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Business Management

Sample Paper 1

2016/17 Questions and Suggested Solutions

of 25 Business Management Sample Paper 1

NOTES TO USERS ABOUT SAMPLE PAPERS

Sample papers are published by Accounting Technicians Ireland. They are intended to provide guidance

to students and their teachers regarding the style and type of question, and their suggested solutions, in

our examinations. They are not intended to provide an exhaustive list of all possible questions that may

be asked and both students and teachers alike are reminded to consult our published syllabus (see

www.AccountingTechniciansIreland.ie) for a comprehensive list of examinable topics.

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 only correct approach,

particularly with discursive answers. Alternative answers will be marked on their own merits.

This publication is copyright 2016 and may not be reproduced without permission of Accounting

Technicians Ireland.

© Accounting Technicians Ireland, 2016

http://www.accountingtechniciansireland.ie/


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).

If more than the requisite number of questions are answered, then only the requisite number, in the

order filed, will be corrected.

Candidates should allocate their time carefully.

Answers should be illustrated with examples, where appropriate.


Question 1

(a) Human Resource Management (HRM) deals primarily with the following functions:

Human Resource Planning

Recruitment/Downsizing & Selection

Employee Induction, training and development

Performance Appraisal

Describe, in detail, any two (2) of the four primary functions above.

(16 marks)

(b) Outline the role of the IT function in an organisation.

(9 marks)

Total: 25 Marks

Question 2

(a) Define Marketing. (5 marks)

(b) The “Ansoff growth matrix” assists organizations to map strategic product market growth.

Draw a diagram to illustrate the Ansoff matrix and use this to outline any two (2) of the

four strategies available to an organisation. (12 marks)

(c) Write a short explanatory note on any two (2) of the following;

Social media marketing

Search Engine Optimization (SEO):

Search Engine marketing (SEM):

Content marketing

Email marketing


SMS marketing

Video marketing/video infographics (8 marks)

Total: 25 Marks

Question 3

(a) Describe Weber’s theory of management and bureaucracy. (13 marks)

(b) Describe the THREE (3) key objectives AND THREE (3) key benefits of environmental

scanning. (12 marks)

Total: 25 Marks

Question 4

You have recently been promoted to a managerial position in your organization. Some friends

have advised you that communications will be important in your new role.

(a) Illustrate the Communications process.

(5 marks)

(b) Describe the barriers to communication that a manager can face.

(10 marks)

(c) Describe how managers can overcome these communication barriers.

(10 marks)

Total: 25 Marks


Question 5

(a) Workplace diversity comes in several forms. Explain the term workplace diversity

and list any TWO (2) forms that it may come in. (7 marks)

(b) Outline THREE (3) benefits of workplace diversity (6 marks)

(c) Outline THREE (3) challenges of diversity in the workplace (6 marks)

(d) Recommend THREE (3) diversity in the workplace solutions. (6 marks)

Total: 25 marks

Question 6

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

the modern business world.

(a) Describe the term ‘code of ethics’.

(5 marks)

(b) Describe the SIX (6) stages of moral development.

(12 marks)

(c) Describe the term ‘social responsibility’.

(8 marks)

Total: 25 Marks

REMINDER TO STUDENTS – You are required to answer FOUR questions in total. Make sure

that you have completed the required number of questions.


Suggested Solutions

DRAFT ONLY

SECTION A

Question 1

Human Resource Planning 16 marks

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 behavior. 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 •

(2 x 8 marks)


(b) Information Technology; It would be difficult to think of a business role that does not

involve the use of computers. Technology assists in the management of HR, in the finance

function, with sales and marketing and just about any role in business can be automated to a

point. Computers abound in offices and shops, factories and homes to the point that they are

common place today. The government is committed to bringing high speed broadband to all

primary schools in Ireland, and most homes in Ireland are connected to the internet. In business

terms, it is expected that computer technology will become more pervasive and there is pressure

on all organisations to automate more and more processes. With this is mind, it is critical to

have a working knowledge of the uses of both Information Technology (IT) and Information

Systems (IS) in a business context. The internet is a growing influence as organisations today

need both an online and off line presence. Cloud computing and social networking are the latest

in a line of technological developments that affect businesses. The financial sector is a clear

example of change; more and more processes are automated as online banking flourishes, and

companies are increasingly using social networking sites, such as Facebook and Twitter, to

reach out to customers. Chapter 1: Functional Areas of Business 11 Business Management

Information technology provides a valuable source of competitive advantage and allows

organisations to integrate their core functions to create efficiencies and reduce costs. For

example, many financial institutions use highly complex IT systems to analyse and predict

stock market trends and outcomes; similarly the educational sector has moved to embrace

online and blended learning. 9 marks

Question 2

(a) Kotler defines marketing as; ‘the science and art of exploring, creating, and delivering value

to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and

desires. It defines, measures and quantifies the size of the identified market and the profit

potential. It pinpoints which segments the company is capable of serving best and it designs and

promotes the appropriate products and services. (http://www.kotlermarketing.com/phil_

questions.shtml#answer3) 5 marks


(b)

The Ansoff Matrix has four alternatives of marketing strategies; Market Penetration,

product development, market development and diversification.

