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Business Management 1

st Year Examination

May 2017

Solutions, Examiners Comments & Marking Scheme

Business Management May 2017 1st Year Paper

of 22

NOTES TO USERS ABOUT THESE SOLUTIONS

The solutions in this document are published by Accounting Technicians Ireland. They are intended to

provide guidance to students and their teachers regarding possible answers to questions in our

examinations.

Although they are published by us, we do not necessarily endorse these solutions or agree with the views

expressed by their authors.

There are often many possible approaches to the solution of questions in professional examinations. It

should not be assumed that the approach adopted in these solutions is the ideal or the one preferred by us.

Alternative answers will be marked on their own merits.

This publication is intended to serve as an educational aid. For this reason, the published solutions will

often be significantly longer than would be expected of a candidate in an examination. This will be

particularly the case where discursive answers are involved.

This publication is copyright 2017 and may not be reproduced without permission of Accounting

Technicians Ireland.

© Accounting Technicians Ireland, 2017.


of 22 Business Management S2017

Accounting Technicians Ireland

1st Year Examination: May 2017

Paper: BUSINESS MANAGEMENT

Thursday 11th

May 2017

9.30 a.m. to 12.30 p.m.

INSTRUCTIONS TO CANDIDATES

Answer FOUR questions in total.

Answer at least ONE question from Section A.

Answer at least ONE question from Section B.

Answer at least ONE question from Section C.

Answer ONE additional question from ANY section (A, B or C).

Candidates should allocate their time carefully.

Answers should be illustrated with examples, where appropriate.

Question 1 begins on page 2 overleaf.



SECTION A

Question 1

(a) "The use of teams is important within the modern business environment" (Robbins, 2015)

Describe TWO (2) characteristics that distinguish a ‘team’ from an ‘ad-hoc’ collection of people. (e.g. a

collection of people waiting at a bus stop).

(4 Marks)

(b) Describe any FOUR (4) stages in Tuckman’s theory of Team/Group development. (16 Marks)

(c) List THREE (3) team roles as identified by Belbin. (5 Marks)

Total: 25 Marks

Question 2

(a) Describe any TWO (2) of the following key marketing activities in a business; ‘Market Segmentation’,

‘Market Targeting’ and Market positioning’.

(16 Marks)

(b) Write a short explanatory note on any TWO (2) of the following;

Human Resource Planning

Recruitment & Selection

Employee Induction, training and development

Performance Appraisal

Advantages and disadvantages of cloud computing

Intentional threats to Information Technology (I.T) security

Unintentional threats to Information Technology (I.T) security

(9 Marks)

Total: 25 Marks



SECTION B

Question 3

(a) Describe FOUR (4) broad functions of Management.

(10 Marks)

(b) Explain BOTH of the following business concepts, using examples where appropriate:

SWOT Analysis;

PESTLE Analysis.

(10 Marks)

(c) Discuss TWO (2) key objectives when undertaking environmental scanning.

(5 Marks)

Total: 25 Marks

Question 4

(a) Describe Maslow’s 'hierarchy of needs' model of motivation. (10 Marks)

(b) Explain what is meant by the ‘equity theory’ of motivation and discuss its relevance. (10 Marks)

(c) Comment on the relevance of Vroom’s 'expectancy theory' of motivation in today’s economic environment.

(5 Marks)

Total: 25 Marks



SECTION C

Question 5

“Workplace diversity manifests itself in many forms”

(a) Explain the term “workplace diversity” and explain any TWO (2) forms it may take.

(7 Marks)

(b) Outline THREE (3) benefits of workplace diversity. (6 Marks)

(c) Outline THREE (3) challenges commonly associated with managing diversity in the workplace.

(6 Marks)

(d) Suggest THREE (3) actions organisations may take to promote greater recognition of diversity in the

workplace. (6 Marks)

Total: 25 Marks

Question 6

"Business ethics and the concept of ‘social responsibility’ have become increasingly important in the modern

business world". (Armstrong, 2016)

(a) Explain what is meant by the term “Corporate Governance” (5 Marks)

(b) Describe any FOUR (4) stages of moral development. (12 Marks)

(c) Explain two ‘Ethical and Social Responsibility’ issues facing managers today. (8 Marks)

Total: 25 Marks



1st Year Examination: May 2017

Business Management

Suggested Solutions

and

Examiner’s Comments

Students please note: These are suggested solutions only; alternative answers may also be deemed to be correct

and will be marked on their own merits.

