Semester I Examination Paper
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Principles and Practice of Management
Section A: Objective Type (30 marks)
This section consists of Multiple Choices & Short Notes type questions
Answer all the questions.
Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part one:
Multiple choices:
1) ________ Decisions relate to the day to day operations of the enterprise generally taken by middle and
lower level management.
a) Productive
b) Qualitative
c) Non- productive
d) Operative
2) Organizational MBO was invented by ________.
a) Go slaws
b) Peter Drucker
c) W . Taylor
d) J G Melon
3) Barriers to delegation of authority would be:
a) Fear of loosing status by managers
b) Over-confidence among managers
c) Lack of trust in subordinates
d) All of the Above
4) 'Span of control' is also referred to as span of _______
a) Management
b) Delegation
c) Life
d) Practice
Semester I Examination Paper
2
IIBM Institute of Business Management
5) Learning from mistakes is often more powerful than learning from________.
a) Mentoring
b) Success
c) Failure
d) Process
6) ________ provides all types of help required to make the business more efficient and profitable.
a) Mediators
b) Consultants
c) Help Department
d) Government
7) Management is said to be the combination of three factors, arts, science and the third is
a) Retrenchment
b) Projection
c) Economics
d) profession
8) Motivating a worker is to create a need and what else on the part of a worker to better his present
performance.
a) Professionalism
b) Motivation
c) Desire
d) Delegation
9) One of the external factors that influence management is
a) Technology
b) Globalization
c) Economic
d) Legal
10) What does decoding mean?
a) Message Downloading
b) Message Exploring
c) Message interpretation
d) Message Decoding
Semester I Examination Paper
3
IIBM Institute of Business Management
Part Two:
1. Differentiate between ‘Administration’ and ‘Management’.
2. What were the common drawbacks in classical and Neo classical theories of management?
3. Write a short on ‘Retrenchment corporate strategy’.
4. Write a short note on ‘Acceptance theory’.
END OF SECTION A
Section B: Caselets (40 marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 200-250 words).
Caselet 1
Dairy Crest is one of the UK’s leading chilled Dairy foods company. It provides dairy spreads and
butters, cheese, milk and milkshakes products for the retail grocery trade and major food
manufacturers. Founded in 1981, it employs around 7,000 people and has a turnover of £ 1.3 billion.
Following a period of substantial growth and capital investment-which included the strategic
acquisitions of Unigate in 2000 and the St Ivel spread brands in 2002-Dairy Crest turned its attention
to the development of its key personnel.’ We went through a huge amount of change,’ said Gareth
Hopkins, Group HR Director. ‘People’s roles expanded and became more complex. We felt we
needed to provide more support to managers in the individual businesses and functional areas, so we
decided to commission a management and leadership skills development program’. Initially the
company planned to develop a program that would be appropriate for all managers but research
revealed that there were different needs at different levels. ‘It was clear that a single program
wouldn’t suffice, ‘said Judith Bufton, the company’s Management Development Manager. We
decided instead to develop two programmes: a leaders’ program for senior managers and a managers’
program for middle managers.
Roffey Park was appointed after Dairy Crest had discussed the two potential programmes with
five development providers. ‘We chose Roffey Park because we felt that they would be best not only
at providing the underlying learning but also in helping individuals to transfer the learning to the
workplace’, said Judith Bufton. They have excellent facilities at their residential centre and their
tutors are very professional and committed. They worked with us to develop the content and structure
of the program. Aimed at senior managers across the company, the Leaders’ Program aims to raise
leadership capability and to encourage participants to take a long-term view of the business. Twelve
senior managers are now undertaking the ten-day program, which is delivered in four modules, at
Roffey Park, over a period of 15 months. ‘In the fresh food industry, there’s precious little time to sit
back and think about where the business is going, ‘said Gareth Hopkins. ‘We wanted to make time to
provide strategic leadership skills training for our senior managers. ‘Dairy Crest has around 60 senior
managers.
Semester I Examination Paper
4
IIBM Institute of Business Management
The participants are selected for each cohort of the program by the company’s Trading Board,
which comprises the managing directors of the various business units. Before the programming
begins, Roffery Park runs a mentoring workshop for the participants and for members of the Trading
Board, who act as their personal mentors. The participants themselves then provide one-to-one
mentoring and coaching for those on the managers’ program. The Leaders’ Program starts with a twoday
Development Centre, which involves exercises based on Dairy Crest’s management competency
framework, 360 degree feedback and a personality questionnaire. Each participant uses this
information to review their own leadership style and behavior and to create their Personal
Development Plan.’ We were very keen to start the program with a Development Centre because this
enables the participants to think through their strengths and development needs at the outset, ‘said
Judith Bufton. ‘This information provides a base which they can use to guide their learning
throughout the program.’
The four modules, each lasting two days, are then delivered approximately three months apart.
The modules, designed specifically for Dairy Crest, cover leadership, strategy, managing change and
business finance. Some of the sessions are presented by Dairy Crest’s senior executives, which not
only focuses the learning on the practical business needs but also demonstrates the company’s
commitment to the program. The senior managers meet periodically in two Learning Sets-small
groups in which the individuals challenge and support each other-to share their learning and to work
on a business project. Facilitated by Roffey Park tutors, these meetings help to reinforce the more
formal learning on the modules. The program ends with a closing event where the learning Set groups
present their project recommendations-and their learning from the program- to senior executives. ‘We
were very keen to provide skills development for our line managers because we see them as a vital
link for unlocking people’s potential across the business,’ said Judith Bufton. Dairy Crest has around
400 managers at the target level. Its Managers’ Program aims to raise management capability by
improving core management and coaching skills. The first group of 16 middle managers is now
undertaking the six-day program. These participants were nominated by their managing directors but
for future cohorts, the managers will be able to nominate themselves. Delivered at Roffey Park, the
program is based on Dairy Crest’s management competency framework, which covers ten
competencies in four clusters; thinking skills, working with people, providing direction and delivering
results. It begins with a three-day Development Centre where participants assess their development
needs and review their preferred management style and behaviors. They then compile their own
Personal Development Plan. A few months later, the participants meet again for three days of
management skills training and group work on a business project. The sessions on this workshop are
tailored according to the development needs identified on the first workshop. Gareth Hopkins says
that one of the key benefits is that the two program bring people together from across the
organization. ‘Our one-to-one mentoring process has had a very positive impact as it encourages
people actively to pursue their personal development plans,’ she said. It has also helped to further
develop and strengthen relationships between managers at different levels.
1. Explain the two program developed by Dairy Crest with the help of Roffey Park to train their
managers at different levels.
2. Designing a training session involves the analysis of training needs and plan a training
program. Explain the aspects such as the content of training sessions, the training
methods, the trainer and trainee aspect in designing of a training session.
Semester I Examination Paper
5
IIBM Institute of Business Management
Caselet 2
Risks are enormous in the petroleum business. The price of raw materials can swing from $4 to $40
per unit, dictators can affect the business climate at will, and human error resulting in an oil spill can
cost $3 billion or more. Royal Dutch/ Shell, an Anglo-Dutch multinational corporation, has a
reputation for handling such risks well. Despite soft prices in the oil industry, mounting costs for
development of new fields, and greater environmental requirements, Royal Dutch/Shell has adopted a
growth strategy.
At Royal Dutch/Shell, pursuing growth amid uncertainty has led to significant rewards. In
1990, the company passed Exxon to become the world’s largest oil company. The company has
annual revenues exceeding $100 billion and is able to handle most of its capital spending through
cash flow. Still, weak oil and gas prices have made Shell’s operating profits somewhat flat over the
past decade. Because the company has continued to invest in exploration and new facilities that
cannot yield large immediate returns, Shell has been under pressure to cut costs in order to boost
profit levels and return on equity. Recently oil prices have improved somewhat, and the cost-cutting
efforts are beginning to have a positive effect on profit levels. Royal Dutch/Shell has developed
several approaches to help handle the uncertainties of the industry. Within a culture that encourages
individual initiative, until recently, approximately 260 operating units were generally free to make
their own decisions; with the help of service units that offer research and technical support. The
relative autonomy allowed managers of operating units, such as Shell Oil Company, a U.S.
subsidiary, to consider local conditions, monitor regularity requirements, and shift quickly to handle
customer needs or crisis. Both, to help with the cost cutting and to achieve better coordination, Shell
has recently instituted a more centralized approach whereby teams of senior executives oversee global
divisions such as exploration and production.
Strategic directions for Royal Dutch/Shell are determined by the committee of managing
directors. The six members are chosen from the top ranks of Royal Ditch Petroleum and Shell
Transport and Trading, the Dutch and the British holding companies that own Royal Dutch/Shell. The
committee operates on the basis of consensus; key strategic and personnel decisions must be
unanimous, and the focus is long-term. Shell uses three major mechanisms to deal with uncertainty:
geographic diversification, concentric product diversification, and speedy adaptation to change. For
example, Shell explores for oil and gas in about 50 countries, has refineries in 34, and sells its
products in 100. As a result, political or economic upheaval in a particular country cannot severely
damage the company. Shell expects particularly high returns in high-risk countries; otherwise it does
not do business there. In the area of product diversification, Shell stays close to the energy and
chemical businesses that it knows best(i.e., a concentric product diversification). Speed is also a key
factor. When Spain discontinued the state monopoly over service stations, Shell quickly began
developing a network of stations there.
