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BMA501 Fundamentals Of Management

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Course Code: BMA501
University: University Of Tasmania

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Write your answer in the space provided or on a separate sheet of paper.
1) list and explain the four basic functions of management.
2) discuss the importance of innovation to the manager’s job. Give an example of a nontechnological innovation and the role manager’s play in innovation.
3) define entrepreneurship and discuss the three important themes that stick out in this definition of entrepreneurship.
4) list and discuss the four most significant ways in which culture is transmi????ed to employees. Include specific examples of each to support your answer.
5) identify seven external stakeholders with whom managers may have to deal.
6) Explain how the global economy creates both opportunities and threats for managers.
7) Define parochialism and explain its strength/weaknesses in a global economy.
8) Contrast multinational, multidomestic, global and transnational organisations.
9) lExplain how the global legal–political and economic environments affect managers.
10) Is globalisation good for business? For consumers? Discuss.
11) Describe three major regional trading alliances.
12) Define global sourcing, exporting, importing, licensing and franchising.
Describe the eight steps in the decision-making process.
13). Contrast programmed and non-programmed decisions.
14). Explain how managers can make effective decisions in today’s world.
15). Is there a difference between wrong decisions and bad decisions? Why do good managers sometimes make wrong decisions? Bad decisions? How can managers improve their decision-making skills?
16) define goals and discuss the differences and conflicts that exist between real and stated goals.
17) describe the various criteria on which organisations’ plans can differ. Next, provide a brief analysis of each criterion as it applies to organisational planning.
18) list and discuss six characteristics of well-designed goals.
19) list and discuss the five steps in the goal-setting process.
20) define project management and discuss the project management process.
21)  list and discuss three strategies where organisations might use e-business to gain a competitive advantage give examples of each. primarily insurance and transportation companies.
22)  list and discuss the three competitive strategies, according to Porter. Include specific examples of companies that pursue each of the three competitive strategies.
23)  discuss the concept of competitive advantage. Include specific examples of companies and their respective competitive advantages to support your answer.
24) list and discuss the five competitive forces, according to Porter, that determine industry attractiveness and profitability.
25)  discuss the Boston Consulting Group (BCG) matrix and explain its usefulness in segmenting businesses. Include a discussion of the characteristics for each of the four categories based on the BCG matrix.
26)  list and explain three corporate level strategies explaining under what circumstances they might be used.
27) list and discuss four ways in which company growth can be achieved by using the corporate level growth strategy. Include specific examples of each growth method to support your answer.
28)  list and discuss the six steps in the strategic management process.
29) describe what organisational behaviour is and what its goals are.
30) define six important employee behaviours that managers want to explain, predict and influence.
31) define attitudes. Next, list and discuss the three components of attitudes. Include an example of a statement that describes each component to support your answer.
32) define cognitive dissonance and discuss the three factors that affect how people cope with cognitive dissonance.
33) describe the attribution theory and discuss the three factors that determine externally caused behaviour based on the attribution theory.
34) define perception. Next, list and discuss the factors that shape and sometimes distort perception.
35) describe attribution theory, and the main factors which determine an attribution.
36) list and discuss four advantages and four disadvantages that group decisions have over individual decisions.
37)list and discuss the three types of conflict that have been found to differentiate functional from dysfunctional conflict.
38) list and discuss five characteristics that are associated with effective teams.
39) discuss the management of global teams as it relates to group structure.
40) explain the special attributes of the generation Y (Gen Y) workforce and why managers may need to provide particular attention to these attributes.
 41) explain the concept of motivation. Then identify and describe the three key aspects of motivation.
42) list and discuss the three-needs theory according to David McClelland. Next, identify which of these needs has been studied most extensively and discuss the findings of this research.
43) discuss job design and describe how a manager could utilise job scope, job enlargement, job enrichment and job depth to design motivating jobs.
44) list and discuss the five core dimensions that can describe any job according to the job characteristics model.
45)discuss the equity theory and list five probable behaviour responses that may occur when employees perceive an inequity.
46) discuss Victor Vroom’s expectancy theory and list and describe the three variables or relationships that support this theory
47)list and discuss four types of flexible working schedules that have been implemented by organisations as a response to the varied needs of a diverse workforce.
48) discuss the unique problems faced in trying to motivate professional employees, contingent workers and low-skilled, minimum-wage employees. Include a discussion of various methods that can be implemented to motivate these types of employees.
49)list and discuss six specific recommendations that should be followed when motivating employees
50)  list and discuss the seven traits associated with leadership.
51) explain Fiedler’s contingency model for leadership. Next discuss the least-preferred co-worker (LPC) questionnaire and the three key situational factors for determining leader effectiveness.
52) discuss the Situational Leadership® theory as developed by Paul Hersey and Ken Blanchard.
Next, list and discuss the four specific leadership styles and the four stages of follower readiness as defined by Hersey and Blanchard.
53)discuss the path-goal leadership theory developed by Robert House. Next, list and explain the four leadership behaviours based on the path-goal leadership theory.
54) discuss how visionary leadership differs from charismatic leadership. Include a discussion of the five characteristics of charismatic leaders and three qualities that are related to effectiveness in the visionary leader’s role.
55) list and discuss the four specific team leadership roles that focus on the priorities of the leader’s job.
56) list and discuss five sources of leader power identified by French and Raven. Include specific examples of each source of power to support your answer.
57) list and discuss six suggestions of how leaders can seek to build trust.
58) define trust and list and discuss the five dimensions that make up the concept of trust.
59) describe the results of the studies that focus on gender and leadership style.


