University of Central Punjab

Faculty
Course Instructor: Mahpara Shah of Management Studies
Semester:Spring2020
Course Code: MGMT2323FINAL TERM EXAMINATIONEven Registration no
Start Time: 09:00 Duration :2hours
Date : 20th July 20, 2020 Program: BSAF-C

Name: Registration Number: Sr no:

INSTRUCTIONS

1. Try to finish your exam within prescribed time

2. Do not open exam papers until told to do so
3. Mobile phones must be turned off and put away
4. Paper will be cancelled if student is caught using unfair means

70

Total Marks Marks Obtained ___________________

Q1: Multiple Choice Questions: (15x1=15marks)

What are the three main types of corporate strategies?
 Retrenchment, turnaround, and clicks-and-bricks
  Growth, stability, and renewal (correct)
 Cost leadership, differentiation, and focus
 Concentration, integration, and diversification

If the supervisor in the sales department requests help of the HR Director in the complex
disciplinary matter, what direction is the communication flow?
 Vertical
 Horizontal
 Lateral
 Diagonal (correct)

.…….. Is managerial function concerned with establishing a structure of tasks grouping

and assigning them to appropriate unit, and establishing lines of information and reporting
to support performance.
 Planning
 Organizing (correct)
 Motivating
 Commanding

The process of monitoring, comparing and correcting performance of an organization is

called:
 Organizing
 Leading
 Planning
 Controlling (correct)

As Sapphire continues to grow, a highly trained group of managers and analysts has
developed at corporate headquarters. This group is highly adaptive in its structure.
Members of this group do not have standardized jobs, but are empowered to handle
diverse job activities and problems. This group of employees is said to have a(n) ________
structure.
 simple
 Functional
 Divisional
 Organic (correct)

What is the most desirable type of control that prevents anticipated problems?
 Concurrent control
 Fast-forward control
  Feedback control
 Feed forward control (correct)

Ahmed and his manager meet for lunch to jointly set Ahmed's quarterly sales goals.
Ahmed's manager will periodically assess the progress Ahmed makes towards those goals.
Ahmed and his manager are most likely participating in ________.
 Job instruction training
 Strategic planning initiatives
 Management by objectives
 corporate-level strategizing

A small business with low departmentalization, wide spans of control, centralized

authority, and limited formalization can be said to possess a ________ structure.
 Matrix
 Divisional
 Simple (correct)
 Functional

Pervez majored in entrepreneurship and computer science in college. After graduation, he

decided to start his own business as an e-business entrepreneur, founding an online B2B
reverse auction company called Compu Save.
After hiring several employees, Pervez requires that each person in this company be involved in
studying trends involving new technology, competitors, and customers. These employees are
involved in ________.
 external analysis
 internal environment
 strategic management
 strategic flexibility
Pervez to complete a SWOT for the company's internal environment each quarter. This includes
 strengths and weaknesses (correct)
 opportunities and threats
 strengths and opportunities
 threats and weaknesses
Pervez needs to complete a SWOT of the external environment in order to put together his
strategic plan. he will analyze the
 threats and weaknesses
 strengths and weaknesses
 opportunities and threats (correct)
 strengths and opportunities

¹Which of the following refers to any factors that allow a company to differentiate its
product or service from those of its competitors to increase market share?
  Related diversification
 Competitive advantage (correct)
 Functional strategy
 Distinctive competence

There are three main types of growth strategies: ________.