Shell’s managing directors try to identify changes in the industry by studying and debating
scenarios prepared by their planning department. The scenarios attempt to depict reasonable, but
alternative pictures of conditions in the world 10 years in the future. Each of the geographic regions
and operating companies then uses the scenarios to formulate its own strategies within the overall
strategic plan. Supplementing the scenario process, war gaming helps Shell handle the unexpected.
For example, local operating companies are expected to stimulate supply disruptions and prepare
alternatives. As a result, when the Gulf war disrupted supplies from the Middle East, Shell was able
to quickly redirect alternative supplies. Shell is currently being severely criticized by some
shareholders and activists for polluting the environment around the Niger delta in Nigeria and for
supporting Nigeria’s military dictatorship by continuing to work in some parts of the country. Shell
has admitted that its environment standards in the country were not as high as elsewhere and has
offered to clean up the area, but does not want to abandon all of its operations in Nigeria. Cor
Semester I Examination Paper
6
IIBM Institute of Business Management
Herkstroker, Shell’s Dutch President, says: “We want a constructive solution. Leaving Nigeria
doesn’t get you that. It is much more constructive to stay there and do the right things, such as
reconciliation.
1. What evidence exists that Shell uses an effective decision-making process in making various
decisions? What were the various problems with decision-making?
2. Explain how scenarios help Shell’s managing directors engage in divergent thinking? Discuss the
limitations of such an approach?
END OF SECTION B
Section C: Applied Theory (30 marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 150-200 words).
1) General Electric was composed of one hundred businesses, before Jack Welch became the CEO.
When he became the CEO he streamlined the organization by selling businesses and acquired
new ones. He recreated the organization and made it a profitable firm in the world. Thus Jack
Welch became the greatest Transformational leader in the world. What makes a
Transformational leader so?
2) What are the different precautions should be taken by a job seeker while attaining
interviews?
END OF SECTION C
---------------------------------------------------------****-----------------------------------------------------------
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Principles and Practice of Management
Section A: Objective Type (30 marks)
This section consists of Multiple Choices & Short Notes type questions
Answer all the questions.
Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part one:
Multiple choices:
1) ________ Decisions relate to the day to day operations of the enterprise generally taken by middle and
lower level management.
a) Productive
b) Qualitative
c) Non- productive
d) Operative
2) Organizational MBO was invented by ________.
a) Go slaws
b) Peter Drucker
c) W . Taylor
d) J G Melon
3) Barriers to delegation of authority would be:
a) Fear of loosing status by managers
b) Over-confidence among managers
c) Lack of trust in subordinates
d) All of the Above
4) 'Span of control' is also referred to as span of _______
a) Management
b) Delegation
c) Life
d) Practice
Semester I Examination Paper
2
IIBM Institute of Business Management
5) Learning from mistakes is often more powerful than learning from________.
a) Mentoring
b) Success
c) Failure
d) Process
6) ________ provides all types of help required to make the business more efficient and profitable.
a) Mediators
b) Consultants
c) Help Department
d) Government
7) Management is said to be the combination of three factors, arts, science and the third is
a) Retrenchment
b) Projection
c) Economics
d) profession
8) Motivating a worker is to create a need and what else on the part of a worker to better his present
performance.
a) Professionalism
b) Motivation
c) Desire
d) Delegation
9) One of the external factors that influence management is
a) Technology
b) Globalization
c) Economic
d) Legal
10) What does decoding mean?
a) Message Downloading
b) Message Exploring
c) Message interpretation
d) Message Decoding
Semester I Examination Paper
3
IIBM Institute of Business Management
Part Two:
1. Differentiate between ‘Administration’ and ‘Management’.
2. What were the common drawbacks in classical and Neo classical theories of management?
3. Write a short on ‘Retrenchment corporate strategy’.
4. Write a short note on ‘Acceptance theory’.
END OF SECTION A
Section B: Caselets (40 marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 200-250 words).
Caselet 1
Dairy Crest is one of the UK’s leading chilled Dairy foods company. It provides dairy spreads and
butters, cheese, milk and milkshakes products for the retail grocery trade and major food
manufacturers. Founded in 1981, it employs around 7,000 people and has a turnover of £ 1.3 billion.
