MAKERERE UNIVERSITY BUSINESS SCHOOL

FINAL EXAMINATION FOR THE DEGREE OF BACHELOR OF CATERING AND HOTEL

MANAGEMENT, BACHELOR OF ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT, BACHELOR OF HUMAN RESOURCE MANAGEMENT, BACHELOR OF
INTERNATIONAL BUSINESS, BACHELOR OF LEISURE AND HOSPITALITY, BACHELOR
OF SCIENCE IN FINANCE AND BACHELOR OF ARTS IN ECONOMICS OF MAKERERE
UNIVERSITY, ACADEMIC YEAR 2019/2020

COURSE NAME: PRINCIPLES OF MANAGEMENT COURSE CODE: BAD 1203

YEAR OF STUDY: ONE SEMESTER: TWO
DATE: SATURDAY, FEBRUARY 06, 2021 TIME: 9AM – 12 PM

Instructions;
This examination paper consists of five (5) questions. Answer only four (4) questions.
Do not write anything on this question paper and read additional instructions from the
answer booklet provided.

QUESTION ONE
Management theories consist of many approaches to organizational analyses which have
caused debates in how such management thoughts can be categorized. As a student of
management,
(a) Distinguish between the classical organizational theories from the behavioral science
theories. (20Marks)
Classical organizational theories (Henri Fayol & Max Webber)
Henry Fayol. Fayol was one of the most influential contributors to modern concepts of
management, having proposed that that there were five primary functions of management; (1)
planning, (2) organizing, (3) commanding, (4) coordinating and (5) controlling. Fayol further
divided business operations into six activities i.e. Technical, Commercial, Financial, Security,
Accounting and Managerial. Fayol developed and listed 14 general management principles that are
considered till today, which principles he said that managers “most frequently had to apply” and
they include; division of work, authority, discipline, unity of command, unity of direction,
subordination of individual interests, remuneration, centralization, hierarchy, order, equity,
stability of staff, initiative and espirit de corp.

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Max Weber, bureaucracy

Max Weber known as the Father of Modern Sociology, he analyzed bureaucracy as the most logical
and rational structure for large organizations characterized with a lot of authority. Weber identified
three types of authority; Traditional authority, Charismatic authority and Rational legal authority.
Webber identified the features of bureaucratic organizations as; Bound by rules and procedures,
Specialization of roles, Hierarchy of authority, Appointment based on competence, Routinization of
activities, Separation of officials from ownership of organization, Impersonal while carrying out
functions

Behavioral theories

Elton Mayo; He carried out experiments at Hawthorne electric company and he established that;

 Productivity increases if workers are treated as a special group.

 Workers as a group can influence productivity rather than management.
 Man is a social man rather than rational.
Abraham Maslow; Maslow argued that people are motivated by various factors and once you
understand these factors and their order of satisfaction, you can then motivate them to work.
Maslow said that people’s needs were in a hierarchy ie physiological needs, safety and security
needs, social needs, self-esteem and self-actualization needs.

Douglas McGregor; (Theory X and Y). He classified employees in organizations into two that is
type x (dislike work, view work as a punishment and work because they have to earn a living) and
type y (who like to work and view work as play)

Hertzberg’s two factor theory; studied job satisfaction at work situations. He established that
there are factors, which lead to job satisfaction that he called motivators, and the other factors
which lead to job dissatisfaction, which he called hygiene factors.

Chris Argyris; He argued that people are pathetic to work if treated like children, and are
motivated to work if treated like adults like in theory X and Y respectively. He suggested that
human beings develop from immaturity to maturity. For instance, where people are unskilled, they
are immature and therefore they have to be controlled until they develop thru experience and
training, when they are mature, they are given independence and autonomy.

(b) Using relevant examples, explain the shortcomings of Max Weber’s approach to current
management practices. (05Marks)
 His theory is not suitable in a dynamic environment
 Bureaucracy delays decision making
 Routinization of activities creates monotony
 Work can be brought to a standstill incase an individual is missing in the
hierarchy

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  Close supervision brings about tension in the work environment

QUESTION TWO
Planning is the process of thinking about the activities required to achieve an
organization’s desired goal and it is the first and foremost activity to be considered in
organizational preparation. However, a variety of analytical tools and techniques are used
in organizational planning activity. Discuss. (25Marks)

 The delphi technic

 Jury of expert opinion
 Sales force composition
 Management by objective
 Brain storming
 Linear programing
 Queuing/waiting lines
 Game theory
 Forecasting
 Tim series
 Gantt chart

