ABDM 1073 Introduction to Organisation & Management Notes

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ABDM 1073 INTRODUCTION TO ORGANISATION & MANAGEMENT

DIPLOMA IN BUSINESS STUDIES
(ACCOUNTING, BUSINESS ADMINISTRATION, MARKETING, E-COMMERCE &
MARKETING, FINANCE & INVESTMENT, BANKING & FINANCE, HUMAN RESOURCE
MANAGEMENT, INTERNATIONAL BUSINESS, BUSINESS ECONOMICS, LOGISTICS
AND SUPPLY CHAIN MANAGEMENT AND RETAIL MANAGEMENT)

Tutorial Rules and Regulations
Attendance & Punctuality Attendance and getting to class on time are expected.

Contribution to the Class - Students are expected to contribute to the class by:-

1. Attending class and being in class on time;
2. Being prepared for class;
3. Thinking about the concepts and issues covered in the lecture;
4. Asking questions, especially if something is unclear;
5. Participating in class discussion and exercises;
6. Performing their share of work on group exercises and assignments;
7. Behaving in a professional manner.
8. Coursework component
9. Final Examination (60% of the total assessment marks)

Section A: 10 MCQ (25 marks)
Section B: Answer 3 essay questions out of 4 questions (75 marks)

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TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
TUTORIAL 1
TOPIC 1 : TAKING RISKS & MAKING PROFITS WITHIN THE DYNAMIC
BUSINESS ENVIRONMENT.

True / False Questions

1. Revenue is the amount a business earns above and beyond what it spends for expenses and
costs.

2. Rosy has started her own Internet consulting firm. While she recognizes the risks involved in
operating a business, she is still willing to invest her time, effort, and money in hopes of earning
a profit. Rosy is an example of an entrepreneur.

3. The term "standard of living" refers to the amount of debt people can incur on a given
income.

4. The only real purpose of a business is to make money for entrepreneurs.

5.John earned the same amount of money this year as he did last year. Thus, his standard of
living must be the same as it was last year.

Multiple Choice Questions

1.Eve and her three college friends enjoy perfumes. As a special gift to each of them last holiday
season, Eve found a way to make scented candles with each friend's favorite perfume scent. The
three friends loved her gift idea and encouraged Eve to create more and sell them on the Internet.
Recently, she is filling orders from her website, and turning a profit. Eve is proof that:
A. me too businesses work.
B. when you successfully fill a market need, you can make money.
C. the Internet is a way to distribute just about anything.
D. the cost of supplies to make candles is relatively cheap.

2. Which of the following entails the greatest amount of risk?
A. Working for the government
B. Working for a large business
C. Working for a small business
D. Starting a business

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3. Leanne owns a nursery business. The trucks, handcarts, and forklift she purchased for the
business are called __________ investments.
A. natural resources
B. intangible resources
C. current asset
D. capital

4. . Companies that outsource research and development and design jobs:
A. have always made a wise decision.
B. will be more profitable in the long run.
C. run the risk of overseas companies using the information to produce competitive products.
D. always invest in the overseas companies that take on these jobs.
5. Successful businesses are keenly focused on their:
A. customers.
B. managers.
C. creditors.
D. bureaucrats.

6. The most important difference between for-profit businesses and nonprofit organizations is
that:
A. businesses do not benefit society.
B. nonprofit organizations seek to make a profit for its owners and organizers.
C. nonprofit organizations do not seek a profit for its owners or organizers.
D. nonprofit organizations do not file tax returns.

TUTORIAL 2
TOPIC 2 : HOW TO FORM A BUSINESS


Mini-Case

For as long as she could remember, Rita's passion was cars. As a teenager, she spent hours with
her dad tinkering with the family car, learning to change the oil and making minor repairs. She
got a job at a local garage while still in school. A few years after graduating from high school
and completing the auto mechanics degree at a local community college, Rita decided she
wanted to be her own boss. She quit her job, borrowed some money from her dad, and began her
own repair shop, the AutoMotion Garage. Rita's hard work gradually attracted a loyal clientele of
satisfied customers. Her success has her thinking about opening garages in two other locations,
but she lacks the financial resources needed for expansion. Furthermore, the success of her
business is forcing Rita to spend more time managing the business and less time doing the actual
technical work she still enjoys. She wants to find business partners who can help her with

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management and provide additional financial resources. She has approached a couple of friends
she met in school: Ali and Ram, to see if they would like to join the business.

