Semester Two Final Examinations, 2016 MGTS1301 Introduction to Management This exam paper must not be removed from the venue Venue ____________________ Seat Number ________ Student Number |__|__|__|__|__|__|__|__| Family Name _____________________ First Name _____________________ School of Business EXAMINATION Semester Two Final Examinations, 2016 MGTS1301 Introduction to Management This paper is for St Lucia Campus students. Examination Duration: 120 minutes Reading Time: 10 minutes Exam Conditions: For\tExaminer\tUse\tOnly Question Mark This is a Closed Book Examination - specified materials permitted During reading time - write only on the rough paper provided This examination paper will NOT be released to the Library Materials Permitted In The Exam Venue: (No electronic aids are permitted e.g. laptops, phones) Unmarked Bilingual dictionary is permitted Materials To Be Supplied To Students: 1 x 14 Page Answer Booklet This is a Central Examination 1 x Multiple Choice Answer Sheet Instructions To Students: Additional exam materials (eg. answer booklets, rough paper) will be provided upon request. The exam has three (3) parts. Part A has 2 questions and students must answer both of these questions. Part B has 2 questions that are based on a case study and students must answer both of these questions. Part C has multiple-choice questions and students must answer all questions. Page 1 of 7 Total ________ Semester Two Final Examinations, 2016 MGTS1301 Introduction to Management PART A: Please answer the following TWO (2) questions. Start each question on a new page. Total marks for this section are 50 marks. Question 1: Environment and Corporate Culture & Managing in a Global Environment (i) What is the task environment of an organisation? Use examples to explain why this environment is important to managers. (10 marks) (ii) How does the environment impact an organisation's global management? (10 marks) (iii) Explain the visible culture and invisible culture of an organisation and how they are connected. (10 marks) Question 2: Organisational Structure (i) You are the manager of an organisation which has a functional structure. Your organisation has grown rapidly by adding on two new product lines. Should your organisation change to a divisional structure? Why or why not? (10 marks) (ii) Explain the contingency factors that influence the choice of organisational design. (10 marks) Page 2 of 7 Semester Two Final Examinations, 2016 MGTS1301 Introduction to Management PART B - Kodak Australasia Case Study Read the Kodak Australasia case study and answer the following TWO (2) questions. Be sure to provide detailed answers which incorporate appropriate course theory for each question. Total marks for this section are 40 marks. Questions 1. Strategy implementation was more difficult than strategy formulation for Kodak Australasia. Do you agree or disagree with this statement? Support your answer with reference to relevant course theory and information from the case study. (20 marks) 2. Kodak Australasia should have made changes to its operations so that it produced its own innovations instead of waiting to respond to the innovation of other organisations. Do you agree or disagree with this statement? What changes could Kodak Australasia have made? Support your answer with reference to relevant course theory and information from the case study. (20 marks) Case Study: Kodak Australasia In 1908, Melbourne-based chemist Thomas Baker and his accountant partner John Rouse went into partnership with American camera pioneer George Eastman to form what later became Kodak (Australasia) Ltd. Eastman had made photography popular in the United States in 1888 with the slogan 'you press the button, we do the rest' and his invention of the Brownie camera had made photography affordable. The partnership that was formed was an early expression of the Australian love of new technology. Ironically, almost a century later, that very same embrace of new technology in Australians brought about the demise of Kodak's Australian manufacturing arm. The closure of Kodak's Coburg plant in Victoria on 26 November 2004 is a reminder that even a successful operation does not have a guaranteed long-term future and that fortunes can change quickly. When the Coburg manufacturing plant opened in 1965, the Kodak empire was at the height of its global influence. Kodak worldwide employed more than 100 000 people at that time. Most of us would have photos from our childhood that have been snapped by Instamatic-type cameras using Kodak film, printed on Kodak paper, and perhaps developed at company-owned Kodak Express photo-labs within department stores and shopping centres. While there were some threats in the early 1990s that the Australian manufacturing arm of Kodak would be moved overseas, federal and state government support (which was common at the time) of around $42 million guaranteed that the Coburg plant