required on this cover page in the space provided as well as
attendance slip.
3. Answer ALL QUESTIONS in the question paper itself and submit this question
4. Candidates are not allowed to bring into the examination hall/room any form of written
materials or electronic gadget except for stationery that is permitted by the Invigilator.
5. Students who are caught breaching the Examination Rules and Regulation will be
charged with an academic dishonesty, and if found guilt y of the offence. the maximum
penalty is expulsion from the University.

(This Question Paper consists of 25 Printed Pages including front page)


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NO..............................................................SECTION . .......................................




Principles of Management (SMBI0I3) CONFIDENTIAL
May 2009 Final Examination

Principles of Management (SMBIOI3) CONFIDENTIAL
May 2009 Final Examination

There are FORTY (40) questions in this part. Answer ALL questions in the table provided
on PAGE 14. Each question is worth I mark.

1. An automobile manufacturer that increased the total number of cars produced at the same
cost, but with many defects, would be:
A. efficient and effective.
B. increasing efficiency.
C. increasing effectiveness.
D. concerned with inputs.

2. Dato Seri Najib Tun Abdul Razak is said to have legitimate power. What is legitimate
A. The power a leader has as a result of his position.
B. The power of a leader has due to his admired personal traits.
C. The power a leader has to give positive benefits or rewards.
D. The power a leader has to punish or control his followers.

3. Which of the following techniques can be used to reduce conflict?

I. Compromise
II. Consultation
Ill. Conformation
IV. Collaboration
A. I and II only
B. II and III only
C. I and IV only
D. Ill and IV only

4. Who proposed guidelines for improving productivity efficiency by putting the right person on
the job with the correct tools and equipment, having a standardized method of doing the
job, and providing an economic incentive to the workers?
A. Douglas McGregor
B. Frederick W. Taylor
C. Henry Fayol
D. Max Weber

5. Encik lzwan's work team consists of individuals who are experts in various specialities and
who work together on various tasks. Encik Izwan is part of a team.
A. self-managed
B. virtual
C. problem-solving
D. cross-functional

Principles of Management (SMBI013) CONFIDENTIAL
May 2009 Final Examination

6. One of the common characteristics of all organizations is its , which is

typically expressed in terms of the organization's goals.
A. people
B. product
C. structure
D. purpose

7. Market control is an approach that emphasizes the use of external market mechanisms
such as:
A. administrative rules.
B. relative market share.
C. administrative procedures.
D. traditions and norms.

8. The Hawthorne studies found that:

A. to increase worker efficiency, management must analyze and minimize the motions
required to complete a task.
B. social norms, group standards and attitudes more strongly influence individual output
and work behavior than do monetary incentives.
C. workers are inherently lazy and will use any excuse not to perform their tasks.
D. when workers know they are being watched, their productivity increases compared
to when they are not being watched.

9. 7-Eleven is a worldwide chain of convenience stores. Its stores are located in eighteen
countries, with its largest markets being Japan, the United States, Canada, Taiwan, and
Thailand. Which of the following are the 7-Eleven's external forces in its specific
I. Its customers
II. Its employees
Ill. Its competitors
IV. Its culture
A. I and II only
B. I and III only
C. II and III only
D. IV only

10. According to Herzberg's Motivation-Hygiene theory, which of the following is considered a

A. Salary and wage
B. Working conditions
C. Hygiene factors
D. Psychological factors

Principles of Management (SMBI0I3) CONFIDENTIAL
May 2009 Final Examination

11. Which of the following organizational practices promote continuation of the organizational
I. Improve the organization's facilities and its work environment
II. Develop acronyms and jargons specific to the organization
III. Orientation or induction programs for new employees
IV. Recruitment of like-minded employees that fit into the organization
A. I and II only
B. II and Ill only
C. III and IV only
D. I and IV only

12. Tony Fernandes is the Group CEO of AirAsia Berhad. He is a leader who is enthusiastic,
has high self-confidence and whose personality and actions could influence people to
behave in a certain way. He can be considered as a:
A. visionary leader.
B. team leader.
C. transnational leader.
D. charismatic leader.

13. If the manager's course of action is to do nothing, it means the:

A. cause of the variation has been identified.
B. standard is acceptable.
C. standard is not acceptable.
D. variance is acceptable.

14. Which of the following is NOT a good suggestion to motivate professionals?

A. Providing them with ongoing challenging projects.
B. Using money and promotions to motivate them.
C. Allowing them to structure their work in ways they find productive.
D. Providing organizational support of their work.