Statistical Analysis – By Question

Question No. 1 2 3 4 5 6

Average Mark (%) 65 64 54 58 57 49

Nos. Attempting 745 928 783 506 607 547

Statistical Analysis - Overall

Pass Rate 81%

Average Mark 58%

Range of Marks Nos. of Students

0-39 122

40-49 81

50 -64 453

65-79 358

80 and over 28

Total No. Sitting Exam 1042

Total Absent 306

Total Approved Absent 59

Total No. Applied for Exam 1407

For students who are registered from 2016 onwards the

breakdown of subject level awards can be found below:

Pass 50 - 64%

Subject Merit 65 -79 %

Distinction 80+%

GENERAL COMMENTS ON THE PAPER AS A WHOLE

A well received paper, with pass rates in keeping with last year. The majority of failures recorded were

ones that would be considered bad fails, a long way from the pass mark. Some notably high performers;

more-so than last year.



Examiner Comments on Question One

SECTION A

Solution 1

(a) "The use of teams is important within the modern business environment" (Robbins, 2015)

Describe TWO (2) characteristics that distinguish a ‘team’ from an ‘ad-hoc’ collection of people. (e.g. a

collection of people waiting at a bus stop).

(4 Marks)

(b) Describe any FOUR (4) stages in Tuckman’s theory of Team/Group development. (16 Marks)

(c) List THREE (3) team roles as identified by Belbin. (5 Marks)

Total: 25 Marks

(a) Daft (2005) defines a team as ‘a unit of two or more people who interact and coordinate their work to

accomplish a specific goal.’ Teams are popular because they deliver many benefits over the old

Taylorism system; including higher productivity, flexibility, provide better use of people and increase

motivation. (4 marks)

(b) Describe the FOUR (4) Tuckman’s stages of Group development

Candidates should describe each of the following 5 stages as per the table on page 27 of text book;

Forming; Group development during which people join the group and then define the groups purpose, structure

and leadership

Storming; membership will agree on leadership hierarchy and group direction. For example, after forming a

lobby group, members will elect a chairperson of the group.

Norming; There are norms and unwritten rules as to the modus operandi of the group; as it has come to be

accepted by those in the groups. E.g.; lobby groups may decide on how much political pressure they deem

necessary to change a situation.

Performing; when the group is fully functional. E.g.; lobby groups will seek to influence powerful people to

further groups agenda.

Adjourning ; this is for temporary groups; the group disbands as it has reached the end of a project or due to

organisational change, a lobby group may achieve its purpose, change legislation and therefore disband.

(4 X 4 marks)

A popular question. Part (a) was answered adequately by most. Most candidates knew Tuckman's

theory extremely well. Candidates, in most cases, scored max marks in Part (c)



(c) List THREE (3) team roles as identified by Belbin.

Candidates should LIST 5 of the nine roles below;

Plant

Monitor/Evaluator

Co-ordinator

Resource Investigator

Implementer

Completer Finisher

Team worker

Shaper

Specialist (5 marks)

Total: 25 Marks

Examiner Comments on Question Two

Solution 2

(a) Answers should contain an explanation of two of the following as well as use of examples to illustrate their

understanding of the theory.

Market segmentation is the grouping of consumers by some criteria, such that those within a group will respond

similarly to a marketing action and those in a different group will respond differently. It is the process of dividing

up markets into more manageable segments in order to match products to people. This means that the strategies

used are different for each segment. By focusing particular products on particular people, organisations can be far

more efficient, increase sales and improve customer retention. The benefits of segmentation include better

matching of customers’ needs to organisational strengths and so greater profits and opportunities for growth.

There are various level s of segmentation; Mass, Segment marketing, niche marketing and micro marketing.

Market targeting is identifying a specific segment of consumers most likely to purchase a particular product,

evaluating the segments and deciding how many to serve best. A target market is the group of customers that the

organisation has targeted its products at. Once a particular group of customers is defined (the target), the next step

is to design the marketing strategy to best respond to the target group’s needs. Market targeting then is evaluating

each segments attractiveness as to its business potential and selecting one or more of the market segments to

enter. The organisation needs to examine major structural factors that affect long run segment attractiveness.

There are different market targeting strategies; Undifferentiated, differentiated and concentrated.