1. Currently, AutoMotion Garage is operated as a(n):
A. Limited liability company.
B. Cooperative.
C. Sole proprietorship.
D. Solitary subsidiary.

2. Rita approached Ali about joining the business as an owner. She proposed that she continue to
provide the technical expertise and deal directly with customers, while Ali, who has a college
degree in finance, handles many of the financial aspects of running AutoMotion. In addition,
Rita wants Ali to contribute some much-needed money for expansion. Under Ritas proposal, she
and Ali would operate the business together as:
A. Limited partners.
B. General partners.
C. Majority shareholders.
D. Business consultants.

3. Although Ram, now a young attorney is impressed with AutoMotion and believes it could be a
place to invest money, he informed Rita that his professional position at a law firm prevents him
from taking an active role in the business. He is also concerned about accepting more risk since
he has a young family. He mentioned a preference for unlimited liability. If Ram joined Rita and
Ail, the three might consider forming a:
A. Limited partnership.
B. General partnership.
C. Sole proprietorship.
D. Master Limited Partnership.

4. Ali also suggested another way Rita could finance her expansion. He described setting-up a
chain of AutoMotion Garages by selling the rights to use AutoMotion's name, business model,
garage design and service ideas to others who would like to own a similar shop. These
individuals would pay AutoMotion an initial fee and monthly royalties based on earnings. Ali is
suggesting that Jenna set up a:
A. Joint venture.
B. Franchise arrangement.
C. Corporation.
D. Llimited partnership.

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Discussion Questions
1. What is the difference between a general partner and a limited partner? Give an example of a
situation in which a person would want to be a limited partner.
2. Although most new firms start out as sole proprietorships, few large firms are organized this
way. Why is the sole proprietorship such a popular form of ownership for new firms? What
features of the sole proprietorship make it unattractive to growing firms?

Practical Exercises

1. Selecting a Form of Business

Alim has seen an opportunity to start his own Web site development business. Alim has just
graduated from University Malaya with a masters degree in computer science. Although he has
many job opportunities in Kuala Lumpur, he wishes to remain in Penang to care for his aging
parents. He already has most of the computer equipment necessary to start the business, but he
still needs additional software. He is considering purchasing server to maintain Web sites for
small businesses. Alim feels he has the ability to take this start-up firm and create a long term
career opportunity for himself and others. He knows he can hire college students to work on a
part-time basis to support his business. For know, as he starts the business, he can work out of
the extra bedroom of his apartment. As the business grows, hell hire the additional full-and / or
part time help needed and reassess the location of the business.

Required
Using what you have learned in this chapter, decide which form of business ownership is most
appropriate for Alim. Use the table provided to assist you in evaluating the advantages and
disadvantages of each decision.

SOLE PROPRIETORSHIP
ADVANTAGES DISADVANTAGES

PARTNERSHIP

CORPORATION

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TUTORIAL 3
TOPIC 3 : ENTREPRENEURSHIP & STARTING A SMALL BUSINESS

True / False Questions

1.While entrepreneurs frequently earn significant profits for themselves, their impact on society
is quite small.

2.Web-based businesses avoid the risk of failure faced by traditional startup businesses.

3.Independence, challenge, and opportunity are among the key reasons given by those who
assume the risks of entrepreneurship.

4. Although corporate managers often exhibit the skills required of successful entrepreneurs, they
seldom have the desire to give up the perks and fringe benefits of corporate life and start their
own business.

5. Kylie is employed by Street Wheels, a large corporation that produces accessories for
scooters, bicycles, and other children's vehicles. She is a creative force within the company and
has helped create and launch several new successful products. Kylie is an example of an
intrapreneur.


1. Explain why people take the risks of entrepreneurship. Identify and briefly explain the
attributes of successful entrepreneurs. Name three successful entrepreneurs in Malaysia. Do you
have the entrepreneur spirit? What makes you think that?