(An explanation of any TWO of these is required; examples below)

Market Penetration

When we look at market penetration, it usually covers products that are existence and that

are also existent in an existing market. In this strategy, there can be further exploitation of

the products without necessarily changing the product or the outlook of the product. This

http://www.ansoffmatrix.com/market-penetration.html


will be possible through the use of promotional methods, putting various pricing policies

that may attract more clientele, or one can make the distribution more extensive.

In Market Penetration, the risk involved in its marketing strategies is usually the least since

the products are already familiar to the consumers and so is the established market. Another

way in which market penetration can be increased is by coming up with various initiatives

that will encourage increased usage of the product. A good example is the usage of

toothpaste. Research has shown that the toothbrush head influences the amount of

toothpaste that one will use. Thus if the head of the toothbrush is bigger it will mean that

more toothpaste will be used thus promoting the usage of the toothpaste and eventually

leading to more purchase of the toothpaste.

Product Development

In product development growth strategy, new products are introduced into existing

markets. Product development can differ from the introduction of a new product in an

existing market or it can involve the modification of an existing product. By modifying the

product one would probably change its outlook or presentation, increase the products

performance or quality. By doing so, it can appeal more to the already existing market. A

good example is car manufacturers who offer a range of car parts so as to target the car

owners in purchasing a replica of the models, clothing and pens.

Market Development

The third marketing strategy is Market Development. It may also be known as Market

Extension. In this strategy, the business sells its existing products to new markets. This can

be made possible through further market segmentation to aid in identifying a new clientele

base. This strategy assumes that the existing markets have been fully exploited thus the

need to venture into new markets. There are various approaches to this strategy, which

include: New geographical markets, new distribution channels, new product packaging, and

different pricing policies. In New geographical markets, the business can expound by

http://www.ansoffmatrix.com/product-development.html

http://www.ansoffmatrix.com/market-development.html


exporting their products to other new countries. It would also mean setting up other

branches of the business in other areas that the business had not ventured yet. Various

businesses have adopted the franchise method as a way of setting up other branches in new

markets.

A good example is Guinness. This beer had originally been made to be sold in countries

that have a colder climate, but now it is also being sold in African countries. The other

method is via new distribution channels. This would entail selling the products via e-

commerce or mail order. Selling through e-commerce will capture a larger clientele base

since we are in a digital era where most people access the internet often. In New Product

packaging, it means repacking the product in another method or dimension. That way it

may attract a different customer base. In Different pricing policies, the business could

change its prices so as to attract a different customer base or so create a new market

segment. Market Development is a far much risky strategy as compared to Market

Penetration. This is so as it is targeting a new market and one may not quit tell how the

outcome may be.

Diversification

The last strategy is Diversification. This growth strategy involves an organization

marketing or selling new products to new markets at the same time. It is the most risky

strategy among the others as it involves two unknowns, new products being created and the

business does not know the development problems that may occur in the process. There is

also the fact that there is a new market being targeted, which will bring the problem of

having unknown characteristics. For a business to take a step into diversification, they need

to have their facts right regarding what it expects to gain from the strategy and have a clear

assessment of the risks involved.

There are two types of diversification. There is related diversification and unrelated

diversification. In related diversification, this means that the business remains in the same

http://www.ansoffmatrix.com/diversification.html


industry in which it is familiar with. For example, a cake manufacturer diversifies into a

fresh juice manufacturer. This diversification is in the same industry which is the food

industry. In unrelated diversification, there are usually no previous industry relations or

market experiences. One can diversify from a food industry to a mechanical industry for

instance.

A good example of the unrelated diversification is Richard Branson. He took advantage of

the virgin brand and diversified into various fields such as entertainment, air and rail travel

foods etc. Another example is the easy jet which has diversified into car rentals, gyms, fast

foods and hotels. Though diversification may be risky, with an equal balance between risk

and reward, then the strategy can be highly rewarding. Another advantage of diversification

is that in case one business suffers from adverse circumstances the other line of businesses

may not be affected.

Analysis Paralysis

Some schools of thought believe that the use of strategic management tools such as the

Ansoff Matrix can result in an overuse of analysis. In fact, Ansoff himself thought about

this and it was he who first mentioned the now famous phrase "paralysis by analysis".