Part (a) answered well by most candidates, with most opting to explain segmentation and targeting.

Part (b); this type of question tends to suit candidates, with a good selection of options for them.

Answered strongly by most.



Market positioning is based around how customers view the firm and its product and changing the position, to get

better reaction. Positioning relates to the perception that customers have of a particular product. In that sense

positioning refers to the process that marketers use to create an image or identity in the mind of the consumer. It

is strongly linked to branding. Competitive strategies through differentiation. Branding is hugely important as

brand logos, symbols and statements can help consumers conjure up associations in seconds. Positioning helps

marketers develop products that better match customer needs and wants and define customer priorities and

develop

It is a marketing strategy that emphasises serving a specific market segment by achieving a certain position in

buyers’ minds. (2 x 8 marks)

(b)

Human Resource Planning

Robbins et al (2013) define Employment planning as the process by which management ensures that it has the

right number and kinds of people in the right places at the right times, who are capable of effectively and

efficiently completing those tasks that will help the organisation achieve its overall objectives.

Employment planning translates the organisational mission and objectives into a personnel plan. (a) Assessing

current and future human resources needs. (b) Developing a plan to meet those plans.

Dessler (2008) defines human resource (HR) planning simply as ‘the process of deciding what positions the firm

will have to fill, and how to fill them’. It is the process therefore that determines the current and future HR needs

of the organisation.

The advantage of HR planning is that it minimises the costs of employee turnover and ideally achieves better

utilisation of staff.

HR planning has four stages; demand analysis, supply analysis, estimating deficits and surpluses, and developing

an action plan.

Recruitment and Downsizing

Examples of techniques that firms use to recruit include trade fairs, traditional advertising and recruitment from

third level institutions. Once managers know their current staffing levels—whether they are understaffed or

overstaffed—they can begin to do something about it.

To fill vacancies, they use recruitment—the process of locating, identifying, and attracting capable applicants. If

employment planning indicates a surplus, management will want to reduce the labour supply and initiate

downsizing or layoff activities.

Recruitment is the process of attracting people to apply for positions in an organisation. There are essentially

three stages to the recruitment process: • Job Analysis • Job Description • Job or Person Specification

Downsizing has become a relevant means of meeting the demands of a dynamic environment. There are a

number of downsizing options; See Exhibit 6.4. Regardless of the method chosen, employees may suffer.



The objective of the selection process is to pick the best person (or who is perceived to be the best person) for the

job. This is a very difficult and time-consuming activity that is occasionally very speculative. Moreover, the costs

of making a mistake are high.

The initial phase is to complete a short-listing process; this is done with a review of the application forms and

CVs. Generally speaking, the decision to select should be based on the person specification; as noted, the person

specification identifies the knowledge, skills and abilities to perform the job.

The selection process is a prediction exercise—it seeks to predict which applicants will be “successful” if hired.

Successful in this case means performing well on the criteria the organisation uses to evaluate its employees. Any

selection decision can result in four possible outcomes. The next phase is to use tools to help select the candidate

from the short-list. The best-known devices include interviews and written and performance-simulation tests.

Employee Induction, training and development

Once selected, the job candidate needs to be introduced to the job and organisation—Induction. The major

objectives of orientation/induction is to Reduce the initial anxiety; Familiarize new employees with the job, the

work unit, and the organisation and to Facilitate the outsider-insider transition. Job induction expands on the

information the employee obtained during recruitment and selection.

A Work-unit induction familiarises the employee with the goals of the work unit. It makes clear how his/ her job

contributes to the unit’s goals and provides an introduction to his/her co-workers.

Organisation orientation/induction informs the new employee about the organisation’s objectives, history,

philosophy, procedures, and rules. It should also include relevant personnel policies such as work hours, pay

procedures, overtime requirements, and benefits, as well as a tour of the organisation’s physical facilities.

Management has an obligation to make the integration of the new employee into the organisation as smooth and

as free of anxiety as possible.

Training refers to a planned effort to modify or develop knowledge, skills and attitudes through learning

experiences. It is a critical component of the HR management programme. Employees need to be more highly

skilled, and this includes both technical and soft (or interpersonal) skills. Employee training is a learning

experience in that it seeks a relatively permanent change in employees such that their ability to perform on the job

improves. It involves changing skills, knowledge, attitudes, or behaviour. Training has benefitted as e-learning

techniques are utilized to develop employees’ skills, knowledge and abilities. IT is applied to help company’s

productivity and the way they conduct business.

For training to be successful employees must be involved in the training process and they must have the

necessary motivation and willingness to learn. Also the material must be relevant and meaningful.

HRM advocates the adoption of a Systematic Training approach.

Managers need to ensure that training is working. They can do so by Measuring results—evaluate the training

program.



Employee Development;

Gunnigle et al (2011) define employee development as ‘any attempt to improve managerial effectiveness through

a planned and deliberate learning process’. Essentially employee development deals with the following: • The

improvement of individual manager’s performance • The improvement of management performance as a whole •

The improvement of organisational effectiveness. Employee development deals thus with the design and delivery

of learning to improve performance, skills or knowledge within a company.

Performance Appraisal

Gunnigle et al (2011) define performance appraisal as ‘a systematic approach to evaluating employee

performance, characteristics and/or potential, with a view to assisting decisions in a wide range of areas such as

pay, promotion, employee development and motivation’.

Partly accounting for the popularity of adoption is the many advantages associated with performance appraisal.

From an employer’s perspective, it facilitates the assessment of an individual, facilitates objectives setting, and

can be used with good effect in promotional and training decisions.

From the employee’s perspective, performance appraisal has many advantages including providing an

opportunity for an employee to have real input into a job, as well as offering the potential to clarify important

issues relating to the job.

In summary performance appraisal systems help to develop commitment in an organisation.

The different methods of performance appraisal are listed in the following table. Methods of Performance

Appraisal Graphic rating scales: Scales containing a list of qualities against which all employees are measured.

They are easy to fill out but if characteristics are not clearly defined, it can cause significant drawbacks. 360°

degree feedback: This is feedback collected from an employee’s manager, peers and subordinates. It is an

appraisal from various viewpoints (hence 360° degrees) and offers a holistic view. They are time-consuming.

Self-assessment: This is where employees analyse their own performance as the basis for discussion and action.

The factors that affect the success of performance appraisal include: • The context in which it is introduced • The

values and attitudes of employees • The ease or difficulty with which performance can be measured • Perceptions

as to fairness in assessments •

Advantages and disadvantages of cloud computing

Advantages;

Reduces need for expensive hardware infrastructure

Global potential/remote working

24-7 access

Reduced software licensing costs



Unlimited storage

Better back up facilities

Disadvantages;

Technical problems exist

Universal access requires a good connection

Security risk

Big target= more chance of an attack

Cost

Intentional threats to Information Technology (I.T) security

This is where someone deliberately tries to harm your system and take your data. These can include;

Theft of physical equipment

Theft of a device

A virus

A worm

A Trojan

Spyware

Adware

Phishing

A Denial of Service

A Hacker

Unintentional threats to Information Technology (I.T) security

User error

Spillages

Natural disaster

Power cuts

Fire

(2 x 4.5 marks)

Total: 25 Marks



Examiner Comments on Question Three

Solution 3

(a) FIVE FUNCTIONS OF MANAGEMENT writing in the early part of the twentieth century, Henri Fayol, a

French academic, argued that: ‘to manage is to forecast and plan, to organise, to command, to co-ordinate and

to control.’ (Fayol, 1916) This gives rise to the focus on the functions of management, as depicted in the

following diagram: Source: http://www.provenmodels.com/3/five-functions-of-management/henri-fayol

Each of these functions is briefly explained as follows:

1) Planning; Planning is one of the most important functions of management, since without plans the

organisation has no goals or targets and thus is likely to fail. Most importantly, planning allows organisations to

make best use of current resources and to anticipate, to the extent that is humanly possible, future trends and

possibilities. It is such an important function that, potentially, every employee in the organisation is involved in

planning. Planning involves devising a systematic process for attaining the objectives of the organisation in

preparation for future business transactions. Plans should demonstrate the following criteria: • Specification •

Flexibility • Active participation

2) Organising from a work perspective organising refers to the way work is arranged among the employees

of the organisation. To be more specific, organising is the process of scheduling work so that it can be

accomplished most effectively by the firm’s resources, including people, material, machinery and finance. This

may mean deciding the exact mix of people and machinery, or alternatively, and more likely, allocating tasks to

individual employees. Managers need to organise the resources to achieve efficiency. As noted above, resources

can include people, jobs or positions, technology, facilities and equipment, materials and supplies, information

and money. Organising must: • Create structure • Establish relationships • Allocate resources • Help accomplish

goals of the organisation

3) Co-ordinating: The co-ordination function is essentially an extension of the organising component.

