2802/303
2803/303
PRINCIPLES AND PRACTICE OF MANAGEMENT
October/November 2023
Time: 3 hours
THE KENYA NATIONAL EXAMINATIONS COUNCIL
DIPLOMA IN CATERING AND ACCOMMODATION MANAGEMENT
DIPLOMA IN FOOD AND BEVERAGE MANAGEMENT
DIPLOMA IN BAKING TECHNOLOGY
MODULE III
PRINCIPLES AND PRACTICE OF MANAGEMENT
INSTRUCTIONS TO CANDIDATES
This paper consists of TWO sections, A and B.
Answer ALL the questions in SECTION A and any THREE questions from SECTION B in the answer booklet provided.
Candidates should answer the questions in English.
This paper consists of 2 printed pages. Candidates should check the question paper to ensure that all the pages are printed and no questions are missing.
SECTION A (40 marks)
Answer ALL the questions in this section.
1. Highlight four functions of the top management in an organization. (4 marks)
Answer:
- Setting organizational goals.
- Developing strategic plans.
- Ensuring overall policy and decision-making.
- Representing the company in external affairs.
2. Outline four benefits of planning to an organization. (4 marks)
Answer:
- Provides direction and focus.
- Improves resource utilization.
- Reduces uncertainty.
- Enhances coordination and control.
3. Explain three circumstances under which a memo could be appropriate in communication. (6 marks)
Answer:
- When conveying brief internal communication.
- For issuing formal updates to staff.
- To provide instructions or policies to a specific group.
4. Highlight four reasons of budgeting in an organization. (4 marks)
Answer:
- To allocate resources effectively.
- To monitor financial performance.
- To ensure financial discipline.
- To set expenditure limits.
5. Outline four disadvantages of verbal communication. (4 marks)
Answer:
- Lack of permanence.
- Misinterpretation due to tone or accent.
- Not suitable for lengthy communication.
- Difficult to reference later.
6. Highlight four ways in which the management of an organization may demonstrate effective leadership. (4 marks)
Answer:
- Providing clear communication.
- Demonstrating integrity and fairness.
- Leading by example.
- Motivating employees towards common goals.
7. State four factors that may contribute to unethical behavior among employees in an organization. (4 marks)
Answer:
- Lack of a strong ethical culture.
- Pressure to meet unrealistic targets.
- Absence of clear guidelines on ethical conduct.
- Poor leadership example.
8. Highlight four parts of an organization as proposed by the systems approach to management. (4 marks)
Answer:
- Inputs (resources).
- Processes (activities and operations).
- Outputs (products or services).
- Feedback mechanisms.
9. Highlight four advantages of using monetary incentives to motivate employees. (4 marks)
Answer:
- Direct and immediate impact on motivation.
- Can improve productivity.
- Easily measurable and adjustable.
- Can attract and retain talent.
10. State four types of coordination that may be applied in an organization. (4 marks)
Answer:
- Vertical coordination (between different levels of hierarchy).
- Horizontal coordination (between departments).
- External coordination (with outside stakeholders).
- Informal coordination (non-structured collaboration).
SECTION B (60 marks)
Answer any THREE questions from this section.
11. (a) Explain four specific effects of casual jobs in an organization. (8 marks)
Answer:
- Reduced job security for employees.
- Lower employee loyalty and commitment.
- Difficulty in workforce planning.
- Increased labor turnover rates.
(b) Outline four personal factors that may influence the choice of leadership style in an organization. (8 marks)
Answer:
- Leader’s personality and traits.
- Level of experience and knowledge.
- Preferred communication style.
- Relationship with employees.
(c) Explain four reasons that make it necessary for a manager to behave ethically. (4 marks)
Answer:
- To maintain trust and integrity.
- To ensure long-term success and sustainability.
- To avoid legal issues and penalties.
- To foster a positive workplace culture.
12. (a) Explain four barriers to delegation that may be associated with subordinates in an organization. (8 marks)
Answer:
- Lack of confidence or trust in the subordinate’s abilities.
- Fear of loss of control.
- Unclear instructions or expectations.
- Lack of necessary skills or training in the subordinate.
(b) Explain four factors that management should follow when formulating policies to ensure job satisfaction in an organization. (8 marks)
Answer:
- Alignment with organizational goals and employee needs.
- Inclusiveness in the decision-making process.
- Clear communication and transparency.
- Fairness and consistency in policy application.
(c) Explain four reasons for the high rate of labor turnover in organizations. (4 marks)
Answer:
- Poor working conditions or low job satisfaction.
- Lack of career growth opportunities.
- Low wages or inadequate benefits.
- Poor management or leadership practices.
13. (a) Explain four factors that may determine the level of coordination required in an organization. (8 marks)
Answer:
- Complexity of the tasks or operations.
- Size and structure of the organization.
- Geographical spread of operations.
- Degree of specialization in different departments.
(b) Explain four factors that make some organizations to recruit employees from within rather than from outside. (8 marks)
Answer:
- Better knowledge of internal candidates’ strengths and weaknesses.
- Reduced costs of recruitment and training.
- Higher employee morale and loyalty.
- Faster onboarding and assimilation.
(c) According to the contingency theory of management, a manager’s decision is influenced by various external factors. Outline four of these factors. (4 marks)
Answer:
- Market trends and customer preferences.
- Economic conditions.
- Competitor actions and industry shifts.
- Government regulations.
14. (a) Explain three human factors that make it necessary for an organization to understand its internal environment. (6 marks)
Answer:
- Employee morale and engagement levels.
- Skills and competencies within the workforce.
- Interpersonal relationships and teamwork dynamics.
(b) Explain four methods of staff motivation in an organization. (8 marks)
Answer:
- Offering rewards and incentives.
- Providing opportunities for growth and development.
- Enhancing work-life balance policies.
- Recognition and appreciation of efforts.
(c) Outline four factors that may influence the ethical standards of an employee. (4 marks)
Answer:
- Personal values and upbringing.
- Organizational culture and code of conduct.
- Peer influence and workplace environment.
- Leadership example and guidance.
15. (a) Explain the arguments that may be raised against corporate social responsibility (CSR) in an organization. (10 marks)
Answer:
- Diverts focus from the primary goal of profit-making.
- Can be seen as a marketing gimmick.
- Imposes additional costs on the company.
- CSR initiatives may conflict with shareholder interests.
(b) Organizations that wish to adapt to social and control free exams challenges. Explain five such challenges. (10 marks)
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