Planning: It means taking business decisions in advance such as what to do and how to do to achieve desired goals.
Organising: It includes activities such as identifying business practices, classifying groups, assigning duties, delegation and coordination of responsibilities.
Staffing: Hiring right people for the right
Directing: Supervising activities of subordinates, leading, communicating and motivating them to achieve common organisational goals.

Managers can rely on an innovative approach to do things differently, taking risks and exploring new territories which enables them to find new business opportunities and methods to achieve common organisational goals. Nontechnological innovations, such as Steward Leadership approach, Corporate Social Responsibility and others, assist managers in focusing on purpose and engagement during business rather than threats and compensation. Managers play dual roles in managing innovation; firstly in bottomup role they stimulate innovative ideas from subordinates and secondly in topdown role they realise innovative goals and strategies.
Entrepreneurship is referred to willingness and capacity of a person to develop, organise and manage a business while dealing with its risks to generate a profit. Three key themes which stick out from the definition of entrepreneurship include pursuit of opportunities, innovation and growth. Entrepreneurs’ pursue new business opportunities based on innovative ideas, and they implement on them to achieve and sustain growth.

Stories: Narrative of significant events occurred in the company creates a positive and collaborative culture. For example, manages at Nike told stories about its past to explain its heritage and to celebrate things together.
Rituals: Corporate rituals performed in repetitive sequences express and reinforce values and culture in the company. For example, ‘cupcake welcomes kit’ for Dropbox’s employees or asking ‘why’ five times at Toyota to find out root cause of an issue.
Language: Use of language to identify procedures within the company unites members to create a positive culture. For example, Microsoft’s employees use unique vocabulary during the office.
Material symbols: It creates a degree of equality between employees which creates a positive culture. For example, a $2 drill symbolises organisational culture at WorldNow.


Local authority
Quality assessors


With the advancement of global economy, managers receive benefit of free trade which reduces barriers such as subsidies, tariffs, valueadded taxes and others.
Managers can target new customer base by expanding their operations in new countries easily.


Competition between enterprises increases with the expansion of global
Ageing population makes it difficult for managers to hire and retain talented employees.

7.Parochialism means viewing the world solely through own eyes without recognising other ways of living and working. It means selfish pettiness or narrowness. Strengths are that managers can focus on increasing efficiency at the workplace which benefits the company in achieving its goals and sustaining a competitive advantage. Weaknesses include hostile working environment, lack of connection with local employees, high retention rates and others.8.

Multinational organisations: Maintain its operations in multiple countries.
Multidomestic organisations: A MNC which decentralises its management and decisions to a local country.
Global organisations: A MNC which centralises its management and decisions in the home country.
Transnational organisations: A MNC which eliminates structural divisions that impose artificial geographic barriers and organised business lines which reflect a geocentric attitude.

