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MALAWI ASSEMBLIES OF GOD UNIVERSITY

FACULTY OF COMMERCE AND MANAGEMENT

DEPARTMENT OF MANAGEMENT STUDIES

SUPLIMENTERY EXAMINATION

ACC 4053: MANAGEMENT CONSULTING

Date: August, 2017 Time allowed: 3hours

General Instructions
1. There are 13 pages in this paper. Please check!
2. This paper has four sections, A, B, C and D. Please check!
3. Follow the instructions for each section.
4. Fill in your details on the answer book provided.
5. Write your name on the top of each page of the answer sheets provided.
6. Write on both sides of the answer sheets.
7. Do not tear any paper from the answer book or question paper.

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SECTION A: MULTIPLE CHOICE
SECTION INSTRUCTIONS
THIS SECTION CARRIES 30 MARKS
EACH QUESTION CARRIES ONE MARK
ANSWER ALL QUESTIONS IN THIS SECTION
INDICATE YOUR ANSWER BY INDICATING A, B, C, OR D

1. Legitimate power is based on the subordinate’s perception that the leader has a right to
exercise influence because of the leader’s ______________.
A. Expertise and knowledge.
B. Personal characteristics and personality.
C. Role or position within the organisation.
D. Ability to punish or reward.
2. Mintzberg suggests that there are ten managerial roles which can be grouped into three
areas. These areas are ___________.
A. Interpersonal, Informational and Decisional.
B. Figurehead, Leader and Liaison.
C. Manager, Director, Liaison.
D. Organizer, Leader, Communicator.
3. In what order do managers typically perform the managerial functions?
A. Organising, planning, controlling, leading.
B. Organising, leading, planning, controlling.
C. Planning, organising, leading, controlling.
D. Planning, organising, controlling, leading.
4. A major challenge in developing creative thinking skills is to learn how to think
____________ in addition to ____________.
A. Emotionally, rationally.
B. Lateral, vertically.
C. Vertically, rationally.
D. Logical, lateral.

5. Which of these is not part of the recognized challenges for modern managers?
A. Micro-managing the workforce.
B. Managing communications.
C. Managing change.
D. Managing the learning organisation.
6. Who of the following is the industrial philanthropist?
A. Frederick Taylor.
B. Seebohm Rowntree.
C. Lawrence Appley.
D. Max Weber.
7. Which one of the following is not one of Drucker's five guiding principles of
management?
A. Making people's strengths effective and their weaknesses irrelevant.
B. Enhancing the ability of people to contribute.

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C. To operate the organisation's status system.
D. Integrating people in a common venture.
8. What are the three interpersonal roles of managers?
A. Figurehead, leader and liaison.
B. Spokesperson, leader, coordinator.
C. Director, coordinator, disseminator.
D. Communicator, organiser, spokesperson.
9. At what level of an organisation does a corporate manager operate?
A. Functional.
B. Operational.
C. Middle level.
D. Top level.
10. What is the guiding principle behind Modern Management in the public sector?
A. Profit maximization.
B. Introducing private sector business principles into the public sector.
C. Replacing public management with private sector management.
D. Restructuring public organisations.
11. Which one is not a recognised key skill of management?
A. Conceptual skills.
B. Human skills.
C. Technical skills.
D. Writing skills.
12. ____________ advocated that humans are essentially motivated by levels of needs.
A. Elton Mayo.
B. Abraham Maslow.
C. Ivon Pavlov.
D. Fredrick Taylor.
13. Which of the following would make the Management Consulting industry less
competitive?
A. Lots of potential substitutes exist.
B. Strong bargaining power among suppliers.
C. High barriers to entry.
D. Strong bargaining power among buyers.
14. What is a social enterprise concerned with?
A. Profit maximization.
B. Maximising market share.
C. Providing public service to members of society.
D. Running a business to create benefits to people.
15. In management process, the most misinterpreted word is ________________.
A. Organizing.
B. Delegating.
C. Controlling.
D. Planning.
16. Which of the following organisation departments is not typical for an event management
company to have in its structure?
A. Creative.
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B. Production.
C. Client servicing.
D. Engineering.
17. “Management is a multiple purpose organ that manages a business, manages a manager
and manages workers and work”. This statement is attributed to ______________.
A. Harold Konntz.
B. Peter Drucker.
C. Kenneth O ‘Donell.
D. Henry Fayol.
18. Under mechanism of scientific management, the following include scientific task setting
except _____________.
A. Time study.
B. Motion study.
C. Method study.
D. Structuring.
19. Management as a discipline is the function of________.
A. Science.
B. Art.
C. Creativity.
D. Commanding.
20. Which theory assumes that people are naturally lazy and will avoid work and
responsibilities if possible?
A. Theory X.
B. Theory Y.
C. Theory Z.
D. Theory M.
21. Who is the person you have to give importance under the company’s checklist before
making call to the consultant?
A. Managers.
B. Employees.
C. Customer.
D. Supplier.
22. What is one of the most significant inhibitors in customer preference while purchasing
perishable items in retail?
A. Proximity of markets.
B. Customer preference to brands.
C. Variability of product demand.
D. Product shelf prices.
23. The following are objectives in corporate governance are except ______________.
A. Overall Business’ Growth.
B. Overall Business’ stability.
C. Shareholders value maximization.
D. Overall society prosperity.
24. In the entry stage of the management consulting process, initial contact is made by
___________.
A. Both client and consultant.