15. IBM of the United States, Toshiba of Japan, and Siemens of Germany had formed a
partnership to develop new generations of computer chips, where they shared resources
and knowledge as well as risks and rewards. Their type of partnership is known as:
A. licensing agreement.
B. joint venture.
C. strategic alliances.
D. foreign subsidiary.
Principles of Management (SMB10I3) CONFIDENTIAL
May 2009 Final Examination

16. Which of the following statement is TRUE about using stock option in designing rewards
A. It is a financial instrument that gives employees the right to purchase shares of stock
at a set price.
B. It is a non monetary compensation offered by the employer to employees.
C. It is a variable compensation plan that rewards employees on the basis of their
D. It is a financial instrument that gives employer the right to offer shares of stock at a
set price.

17. The tendency for an individual to expend less effort when working collectively than when
working individually is known as:
A. social loafing.
B. social behavior.
C. social facilitation.
D. social obligation.

18. Bruce Wayne is a marketing manager at Gotham Toys Maker Sdn. Bhd. He has high
concern for people but low concern for production. Based on The Managerial Grid (Blake
and Mouton), which type of managerial style is he using?
A. Impoverished management
B. Task management
C. Country club management
D. Team management

19. If the standard is not acceptable, the manager's course of action should be to:
A. revise the standard.
B. do nothing.
C. correct the variance.
D. accept the variance.

20. When an organization drops its structure based on countries and reorganizes according to
industries, it is pursuing a global organizational operation known as:
A. ethnocentrism.
B. polycentrism.
C. borderless organization.
D. multinational organization.

21. The approach to environmental issues is when organizations respond to

environmental preferences of their customers such as producing environmentally friendly
A. legal
B. market
C. stakeholder
D. activists
Principles of Management (SMBI0I3) CONFIDENTIAL
May 2009 Final Examination

22. Which of the following is the purpose of electronic monitoring in the workplace?
I. To avoid the company from being sued due to inappropriate message on employee's
computer screen
II. To ensure company secrets are not leaked by employees to company's competitors
III. To make sure employee's productivity is not affected by unbeneficial activities during
working hours
IV. To ensure employees rights to privacy at the workplace is not violated by employer
A. I and IV only
B. II and IV only
C. I, II and Ill
D. I, III and IV

23. is a performance measure of both efficiency and effectiveness of

A. Organizational citizenship behavior
B. Employee productivity
C. Job satisfaction
D. Turnover

24. The management team of Sanjung Tinggi Sdn Bhd would like to implement several ways to
reduce unethical behavior in their organization. Which of the following is NOT a way to
achieve their objective in improving ethical behavior?
A. Select individuals with high ethical standards
B. Establish codes of conduct
C. Provide ethics training for their employees
D. Monitor employee telephone calls

25. How would a manager motivate low-skilled, minimum-wage employees?

A. Offer more pay for high levels of performance
B. Provide the opportunity for training
C. Use employee recognition programs
D. Provide the opportunity for full-time employment

26. The MBTI® assesses style of making decisions as:

A. extrovert or introvert.
B. sensing or intuitive.
C. feeling or thinking.
D. perceptive or judgmental

27. Intuitive decision making is:

A. not utilized in organizations because it is based on feelings.
B. a conscious process based on accumulated judgment and clear evidence.
C. making decisions based on experience, feelings, and accumulated judgment.
D. important in supporting escalation of commitment.

Principles of Management (SMBI0I3) CONFIDENTIAL
May 2009 Final Examination

28. If you believe that you control your own destiny, then your personality would be described
as having a(n):
A. external locus of control.
B. high Mach iavellianism score.
C. high self-esteem.
D. internal locus of control.

29. When a subordinate or first-line manager passes information or offers suggestions to

higher level management, he/she is using which level of communication?
A. Downward communication
B. Upward communication
C. Lateral communication
D. Diagonal communication

30. A retail clothing store manager who estimates how much to order for the current spring
season based on last spring's outcomes is operating under what kind of decision-making
A. Seasonal
B. Risk
C. Uncertainty
D. Certainty

31. The process through which the symbols of a message are translated into a form that the
receiver can understand is called:
A. decoding.
B. feedback.
C. encoding.
D. recording.