Make sure that you do not fall victim to procrastination caused by excessive planning.

(http://www.ansoffmatrix.com/) 12 marks

(c) Write a short explanatory note on any two (2) of the following; (2 x 4 marks)

Social media marketing: this has risen hugely in popularity and there are now countless

dedicated agencies scattered around the web which promise to help with it. Facebook,

Twitter, Pinterest and LinkedIn are all examples of social networks which can be used

as a part of your marketing efforts, although they are far from the only ones.

Social media marketing allows two-way communication between a company and consumer in a

way that wasn’t previously seen and it’s safe to say that it has changed business approach to

marketing as now, the consumer holds the power.

http://www.ansoffmatrix.com/


It’s also based on one of the most effective forms of advertising; word of mouth.

Social media means that communication can be a lot more targeted and personalized than other

forms of marketing, as companies get the chance to receive feedback from customers daily.

It’s also useful for making content ‘go viral’, something which can help to strengthen a brand

very quickly. It’s brand personality that makes social work so well, as if this is done correctly,

across the board, then it can boost engagement considerably.

Search Engine Optimisation

Search Engine Optimization (SEO): is a means of optimizing the content of a website in

order to gain better placement on the Search Engine Results Page (SERPS). A variety

of techniques are employed to achieve this and it’s not a job for amateurs really as there

are many pitfalls that could have Google frowning on your site.

SEO includes:

Keyword research and usage, on-page and off (within HTML)

Link building /outreach blogging

Content delivery

Site structure

Analytics

This is not an exhaustive list, but it does give an indication of how much work is necessary in

order to optimize a site.

Search Engine Marketing

Search Engine marketing (SEM): is similar to, but incorporates, SEO and uses many of

the same techniques as a part of that. The main difference between the two terms is that

SEM also includes paid online advertising models, such as pay-per-click (PPC).

http://www.wikihow.com/Improve-Your-Chances-of-Going-Viral


PPC advertising models are those such as Google Adwords and Bing, which only require

payment when the ad is clicked through to the target website. SEM also requires keyword

analysis as the words and phrases used in the ad and site and these need to be monitored

carefully to reflect the market and current search engine rules.

Whilst it can be said that SEM encompasses all kinds of digital marketing, it’s more commonly

thought of in a narrower niche, to describe paid models.

Content Marketing

Content marketing: is a technique where content is produced and distributed with the

intention of providing relevant, interesting content to attract and engage a particular

audience that a business is targeting. The creation of useful content is a way of

developing communication with the customer in order to drive engagement and

customer action. Content can mean anything from blogs to videos and whitepapers tend

to work well using content marketing techniques too. The goal is to win customer

loyalty and retain it.

Email Marketing

Email marketing: remains a very effective tool, despite claims that it isn’t as important

as social these days. Modern email marketing is just beginning to evolve so that it can

be linked to a database in order to personalise it, so that individual groups of customers

can be sent mail based on previous purchases and interests.

SMS marketing: is also highly effective and rising in popularity, due to the fact that

many of us no longer go anywhere without our cell phones. This ‘always-on’ aspect

means that when SMS marketing is used, it’s highly likely that the customer will at

least read the text.


Video marketing/video infographics: is again becoming hugely popular and it’s likely

that we’ll see an even bigger move in its direction this year as more and more

businesses begin to recognise the potential it has. People take in more information when

watching video and are more likely to engage, so it’s certainly worth looking at.

Whilst image-based infographics are already hugely popular, making these in the form of a

series of frames for video is beginning to really take off in the digital marketing space too.

SECTION B

Question 3

Describe Weber’s theory of management and bureaucracy (13 marks)

Weber’s Theory Born in Germany, Max Weber (1864-1920) trained as lawyer but later turned

his attention towards the emerging discipline of sociology. Aside from his work in the field of

the sociology of organisations, he wrote widely on religion and on the development of

capitalism. Weber’s particular concern, was how authority is exercised in large organisations.

To him, the essence of effective and democratic management was bureaucracy. Though the

term ‘bureaucracy’ has taken on a negative connotation of late, in Weber’s view bureaucracy

was beneficial. This is because bureaucracy helps to avoid managerial abuses, particularly

nepotism and favouritism. Like Fayol, therefore, Weber has to be seen as a product of his times.

Then (the late 19th century) there was no written knowledge as to how firms should be run.

Managers ruled by decree, commanding employees and showed little concern for human needs.

What was needed, according to Weber, was a set of rules that would ensure that managers

operated efficiently, competently, and fairly — in short, bureaucracy. To Weber, bureaucracy is

an intelligent and democratic way of running businesses with a system of rules at its core.

Weber’s main academic interest was in authority: where did it come from and how should it be

used?