Businesses today are quite complex: multinational corporations for example employ hundreds if not thousands, of

workers, have numerous operations and departments and often trade in many countries across the globe.

Coordination is vital if consistency and efficiency is to be achieved across operations in different countries.

Today, the management function of co-ordination is dealt with under the heading of organising.

4) Commanding: The word ‘commanding’ has a militaristic background; this is because the earliest examples

of management came from the military that employed a ‘command and control’ system. Therefore from a

Business Management traditional perspective, commanding means issuing orders and instructions and offering

encouragement so that jobs are done. From a modern perspective commanding deals largely with leading and

motivating employees. Leadership and motivation is the building of an effective work force, encouraging each

employee to work willingly and enthusiastically towards the accomplishment of the desired objectives.

5) Controlling: Finally, managers need to control the operations of the business — that is, measure its results

to see how they compare with the planned objectives. Control involves verifying that the actual performance

matches the plan. If not, then appropriate action should be taken to rectify the situation. Cole has argued that

Surprisingly part (a) was misinterpreted by quite a few candidates with them detailing the main business

functions/departments instead of Management.

Part (b); candidates were well prepared for this question.

Part (c); answered adequately by most



broadly speaking there are four stages to control, as follows: • Establish standards of performance • Measure

performance • Compare actual results against standards • Take corrective action where required. Financial

control, as well as quality control are important aspects of modern management. Fayol wrote in the last century;

he drew much inspiration from the way both the military and the church were organised. Hence the focus on

commanding and co-ordinating. Today the functions of management are usually shortened to planning,

organising, motivating and controlling. So management plan out work, organise resources to get the work done,

motivate themselves and others to do the work, and control to see that the work was done as planned. The next

section deals with management theory, beginning with Fayol and the classical school.

(4 x 2.5 marks)

(b) SWOT Analysis

Defining current position and objectives - is the organisation performing satisfactorily? Are there opportunities it

should be pursuing or weaknesses it should be concerned about?

External/Internal analysis – how will the organisation go about achieving its goals? What are the factors within

and outside the organisation that might help or hinder its performance?

Analysing gaps and matching capabilities - does the organisation have the human and material resources to fulfil

its objectives? Can it get them? Or are the objectives realistic?

Once an appropriate SWOT analysis has been undertaken, an organisation is in a position to devise strategies to

counter threats and weaknesses and to capitalise on opportunities and strengths This form of analysis of the

current situation, allows organisations to determine the direction it should take, the resources it will need and the

tactics, or parameters it should operate within to achieve its objectives.

PESTLE Analysis

PESTLE analysis is a technique for analysing the macro-environment of an organisation under the following

headings – political economic, socio-cultural, technological, legal and environmental.

Analysis of the political and legal environment involves considering the impact of changes in requirements,

safety regulations, consumer protection legislation, parties in Government, EU developments and other factors.

Consideration of key issues such as the levels of demand within the economy, interest rates, foreign exchange,

grants and inflation are indicative of the economic variables to be monitored.

The social-cultural environment encompasses issues of a demographic nature, such as in the structure of the

population – gender, income distribution, emigration and issue of a cultural nature (such as, language, customs

and religion).

The technological environment includes consideration of the threats and opportunities arising from IT and

scientific developments in various areas.

PESTLE analysis is an important part of the environmental scanning process which feeds in to strategy

formulation. (2 x 5 marks)

P.T.O



(c) Key Objectives

Detect trends and events important to the organisation.

Define potential opportunities, threats or changes for the organisation implied by those trends and

events.

Promote a future orientation in the thinking of management and staff. Alert management and staff to

trends that are converging, diverging or interacting.