32. Plans are documents that outline how goals are going to be met and:
A. define which department has what responsibilities needed to accomplish the goals.
B. tell what materials and processes are necessary to fulfill the goals.
C. identify how much capital and resources are required to complete the goals.
D. describe resource allocations and activity schedules to accomplish the goals.

33. When a person tells his or her manager what the manager wants to hear, that individual is
using which of the following barriers to effective interpersonal communication?
A. Filtering
B. Emotions
C. Feedback
D. Defensiveness

Principles of Management (SMBIO13) CONFIDENTIAL
May 2009 Final Examination

34. A city's policy concerning parking violation that provides guidance for police action would
be considered what type of plan?
A. Standing plan
B. Contingency plan
C. Directional plan
D. Single-use plan

35. When an organization is analyzing its financial and physical assets, it is studying its:
A. organizational culture.
B. internal environment.
C. external environment.
D. organizational structure.

36. A textile manufacturing company has divided its departments into pattern making, fabric
cutting, and fabric coloring. What type of departmentalization is this?
A. Geography departmentalization
B. Function departmentalization
C. Process departmentalization
D. Product departmentalization

37. If DCL Marketing Sdn Bhd would like to adopt differentiation as a strategy, it will require the
firm to:
A. aggressively seeking to attain the lowest cost structure.
B. be unique and distinctive in its product offering.
C. aim at a cost advantage in a niche market.
D. aim to be similar to its competition in all operations.

38. The concept that defines the number of subordinates that report to a manager and that
indirectly specifies the number of levels of management in an organization is called:
A. formalization.
B. unity of command.
C. responsibility factor.
D. span of control.

39. Which form of communication are students using to tell their instructor that class is over
when they begin putting their books, notebooks, and papers away?
A. Interpersonal communication
B. Skilled communication
C. Nonverbal communication
D. Filtering communication


Principles of Management (SMB10I3) CONFIDENTIAL
May 2009 Final Examination

40. What kind of departmentalization would be in place in a government organization where

different public service responsibilities are divided into activities for senior citizens, children,
and the disabled?
A. Product departmentalization
B. Geographic departmentalization
C. Process departmentalization
D. Customer departmentalization

There are TWENTY (20) questions in this part. Answer ALL questions in the table provided
on PAGE 15. Each question is worth I mark.

1. Effectiveness refers to the relationship between inputs and outputs. TRUE! FALSE

2. Authority is the rights inherent in a managerial position to tell people what to do and to
expect them to do. TRUE! FALSE

3. Informal communication takes place when employees talk with each other in the
lunchroom, as they pass in hallways, or as they're working out at the company exercise
facility. TRUE! FALSE

4. According to the contingency approach, there is no one universally applicable set of

management principles or rules by which to manage organizations. TRUE! FALSE

5. Strategic management is the set of managerial decisions and actions that determines the
short-term performance of an organization. TRUE / FALSE

6. A global company is a multinational corporation, which maintains significant operations in

two or more countries simultaneously, but centralizes its management and other decisions
in the home country. TRUE! FALSE

7. The three key elements in the definition of motivation are energy, direction, and
achievement. TRUE! FALSE

8. The more employees accept the organization's key values and the greater their
commitment to those values, the stronger the culture is. TRUE / FALSE

9. Contingency theories are leadership theories that identified two dimensions of leader
behavior which is employee oriented and production oriented. TRUE / FALSE

Principles of Management (SMB10I3)
May 2009 Final Examination CONFIDENTIAL

10. McGregor's Theory X assumes that workers can exercise self-direction, desire
responsibility, and like to work. TRUE/FALSE

11. Control is the process of monitoring activities to ensure that they are being accomplished
as planned and of correcting any significant deviations. TRUE/FALSE

12. In the socioeconomic view of organizational social responsibility, management's only social
responsibility is to maximize profits by operating the business in the best interests of the
shareholders. TRUE/FALSE

13. A formal group of employees who operate without a manager and are responsible for a
complete work process or segment is referred to as the self-managed team.

14. Employees with high self-esteem tend to be more satisfied with their jobs than low self-
esteem employees. TRUE/FALSE

15. The control process is a two-step process that compares actual performance against a
standard and takes managerial action to correct deviations or inadequate standards.