9.Laws and political stability of a country affect the way a business is operated. Noncompliance with laws leads to legal consequences and managers have to pay fine or get punishment for noncompliance. Laws change with political parties, and they provide opportunities or threats to a business. Managers are also required to evaluate economic factors such as tax policies, currency exchange rates, and inflation rates.10.Globalisation is both good and bad for business. Good parts include open market, more opportunities, larger customer base, and increased ability of business expansion. Bad parts include intensification of competition, compliance with new business laws, and price and profit swings. Globalisation is good for customers because of factors such as lower prices, variety of products, high quality at lower price, and priority of customer satisfaction.11.

World Trade Organisation (WTO)
South Asian Association of Regional Corporation (SAARC)
North American Free Trade Agreement (NAFTA)


Global sourcing: The activity of sourcing from global market for finding most efficient manufacturing location.
Exporting: Selling goods and services to customers in other countries.
Importing: Bringing goods or services into a country for sale which is produced or manufactured elsewhere.
Licensing: A business agreement for allowing another corporation to manufacture products for specific payment.
Franchising: An agreement between parties which gives one party right to use trademark as well as business procedure to produce, market and sell goods and services.
Defining problem
Understanding strategic agenda
Identifying desired outcome
Establishing solution domain
Identifying alternative solutions
Establishing criteria for evaluation
Applying the tools

Programmed Decisions
Managers made these decisions in the past, and they focus with relatively routine problems in the business. Generally, these decisions are repetitive and structured. They are simple and have a smaller impact.
Nonprogrammed Decisions
These decisions involve scenarios which are new or novel, and for these scenarios, no proven s can be used as a guide. In these situations, managers take decisions which are new and tailored to the situation. They are complex and have longterm impact.

Understand cultural differences
Know when to stop
Spot the unexpected and adapt
Use effective decisionmaking process which includes

Focus on important factors
Logical and consistent
Both subjective and objective thinking
Only evaluate necessary information
Gathering relevant information
Straightforward, reliable, easy and flexible method

15.Yes, there is a difference. Humans make mistakes which constitutes a wrong decision. On the other hand, bad decision is made from incompetence, ignorance, and a weak ethical standpoint. Good managers made wrong decisions because it is a simple fact of life. They made bad decisions due to greed, discrimination, biasness, inflexibility or lost sight of the vision. To improve decisionmaking, managers should embrace diversity, comply with code of ethics, be flexible and take ownership of their choices.
16.A goal is referred to a measurable and observable end result which has one or more objectives to be achieved in a fixed or flexible timeframe. Stated goals include official statements made by organisations which they want their stakeholders to believe its goals are. On the other hand, real goals referred to such goals which organisations actually pursue. If these goals are far apart, then conflict arises in a corporation.
17.Organisations’ plan can differ on criteria such as revenue generation, organisational structure, service delivery and others. During the planning stage, organisational structure is decided by managers whether it should be hierarchical, flat, geographical or others. They also decide revenue generation methods whether it should be markup, arbitrage, licensing, commission or others. The mode of service delivery changed based on organisational requirements as well.



Defining the goals
Finding congruence
Performing ecology check
Developing a blueprint
Drawing up an action plan

20.Project management is referred to the act of initiating, planning, executing, controlling and executing a team’s work to achieve specific goals and meet specific criteria in specific timeframe effectively. Following is the project management process.

Initiation: Starting point of the project to gather details and prove eligibility of the project.
Planning: Paying detailed attention to the process of the project to avoid unpredictable and negative consequences.
Execution: Executing or performing the activities of the project to achieve its goals.
Control: Controlling the project activities by adhering to protocols such as communication, project and quality assurance test plan.
Evaluation: Evaluation of results to determine the success or failure of the project.

Ecommerce strategy: Organisations can use the internet to offer its products or services to wider range of customers. For example, Amazon offers its products and services across the globe which provides it a competitive advantage.
Customer engagement strategy: Engaging with customers and collecting their feedback online is an effective strategy. For example, Starbucks has made a positive brand image by interacting with its customers online, resolving their queries and collecting feedback.
Online marketing strategy: Companies can take advantage of online sources to market their products to a global audience. For example, Domino’s uses online marketing to spread information about its new products or offers to a wider audience.
Cost leadership strategy: Companies get an “edge” in sales over their competitors by increasing market share by reducing prices and increasing profits while reducing costs. Examples include WalMart, McDonalds and Southwest Airline.
Differentiation strategy: Differentiation of products or services to make them more attractive from competitors’ products by improving features, support, durability, functionality and brand image. Examples include Whole Foods and Airbnb.
Focus strategy: Corporations can use this strategy to focus on particular niche markets by understanding its dynamics and the unique needs of customers and by developing lowcost and wellspecified products for the market. Examples include PepsiCo, TOMS and Frog Box.
23.When a circumstance or factor puts a corporation in superior or favourable position than compared to its competitors, then it is called a competitive advantage. For example, Amazon has dominated the ecommerce market with services such as Amazon prime, sameday delivery and others. Apple Inc. has a competitive advantage due to high popularity of iPhone and its control over both hardware and software integration.

