Cork Institute of Technology

Bachelor of Business in Accountancy – Award

(National Diploma in Business Studies in Accountancy - Award)
(NFQ – Level 7)
Autumn 2005
Management and Organisation – Theory and Concepts
(Time: 3 Hours)
Instructions Examiners: Ms. M. McManus
Use separate answer books for each Section. Mr. N. O Brien
Attempt all questions in Section A (25 Marks)
Attempt two questions in Section B (2 x 25 Marks)
Attempt all questions in Section C (25 Marks)

Section A
Answer all questions

Case Study: Spooked by Computers

The New England Arts Project had its headquarters above an Italian restaurant in Portsmouth, New
Hampshire. The project had five full-time employees, and during busy times of the year,
particularly the month before Christmas, it hired as many as six part-time workers to type, address
envelopes, and send out mailings. Although each of the five full-timers had a title and a formal job
description, an observer would have had trouble telling their positions apart. Suzanne Clammer, for
instance, was the executive director, the head of the office, but she could be found typing or licking
envelopes just as often as Martin Welk, who had been working for less than a year as office
coordinator, the lowest position in the project’s hierarchy.

Despite a constant sense of being a month behind, the office ran relatively smoothly. No outsider
would have had a prayer of finding a mailing list or a budget in the office, but project employees
knew where almost everything was, and after a quiet fall they did not mind having their small space
packed with workers in November. But a number of the federal funding agencies on which the
project relied began to grumble about the cost of the part-time workers, the amount of time the
project spent handling routine paperwork, and the chaotic condition of its financial records. The
pressure to make a radical change was on. Finally Martin Welk said it: "Maybe we should get a
computer."
To Welk, fresh out of college, where he had written his papers on a word processor, computers
were just another tool to make a job easier. But his belief was not shared by the others in the office,
the youngest of whom had fifteen years more seniority than he. A computer would eat the project’s
mailing list, they said, destroying any chance of raising funds for the year. It would send the wrong
things to the wrong people, insulting them and convincing them that the project had become
another faceless organization that did not care. They swapped horror stories about computers that
had charged them thousands of dollars for purchases they had never made or had assigned the same
airplane seat to five people.

"We’ll lose all control," Suzanne Clammer complained. She saw some kind of office automation as
inevitable, yet she kept thinking she would probably quit before it came about. She liked hand-
addressing mailings to arts patrons whom she had met, and she felt sure that the recipients
contributed more because they recognized her neat blue printing. She remembered the agonies of
typing class in high school and believed she was too old to take on something new and bound to be
much more confusing. Two other employees, with whom she had worked for a decade, called her
after work to ask if the prospect of a computer in the office meant they should be looking for other
jobs. "I have enough trouble with English grammar," one of them wailed. "I’ll never be able to
learn computer language."

One morning Clammer called Martin Welk into her office, shut the door, and asked him if he could
recommend any computer consultants. She had read an article that explained how a company could
waste thousands of dollars by adopting integrated office automation in the wrong way, and she
figured the project would have to hire somebody for at least six months to get the new machines
working and to teach the staff how to use them. Welk was pleased because Clammer evidently had
accepted the idea of a computer in the office. But he also realized that as the resident authority on
computers, he had a lot of work to do before they went shopping for machines.

Questions
1. Is the introduction of a computerised system an example of organisation development? Why
or why not?
(6 Marks)
2. What kinds of resistance to change are evident in this case study?
(10 Marks)
3. What can Martin Welk do to overcome this resistance?
(9 Marks)

Section B
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 Answer two questions

1. Explain what is meant by the term organisational culture. Briefly outline the process through
which such a culture is created. Discuss the main issues involved in managing organisational
culture. (25 Marks)

2. Discuss, with the aid of diagrams, the following motivation theories, making particular
reference to the role that money plays in each one:
- Hierarchy of Needs Theory
- Herzberg’s Dual Structure Theory
- Equity Theory
- Expectancy Theory (25 Marks)

3. (a) Discuss the main differences between groups and teams. (10 Marks)

(b) If employees are happy working in the traditional hierarchical organisation, why should a
manager even consider changing to a team-based organisation?
What difficulties will arise from such a change? (15 Marks)

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 Section C
Answer all questions

1. The scientific roots of contemporary perspectives on task design rest in the work of

a. Walker and Guest.

b. Adam Smith and Charles Babbage.
c. Frederick Herzberg.
d. Abraham Maslow.
e. Turner and Lawrence.