 Integration, diversification, and infiltration
 Concentration, integration, and exfoliation
 Concentration, integration, and diversification (correct)
 Concentration, integration, and focus

When an organization attempts to combine with other organizations in different, but

associated industries, the strategy is known as a ________ strategy.
 Growth
 Horizontal integration (correct)
 Related diversification
 Vertical integration

The balanced scorecard is an approach that looks at four areas in the organization,
financial, customer, internal processes, and ________ that contribute to a company's
performance.
 people/innovation/growth assets (correct)
 Debt
 Shareholder value
 Managerial decision making

Q2: Correct statements after making required changes: (5x2=10marks)

 Job enrichment, job enlargement, authority, empowerment, training and job rotation are
“Intrinsic rewards ”.
 The “Manager” administers and maintains, by focusing on systems and plans, organize,
leads and controls and have short term view.
 The type of control that prevents a problem, before actual activity occurs is called
“feedforward control”.
 Factors and forces, outside the organization, that affect the organization’s performance is
called “external environment”.
 A corporate strategy in which an organization continuous to do what is currently doing is
called “continuous improvement strategy ”.

Question 03: Long Question (4x5=20 marks)

Choose an organization and discuss
Organization: Nestle
Business Strategy, plans, business objectives (Planning): Objectives of Nestle: “Marketing
objectives are compatible with the overall corporate objectives of Nestle. Company’s objective is
to be the world’s largest and best-branded food manufacturer while ensuring that nestle name is
synonymous with the products of the highest quality”.Nestle’s business objective is to
manufacture and market the Company’s products in such a way as to create value that can be
sustained over the long term for shareholders, employees, consumers, and business
partners.
a)
b) Organizational structure (Organizing): Nestle Company is a decentralized organization
that is organized according to the matrix structure. Nestle as a decentralized organization
permits to subordinate branches to enjoy a proportionately high-level of independence.
Although it still makes major strategy decisions at the headquarter level, daily operations
are left up to subordinate branches to derive and perform. Management of Nestle is
divided into three level

●Top management: It contains of board of directors, chief executive or managing director. The top
management is the final source of authority and it manages aims and policies for an initiative. It
dedicates more time on planning and coordinating functions.
The role of the top management is that Top management broad policies of the enterprise and lays
down the objectives.It issues necessary instructions for preparation of subdivision procedures,
schedules, budgets, etc.It prepares strategic policies & plans for the initiative.It appoints the
executive for middle level for instance departmental managers. It coordinates & controls the
activities of all the departments. It is also responsible for maintaining a contact with the outside
world.It provides direction and guidance.The top management is also responsible towards the
stockholders for the performance of the initiative.

● Middle Management: The branch managers and departmental managers constitute middle
level. They are responsible to the top management for the operative of their department. They
devote more time to directional and organizational functions.They execute the plans of the
organization in accordance with the policies and directives of the top management.They make
plans for the sub-units of the organization.They participate in training & employment of lower
level management. They understand and explain policies from top-level management to lower
level. They are also responsible for inspiring lower level managers towards better performance
●Lower Management: Lower level is also known as operative/supervisory level of management.
It contains of supervisors, superintendent section, officers etc.. Their duty is to assigning of jobs
and tasks to various workers.They instruct and guide workers for day-to-day activities.They are
responsible for the quality as well as quantity of production.They are also entrusted with the
responsibility of maintaining good relation in the organization.They communicate workers
problems, suggestions, and recommendatory appeals etc to the higher level and higher-level
goals and objectives to the workers.

c) Employee motivation, communication (Leading)

Nestle managers are at all levels are more concerned with leading and inspiring people to add
values to the company and society rather than with exercising with formal authorities. This
calls for a high personal commitment of each employee and common mindset leads towrds
result. In a dynamic condition, leaders face significant challenges. These stem from shifts to
new social patterns and competition. To achieve ongoing success Nestle leaders follow these
rules:
Lead to win
Manage for results
Grow talent and team
Compete and connect externally
d) Evaluation (Controlling)

Question04: NADRA is a federal organization in Pakistan that focuses on standardization by

establishing formal rules and regulations in the organizations. These mechanisms help NADRA creating
SOPs for every procedure so that all offices work in an integrated manner. Which type of control is being
exercised in the scenario? Justify.
(5marks)
Answer: the control which nadra is using for all the offices to work in an integrated manner is preventing
control. Preventative control are designed to be implementied prior to a threat event and reduce or avoid
the likelihood and potential impact of a successful threat event. Example of preventative control include
policies, standards,process,procedures,encryption,bills and physical barriers