2. Identify the differences between a businessman and an entrepreneur.

3. Discuss any FOUR (4) advantages and disadvantages of entrepreneurship.

TUTORIAL 4
TOPIC 3-ENTREPRENEURSHIP & STARTING A SMALL BUSINESS

1. What is the difference between micropreneur and intraprenuer?

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2. Discuss why are small businesses important to Malaysian economy. Do a research on 2
Malaysian companies that are under small business category.

3. Discuss the primary reasons for new business failure and success.
4. What are some of the special problems that small-business owners have in dealing with
employees?
5. Discuss how the Internet has affected small-business start-ups in recent years.

6. Imagine yourself starting a small business. What kind of business would it be? How much
competition is there? What could you do to make your business more attractive than those of
competitors? Would you be willing to work 60 to 70 hours a week to make the business
successful?

TUTORIAL 5
TOPIC 4-DEMANDING ETHICAL AND SOCIAL RESPONSIBLE BEHAVIOR


1. Considering the potential impact on others prior to making a decision is consistent with
________ behavior.
A. legal
B. anti-social
C. ethical
D. self-motivated

2. When Angela graduated with a degree in computer science and started her software company,
she posted a sign that read, "This company will always operate within the legal limits of the
law." Posted where all employees could clearly see it each day, this demonstrated:
A. Her commitment to high ethical standards of behavior.
B. Her commitment to respect the law.
C. Her expectation that all employees follow the laws that apply to the business.
D. Her aversion to cheating, stealing, and dishonesty.

3. Treating others unfairly can result in retaliation from the injured party. This will likely create
a:
A. lose-win situation.
B. win-win situation.
C. lose-lose situation.
D. Golden Rule application.

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4. Ethical behavior will result in which of the following?
A. Mistrust between employees and managers.
B. Agreements that create benefits for only the shareholders.
C. Negative publicity from the news media.
D. Improved self-esteem - makes us feel good about our decision.

5. Which of the following questions will help individuals and organizations when deciding if
their decisions are ethical?
A. Can I do this without getting caught?
B. Is it balanced?
C. Has it been done before?
D. Is there a desirable alternative

6. An ethical dilemma refers to a situation where you must:
A. treat someone unfairly.
B. choose between equally unsatisfactory alternatives.
C. choose between a correct and an incorrect option.
D. balance the concerns of profit and legality.

7. Ethical behavior at work is learned by:
A. Attending corporate responsibility seminars.
B. Tracking the failures of those who are caught in business scandals.
C. Reading about why others were fired from the job.
D. Observing the actions of others.
8. When managers disregard ethical concerns, the likely result is:
A. a reduction in employee turnover.
B. an improvement in overall manager morale.
C. a reduction in lawsuits.
D. a general mistrust between workers and management.


1. Discuss the three questions that an ethics-based manager should ask when facing a potentially
unethical action.

2. Think of a situation that tested your ethical behaviour. For example, maybe your best friend
forgot about a term paper due the next day and asked if he could copy a paper you wrote for
another instructor last semester. What are your alternatives, and what are the consequences of
each? Would it be easier to resolve the dilemma if you had asked yourself the three questions
listed in the chapters? Try answering them now and see whether you would have made a
different choice.

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TUTORIAL 6
TOPIC 4-DEMANDING ETHICAL AND SOCIAL RESPONSIBLE BEHAVIOR


1) Bob sold shares in XYZ Company after finding out from XYZ's CEO that XYZ's stock was
about to drop in price. Bob engaged in ________.
A) whistle-blowing
B) misrepresentation of finances
C) insider trading
D) an accommodative stance to social responsibility

2) An employee who discovers and tries to put an end to a company's unethical, illegal, or
socially irresponsible actions by publicizing them is called ________.
A) top management
B) outside contractor
C) whistle-blower
D) investor

3) The way in which a business tries to balance its commitments to groups and individuals in its
social environment is called ________.
A) business ethics
B) socialization
C) corporate responsibility
D) social responsibility

4) Organizational stakeholders can best be defined as ________.
A) individuals and businesses that own stock in a company
B) individuals and groups that are directly affected by the practices of an organization
C) the officers and key employees of an organization
D) competitors

