MODULE III KNEC PAST PAPERS PRINCIPLES AND PRACTICES OF MANAGEMENT JULY 2021

PRINCIPLES AND PRACTICE OF MANAGEMENT

Instructions to Candidates:

• This paper contains TWO sections, A and B.
• Answer ALL the questions in Section A and THREE questions from Section B in the answer booklet provided.
• Maximum marks for each part of a question are as shown.
• Candidates should answer the questions in English.

SECTION A (40 marks)
Answer ALL the questions in this section.

1. Explain each of the following managerial roles:
   • Disturbance handler role.
     Answer: The disturbance handler role involves managing and resolving conflicts, disturbances, or crises that arise within an organization.
   • Spokesperson role.
     Answer: The spokesperson role involves representing the organization to external stakeholders by communicating on behalf of the company and providing official information.
2. With reference to the Behavioral Theory of Management, explain two conclusions made by Elton Mayo from the Hawthorne experiments.
   Answer: Elton Mayo concluded that:
   • Social factors in the workplace, such as feeling valued and recognized, have a significant impact on worker productivity.
   • Informal groups within the workplace strongly influence worker behavior and performance.
3. Outline four features that may determine the degree of cooperation in an industry.
   Answer:
   1. Degree of competition among firms.
   2. Level of trust between companies.
   3. Regulatory framework within the industry.
   4. Availability of resources and mutual benefits for collaboration.
4. Highlight four areas in which an organization can apply delegation.
   Answer:
   1. Task execution and management.
   2. Decision-making processes.
   3. Leadership of specific projects.
   4. Resource allocation and budgeting.
5. State two reasons that may make delegation important to an organization.
   Answer:
   1. Helps to free up time for management to focus on strategic activities.
   2. Empowers employees by giving them responsibility, enhancing their skills and development.
6. Outline four principles that should be followed when setting performance standards during the planning process.
   Answer:
   1. The standards should be measurable and clear.
   2. They must be realistic and achievable.
   3. They should align with organizational objectives.
   4. There should be a time frame for achieving the standards.
7. Highlight four advantages derived from formal communication.
   Answer:
   1. Ensures clarity and consistency of information.
   2. Provides a formal record for future reference.
   3. Facilitates accountability and responsibility.
   4. Helps in maintaining a structured flow of information.
8. State four factors that may hinder effective communication in an organization.
   Answer:
   1. Language barriers.
   2. Cultural differences.
   3. Poor listening skills.
   4. Technological disruptions.
9. Outline four reasons that may make training important to an organization.
   Answer:
   1. Enhances employee skills and competencies.
   2. Improves organizational productivity and performance.
   3. Facilitates employee motivation and job satisfaction.
   4. Reduces errors and increases work quality.
10. Explain the importance of implementing social responsibility activities in an organization.
    Answer: Social responsibility enhances a company’s public image, helps attract and retain talent, builds customer trust, and contributes positively to the community and environment.

SECTION B (60 marks)
Answer any THREE questions from this section.

1. (a) Explain four ways in which forces of bureaucracy have been incorporated in modern organizations.
   Answer:
   1. Clear hierarchical structures with defined roles and responsibilities.
   2. Standardized procedures and rules for tasks and decision-making.
   3. Merit-based employment and promotion systems.
   4. Detailed documentation and record-keeping for accountability.

   (b) Outline four roles that are played by a manager in an organization.
   Answer:

   1. Planning and organizing resources.
   2. Leading and motivating employees.
   3. Controlling and monitoring activities.
   4. Communicating effectively with stakeholders.
2. (a) Explain four external economic conditions that constitute the economic environment of an organization.
   Answer:
   1. Inflation rates.
   2. Interest rates.
   3. Exchange rates.
   4. Government fiscal policies.

   (b) Outline three measures that an organization may take to improve the effectiveness of decision-making.
   Answer:

   1. Incorporating data-driven insights.
   2. Encouraging collaborative decision-making.
   3. Implementing feedback mechanisms to evaluate past decisions.
3. Explain the differences between how the line organizational structure and the line-staff organizational structure may be applied in an organization.
   Answer:
   1. Line structure involves direct authority and clear reporting lines, while line-staff structure incorporates advisory roles alongside the main chain of command.
   2. Line structure is more rigid, while line-staff allows for specialization and flexibility.
4. (a) Explain four factors that may account for the increased popularity of the participative approach to management.
   Answer:
   1. It improves employee morale and engagement.
   2. Facilitates better decision-making through diverse input.
   3. Enhances innovation and creativity within teams.
   4. Builds trust between management and employees.

   (b) Explain four benefits of using the committee system of decision-making in an organization.
   Answer:

   1. Encourages thorough consideration of issues through discussion.
   2. Promotes shared responsibility and accountability.
   3. Ensures decisions reflect multiple perspectives.
   4. Helps in balancing power within the organization.
5. (a) Explain the importance of maintaining ethical standards among employees. Outline four measures that an organization may take to uphold ethical standards.
   Answer:
   1. Ethical behavior enhances the company’s reputation.
   2. Reduces legal risks and promotes compliance with laws.
   3. Builds customer trust and loyalty.
   4. Fosters a positive work culture.

   Measures:

   • Implementing a code of ethics.
   • Providing regular ethics training.
   • Establishing clear reporting channels for misconduct.
   • Enforcing disciplinary actions for ethical violations