2. The approach to task design that has characterized much of American industry is

a. job specialization.
b. job enlargement.
c. job enrichment.
d. motivational design.
e. job rotation.

3. In his book The Wealth of Nations, Adam Smith attributed the dramatic increase in pin
production to several factors, including

a. increased time changing from one production operation to another.

b. increased dexterity due to practice.
c. the development of standardized equipment.
d. the introduction of flexible work schedules.
e. the decrease in waste and rework.

4. One of the primary problems associated with the specialization of jobs is

a. boredom.
b. increased absenteeism.
c. increased worker complaints.
d. increased turnover.
e. lower motivation.

5. All of the following are examples of job design techniques except

a. job enlargement.
b. job integration.
c. job rotation.
d. job enrichment.
e. job specialization.

6. Job enlargement involves the process of horizontal job loading, meaning that

a. the employee is assigned tasks with more responsibility.

b. the jobs are broken into small, component parts.
c. the employee is assigned more tasks at the same level.
d. each employee is given a specialized task to perform.
e. the employee is assigned less monotonous and routine tasks.

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7. The degree to which a job requires completion of a "whole" and identifiable piece of work is
called

a. job description.
b. task significance.
c. task identity.
d. task autonomy.
e. job integration.

8. In the job characteristics theory, which of the following is not a factor presumed to cause the
emergence of psychological states?

a. Task significance
b. Feedback
c. Task variety
d. Task identity
e. Autonomy

9. The degree to which a job requires a variety of activities that involve different skills and
talents is

a. task identity.
b. task significance.
c. skill variety.
d. task variety.
e. skill identity.

10. The key outcomes expected to result from the psychological states detailed in the job
characteristics theory include all of the following except

a. high attendance.
b. high internal work motivation.
c. high-quality work performance.
d. low absenteeism.
e. low levels of feedback.

11. Participative management can be effective at enhancing employee motivation provided that

a. employees are provided with little information regarding big decisions in the workplace.
b. employees are limited in the level of participation that they are allowed.
c. employees are allowed to make decisions regarding highly interdependent portions of the
job.
d. employees are allowed to make decisions about administrative managers provided that the
jobs are relatively independent.
e. employees have limited access to proper tools and materials to do their jobs.

12. The role of participation and empowerment in motivation can be expressed in terms of all of
the following theoretical perspectives except
a. diversity theory.
b. expectancy theory.
c. Maslow's hierarchy of needs.
d. need for achievement.
e. self-esteem.

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13. Quality circles are an example of organizational attempts at

a. behavior modification.
b. empowerment.
c. motivational training.
d. applying reinforcement theory.
e. OB mod.

14. Organizations attempt to facilitate empowerment by doing all of the following except

a. eliminating layers of hierarchy.

b. increasing the level of centralization in the organization.
c. delegating power and authority throughout the organization.
d. placing control in the hands of employees who actually do the work.
e. exhibiting long-term commitment to the ideals of participative management and
empowerment from the top management.

15. Organizations are beginning to use a work schedule called "nine-eighty." The characteristics
associated with this schedule include all of the following except

a. employees get every other Friday off.

b. employees work two traditional work weeks.
c. employees work eighty hours in nine days.
d. schedules are alternated across half the workforce.
e. organization is fully staffed at all times.

16. Telecommuting involves all of the following except

a. less flexibility for the organization.

b. using E-mail and other technology to stay in touch with the workplace.
c. employees spending one or two days a week at home.
d. reductions in absenteeism and turnover.
e. organization savings on facilities such as parking.

17. Employees who utilize telecommuting tend to like it for all of the following reasons except

a. they get more work done at home.

b. they prefer the lack of social interaction.
c. it does not require drastic changes in work scheduling like compressed workweeks would
require.
d. it provides them with more personal flexibility.
e. they are less likely to be interrupted.

18. Which of the following statements is not true regarding flextime?

a. The workday is broken down into two categories: flextime and coretime.
b. Employees can choose their own schedules during flextime.
c. Employees are free to alter their flextime schedules as the organization permits.
d. Attendance at individual workstations is not mandatory during coretime.
e. It gives employees less say over the days that they work.

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19. Compressed workweeks can cause difficulties in an organization for which of the following
reasons?

a. Motivational problems may arise between individuals about getting the most desirable
days off.
b. Staggering days off helps to deal with outsiders.
c. Longer days help increase employee productivity.
d. The policy gives employees time off during "regular" hours.
e. Administratively, this arrangement is fairly straightforward.

20. Job sharing is a work arrangement where

a. two full-time employees share responsibility for each other's jobs.

b. two part-time employees share the benefits package normally allotted to one full-time
employee.
c. one full-time employee is assigned to train a part-time employee while on the job.
d. two part-time employees share one full-time job.
e. one part-time employee is shared by several full-time employees who need occasional
assistance.

21. According to the text, goals have been used in organizations for primarily two purposes. Goals
provide a framework for managing employee motivation and as a

a. means of increasing individual self-efficacy.

b. means of communicating with employees.
c. control mechanism.
d. training tool.
e. social learning mechanism.

22. Goal-setting research suggests that the best goals are

a. difficult and specific.

b. difficult but attainable.
c. established by the manager.
d. easy goals.
e. qualitative but challenging.

23. ____________ is the extent to which a goal requires effort to achieve.

a. Reach
b. Specificity
c. Challenge
d. Difficulty
e. Attainability

24. For difficult goals to motivate behavior,

a. the goal must be attainable.

b. attainment of the goal should not be rewarded.
c. the goal should be unattainable.
d. the goal must be stated in qualitative terms.
e. the goal must be publicly stated.

25. Goal specificity is defined as

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 a. a general "do your best" attitude.
b. defining a general goal.
c. establishing a specific target for a goal.
d. defining how a goal will affect the total organization.
e. defining the degree of difficulty of the goal.

26. Expansions on goal-setting theory argue that goal-directed effort is a function of four goal
attributes: goal difficulty, goal specificity, goal commitment, and

a. goal clarity.
b. goal importance.
c. goal prevalence.
d. goal attainability.
e. goal acceptance.

27. ____________ is defined as the extent to which an individual is personally interested in

reaching a goal.
a. Goal attachment
b. Goal specificity
c. Goal importance
d. Goal commitment
e. Goal acceptance

28. Organizations should design MBO systems so that

a. top management sets worker objectives in order to streamline the process.
b. workers are rewarded for factors other than goals.
c. superiors and subordinates set mutually acceptable work goals.
d. the superior and subordinate set goals independently.
e. workers do not have to waste valuable work time establishing work goals.

29. Goal-setting theory has been tested in a variety of settings. Which of the following statements
is not true regarding the findings of these studies?
a. Little is known about how individuals accept and become committed to goals.
b. Several studies have confirmed the importance of goal acceptance and goal commitment.
c. Goal difficulty and goal specificity are closely related to performance.
d. Goal setting may focus too much on the short-term at the expense of long-term issues.
e. Goal setting, through programs like MBO, is an important way for managers to convert
motivation into improved job performance.

30. Which of the following is not part of the performance measurement process?
a. Evaluating an employee's work behavior by measurement
b. Comparing an employee's work behavior with previously established standards
c. Recording the results
d. Communicating the results to the employee
e. Rewarding the employee according to his or her performance

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31. What is the most critical purpose of performance measurement?
a. To allocate organizational rewards
b. To develop training and development programs
c. To provide job performance feedback and other information about work behaviors
d. To provide human resource planning information
e. To provide support for human resource decision making

32. Which of the following statements about performance measurement with a developmental
orientation is true?

a. Developmental performance appraisals are used to determine wages and pay raises.
b. Performance appraisals with a developmental orientation provide information for
performance improvement.
c. A developmental orientation entails a focus on past performance.
d. Developmental performance measurement focuses on the employees' growth since the last
appraisal.
e. A developmental orientation helps managers punish undesirable behaviors and demote
low-performing employees.

33. Two of the most important issues regarding how to conduct a performance appraisal are
a. who does the appraisal and the frequency of the appraisal.
b. where the appraisal takes place and who is present at the time.
c. how long the appraisal lasts and how often it occurs.
d. whether the appraisal uses past or current information and whether one or many raters are
used.
e. whether the appraiser takes a judgmental or developmental orientation and whether pay is
linked to performance.