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B. The client.
C. The consultant.
D. Either client or consultant.
25. The word _____________ denotes a function, a task, a discipline.
A. Management.
B. Leadership.
C. Motivation.
D. Coordination.
26. The concept of Strategic Business Unit includes the following except ______________.
A. Unrelated products and businesses that are separated.
B. The fact that each SBU has its own CEO.
C. A scientific method of grouping the business.
D. All SBUs having equal number of employees.
27. The following are factors coming under philosophy of scientific management except
____________.
A. Co-operation.
B. Maximum output.
C. Harmony.
D. Testing hypotheses.
28. Advantage of delegation of authority results in prompt ________.
A. Understanding.
B. Decision making.
C. Training.
D. Experience.

29. Costliness of the ________ is the overriding factor determining the extent of
decentralization.
A. Decision.
B. Staffing.
C. Controlling.
D. Managing.
30. Which law states that ‘you get what you deserve and not what you desire’?
A. Law of destiny.
B. Law of Karma.
C. Law of vision.
D. Law of peace.
31. Positive motivation makes people willing to do their work in the best way they can and
improve their _________________.
A. Skills.
B. Performance.
C. Work.
D. Attitude.
32. _______________ is a tool for corporate governance.
A. Management.
B. Communication.
C. Coordination.

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D. Leadership.
33. Who is the father of the three-needs theory?
A. Vroom.
B. McClelland.
C. Peter Drucker.
D. Herzberg.
34. The following would be non-financial type of motivators except ____________.
A. Encouragement.
B. Freedom.
C. Recognition.
D. Salary.
35. Learning organizations are adaptive to their _____________ environment.
A. Internal.
B. External.
C. Work.
D. Employee.
36. The following are Fedrick Winslow Taylor’s Mechanism of Scientific Management
except ___________.
A. Scientific task setting.
B. Planning the task.
C. Standardization of tools.
D. Performance appraisals.
37. Under the principles of effective _______________, it is said that never delegate and
disappear.
A. Delegation.
B. Management.
C. Organisation.
D. Centralization.
38. The higher the _________________ level of the employee, the lower the job satisfaction.
A. Managerial.
B. Educational.
C. Satisfaction.
D. Aptitude.
39. _______________ is the result of human limitation to the span of management.
A. Delegation.
B. Satisfaction.
C. Motivation.
D. Development.
40. The different A’s of the service sector are
A. Acceptability, Awareness, Answerability.
B. Acceptability, Awareness, Availability.
C. Administration, Awareness, Availability.
D. Acceptability, Acknowledgement, Availability.
41. The external factors that limit control are ______________.
A. Government policies.
B. Market changes.

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C. Economic changes.
D. Technological changes.
42. Communication barrier in the international environment is mostly _____________.
A. Loss by transmission.
B. Loss by poor retention.
C. Poor listening.
D. Lack of general skills.
43. Management is a creative and ___________ process.
A. Systematic.
B. Continuous.
C. Long.
D. Futile.
44. The following is (are) old control technique(s) which were used through years except
__________.
A. Organizational Financial Statements.
B. Business Break-even analysis.
C. Organizational Budgetary control.
D. Management Information Systems.
45. What does a mission statement specify that the organization will achieve?
A. Goals.
B. Profit.
C. Motivation.
D. Performance.
46. In the consultant’s proposal, preliminary assessment of the problem and an approach to
be taken fall under the _______________.
A. Technical aspect.
B. Creative thinking aspect.
C. Human aspect.
D. Financial aspect.
47. _____________ is a process of influencing people.
A. Motivation.
B. Leadership.
C. Delegation.
D. Controlling.
48. The following are the elements of control except ____________.
A. Authority and knowledge
B. Guidance and direction
C. Constraint and restraint
D. Organizing and Coordinating.
49. Which type of strategies do professional managers help organizations in chalking out?
A. Corporate.
B. Multi-disciplinary.
C. Operational.
D. Motivational.
50. Limitations of control are _____________.