Competitive rivalry: Number of competitors and their strengths in the industry.
Supplier power: Suppliers ability to increase prices of their products.
Buyer power: Customers power to drive company’s prices down.
Threat of substitution: Likelihood of customers finding similar products or services
Threat of new entry: Competitors ability to enter into the market

25.BCG matrix is used by enterprises to analyse products as per their growth and market share by providing them growth rating and comparing them with the largest competitors over the next three years. It is useful for businesses to determine future profit margin to decide where to invest.

Stars: High growth and high market share products
Cash cows: Low growth but high market share products
Dogs: Low growth and low market share products
Question marks: high growth and low market share products


Growth level strategy: Suitable for establishing a value proposition and defining ideal customers and key
Diversification strategy: Suitable for limiting number of products and entering new markets.
Stability strategy: Suitable when the company reach its optimal market share to maintain market share.


By penetrating new market to increase sales. For example, Amazon opened Whole Foods Market Inc. to enter new
By developing market by expanding product range. For example, launch of cloud and music services by Apple Inc.
Through product expansion by adding new features or product line. For example, adding new products based on customer preference by McDonald’s.
Acquiring other successful business, for example, purchase of Marvel Studios and Fox by Disney.


Establishing vision
Analysing opportunities and threats
Analysing internet strengths and weaknesses
Conducting SWOT
Implementing the strategy
Strategic followup

29.Organisational behaviour studies groups and individuals in an organisation setting. Its goal is to describe, understand, predict and control human capital in the company.

Workplace misbehave
Organisational citizenship behaviour
Job satisfaction

31.Attitude is referred to a person’s way of feeling and thinking about something which influences his/her choice of action, response to challenges, rewards, and incentives. Components of attitude include affective, behavioural and cognitive. For example, I feel scared of a snake when I think or see it.32.Cognitive dissonance is a field of psychology which is referred to a mental discomfort which is experienced by people who hold two or more contradictory value, beliefs or ideas. Three factors based on which people cope with cognitive dissonance include anxiety, procrastination and telling white lies.
33.The attribution theory provides that people try to understand the behaviour of others by attributing various factors to them such as intentions, beliefs and feelings. Factors while determine externally caused behaviour include effort, luck and ability.
34.Perception is referred to people’s ability to become aware by seeing or hearing through their senses to understand the way something is regarded or understood. Factors which shape or distort perception include attitudes, interests and expectation.
Same as 33

Evaluation of more information
Diversity of views
Expert opinions
Greater acceptability


Lack of onus
Individual domination
Compromise decision


Conflict regarding improvement of working condition which is accomplished by finding solutions together
Conflict between groups to make innovations and improvements in the company
Awareness regarding the issues faces by both sides


Emotional intelligence
Great leadership
Mix of introverts and extroverts
Proactive communication
Sharing of same stories


Evaluations of difference in culture
Promoting participation of members in decisionmaking
Effective communication channels



Evaluation of these attributes assists managers in understanding needs of GenY employees which enable them to build strong relationship and motivate them to achieve their targets.
41.Motivation is referred to both intrinsic and extrinsic factors which result in stimulating energy and desire in people to commit to their job, subject or role and make efforts for attaining certain goals. Three aspects of motivation include direction, intensity and persistence.
42.McClelland provided in his research that specific needs of people are acquitted over time, and they are shaped by their life experiences which can be classified into three categories including achievement, affiliation or power. The needs for achievement studied most extensively which are the most important needs as per McClelland which is effective for economic progress of a nation.
43.Job design is a function relating to human resource management which focuses on specification of relationship, contents and methods of jobs for satisfying organisational and technical requirements along with social and personal needs of a job. Choosing right employees for right job provides them growth opportunities and managers can continuously challenge workers to perform better through factors such as job enlargement, scope, enrichment, and depth.