16. Operational plans specify the details of how the achievement of the overall objectives is to
be obtained. TRUE/FALSE

17. The solution to non-programmed decision making relies on procedures, rules, and policies.

18. Directional plans are flexible plans that set out general guidelines, provide focus and yet
allow discretion in implementation. TRUE/FALSE

19. When decisions tend to be made at lower levels in an organization, the organization is said
to be decentralized. TRUE/FALSE

20. In the chain network, communication flows according to the formal chain of command, both
downward and upward. TRUE/FALSE

Principles of Management (SMB 1013)
May 2009 Final Examination CONFIDENTIAL


(20 Marks)
Answer the question below. Write your answer in the blank space provided on PAGE 16 to
25. This question is worth 20 marks.

Question I
a) Define the following term in the context of organizational structure:
i) Work specialization (2 marks)
ii) Formalization (2 marks)

b) Briefly explain the difference between social responsiveness and social responsibility.
Provide appropriate examples. (6 marks)

C) Explain the stages of group development. (10 marks)
(Total 20 Marks)


There are TWO (2) questions in this part. Answer only ONE (1) question in the table
provided on PAGE 16 to 25. Each question is worth 20 marks.

Question I

Sam and Sandra both are employees at a food processing plant in Petaling Jaya. Sam is a
manager in a quality control department and Sandra is a manager in the information and
communication technology (ICT) department.

Sam realized that he has not been receiving the information that he needs from his current
control system. By the time Sam receives the information, the activity has occurred. Sam would
like to do better. He would like to fix things before the damage is done and anticipate more of the
problems that occur.

Meanwhile, Sandra has been given the responsibility of analyzing the company's present
information system and she has been asked by the top management to decide whether the
company should add to the existing information system or buy a new system.

a) Sam needs appropriate tools for monitoring and measuring the performance of the
company. Explain the controlling tools that are available. (6 marks)
Which controlling tools that Sam is using now? Which controlling tools that Sam would like
to use?
(1 mark)


Principles of Management (SMBI013) CONFIDENTIAL
May 2009 Final Examination

c) Sandra has been asked to make a decision about the company's existing information
i) Define the term "decision" in the context of decision making process. (1 mark)
ii) Explain to Sandra the steps in decision making process. (12 marks)
(Total 20 Marks)

Question 2
Mr. Marvel is the president of Super Delicious Taco, a new and successful chain of 100 Mexican
fast food restaurants and Mr. Weston, a manager, is one of the employees in this company.
The success that Mr. Marvel has experienced in the last 5 years has made him think of what to
do with the business next. Should he expand the business at the current rate or open new and
different restaurant?
Meanwhile, Mr. Weston has two very different first-line supervisors who report directly to him.
Aaron firmly believes in strict controls and punishment for those workers who do not perform up
to the company expectations. Zach, on the other hand, has very few controls and believes that as
long as people know what their objectives are, they will exercise self-control and self-direction.
Aaron has been trying to use working conditions to increase level of productivity in his
department. However, when conditions were improved, workers were still not motivated. In
contrast, Zach chooses to use responsibility and the opportunity for growth to increase
productivity levels in his department, and he has been much more successful.

a) Given Mr. Marvel's managerial position at Super Delicious Taco, explain briefly what type
of planning he has to make for the company? (6 marks)
b) If Mr. Marvel would like to expand his business by using growth strategies, how does he go
about doing it? Explain your answer and provide appropriate examples. (10 marks)
c) Explain briefly Aaron and Zach motivation approach towards their employees in the effort
to increase the level of productivity in their departments in relation to Maslow's Hierarchy of
Needs theory. Justify your answer. (4 marks)
(Total 20 Marks)



Principles of Management (SMB 1013) CONFIDENTIAL
May 2009 Final Examination

SECTION: NO.:___________

Answer to SECTION A


1 21

2 22

3 23

4 24

5 25

6 26

7 27

8 28

9 29

10 30

11 31

12 32

13 33

14 34

15 35

16 36

17 37

18 38

19 39

20 40


Principles of Management (SMB 1013) CONFIDENTIAL
May 2009 Final Examination

SECTION: MATRIC NO.:___________




1 11

2 12

3 13

4 14

5 15

6 16

7 17

8 18

9 19

10 20

Principles of Management (SMBI013)
May 2009 Final Examination CONFIDENTIAL



Answer to SECTION C and 0

Question No.:

Principles of Management (SMBI0I3)
May 2009 Final Examination CONFIDENT/AL


Answer to SECTION C and D
Question No.:

Principles of Management (SMB10I3) CONFIDENTIAL
May 2009 Final Examination

COURSE CODE :_______________________ CENTRE

Answer to SECTION C and D

Question No.: