CAT I-EMG 2512 IndustrialManagement-Marking Scheme

7/24/2019 CAT I-EMG 2512 IndustrialManagement-Marking Scheme

1/4

Multimedia University of Kenya

University Examinations: Second Semester, Fifth year December, 20!

"#$ % & EM' 2!2 %(DUS$)%#* M#(#'EME($&Mar+in Scheme

Instructions to Candidates: Answer question any TWOQuestions

Q1. a)Discuss the five important decisions which management of an industry has to

take when developing an advertising program. (10marks)

b)Define budget and Outline the different budgeting methods used by organizations.(6marks)

c) hat are the advantages and disadvantages of being an !ntrepreneur? (4marks)

a- %m.ortant decisions ta+en by manaement /hen develo.in an advertisin .roram:

i) Setting advertising objectivesii) Setting advertising budget

iii) Developing advertising strategy

iv) Selecting advertising mediav) Evaluating advertising

0mar+s-

b- Define budet and budetin methods used by orani1ations:

udet - A budget is a document that translates plans into money - money that will need to be spent

to get your planned activities done (expenditure) and money that will need to be generated to cover the

costs of getting the wor done (income)! "t is an estimate# or informed guess# about what you will need

in monetary terms to do your wor in a given period of time!

udetin Methods 3 $here are two main techni%ues for budgeting& these are incremental budgeting

and 'ero based budgeting!

i) "ncremental budgetsare budgets in which the figures are based on those of the actualexpenditure for the previous year# with a percentage added for an inflationary increase for the

ew ear! $his is an easy method that saves time but it is the *la'y+ way and is often

inaccurate! $his budgeting techni%ue is only suitable for organisations where each year is verysimilar to the previous one in terms of activities! ,ery few dynamic organisations or projects are

so stable that this budgeting techni%ue really wors for them!

ii) "n 'ero based budgets# past figures are not used as the starting point! $he budgeting processstarts from *scratch+ with the proposed activities for the year! $he result is a more detailed and

accurate budget# but it taes more time and energy to prepare a budget in this way! $his

techni%ue is essential for new organisations and projects# but it is also probably the best route to

go in a dynamic organisation that is proactive in taing on new challenges!

4mar+s-c- #dvantaes and disadvantaes of bein an Entre.reneur:

#dvantaes:$here are many advantages to being an entrepreneur# including. Satisfaction from taing a ris and becoming a success

. Showing expertise and sills

. /oring from home

. 0aining profit

$he disadvantaesto being an entrepreneur are


2/4

. 1ong hours

. $otal responsibility for the business

. 2inancial riss

5 mar+s-

Q2. a)#riefly describe the !lements of a balance sheet. (4marks)

b)hat isperformance Appraisal$hat are theadvantages ofperformance Appraisal$

(6 arks)

c) #riefly describethe organization structure and management of an industry. (10marks)

a- Elements of a balance sheet are:

i) #ssets3 these are resources with future economic benefit to a business entity as a result of a past

transaction!

ii) *iabilities- these are legal obligations re%uired for future payments of assets or services as a

result of a business entity4s past transactions or events!iii) E6uity3 these are residual claims (assets-liabilities) to the business entity from stocholders

7 Mar+s-

b- Definition of 8erformance #..raisal

5erformance appraisal is the system of measuring Employeeperformance andgiv ing feedbacto the employee regarding hisperformance!

$he advanta,es of .erformance #..raisali ) 0etting performance2eedbac

i i ) "dentifying training needs

iii) 6otivating5ersonneliv) 5romotionalconsiderationv) 5ay fixation!

4 Mar+s-c- 9rani1ation structure and manaement of an industry:

i) $op management - designing and strategic long range plans for decision maing!

ii) 7peration research management aids in conducting research of all operations forimproving productivity in the industry!

iii) $echnical department 3 it wors with technical groups to ensure system designs human

re%uirement and wor analysis are followed!iv) 6areting department 3 it provides assistance in the analysis of complete mareting

systems and pricing!

v) 2inance department 3 ensures all areas re%uiring capital are catered for including

payments and purchases!

vi) 5rocurement 3 establishes economic order %ualities ensure provision of better servicesfor minimum cost by using better methods of purchasing!

vii) $ransportation and distribution 3 it controls distribution and evaluates alternativepatterns of distribution in order to determine the optimum plans in meeting consumer

re%uirement!

viii) 5roduction and %uality 3 it helps in achieving maximum utili'ation of e%uipmentmaterial and labour to achieve optimum performance!

ix) 5erformance and replacement 3 it assists in reduction of maintenance cost!


3/4

x) "ndustrial relation human resource it deals with matters concerning woring conditions

training compensation!

0 Mar+s-

Q!. a)!%plain the importance of communication to an organization. ("marks)

b) &ow do marketers select a price for a product or service$ hat are the trends

that influence price setting$ ("marks)c) hich important aspects should management of an industry consider in order to

effectively manage their human resource$ (10marks)

a- $he im.ortance of communication to an orani1ationi) Aids in managerial performanceii) Aids to understanding and acceptance of wor!

iii) 8elps in leadership 3 9 way communication

iv) 8elps in coordination

v) Enables job satisfaction

vi- 8elps in 5ublic relation! Mar+s-

b- Selection of a .rice for a .roduct or service:

8rice selection:6areters must select a price that is not too high or not too low# a price that e%uals

the perceived value to target consumers

$rends %nfluencin 8rice Settin:

i) rate of new product introduction

ii) availability of bargain-priced dealer and generic brands

iii) 5rice cutting as a strategy to maintain or regain maret share

iv) 6ore efficient and better informed buyers

!mar+s-

c- Manaement of human resource:a! Scientific selection and recruitmentb! Developing and training worers

c! 6otivating worers

d! Allowing participation of worerse! 2air remuneration

f! 5roper woring conditions

g! 5roper channels of communicationh! 5roper grievance handling

i! 5roper planning and supervision

j! Evaluating performance

0mar+s-

Q4. a) Outline any five factors that affect productivity in a manufacturing organization(10 marks)

b)#riefly describe any five managerial functions in an organization. (10marks)a-Factors #ffectin 8roductivity

5roductivity is how a business can measure its efficiency


4/4

5roductivity :Quantity of Output

Quantity of inputs

8roductivity can be affected by the follo/in factors:

i)&uman 'esources ( 5roviding training to use best method of production& ;onstantly motivating the

worers by providing financial and non-financial incentives&

Documents

CAT I-EMG 2512 IndustrialManagement-Marking Scheme