Skill variety
Task identity
Task significance

45.Equity theory assists management in identifying balance between inputs (effort) and outputs (income) of employees. It assists in evaluating whether distribution of resources is fair in an organisation. Probable behaviour response from employees in case of inequity includes:

Leaving early
Complaining to superiors

Expectancy theory provides that motivation of employees is based on three factors including valence, instrumentality and expectancy. It assumes that behaviour of employees is result of conscious choices made by employees to maximise pleasure and pain. Three variables include expectancy, instrumentality and valence.

When a person would work (flexible timing)
Where one works (location of work)
How much one works (workload)
Continuity of work (short or longterm breaks)

Professional employees have longterm commitment to their field, thus, they are not motivated by monetary rewards. Contingent workers seek stability/security, thus, managers are required to show their commitment towards these employees to motivate them. Lowskilled employees are motivated by monetary and other financial rewards rather than intrinsic factors. Managers should implement the ‘hierarchy of needs’ theory to evaluate needs of different employees and motivating them.

Rewarding great work
Creating a welcoming environment
Surprising staff members
Investing in training
Communicating with team members
Leading by giving examples



51.Fiedler’s Contingency Model is based on personality and characteristics of leaders. It provides that there is no best style of leadership; instead, the effectiveness of leadership is based on situation. Leastpreferred coworker (LPC) questionnaire evaluates people who employees are least enjoyed to work with. If a leader scores high, then he is like to be a relationshiporiented leader whereas a low score denotes a taskoriented leader. Factors which determine leadership effectiveness include position power, leadermember relations and task structure.
52.Situational leadership provides that effective leadership is based on situations and there is not one best leadership approach which applies to every situation. A successful leader adopts as per situations to achieve his/her goals based on various factors such as experience, education and responsibility.
Four leadership styles include:
Authoritarian: These leaders emphasis on power and decisionmaking to achieve organisational goals.
Paternalistic: These leaders evaluate employee needs and establish a parent/child relationship.
Democratic: These leaders provide power to a group and employees are welcome to participate in decisionmaking
Laissezfaire: These leaders put little input and believe in delegating powers
53.Pathgoal leadership theory focuses on specifying a leader’s behaviour which is suitable for employees and organisational environment to achieve corporate goals. The four leadership behaviour includes:

Directive: Leaders give directions to employees regarding how they should behaviour, control and perform their tasks
Supportive: Leaders behaviour friendly while showing concern for employees’ needs.
Participative: Leaders promotes group decisionmaking and share crucial information with subordinates.
Achievementoriented: Leaders provide challenging objectives for employees and encourage them to reach their peak performance.

54.Visionary leaders have an idea regarding how to motive employees and promote them to achieve organisational targets. The vision could be religious in which they provide a way for their follower to fulfil the purpose of life. Charismatic leaders are people who gain followers based on their personality traits. These leaders are charming, and they use their traits to make individuals like them and to do tasks in order to achieve organisational goals.
Characteristics of charismatic leaders:

Listening skills

Qualities of visionary leaders:

Strategic planner
Good communicator


Analyse: Ability to analyse data which is logical and reasonable to put ideas for the team
Structure: Ability to structure a plan which makes sense to the entire team and which define the process for working with the team
Connection: Connecting to team members and engaging with them
Conception: Setting the vision for the team and company’s future

Coercive: Forcing someone to act against their will, for example, establishing rules or policies in the company for actions of employees
Reward: It is opposite of coercive power in which leader motives employees to improve their performance through promotion, increasing pay, additional facilities and others.
Legitimate: It comes from higher authorities, and managers get power due to their position.
Expert: These powers came from knowledge and skills and based on such power expert influences another person’s behaviour.
Referent: It is referred to personal powers of leaders relating to charisma and personality. It is based on each leader individually.

Being honest and supportive
Building accountability
Recognising that building trust takes hard work
Being honest and supportive
Being consistent
Committing to follow through

58.Trust is referred to firm belief in the truth, reliability or ability of someone or something; trust in organisations lead to innovation and better outcomes. Five dimensions of trust include:


59.Studies regarding gender and leadership style provide that male leaders tend to be more taskoriented whereas female leaders are more relationshiporiented. Studies have proven that women employ a more participative and democratic style, whereas, men take directive or autocratic approach.

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