Following a period of substantial growth and capital investment-which included the strategic
acquisitions of Unigate in 2000 and the St Ivel spread brands in 2002-Dairy Crest turned its attention
to the development of its key personnel.’ We went through a huge amount of change,’ said Gareth
Hopkins, Group HR Director. ‘People’s roles expanded and became more complex. We felt we
needed to provide more support to managers in the individual businesses and functional areas, so we
decided to commission a management and leadership skills development program’. Initially the
company planned to develop a program that would be appropriate for all managers but research
revealed that there were different needs at different levels. ‘It was clear that a single program
wouldn’t suffice, ‘said Judith Bufton, the company’s Management Development Manager. We
decided instead to develop two programmes: a leaders’ program for senior managers and a managers’
program for middle managers.
Roffey Park was appointed after Dairy Crest had discussed the two potential programmes with
five development providers. ‘We chose Roffey Park because we felt that they would be best not only
at providing the underlying learning but also in helping individuals to transfer the learning to the
workplace’, said Judith Bufton. They have excellent facilities at their residential centre and their
tutors are very professional and committed. They worked with us to develop the content and structure
of the program. Aimed at senior managers across the company, the Leaders’ Program aims to raise
leadership capability and to encourage participants to take a long-term view of the business. Twelve
senior managers are now undertaking the ten-day program, which is delivered in four modules, at
Roffey Park, over a period of 15 months. ‘In the fresh food industry, there’s precious little time to sit
back and think about where the business is going, ‘said Gareth Hopkins. ‘We wanted to make time to
provide strategic leadership skills training for our senior managers. ‘Dairy Crest has around 60 senior
managers.
Semester I Examination Paper
4
IIBM Institute of Business Management
The participants are selected for each cohort of the program by the company’s Trading Board,
which comprises the managing directors of the various business units. Before the programming
begins, Roffery Park runs a mentoring workshop for the participants and for members of the Trading
Board, who act as their personal mentors. The participants themselves then provide one-to-one
mentoring and coaching for those on the managers’ program. The Leaders’ Program starts with a twoday
Development Centre, which involves exercises based on Dairy Crest’s management competency
framework, 360 degree feedback and a personality questionnaire. Each participant uses this
information to review their own leadership style and behavior and to create their Personal
Development Plan.’ We were very keen to start the program with a Development Centre because this
enables the participants to think through their strengths and development needs at the outset, ‘said
Judith Bufton. ‘This information provides a base which they can use to guide their learning
throughout the program.’
The four modules, each lasting two days, are then delivered approximately three months apart.
The modules, designed specifically for Dairy Crest, cover leadership, strategy, managing change and
business finance. Some of the sessions are presented by Dairy Crest’s senior executives, which not
only focuses the learning on the practical business needs but also demonstrates the company’s
commitment to the program. The senior managers meet periodically in two Learning Sets-small
groups in which the individuals challenge and support each other-to share their learning and to work
on a business project. Facilitated by Roffey Park tutors, these meetings help to reinforce the more
formal learning on the modules. The program ends with a closing event where the learning Set groups
present their project recommendations-and their learning from the program- to senior executives. ‘We
were very keen to provide skills development for our line managers because we see them as a vital
link for unlocking people’s potential across the business,’ said Judith Bufton. Dairy Crest has around
400 managers at the target level. Its Managers’ Program aims to raise management capability by
improving core management and coaching skills. The first group of 16 middle managers is now
undertaking the six-day program. These participants were nominated by their managing directors but
for future cohorts, the managers will be able to nominate themselves. Delivered at Roffey Park, the
program is based on Dairy Crest’s management competency framework, which covers ten
competencies in four clusters; thinking skills, working with people, providing direction and delivering
results. It begins with a three-day Development Centre where participants assess their development
needs and review their preferred management style and behaviors. They then compile their own
Personal Development Plan. A few months later, the participants meet again for three days of
management skills training and group work on a business project. The sessions on this workshop are
tailored according to the development needs identified on the first workshop. Gareth Hopkins says
that one of the key benefits is that the two program bring people together from across the
organization. ‘Our one-to-one mentoring process has had a very positive impact as it encourages
people actively to pursue their personal development plans,’ she said. It has also helped to further
develop and strengthen relationships between managers at different levels.
1. Explain the two program developed by Dairy Crest with the help of Roffey Park to train their
managers at different levels.
2. Designing a training session involves the analysis of training needs and plan a training
program. Explain the aspects such as the content of training sessions, the training
methods, the trainer and trainee aspect in designing of a training session.
Semester I Examination Paper
5
IIBM Institute of Business Management
Caselet 2
Risks are enormous in the petroleum business. The price of raw materials can swing from $4 to $40
per unit, dictators can affect the business climate at will, and human error resulting in an oil spill can
cost $3 billion or more. Royal Dutch/ Shell, an Anglo-Dutch multinational corporation, has a
reputation for handling such risks well. Despite soft prices in the oil industry, mounting costs for
development of new fields, and greater environmental requirements, Royal Dutch/Shell has adopted a
growth strategy.
At Royal Dutch/Shell, pursuing growth amid uncertainty has led to significant rewards. In
1990, the company passed Exxon to become the world’s largest oil company. The company has
annual revenues exceeding $100 billion and is able to handle most of its capital spending through
cash flow. Still, weak oil and gas prices have made Shell’s operating profits somewhat flat over the
past decade. Because the company has continued to invest in exploration and new facilities that
cannot yield large immediate returns, Shell has been under pressure to cut costs in order to boost
profit levels and return on equity. Recently oil prices have improved somewhat, and the cost-cutting
efforts are beginning to have a positive effect on profit levels. Royal Dutch/Shell has developed
several approaches to help handle the uncertainties of the industry. Within a culture that encourages
individual initiative, until recently, approximately 260 operating units were generally free to make
their own decisions; with the help of service units that offer research and technical support. The
relative autonomy allowed managers of operating units, such as Shell Oil Company, a U.S.
subsidiary, to consider local conditions, monitor regularity requirements, and shift quickly to handle
customer needs or crisis. Both, to help with the cost cutting and to achieve better coordination, Shell
has recently instituted a more centralized approach whereby teams of senior executives oversee global
divisions such as exploration and production.
Strategic directions for Royal Dutch/Shell are determined by the committee of managing
directors. The six members are chosen from the top ranks of Royal Ditch Petroleum and Shell
Transport and Trading, the Dutch and the British holding companies that own Royal Dutch/Shell. The
committee operates on the basis of consensus; key strategic and personnel decisions must be
unanimous, and the focus is long-term. Shell uses three major mechanisms to deal with uncertainty:
geographic diversification, concentric product diversification, and speedy adaptation to change. For
example, Shell explores for oil and gas in about 50 countries, has refineries in 34, and sells its
products in 100. As a result, political or economic upheaval in a particular country cannot severely
damage the company. Shell expects particularly high returns in high-risk countries; otherwise it does
not do business there. In the area of product diversification, Shell stays close to the energy and
chemical businesses that it knows best(i.e., a concentric product diversification). Speed is also a key
factor. When Spain discontinued the state monopoly over service stations, Shell quickly began
developing a network of stations there.
Shell’s managing directors try to identify changes in the industry by studying and debating
scenarios prepared by their planning department. The scenarios attempt to depict reasonable, but
alternative pictures of conditions in the world 10 years in the future. Each of the geographic regions
and operating companies then uses the scenarios to formulate its own strategies within the overall
strategic plan. Supplementing the scenario process, war gaming helps Shell handle the unexpected.
For example, local operating companies are expected to stimulate supply disruptions and prepare
alternatives. As a result, when the Gulf war disrupted supplies from the Middle East, Shell was able
to quickly redirect alternative supplies. Shell is currently being severely criticized by some
shareholders and activists for polluting the environment around the Niger delta in Nigeria and for
supporting Nigeria’s military dictatorship by continuing to work in some parts of the country. Shell
has admitted that its environment standards in the country were not as high as elsewhere and has
offered to clean up the area, but does not want to abandon all of its operations in Nigeria. Cor
Semester I Examination Paper
6
IIBM Institute of Business Management
Herkstroker, Shell’s Dutch President, says: “We want a constructive solution. Leaving Nigeria
doesn’t get you that. It is much more constructive to stay there and do the right things, such as
reconciliation.
1. What evidence exists that Shell uses an effective decision-making process in making various
decisions? What were the various problems with decision-making?
2. Explain how scenarios help Shell’s managing directors engage in divergent thinking? Discuss the
limitations of such an approach?
END OF SECTION B
Section C: Applied Theory (30 marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 150-200 words).
1) General Electric was composed of one hundred businesses, before Jack Welch became the CEO.
When he became the CEO he streamlined the organization by selling businesses and acquired
new ones. He recreated the organization and made it a profitable firm in the world. Thus Jack
Welch became the greatest Transformational leader in the world. What makes a
Transformational leader so?
2) What are the different precautions should be taken by a job seeker while attaining
interviews?
END OF SECTION C
---------------------------------------------------------****-----------------------------------------------------------
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