5. Management's philosophy at Apple, Inc. has often stated that a fit body contributes to more
productivity at work. Apple provides exercise facilities at most of its sites across America, and
permits employees to use a half-hour of work time each day to relieve stress through exercise.
This serious position on physical fitness is part of Apple's ___________.
A. corporate philanthropy
B. corporate policy
C. community mediation services
D. participative funding

6. A(n) ________ occurs when an activity may benefit the individual to the detriment of his or
her employer.

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A. agency dispute
B. loss leader
C. conflict of interest
D. ethical dilemma

Essay Questions

1. Identify the six-step approach to achieve a long-term improvement of business ethics.

2. Identify and discuss the social responsibilities of a firm, to three of the four stakeholder groups
described in your textbook.

3. How do organisations exercise social responsibility toward customers? Discuss.

TUTORIAL 7
TOPIC 5 - MANAGEMENT AND LEADERSHIP

TRUE / FALSE QUESTIONS

1. Management is the art of getting things done through organizational resources.

2. Managers focus on making efficient use of their organization's human resources, but leave
decisions about the efficient use of other resources such as buildings, machinery, and supplies to
engineers and accountants.

3. Financing is one of the four key functions of management.

4. One trend of the "leading" management function is to empower employees, giving them as
much freedom as possible to become self-directed and self-motivated.

5. Beth has spent the last two hours going over some consumer surveys to see how well her
company is achieving its goal of improving customer satisfaction. Beth's efforts are an example
of the controlling function of management.

6. Jack, a manager with Tiny Tots Toy Company, has just participated in a meeting that looked at
future trends in the toy industry, and identified new challenges and opportunities for Tiny Tots.
Jack's participation in this meeting was part of the organizing function of management.

7. Today's business environment changes so rapidly that strategic planning is becoming more
difficult and subject to change.

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8. Rita is a manager of a medium-sized service company. She is currently involved in
redesigning her department to ensure that employees and other resources can respond more
quickly and efficiently to the needs of its customers. Rita's efforts are part of the organizing
function of management.


1. Explain the differences between strategic, tactical, operational, and contingency planning.

Group Activity
a) Work in a group of 3-4 to perform the following activity.
SWOT analysis, the key tool in the strategic planning process, can also be applied to career
planning. A SWOT analysis focuses on the internal and external environments, examining
strengths and weaknesses in the internal environment and opportunities and threats in the
external environment. Use Figure 7.2, SWOT Matrix, presented on text page 184 and
conduct an analysis of your career planning.

1. Strengths:
What advantages do you have?
What do you do well?
What relevant resources do you have access to?
What do other people see as your strengths?

2. Weaknesses:
What could you improve?
What do you do badly?
What should you avoid?

3. Opportunities:
Where are the good opportunities facing you?
What are the interesting trends you are aware of?
What changes in technology and markets are occurring on both a broad and narrow
scale?
What changes are occurring in social patterns, population profiles, lifestyle changes,
etc?

4. Threats:
What obstacles do you face?
Are the required specifications for your career changing?

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Is changing technology threatening your plan?
Do you have bad debt or cash flow problems?
Could any of your weaknesses seriously threaten your future?

TUTORIAL 8
TOPIC 5 -MANAGEMENT AND LEADERSHIP


1. Ho Han has just spent two hours going over quality reports to determine whether his
department is meeting quality standards he set for the current month. Ho's efforts are part of the
___________ function of management.
A. planning
B. organizing
C. directing
D. controlling

2. In order for standards to be useful in the controlling process, they must have certain
characteristics. One of these characteristics is that they must be:
A. nonspecific.
B. redundant.
C. included the mission statement.
D. attainable.

3. At Lifeline Pharmaceuticals, highly regarded research personnel rely on top management to
provide strategic direction. Beyond that, researchers work on their own to develop new drugs to
satisfy customer needs and company profit objectives. Middle management at Lifeline practice
_____________.
A. free-rein leadership
B. consultative leadership
C. projectory leadership
D. autocratic leadership

4. Which of the following statements about leadership styles is most accurate?
A. A manager should choose one style and use it consistently
B. Managers have no control over the leadership style they use
C. Effective managers often use a variety of leadership styles
D. Managers should always start with an autocratic style, but can gradually switch to a more
democratic approach if workers earn their trust

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5. One difference between managers and leaders is that:
A. managers are found in businesses while leaders operate in nonprofit organizations.
B. mangers work to achieve stability while leaders embrace change.
C. managers use an autocratic approach while leaders embrace a democratic style.
D. all employees can manage, but only top managers can lead.

