PPQ - INTERNAL - management theory

Question 1

2022 - Describe McGregor’s theory X approach to management. (4 marks)

Answer 1

• Employees are believed to: avoid responsibility, shy from work, adopt a blame culture, resist change
• suggests a classical management approach where employees are viewed as machines
• assumes autocratic leadership style/little to no involvement in decision making
• believes employees need to be controlled and directed

Question 2

2021 - Evaluate the possible challenges with the methods BMW Group uses to encourage a committed workforce. (6 marks)

Answer 2

• above-average salaries – increased wage expenses/outgoings for BMW
• continuous training – may lower productivity if staff are constantly training
• talent-scouting and high-potential programmes – there may not be enough internal promotion opportunities to allow staff to progress once trained so they leave
• flexible working – hard to organise staff training if not all in the workplace at the same time
• sabbatical – may be difficult to find cover staff so may not be granted to all staff
• teleworking – may be very distracting for employees if working from home

Question 3

2021 - Discuss the costs and benefits of scientific management. (10 marks)
Costs

Answer 3

• specialisation of work can de-skill staff making the workforce inflexible
• views workers like machines and therefore does not empower or motivate them
• employees are not only interested in financial incentives and a failure to acknowledge this can lead to a high staff turnover
• lack of involvement or discussion with employees can result in the firm missing valuable feedback and idea generation from an operational level
• authoritarian management and organisation structure may lead to employee stress

Question 4

2019 - Discuss the findings of Elton Mayo’s Hawthorne Experiments. (4 marks)

Answer 4

• when staff were given attention from managers their productivity improved
• productivity improved when physical conditions were changed
• workers enjoy social aspects of working in groups
• workers may be influenced more by informal groups than official leaders

Question 5

2021 - Discuss the costs and benefits of scientific management. (10 marks)
Benefits

Answer 5

• division of labour increases productivity with cost efficient use of resources
• time and motion studies help to eliminate waste in the processes
• hierarchical structure provides promotion opportunities which motivate staff
• little upward communication may quicken decision making as there is less consultation
• scientific management believes finance is the primary motivator, so commission and bonuses are often used as rewards to motivate staff

Question 6

2017 - With reference to Mintzberg, explore the impact of the different roles of a manager on an organisation. (10 marks)

Answer 6

• Figurehead – the CEO is the role model of the company and represents the firm out with the company. - A strong figurehead can lead to beneficial PR and media attention
• Leader – to inspire and motivate employees - A strong leader can instil loyalty from the workforce/may reduce staff turnover
• Liaison – builds and maintains relationships and communication channels - Power of persuasion can lead to lucrative business deals and opportunities
• Monitor – supervisory role, checking progress to ensure plans are on target - The workforce will be more productive if the manager is checking if work is being done
• Disseminator – distribute and convey information to relevant bodies in the organisation - Reduces confusion and stress from staff if communication is clear and often

Question 7

2018 - Describe the contingency theory of management (4 marks)

Answer 7

• tries to get the best fit between task, people and environment.
• states that no single ideal method of management exists - best approach will depend on the variables (contingencies) that must be considered.
• each situation and organisation is unique and management must be tailored accordingly to achieve maximum organisational effectiveness.
• management must be flexible and adapt to all circumstances

Question 8

2018 - Explore the relevance of contingency theory of management to UK organisations today. (6 marks)
Part 1

Answer 8

• managers must be flexible and decide what to do in various circumstances in a rapidly changing environment that exists today.
• organisations need to ensure they match suitable managers to relevant areas of work – in informal situations a relationship manager is better suited whereas in a formal situation a task orientated manager is more suited.
• Organisational structures can have a direct impact on employee relations making contingency theory highly relevant in modern day business where a flat structure with less supervision enhances employee relations.

Question 9

Explore the relevance of a classical management approach to modern business practice (10 marks)
Part 1 - general description

Answer 9

• Classical MGT viewed organisation as a machine and tried to make it efficient
• Suggested workers were motivated by money
• Suggested there was a best way to perform tasks to maximise workers’ efficiency
• Aimed to achieve standardisation by dividing jobs into small tasks

Question 10

Explore the relevance of a classical management approach to modern business practice (10 marks)
Part 2 - modern use

Answer 10

• Classical management is still used in manufacturing industries which standardise processes to remove inefficiencies - McDonalds standardisation
• Division of labour can maximise output by using resources efficiently and is used by many labour intensive production facilities - most firms prefer flexibility to avoid boredom
• Piece rate payment is still used in industries which require a quick rate of output (agriculture) - now that financial times easier than in Taylor’s day, most employees not only financially motivated

Question 11

2018 - Explore the relevance of contingency theory of management to UK organisations today. (6 marks)
Part 2

Answer 11

• Inexperienced or new workers may require a more directed approach however experienced staff can be empowered and a manager must adapt to accommodate this.
• Organisation which combine production and service may adopt different approaches in each area as production will be suited to elements of classical management whereas service sector uses a more human relations approach allowing employees to work in teams and be empowered.
• The increase of global online competition from the rise of e-commerce sales in retailing means organisations need to develop a flexible structure to respond to rapidly changing markets.