Question 1

Explain two important activities carried out by one functional area of a business.


The marketing department promotes the firms products to encourage sales. Consumers must be made aware of what is being offered and encouraged to buy. They also conduct market research to identify the needs and wants of consumers. Companies depend on consumers support for their success, and so ascertaining consumers taste is very important.

Question 2

Outline two functions of management and say how each is important to the efficient operation of a business.


Controlling involves the continuous assessment of the work done by subordinates.  Poor quality work is a reflection of the company and so managers must ensure that quality work is done.

Planning involves outlining all future activities that are required to achieve the organizations objectives. Planning activities involve all the programmes and policies that will guide the firm’s path to success.

Question 3

Give two examples to show how managers can fulfill their responsibilities to one group of business stakeholders.


Managers can full their responsibility to customers by proving quality goods and services. A system that ensures standards should be implemented. Prices must also be affordable. All measures must be taken to operate as efficiently as possible so that production cost are kept low resulting in affordable selling prices.

Question 4

(a) Draw an organizational chart of your school or business organization.

(b) Identify the type of organizational chart drawn

(c) Identify the span of control of one person in authority on the chart

(d) Identify two persons at the same level of authority.



(b)   Line organizational chart

(c)   The span of control of Vice principal is the head of departments for arts and science.

(d)   Two persons at the same level of authority are the heads of department for arts and science.

Question 5

Show how two important characteristics of a good leader can improve the efficiency of a group.


Good communication skills will foster good working relationships between workers and managers. Workers are more effective in a comfortable environment. This also encourages feedback from workers.

A devoted and committed manager will lead by example. His commitment to the tasks that are required to achieve the organizations objectives will inspire subordinates to work hard.

Question 6

Give two differences between the autocratic and the democratic leadership styles.


An autocratic manager makes all decisions concerning the tasks to be performed by subordinates. All directives handed down by him must be closely followed. He makes frequent checks on output of workers. The democratic leader allows the participation of others in decision making. He allows workers some latitude to work on their own initiative and periodically checks output from workers.

Question 7

Outline the steps for handling grievances in the organization.


The worker lodges a complaint with his or her immediate supervisor. If worker feels that the complaint was not adequately dealt with then he may discuss the matter with the head of department. If the worker is still not satisfied with how the matter is being dealt with, he along with the union representative may discuss the matter with management. It may need to go a further stage where there is mediation from Ministry of Labour or any independent body. The final stage is when the matter has to be taken to court.

Question 8

Explain the purpose of the collective bargaining process.


The purpose of collective bargaining is a means to reach an amicable agreement between management and workers. Workers bargain collectively through their union representative with management until an agreement is reached.

Question 9

Discuss two ways in which teamwork can improve the efficiency of an organization.


Teamwork gives workers the opportunity to make collaborative decisions and support each other to accomplish tasks more effectively.

Teamwork allows for specialization in various parts of a task based on the skill of each team member. Specialization increases output.

Question 10

Discuss two benefits that a business will derive from using Management Information Systems.


It reduces labour costs as the computer compiles and analyses all the data. This increases the efficiency of employees and reduces production costs. It provides timely information that helps the business. This allows for better decision making as information is available when needed.

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