would continue to operate, meeting certain export, employment and productivity targets. There was also an injection of $75 million in 1996 from the parent company Eastman Kodak Co., to make the Coburg plant its Southeast Asia supplier of Page 3 of 7 Semester Two Final Examinations, 2016 MGTS1301 Introduction to Management Ektacolour photographic paper. Kodak's Australasian operations' profit in 2000 was $56 million, and $41 million in 2001, but then dropped to just $615 000 in 2002. The reason for this sudden drop in Kodak Australasia's fortunes was the meteoric rise in the sale of digital cameras and the arrival of the first phones with in-built capacity to take photos. While the digital technology had only been in place for a few years and the predictions had been that it would eventually replace the old technology, very few experts had predicted it would happen so quickly. Warnings about the upcoming problems for the Coburg operations had already appeared on the horizon in January 2004 when Eastman Kodak announced it would cut 1200015000 jobs worldwide (representing 20% of its global workforce) as it became increasingly clear that the digital revolution would make traditional cameras and chemical photo processing virtually redundant. In September 2003, the US headquarters had already warned of radical changes after a massive fall in profits worldwide in the group. However, at that time there was a perception that the Coburg plant, which was one of nine such plants globally, would still have a future because 80% of its production was exported to Asia, where the markets for traditional film cameras and products in China and India were expected to continue to grow. The announcement on 22 September 2004 that the Coburg film and manufacturing plant would close in November of that year with the loss of 600 jobs came as a shock. The belief that there may have been a future for the plant turned out to be an illusion because the digital revolution was unstoppable. The whole industry was shifting to digital, as consumers all over the world - not just in technology-loving Australia - were eagerly adopting the new technology. The emergence of the first quality sub-$100 digital camera in late 2005 finally killed off the traditional film cameras. Like vinyl records, then video tapes, the humble 35mm film cameras were more or less history by 2006, all being superseded by the digital revolution. The decision to close the manufacturing operations at Kodak's Coburg plant was not based on poor production performance of the plant; nor was it caused by Australian economic, industrial or political factors. Instead it was based on the failure of Eastman Kodak (and other similar companies such as Agfa and Fuji) to realise that the fundamental change in technology and consumer behaviour driven by the increasing popularity of digital photography in Australia and worldwide would be so rapid. For the 600 staff at Coburg (and thousands of others around the world in similar closures - Eastman Kodak had to cut 12 000 jobs worldwide) who lost their jobs, the impact was devastating. Many of them had been working in jobs that required highly specialised skills for which there was no longer a need, and it would probably be difficult for them to find new jobs in the industry. The decision to close the plant had even come as a surprise to local management, who claimed they had not received the final confirmation from the US headquarters of Eastman Kodak that the plant would close until a few days before the announcement was made public. The only thing that Kodak could do (although the union movement had urged the company to look for ways to keep the plant open) was try to assist the employees who lost their jobs by offering counselling and career advice to help them find new jobs and make sure they received their full entitlements. Robbins, Bergman, Stagg and Coulter, 2009, Management 5, Pearson Education Australia pp 500-501. Page 4 of 7 Semester Two Final Examinations, 2016 MGTS1301 Introduction to Management PART C - Multiple Choice Questions Please answer all 20 questions. Each question is worth 0.5 marks. Total marks for this section are 10 marks. 1. Which of the following statement/s describes an organisation? A. It is an open system. B. It is managed in a way to achieve performance efficiency and effectiveness. C. It is a collection of people working to achieve a common purpose. D. It interacts with the environments in the continual process of transforming resource inputs into product outputs in terms of finished goods and/or services. E. All of the above 2. The cognitive ability to see the organisation as a whole and the relationship between its parts is considered a: A. Human skill B. Conceptual skill C. Technical skill D. Scanning skill E. Planning skill 3. Sustainable development includes all the following activities, except: A. Using materials that can be effectively recycled