6. ____________ is concerned with finding the right information and making that information
accessible and understood by everyone in an organization.
A. Mission management
B. Data management
C. Knowledge management
D. Auditing

7. Tomorrow's managers must equip themselves with the special tools, techniques, and skills
needed to compete in a global environment. They will need to
A) understand foreign markets, cultural differences, and the motives and practices of foreign
rivals.
B) understand how to collaborate with others around the world on a real-time basis.
C) rely on directors from other countries only.
D) A and B

8. Which of the following levels of management sets general policies, formulates strategies,
approves all significant decisions, and represents the company in dealings with other firms and
with government bodies?
A) operations managers
B) production managers
C) top managers
D) middle managers

Essay Questions
1. Describe the three basic types of management skills, and relate these skills to the tasks
performed by different levels of management.
2. Remember the four management functions? They are: planning, organizing, leading, and
controlling. Think of a job you have now or one youve had in the past. List the managerial
activities you have done or observed. If you have never had a paid job, remember it takes
management skills to manage a home, run a baseball team, and lead a church group. Classify
each activity of your job according to whether it involved planning, organizing, leading, or
controlling.

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PLANNING

ORGANIZING

LEADING

CONTROLLING

TUTORIAL 9
TOPIC 6 ADAPTING ORGANISATIONS TO TODAYS MARKETS

1. Organizing a business begins with:
A. acquiring the necessary resources.
B. choosing the best qualified employees.
C. developing an efficient plan of action.
D. determining the work to be done

2. Today's preference to flat vs. tall organization structures is mainly due to a flat organization's
cability to:
A. encourage esprit de corps among employees in various departments.
B. increase the cost of labor through economies of scale.
C. respond readily to customer demands.
D. increase sales through multiple customer contacts by several layers of management.

3. Job specialization is known to:
A. minimize delegated authority and responsibility.
B. improve job performance.
C. create work teams and improve resource allocation.
D. establish procedures.

4. Which of the following is an example of a move to reorganize?
A. Reducing the labor force within your business
B. Revising plans by creating contingency plans
C. Managing by objectives and clearing pathways for success

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D. Developing a way to monitor financial success

5. Organizations that require consistent production standards to help create a high quality public
image would tend to favor:
A. centralized authority.
B. an inverted organization.
C. a high level of employee empowerment.
D. flat organizational structures.

6. Within its production department, Sooner Manufacturing has shift leaders, supervisors,
assistant plant managers, plant managers, product group managers, assistant division managers,
division managers, an assistant vice president for production, and a vice president in charge of
production. Given its multiple layer management structure, Sooner Manufacturing is an example
of a(n) ____________ organization.
A. tall
B. wide
C. cross-functional
D. decentralized

7. The span of control for a manager:
A. should never exceed 7 subordinates.
B. is no longer a relevant issue in today's computerized offices.
C. depends on a number of factors, and can vary from one manager to another.
D. varies somewhat from manager to manager, but most managers operate best with a span of
control of about 9 employees.

8. Mike prepared a paper for his class about organizational styles used in business. He found that
one reason the traditional bureaucratic style is less popular than in the past is that:
A. business organizations are much larger than they once were.
B. restructuring has not produced the increased efficiency that was expected.
C. the chain of command clearly identifies areas of responsibility.
D. today's workforce is better educated and prefers a greater amount of decision-making
involvement in their jobs.