(2x2.5 marks)

Total: 25 Marks

P.T.O



Examiner Comments on Question Four

Solution 4

(a)

(4 marks)

In 1943, the influential American psychologist Abraham Maslow argued that people are motivated by the desire

to satisfy needs which, grouped together, can be listed in hierarchical form (see figure above). Maslow further

contended that people tended to satisfy their needs systematically, starting at the bottom with the physiological

needs and then moving slowly up the hierarchy fulfilling one need after another. The fulfilment of needs is thus

continuous; when one need is fulfilled, another takes it place and so on. At the bottom of the hierarchy are the

basic physiological needs, such as food, drink, shelter, sex and sleep. Maslow asserts that once these have been

satisfied, the individual then moves to the second order needs—safety needs. The latter include protection,

security, order, law, limits and stability. Once these needs are fulfilled, the individual can proceed to the third

level. Belonging and love needs include family, affection and relationships. These are also referred to as social

needs. Only then, according to Maslow, can the penultimate levels be satisfied – he terms these esteem needs and

they include achievement, status, responsibility and reputation. Finally, the hierarchy concludes with self-

actualisation – a term applied to personal growth and fulfilment. Fulfilling this need means an individual has

reached his full potential in life. It also implies that the individual has mastered the lower level needs first—

physiological, safety, belonging and love, and esteem. The following table lists the benefits and limitations of the

model. Benefits of Model Limitations of Model • Model allows managers to identify the motivations of

employees • Allows for classification of biogenic versus hedonic needs – i.e. separate physical and emotional

motivations • Self-actualisation concept can be applied in workplace scenarios through career and personal

development • The model is too simplistic and generalised • The model looks at basic needs and doesn’t consider

many other facets of human experience (i.e. aesthetics) • Model does not consider culture • One may satisfy a

higher level before a lower level (i.e. experience achievement before love) Example: Many organisations seek to

satisfy the elements proposed by Maslow. For example, safety needs are addressed through pensions and health

benefits. Belongingness needs may be addressed through social clubs and group activities external to a work

context. (2 marks per valid point)

Strong question for most; (a) Maslow was answered very well, (b) Equity theory to a slightly lesser

degree and (c) Vroom adequately



(b) Adam’s equity theory (sometimes also referred to as ‘Justice Theory’) is built on the belief that employees

become de-motivated both in relation to their job and their employer, if they feel as though their inputs are

greater than the outputs. Employees can be expected to respond to this in different ways, including: de-

motivation, reduced effort and eventually becoming disgruntled.

Inputs include all of the elements an individual puts into their job and includes: effort, loyalty, hard work,

commitment, skill, ability and enthusiasm.

Outputs, on the other hand, are what the individual receives as an outcome of their inputs. They include variables

such as financial rewards, recognition, reputation, responsibility, praise and job security.

Equity theory asserts that positive outcomes and high levels of motivation can be expected only when employees

perceive their treatment to be fair. If the balance lies too far in favour of the employer, some employees may

work to bring balance between inputs and outputs on their own, by asking for more compensation or recognition.

Its relevance today;

Despite its criticisms, managers can apply equity theory across the company. Research among employees can be

easily (and anonymously) conducted to ascertain what the main dissatisfactions among employees are. If certain

staff feel that they are putting in more than they are getting out of a job situation, then perhaps policies can be

implemented to adjust this. For example, bonuses can be performance based so that those employees who are

willing to work hard and perform can be duly rewarded in line with their efforts.

(4 marks for description+ 2 marks for overall quality)

(c) This theory identifies important expectations that individuals bring to the workplace and focuses on the

relationship between the effort put in and the expectations concerning the actual reward.

Using Expectancy, managers can improve workers beliefs in their performance ability by increasing training to

improve skills, coaching, and increasing the worker’s sense of usefulness through positive feedback.

Secondly, managers can be consistent in their application of rewards and positive feedback. This is

instrumentality in action.

Finally, using the valence principle, managers can learn what outcomes’ rewards are most important and desired

by employees and so provide them.

Focused, rather than random, rewards will increase workers’ motivation to put in the effort to gain them.

Overall, no one framework can be used to deal with the complexities of reality but, in appropriate conditions and

circumstances, expectancy theory has a significant role to play in contributing to motivation in work

environments.

Expectancy Theory is still valid, but if you apply it at the ‘task level’, it is incomplete as a conceptual framework

for understanding human behaviour.

If you apply it at the ‘career level”, then it becomes a really powerful analytical tool that could reveal insights

about a person.

For example - can I become successful if I choose to pursue this career? If I become successful, what’s my

reward? Is the reward worth the effort, as well as the sacrifices that I might be called upon to make?



Maybe that’s why some women quit full time employment after having children. They may re-evaluate the

‘reward’ they get from competing in the workplace.