QUESTION THREE
In principle, organizing is the establishment of effective authority relationships among selected
work, persons and work places in order for the group to work together efficiently. Organizing is
also synonymous with dividing work into sections and departments. Nonetheless, a disagreement
between the classical principles of organizing and the organizing process is still unsettled. Explain
the above statement. (25Marks)

Principles of organizing

 Span of control
 Chain of command/scalar chain
 Unity of command
 Departmentalization

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  Management by exception
 Management by walking around

Organizing process

 Detailing of work
 Division of work
 Departmentalization
 Coordination
 Monitoring effectiveness
 Re-organizing

QUESTION FOUR
“All leaders manage, but not all managers lead” is a common saying to those who try to
detach the two functions. In line with the above statement, use practical examples from
organizations you are familiar with to;
(a) Distinguish between a leader and a manager (16Marks)
 Managers get things done so as to achieve organizational goals. They may do
these themselves or through people. Leaders on the other hand influence people.
They inspire them to perform certain tasks to achieve certain goals.
 Managers get their authority from their positions and they have legitimate
authority outside their pool and they don’t carry authority. Leaders don’t
necessarily get authority from positions leadership depends on one’s
personality.
 Managers follow order and they go by the order following existing instructions.
Leaders do without hierarchy.
 Managers have formal behaviors. They are driven to improving efficiency,
cutting costs and following procedures and the task is most important. Leaders
on the other hand focus on people and they have empathy and are more
interested in people than any other tasks.
 Managers want a predictable environment where there is stability, harmony and
maintenance of order. Leaders always want change, they are comfortable with

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 the unknown because they are always creative, imaginative and use their energy
to solve problems.
 Leaders think ideas while managers think execution. While a managerial
culture emphasizes rationality and control, leaders are more about looking for
opportunities for improvement on the organizational level. They do so by
coming up with new ideas and driving the shift to a forward-thinking mindset. In
other words, managers always look for answers to “how and when”, while
leaders look for answers to “what and why”.
(b) Explain the qualities for effective leadership (09Marks)
 Knowledge of self
 The leader must be real
 Good communication skills
 Empathetic
 Cooperative
 Confidence
 Technical and professional expertise
 Integrity
 Self-awareness
 Etc
QUESTION FIVE
Write short but comprehensive notes on the following;
a) Control systems (05Marks)

Pre-action Controls
These are the controls which are undertaken before an action. Like those ones required to
determine financial resources, raw materials, human resources. These controls Marjory control
inputs. Examples of these controls are the budget techniques, resource allocation techniques etc.

Concurrent/ Steering Controls

These are also refereed to as feed word controls. They are used during work to make sure that
work is performed according to designed procedures. These detect any deviations regarding set
goals. Example of such controls is observation

Screening/ rework Controls

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These are controls which set conditions after the first stage of operation before the second stage of
operation. At this level the infective products can be reworked upon.

Post action Controls

These are also referred to as feedback controls. These are controls for past actions which have
taken place. They control output. Example of such controls are; profitability, quality and quantity
techniques. Here performance of past actions is measured and corrective action takes place.

b) System 4 by Rensis Likert (05Marks)

 Exploitative authoritative leadership style; This is where decision making is solely
under taken by management. It emphasizes control with given order to subordinates by
the leader who is a dictator. Failure to meet the managers goals results in threats and
punishment, managers have little trust confidence in the subordinates and inform
subordinates fear managers.
 Benevolent authoritative; Management style in this case leader gives limited powers
to subordinates in decision making. Delegate authority to subordinates with close
supervision. Managers have some trust or confidence in the subordinate’s abilities;
subordinates who meet or exceed manager’s goals are rewarded
 Consultative leadership style; In this case leadership has trust and confidence of
subordinates abilities and skills. Managers sparingly have control or coercion.
Subordinate can make their own decisions above how to carry out their tasks.
 Participative leadership style; This is the ideal system which organizations should
work towards. Goals are set and work related decisions are made by the team. There is
free interaction between managers and subordinates

c) Rule of thumb and esprit de corps (05Marks)

Rule of thumb; application of traditional methods or the methods decided by the
manager based on his past experience. All these methods are often untested, un
scientific and do not guarantee specific results or outcomes
Espirit de corps; it’s a principle by Henri Fayol that states that an organization must
take every effort to maintain group cohesion/team spirit in the organization. All
employees must consider themselves members of the organization
d) Mintzberg’s managerial roles (10Marks)
 Entrepreneur
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 Disturbance handler
 Resource allocator
 Negotiator
 Liaison
 Leader
 Figure head
 Spokesperson
 Monitor
 Disseminator

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