He suggested there were three main categories of authority; these are listed in the next table.

Rational Legal authority was the type of authority that Weber believed should be used in

organisations. Weber’s Categories of Authority Traditional Authority Leadership and power are

bestowed on individuals simply because this is the way it has always been done. Charismatic

Authority This is a type of authority based on the personality of the person.

Rational-Legal Authority He created this term to describe authority based on one’s position.

Each job has its own specific and individual level of authority that goes along with it. Rational-

legal authority was linked to bureaucracy. For Weber the ideal organisation was a bureaucracy

based on rules rather than personal connection which would offer technical superiority. As a

result of his focus on authority, he also suggested that decisions should be formulated and

recorded in writing; that officials should be separated from company ownership; that

appointment to jobs should be based on technical competence and that a person had no rights to

a particular post, that there should be a hierarchical arrangement of offices and specialisation of

work. In summary there should be rules.

These features, Weber went on to argue, would mean that a bureaucratic organisation was

capable of attaining the highest degree of efficiency and was, in that sense, the most rational

way of controlling people.

Bureaucracy is not without its problems. Though originally perceived as the democratic solution

to managing large organisations, bureaucratic organisations tend to take on a meaning of their

own. As a result, most large organisations nowadays, including the Irish civil service, are

implementing plans to de-bureaucratise.

(b) Describe the THREE (3) key objectives AND THREE (3) key benefits of environmental

scanning 12 marks

Key Objectives (3 x 2marks)

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.

Key Benefits (3 x 2 marks)

Provides a better general awareness and responsiveness to a dynamic business

environment.

Improves strategic planning as the firm has acquired relevant information pertaining to

its industry.

Enables the organisation to be more effective in dealing with its customers.

Improves market analysis and resource allocation.

Question 4

(a) Communication requires a purpose, expressed as a message conveyed between a source (the

sender) and a receiver. It is encoded and is passed by some medium to the receiver, who re-

translates the message initiated by the sender. The result is a transference of meaning from one

person to another. Candidates should illustrate the process with a diagram similar to the one

shown in the core text. 5 marks

(b) A number of interpersonal and intrapersonal barriers affect the decoding of a message.

Filtering The deliberate manipulation of information to make it appear more favourable to the

receiver.


Selective Perception Receiving communications on the basis of what one selectively sees and

hears depending on his or her needs, motivation, experience, background, and other personal

characteristics.

Information Overload When the amount of information one has to work with exceeds one’s

processing capacity.

Emotions How the receiver feels when a message is received. Language Words have different

meanings to different people. Receivers will use their definition of words being communicated

Gender How males and females react to communication may be different, and they each have a

different communication style.

National Culture Communication differences arising from the different languages that

individuals use to communicate and the national culture of which they are a part.

10 marks

(c) How Can Managers Overcome Communication Barriers?

Use Feedback Check the accuracy of what has been communicated – or what you think you

heard.

Simplify Language Use words that the intended audience understands.

Listen Actively Listen for the full meaning of the message without making premature judgment

or interpretation – or thinking about what you are going to say in response.

Constrain Emotions Recognise when your emotions are running high. When they are, don’t

communicate until you have calmed down.

Watch Nonverbal Cues Be aware that your actions speak louder than your words. Keep the two

consistent.

Feedback; Many communication problems can be directly attributed to misunderstandings and

inaccuracies. These problems are minimized if the manager uses the feedback loop. Feedback

can be verbal or nonverbal.


Because language can be a barrier, managers should choose words and structure their messages

in ways that will make those messages clear and understandable to the receiver.

Effective communication is achieved when a message is both received and understood. Jargon

can facilitate understanding when it is used within a group of those who know what it means,

but it can cause innumerable problems when used outside that group.

10 marks

SECTION C

Question 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 (3 x 2 marks)

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:

s

(c) Challenges of Diversity in the Workplace (3 x 2 marks)

Taking full advantage of the benefits of diversity in the workplace is not without its

challenges. Some of those challenges are:

change

- This can be the overriding challenge

to all diversity advocates.


- A strategy must be created and

implemented to create a culture of diversity that permeates every department and function of the

organisation.

(d) Recommended diversity in the workplace solutions include: (3 x 2 marks)

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.

Question 6

(a) Describe the term ‘code of ethics’ 5 marks

A code of ethics is a formal statement of an organisation’s primary values and the ethical rules

it expects employees to follow. In addition, decision rules can be developed to guide managers

in handling ethical dilemmas in decision making. The variables are included in the three content

categories found common to various corporate codes of ethics.

(b) Describe the six (6) stages of moral development. 12 marks

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

2015). Candidates should describe the elements as detailed in the figure on page 179 in the core

text.


(c) Describe the term Social responsibility 8 marks

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.

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