9. As the head of the engineering department for her company, Jody works with her team on
complex and challenging projects. The level of detail in this work requires Jody to spend a
significant amount of time with each team member, providing advice and support. Due to the
complexity and time involvement of each project, Jody has a(n) ________ span of control.
A. wide
B. narrow
C. unlimited
D. functional

10. Greenwave Garden Centers is a national chain of discount gardening stores. The top
management at Greenwave realizes that different regions of the United States have very different
climates and soil conditions, so they give regional managers a great deal of freedom to decide

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exactly what types of plants, fertilizers, and other items to stock and how to best market these
products. Greenwave is an example of a _______________ organization.
A. bureaucratic
B. top down
C. free form
D. decentralized

Essay Questions
1. Describe FOUR (4) major issues that are important in organisational design.
2. Explain the difference between a firm's formal organization and its informal organization.
Why are both types of organization important to managers?

TUTORIAL 10
TOPIC 6 ADAPTING ORGANISATIONS TO TODAYS MARKETS

Mini-Case
Angelica Canizales is the CEO of Mucho Dinero Enterprises. Sales have declined for four
consecutive years and the firm's accountants have reported net losses in each of the last two
years. Employees appear demoralized and frustrated. Recently, Angelica met with managers
from marketing, production, and finance to listen to their views regarding the company's
problems. The managers unanimously agreed that the main problem was a lack of
communication between the several functional areas of the business. Each manager felt that the
firm could increase quality and customer satisfaction with better interdepartmental
communication. Angelica also met with marketing and production employees to get their
respective opinions on the problems of the firm. One employee from the production department
observed that, "We have so many layers of management that it takes forever to make decisions."
An employee from marketing complained that, "This place is so bogged down with rules and
regulations that there is no opportunity to be creative." Several employees shared their opinions
regarding their bosses. Specifically, one employee expressed "My boss never pays attention to
my ideas. He just issues orders and expects me to obey them." Angelica decided, after listening
to many comments from employees, suppliers, and customers, that the only way to end Mucho
Dinero's slide was to completely rethink the firm's structure and to make radical changes in its
organization. She presented her ideas to the board of directors, promising to voluntarily resign if
her efforts to reorganize did not return the firm to profitability.

1. Employee complaints that there are too many layers of management and too many rules and
regulations suggest that Mucho Dinero is a(n):
A.flat organization.
B. bureaucratic organization.

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C. inverted organization.
D. wide organization.

2.Angelica's decision to completely redesign Mucho Dinero's organization indicates that she
believes the best approach to her firm's problems is:
A.competitive benchmarking.
B.flexible departmentalization.
C. restructuring.
D.organizational therapy.

3.Currently, Mucho Dinero is organized into specialized departments such as marketing, finance,
production and personnel. These departments are designed to allow people with similar skills and
expertise to work together. This approach is known as ___________ departmentalization.
A. functional
B. process
C. interest group
D. task-oriented

4.In order to encourage more interdepartmental communication and cooperation, Angelica is
thinking about setting up groups of workers from different departments to work together on a
long-term basis. She is even thinking about asking people from some of Mucho Dinero's
suppliers, customers and distributors to join these groups. The type of group that Angelica is
considering is known as a(n):
A. focus group.
B. dynamic group.
C. matrix team.
D. cross-functional teams

5.From her discussions with employees, Angelica learned quickly that production workers put
their trust in 20-year veteran Willie McClaren. Many people told her that if you wanted
something done, Willie was the person to see. Willie appears to be an important part of the:
A.decentralized authority.
B. span of control.
C. informal organization.
D. functional structure.

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TRUE / FALSE QUESTIONS
1. A bureaucracy empowers employees to quickly respond to customers' wants and desires.

2. Empowerment works only when employees are given the proper training and resources to
respond.

3. Bryce is a manager at a car seat manufacturing company. He believes that it is very important
and less confusing if each worker has only one boss. Bryce's view is consistent with Fayol's unity
of command principle.

4. Centralized authority provides for the delegation of authority to employees who are then better
able to respond to customers' needs.

5. Improvements in information technology have permitted companies to increase their span of
control.

6. Rise n Shine Bakeries is a nationwide bakery that has plants located throughout the United
States. Top management at Rise n Shine believes that customers in different regions have
different tastes. It also recognizes that its bakeries face more intense competition in some regions
than in others. Therefore, Rise n Shine's top management gives local managers the freedom to
offer different types of breads and desserts, and to decide on a reasonable pricing strategy for its
products. Rise n Shine typifies a decentralized organization.

