CAIE A-Level Business AS 2.3 Management Questions

Practise applying manager functions, roles, styles and Theory X or Y assumptions to analyse workforce and performance effects and evaluate which managerial priority fits the case.

Exam points

identify a planning, organising, directing or controlling function and apply it to the decision
analyse how a management style or Theory X/Y assumption affects employees and performance
evaluate the most important manager role using the organisation's people, task and objectives

Covered syllabus points

2.3.1—Managers and management

[Maximum number: 1]

Direct News (DN)

Shila and Lucy own and manage DN, an online publishing business. DN produces a daily online local newspaper called QNews. Readers pay a subscription to access QNews. DN's mission statement is: 'to be a daily community newspaper for local people, about local people'.

DN recently tested a monthly online magazine aimed at the 18-30 age group called QLine. DN's plan is to stop publishing QNews and produce only QLine. Secondary market research suggests QLine will be popular with national businesses wanting to promote their products.

Shila is aware that revenue from online newspapers is decreasing. However, she has found national market research data about online monthly magazines (see Table 2.1).

Table 2.1 National revenue for online monthly magazines

Shila thinks that before the business decides to produce QLine, more market research data will be needed. Shila and Lucy will have to decide on new objectives for DN.

To ensure a quality product that meets customer expectations, Lucy thinks it is important to have careful management of the supply chain, from content creation to customer delivery.

Identify one function of a manager.

[Maximum number: 1]

Samira's Whiteboards (SW)

Samira left school at the age of 18 in country H . She had a small amount of savings and an idea to create a flexible, removable and reusable whiteboard. Samira created a prototype and received small orders from local retailers.

A local manufacturer batch produces stock when required. There is a two-week lead time for a minimum order of 500 units. Samira started to sell her whiteboards on her website and at trade shows. She has been trading for seven months. She has good cashflow but little working capital as production costs are high.

Samira has heard that OS, a large business that sells office equipment, is planning to sell their own version of Samira's whiteboard. She is keen to increase production quickly to take advantage of being first to market. However, Samira's manufacturer cannot supply enough product to meet the growth in potential demand for whiteboards.

Fig. 1.1 shows an inventory control chart for the first seven months of trade.

Lara, a venture capitalist with experience of manufacturing, has approached Samira about making an investment. She would invest $ 100000 to build a local mass production facility for SW. The facility would have a maximum output of 50000 units per month. Lara wants to own 40% of the business.

Identify one traditional function of a manager.

[Maximum number: 8]

Analyse two benefits to the workforce of McGregor's Theory X management.

Analyse two benefits to the workforce of McGregor's theory X management.

There are 8 marks in total for Q5(a) - 4 marks for each of the two benefits to the workforce of McGregor's Theory X Management:

1 mark for □

1 mark for

2 marks for □

Indicative content

Responses may include:

AO1 Knowledge and understanding

1 mark for identifying one benefit to a workforce of McGregor's theory X management

- Theory X takes the position that employees are reluctant to change and that they require significant external motivation from their managers to complete their work.

- Employees dislike work and avoid it where possible.

- Employees will avoid responsibility and are not creative

- When staff are motivated only by money

- Employees know exactly what is required of them

- Some employees thrive under an authoritative management style

- Employees can focus on achieving goal

- Some employees may not have the skills

- No room for ambiguity

- Benefit new starters or people with lack of experience

- Employees may not want to make decisions in a crisis

- Close supervision can motivate some workers

5(a)

AO2 Application

1 mark for application/explanation of one benefit to a workforce of McGregor's theory X management

- Can benefit employees who are motivated by money - to achieve targets

- Employees know exactly what is required of them - so can complete work set

- Some employees thrive under an authoritative management style - perhaps if new to a job

- Employees can focus on achieving goal - so they achieve it

- Some employees may not have the skills - to take on more responsibility

- No room for ambiguity - as roles are clear

- Can benefit new starters or people with lack of experience - who need a lot of guidance

- Employees may not want to make decisions in a crisis - and can rely on the manager to do this

- Close supervision can motivate some workers to work more quickly - as they may naturally be lazy

AO3 Analysis

2 marks for developed analysis of one benefit to a workforce of McGregor's theory X management L2 □

1 mark for limited analysis of one benefit to a workforce of McGregor's theory X management L1

- If employees are motivated by money - theory X may enable targets to be met and subsequent financial rewards.

- Lazy employees are more likely to be kept on track - so less likely to face disciplinary/performance issues

- Removes the stress of having to make decisions (in a crisis) - so better able to cope at work

- Being able to complete work set - means they meet targets set by managers

- Newer employers are able to settle into job faster - might not leave

- Not given additional responsibility - so don't feel overburdened

Accept all valid responses.

All question bank results loaded

Covered syllabus points

Question 1

Question 2

Question 3