(3 marks for description + 2 marks per valid point)

Total: 25 Marks

P.T.O



Examiner Comments on Question Five

SECTION C

Solution 5

(a) Workforce diversity is defined as the ways in which people in an organisation are different from and similar

to one another.

Diversity not only involves how people perceive themselves, but how they perceive others. Those perceptions

affect their interactions. For a wide assortment of employees to function effectively as an organisation, human

resource professionals need to deal effectively with issues such as communication, adaptability and change.

Diversity will increase significantly in the coming years.

Successful organisations recognize the need for immediate action and are ready and willing to spend resources on

managing diversity in the workplace now.

(3 marks)

Workplace diversity comes in several forms. All of these forms have potential ramifications for management;

Candidates should list 2 of the 5 of the forms as listed below;

a) Age

b) Gender

c) Race and Ethnicity

d) Disabilities/Abilities

e) Religion

f) LGBT: Sexual Orientation and Gender Identity

g) Other Types of Diversity 1) Diversity is not limited to the topics above; it refers to any dissimilarities or

differences that might be present in a workplace.

2) Other types of workplace diversity that managers might confront and have to deal with include socioeconomic

background (social class and income-related factors), team members from different functional areas or

organisational units, physical attractiveness, obesity/thinness, job seniority, or intellectual abilities.

(2 x 2 marks)

(b) Benefits of Workplace Diversity

An organisation’s success and competitiveness depends upon its ability to embrace diversity and realize the

benefits. When organisations actively assess their handling of workplace diversity issues, develop and implement

diversity plans, multiple benefits are reported such as:

Increased adaptability

Broader service range

Part (a) was answered well by some candidates, with others misinterpreted the meaning of diversity.

The remaining portions were addressed well be candidates.



Variety of viewpoints

More effective execution

(3 x 2 marks)

(c) Challenges of Diversity in the Workplace

Taking full advantage of the benefits of diversity in the workplace is not without its challenges. Some of those

challenges are:

Communication

Resistance to change

Implementation of diversity in the workplace policies - This can be the overriding challenge to all

diversity advocates.

Successful Management of Diversity in the Workplace - A strategy must be created and implemented to

create a culture of diversity that permeates every department and function of the organisation.

(3 x 2 marks)

(d) Recommended diversity in the workplace solutions include:

Ward off change resistance with inclusion.

Foster an attitude of openness in your organisation.

Promote diversity in leadership positions.

Utilize diversity training

Launch a customizable employee satisfaction survey

As the economy becomes increasingly global, our workforce becomes increasingly diverse. Organisational

success and competitiveness will depend on the ability to manage diversity in the workplace effectively.

(3 x 2 marks)

Total: 25 Marks



Examiner Comments on Question Six

Question 6

(a) Corporate governance is concerned with the structures and systems of control by which managers are

held accountable to those who have a legitimate stake in an organisation. It is the system of rules, practices

and processes by which a company is directed and controlled. Corporate governance essentially involves

balancing the interests of the many stakeholders in a company - these include its shareholders, management,

customers, suppliers, financiers, government and the community (5 marks)

(b) Describe four (4) stages of moral development.

Research confirms three levels of moral development, each level has two stages; (Robbins et al, 2015).

Candidates should describe the elements as detailed below;

Preconventional

1. Sticking to rules to avoid physical punishment

2. Following rules only when doing is in your immediate interest

Conventional

3. Living up to what is expected by people close to you

4. Maintain conventional order by fulfilling obligations

Principled

5. Valuing rights of others and upholding absolute values and rights regardless of the majority's

opinion

6. Following self-chosen ethical principles even if they violate the law.

(4x3 marks)

(c) Describe the term Social responsibility

Managers regularly face decisions that have dimensions of social responsibility. Examples

include employee relations, philanthropy, pricing, resource conservation, product quality and

safety, and doing business in countries that violate human rights.

There are two opposing views of social responsibility. The classical view is the view that

management’s only social responsibility is to maximise profits. The socioeconomic view is the

view that management’s social responsibility goes beyond the making of profits to include

protecting and improving society’s welfare.

(2 x 4 marks)

Total: 25 Marks

Not a very popular question.

Part (a) was adequately answered.

Part (b) was weak in most cases.

Part (c) was adequately answered.

PArt (c)

the institute of accounting technicians in ireland · business management may 2017 1st year paper...

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