Question05: Motivating employees is a multi-dimensional issue and manager try to use multiple
techniques to motivate the workers. Goal Setting is one of the famous techniques to motivate the
people, so you need to identify the technique of goal setting theory along with its contingencies.
(10
Marks)
ANSWER: Goal Setting Theory of motivation was forwarded by Edwin Locke in 1960 . This
theory states that goal setting is essentially linked to task performance. It states that specific and
challenging goals along with appropriate feedback contribute to higher and better task
performance. In simple words, goals indicate and give direction to an employee about what
needs to be done and how much efforts are required to be put in. The goals should be specific,
time constrained and difficult. Difficult goals should be set ideally at the 90th percentile of
performance assuming that motivation and not ability is limiting attainment of that level of
performance. As long as the person accepts the goal, has the ability to attain it, and does not have
conflicting goals, there is a positive linear relationship between goal difficulty and task
performance.
There are contingencies in goal-setting theory. In addition to feedback, three other factors
influence the goals-performance relationship, goal commitment, task characteristics, and national
culture
Goal-setting theory presupposes that an individual is committed to the goal. He or she believes
they can achieve the goal and They want to achieve it. Goal commitment is most likely to occur
when goals are made public, when the individual has an internal locus of control, and when the
goals are self-set rather than assigned
Goals themselves seem to affect performance more strongly when tasks are simple rather than
complex, well learned rather than novel, and independent rather than interdependent. On
interdependent tasks, group goals are preferable
National culture-- Goal-setting theory is culture bound and it is well adapted to North American
cultures, where individual achievement and performance are most highly valued. To date,
research has not shown that group-based goals are more effective in collectivists than in
individualist cultures. In collectivistic and high-power-distance cultures, achievable moderate
goals can be more highly motivating than difficult ones. Finally, assigned goals appear to
generate greater goal commitment in high than in low power-distance cultures. More research is
needed to assess how goal constructs might differ across cultures.
Question 06: Pakistan Fruit Juice Company (Pvt) Limited was incorporated in 1962, Pakistan
Fruit Juice Company has remained alive to opportunities, attuned to shifting market trends and
responsive to changing consumer demands. As a Result, the PFJ has become one of the
prominent groups in Pakistan. Company is operating with 6 divisions based on their products: a)
Beverages Division, b) Fruit Juices Division, c) Ice Cream & Dairy Division, d) Fruits &
Vegetables Processing & Preservation Division, e) Canning Division and f) Seed & Agriculture
Services Division. The Group's operating divisions and industrial set ups are located at main
cities of Pakistan. Each division is headed by Vice President and consists of production,
marketing, Inventory management and sales departments. Every functional unit is headed by
respective manager and perform its specialized task and work in teams of 5 workers.
Organization heads believe in specialization and quick decision making hence decision making is
based on rigid rules and regulations. It is headed by CEO and managers are encouraged to
implement policies in a true manner by offering support. This structure do demands high level of
formalization so each interrelated units is advised to adhere to formal regulations set by the
heads.
Analyze the above scenario and answer the following questions. Explain which type of
departmentalization Fruit Juice Company is following? Draw the structure of the company
based on the available information..
 (10 Marks)

ANSWER: Highly mechanistic structure: Strict rules and regulations no innovation

No participative management authority: Only top management can make decisions no
participation from employees.
Division for different products: every division is for separate product meaning that there is
product divisionalizaton. Each division has its own manger and employees.
Focus on high specialization: This company requires highly specialized employee means it
required high education standards
Orders to be followed no questions asked: The employs must follow the orders of management
and cannot change any process and cannot asked question. There is no atonomy. Employee have
to follow strict scdule.
The fruit jjuice has high standards and strict quality consistency requirments so it follow the
mechanistic structure with no inovation on the side of employees. It does not compromise its
working standards.