TUTORIAL 11
TOPIC 7- COMMUNICATION IN ORGANISATION


1. A manager might use __________ as a type of communication.

2. What percentage of a manager's time is spent in direct communication?

3. Communication is defined by the text as the process by which information is
a. shared.
b. exchanged and understood by two or more people, usually with the intent to
motivate or influence behavior.
c. received.
d. transmitted to others.

4. What are the key elements of communication?
a. Encoding, message, and feedback
b. Encoding, noise, and symbols
c. Message, circuit, and decoding
d. Feedback, message, and perception

5. Which of these is necessary for communication to be considered two-way?
a. Message
b. Channel
c. Feedback
d. Noise

a. Meetings
b. telephone conversations
c. talking informally
d. all of these
a. 20 percent
b. 100 percent
c. 50 percent
d. 80 percent

6. The job of the __________, in the communication process, is to decode the symbols and
interpret the meaning of the message.
a. Sender
b. Receiver
c. Channel
d. Filter

7. __________ and __________ are potential sources for communication errors, because
knowledge, attitudes, and background act as filters.
a. Encoding, channel
b. Encoding, noise
c. Decoding, channel
d. Decoding, encoding

8. When an electronic mail system is installed as part of the communication system, what
element of the communication process is changed?
a. Channel
b. Message
c. Sender
d. Filter

9. Which of these refers to the amount of information that can be transmitted during a
communication episode?
a. Channel richness
b. Electronic mail
c. Encoding
d. Upward communication

10. Channel richness refers to the
a. number of messages a channel can carry at one time.
b. speed in which messages can be carried.
c. amount of information that can be transmitted during a communication episode.
d. number of channels available at any one time.

11. __________ is the richest medium for communication.
a. Telephone conversations
b. Face to face contact
c. Electronic media
d. Written media

12. __________ are examples of channels which managers might choose to use when
communicating with employees.
a. Newsletter, telephone, and feedback
b. Telephone, electronic mail, and memo
c. Television, encoding, and letter
d. National newspapers and television

13. When informing your staff of the date for the company picnic, which communication
channel would be most practical and successful?
a. Memo
b. Telephone
c. Video conference
d. Face to face contact

14. A communication transmitted through actions and behaviors rather than through words is
known as
a. verbal communication.
b. oral communication.
c. written communication.
d. nonverbal communication.

15. Which of the following is(are) part of keys to effective listening?
a. Listen for facts
b. Listen for ideas
c. Be passive, laid back
d. Have preconceptions

16. Characteristics of a good listener are someone who
a. asks questions, listens for facts, and avoids distractions.
b. asks questions, summarizes, and listens to central themes.
c. shows interest, judges content, and has preconceptions.
d. listens between lines, starts to argue, and works hard.

17. __________ is described by the text as a communication channel that flows within the chain
of command or task responsibility defined by the organization.
a. Formal communication
b. Horizontal communication
c. Downward communication
d. Upward communication

18. Information distortion or loss of message content is a major problem with
a. upward communication.
b. formal communication.
c. downward communication.
d. informal communication.
e. horizontal communication.

19. Messages that appraise how well individuals and departments are doing their jobs are called
a. job instructions.
b. implementation of strategies.
c. practices.
d. performance feedback.
e. indoctrination.

20. Many organizations use suggestion boxes, open door policies, and surveys to facilitate
a. upward communication.
b. downward communication.
c. formal communication.
d. informal communication.

TUTORIAL 12
TOPIC 7- COMMUNICATION IN ORGANISATION

Essay Questions

1. Briefly describe the communication process.

2. Describe formal communication channels. Identify and explain three (3) types of formal
communication channels.

3. Define nonverbal communication and briefly discuss its importance to communicating in
organizations.

4. Describe the difference between centralized networks and decentralized networks.

5. Describe the concept of channel richness, specify the richest channel, and explain why it is so
rich.

TUTORIAL 13

Past Year Examination Question
Discussion of past year examination questions. Please refer to marking scheme attached. Do not
distribute the marking scheme to student. Treat it as confidential.

ABDM 1073 Introduction to Organisation & Management Notes

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