34. In most performance measurement systems, who is the employee's primary evaluator?

a. The corporate evaluation specialist

b. The director of training and development
c. The vice president of human resources
d. The employee's supervisor
e. The employee's peers

35. Which of the following is least likely to influence the frequency with which performance
appraisals are conducted?

a. The task or job cycle time

b. The organization's need for information regarding performance on a particular project
c. The employee's need for job performance information
d. The employee's combined salary and benefits package
e. The convenience for organizational purposes such as record keeping and predictability

36. Which of the following is not part of the fundamental change in an organization's culture that
occurs with Total Quality Management?
a. A focus on the customer
b. An environment of trust and openness
c. Shared power
d. Breaking down internal organizational barriers
e. Reducing the number of work teams

37. How do clearly stated objectives help managers incorporate the principles of Total Quality
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 Management into the performance management system?
a. They allow managers to monitor the program and evaluate it periodically.
b. They keep supervisors from becoming overconfident that their efforts will pay off.
c. Clearly stated objectives prevent midstage adjustments to the system.
d. Clearly stated objectives screen the actual level of top management commitment.
e. They replace the need for job analyses.

38. Which of the following statements regarding job analysis is false?

a. Information obtained in job analysis is used to write job or position descriptions.
b. There is no one best job analysis method for all organizations.
c. Analysts should gather as much information as possible, regardless of the nature or
relevance of the information.
d. Job analysis helps managers develop equitable pay systems.
e. Job analysis information can be gathered by various people such as the employee, a
specialist from the human resource department, or an outside consultant.

39. The _________________ is one that works to facilitate the lifelong learning and personal
development of all of its employees while undergoing continuous transformation in response
to the demands of the environment.
a. cognizant organization
b. coherent organization
c. learning organization
d. adaptive organization
e. evolving organization

40. One of the major problems that is common to all methods of evaluating individual performance
is
a. perceptual biases.
b. interrater reliability.
c. rater consistency.
d. inability to discriminate among levels of performance.
e. insufficient knowledge of job content.

41. An organization should develop its own philosophy of compensation for all of the following
reasons except
a. a compensation philosophy provides a framework for making compensation decisions.
b. a clearly stated philosophy can make the system more credible.
c. the compensation philosophy allows the organization flexibility in changing economic and
labor market conditions.
d. the compensation philosophy indicates what types of behaviors the organization wants to
encourage.
e. a well-developed compensation philosophy articulates the purpose of the reward system.

42. A manager who rewards employees based on the number of units they produce is following
which type of incentive system?

a. Piecework program
b. Long-term compensation
c. Profit-sharing program
d. Commission system
e. Bonus system

43. Which of the following is typically not part of the employee benefits plan?

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 a. Payment for time not worked, both on and off the job
b. Social security contributions
c. Unemployment compensation
d. Life and health insurance
e. Bonuses for exceptional organizational performance

44. What is the likely impact of perquisites on the employees who receive them?

a. An elevated sense of status in the organization

b. Reduced job satisfaction since perquisites can be taxed
c. Increased turnover due to lower restrictions on travel
d. A perceived leveling out of special privileges among employees
e. A lowered sense of commitment toward the organization

45. Industry pay standards fit into which category of issues an organization must consider when
developing its reward system?

a. Pay secrecy
b. Employee participation
c. Economic and labor market factors
d. Ability to pay
e. Impact on organizational performance

46. Why are flexible reward systems becoming an increasingly popular form of compensation
system?

a. Flexible reward systems allow the organization to standardize the benefits package for all
employees.
b. Flexible systems require less administrative time to develop and maintain than do
conventional approaches.
c. Organizations get fewer benefits for their dollar than they do with standard approaches, but
their employees are more satisfied.
d. The flexible reward system allows the organization to trade off salary increases for benefit
increases as ways of rewarding the employee.
e. The benefits of the flexible approach outweigh the costs, and most companies end up
saving money.

47. An employee's increased buying power after receiving a promotion reflects the __________
value of that reward.

a. symbolic
b. tangible
c. intangible
d. compensation
e. surface

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48. Ending the workweek at lunchtime on Friday is most likely an example of

a. flextime.
b. job sharing.
c. flexible work schedules.
d. a compressed workweek.
e. a shortened workweek.

49. Self-efficacy refers to

a. the extent to which an individual believes he or she can accomplish goals even if he or she
failed to do so in the past.
b. the extent to which an individual accepts a goal as his or her own.
c. the extent to which an individual is personally interested in reaching a goal.
d. the extent to which an individual is willing to expend effort in order to attain a goal.
e. the extent to which an individual believes that a goal is worthwhile.

50. Which of the following is not a guideline that managers can use to implement the job
characteristics theory?

a. Establishing direct relationships with clients

b. Combining existing tasks into more complex ones
c. Forming natural work units
d. Increasing autonomy through horizontal job loading
e. Opening feedback channels

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