B. Conducting energy and water audits and reducing energy use C. Providing employees with flexible working conditions and health checks etc making their lives better and enhancing motivation and workplace productivity D. Working proactively with suppliers and customers on issues such as reducing the amount of packaging required E. A clear focus on the short term 4. Which one of the following functions defines the managerial activity of monitoring employees' activities, keeping the organisation on track towards its goals, and making corrections as needed? A. Planning B. Organising C. Monitoring D. Coordinating 5. What kind of a plan is management adopting if it sets a goal of 12% return on investment over next 5 years and undertakes action steps to fulfil this goal? A. Operation plan B. Tactical plan C. Strategic plan D. On-going plan E. Single plan 6. Which ethical approach are companies citing to justify their policing of employees' personal habits on and off the job, if they argue that they are maximising the greatest good? A. Justice approach B. Utilitarian approach C. Individualism approach D. Moral-justice approach E. Discretionary responsibility Page 5 of 7 Semester Two Final Examinations, 2016 MGTS1301 Introduction to Management 7. Policies, rules and procedures that are used by organisations to ensure control, quality and efficiency in production constitute what type of plans? A. Control plans B. Single-use plans C. Standing plans D. Strategic plans E. Tactical plans 8. Which of the following is included in an organisation's task environment? A. Suppliers B. Accounting procedures C. Technology D. Government E. Demographic characteristics 9. Mia of Ipswich Pest Control uses praise, letters of support, and pats on the backs as ways to influencing her subordinates' behaviour. All of these actions are highly valued by the work group. This is an example of: A. Coercive power B. Legitimate power C. Reward power D. Expert power E. Referent power 10. Which of the following two leader behaviours does the leadership grid uses? A. Employee-centred and job-centred B. Consideration and initiating structure C. Concern for people and concern for production D. Relationship-oriented and task oriented E. Employee-oriented and relationship-oriented 11. Under the assumptions of the BCG Matrix, a 'dog' has a: A. large market share in a rapidly growing industry B. large market share in a slow growth industry C. small market share in a rapidly growing industry D. small share of a slow growth market E. moderate market share in a rapidly growing industry. 12. An entrepreneur A. assumes the risks of the business B. reaps the rewards of the business C. assumes the financial and legal risks of ownership D. recognises a viable idea for a business product or service and carries it out E. All of these choices. 13. ______________________ are leaders who are committed to both good business and positive social change. A. Entrepreneurs B. Business leaders C. Social entrepreneurs D. Politicians E. None of these choices. Page 6 of 7 Semester Two Final Examinations, 2016 MGTS1301 Introduction to Management 14. 'Work specialisation' is also known as: A. job design B. lines of authority C. division of labour D. line specialisation E. team structure. 15. Which of the following factors is NOT associated with larger span of management? A. Work performed by subordinates is stable and routine. B. Subordinates perform similar work tasks. C. Subordinates are located at various different locations. D. Subordinates are highly trained and need little direction. E. Rules and procedures defining task activities are available. 16. A type of rating error that occurs when an employee receives the same rating on all dimensions regardless of his or her performance on individual ones is called: A. stereotyping B. the halo effect C. the realities of management D. 360 degree feedback E. the point system. 17. Compensation refers to: A. the total monetary and non-monetary goods or commodities used to reward employees B. the total cash and superannuation provided to employees for their efforts C. the total cash less taxation paid to an employee on a regular basis D. two of these choices E. none of these choices. 18. An entry strategy in which the organisation maintains its production facilities within its home country and transfers its products for sale in foreign markets is referred to as: A. franchising B. licensing C. exporting D. Greenfield venture E. joint venture. 19. __________ is (are) important role(s) to be played during the process of organisational change. A. The idea champion B. The critic C. The sponsor D. The inventor E. All of these choices 20. Effective leadership practices include all the following, except: A. setting vision and strategy B. organisation focused C. communication an inspiration D. being humble and 'servant like' E. all of these choices. 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