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i. External factors
ii. Fixing of responsibility
iii. Internal factors
iv. Delegation.
A. i and ii.
B. i and iv.
C. i and iii.
D. ii and iii.
51. Creative thinking people have the following personalities except ______________.
A. Positive thinkers without being blindly self-confident.
B. Nonconformists and don’t need strong approval from group members.
C. Work in isolation when developing ideas.
D. Able to correlate where correlation is unobvious.
52. Management By Objectives was invented by ________.
A. Peter Drucker.
B. Koontz and O ‘Donell.
C. Henry Fayol.
D. Max Weber.
53. The following are relationships for selecting the span of control ____________.
A. One to one.
B. Cross relationship.
C. Direct group.
D. Representative.
54. Management is said to be the combination of three factors, arts, science and the third is
A. Profession.
B. Authority.
C. Communication.
D. Motivation.
55. One of the popular forecast in business is ___________.
A. Technological.
B. Economic.
C. Demand.
D. Environmental.
56. Events are occurrences designed for ________ interests.
A. Marketing.
B. Customer.
C. Management.
D. Company.
57. _____________ remain unique to the company over the long haul.
A. Core competencies.
B. Strategic abilities.
C. Distinctive capabilities.
D. Strategic resources.

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58. The following are limitations of business planning except ___________.
A. Time Consuming
B. Expensive device
C. Heavy cost of planning
D. Less benefits.
59. In pursuit of cost reduction due to economic and financial problems, many organisations
are opting to get consulting services from virtual freelance consultants’ platforms. This
can best be explained as an influence of ____________.
A. Ecological environment.
B. Economic environment.
C. Political environment.
D. Technological environment.
60. Free-wheel is when ___________________.
A. Judgement is suspended.
B. Even wild ideas are welcome.
C. More ideas are encouraged.
D. Ideas are built upon others.

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SECTION B: TRUE OR FALSE QUESTIONS.
SECTION INSTRUCTIONS:
THIS SECTION CARRIES 10 MARKS
EACH QUESTION CARRIES ONE MARK.
ANSWER ALL QUESTIONS IN THIS SECTION.
INDICATE WHETHER THE SATEMENT IN THIS SECTION IS TRUE OR FALSE BY
INDICATING A FOR TRUE AND B FOR FALSE___________________________________.

61. It is not recommended to involve a consultant in the implementation stage because their
task is identifying a problem.
A. True.
B. False.
62. By definition, all effective managers are true leaders.
A. True.
B. False.
63. Conceptual skill is the ability to think in abstract terms, to analyse and diagnose
problems, and to make use of lateral thinking when appropriate.
A. True.
B. False.
64. The Hawthorne effect is associated with the behavioural science approach.
A. True.
B. False.
65. Middle managers are responsible for developing long range plans for the business.
A. True.
B. False.
66. You cannot set goals for factors such as service and innovation.
A. True.
B. False.
67. According to Maslow, once a need is satisfied, it becomes a powerful motivator.
A. True.
B. False.
68. An autocratic leadership style occurs when power is split between the leader and his or
her staff.
A. True.
B. False.
69. Punishment is removing or withholding an undesirable consequence.
A. True.
B. False.
70. External Consultants rarely bring new ideas to the organization.
A. True.
B. False.
71. The leader with legitimate power has personal characteristics that appeal to others.
A. True.
B. False.
72. Cross-unit coordination can lead to effective problem solutions.
A. True.

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B. False.
73. A person can restore equity in a number of ways by behaviorally or perceptually
changing inputs and outcomes.
A. True.
B. False.
74. Independence and discretion in making decisions refer to autonomy.
A. True.
B. False.
75. It is important not to establish a single productivity goal if there are other important
dimensions of performance.
A. True.
B. False.
76. Task performance behaviors are the leader's efforts to ensure that the work unit or
organization reaches its goals.
A. True.
B. False.
77. Both Effectiveness and Efficiency mean doing the right thing, at the right time, to achieve
the right results.
A. True.
B. False.
78. People skill is the ability to work effectively with and motivate others.
A. True.
B. False.
79. With referent power a leader can exercise power as a result of their position in the
organisation.
A. True.
B. False.
80. Charismatic leadership is to involve staff and others in the decision making process.
A. True.
B. False.

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SECTION C: STRUCTURED QUESTIONS
SECTION INSTRUCTIONS:
THIS SECTION CARRIES TWENTY MARKS (20 MARKS)
ANSWER ALL QUESTONS IN THIS SECTION.
MARKS ALLOCATION ARE INDICATED ON EACH QUESTION _____________________

81. One of the roles of Consulting Management is to enable client organisation be efficient
and effective. Distinguish the concept of efficiency and the concept of effectiveness as
applied in Management. (4 Marks).
 Effectiveness is the extent to which planned activities are realised and planned
results achieved. A process is effective if its outcomes match the stated goals.
 Efficiency is the ratio of effective output to the input required to achieve it. This
term relates to a process’ intended results achieved and the resources used in
order to achieve the results.
82. Kasupe is a company that produces and distributes pure water. It has a Production and
Operations department as well as Human Resource Management department.
i. Define the term core competence. (2 Marks)
Core competence is a skill and ability developed within an organisation with
which competitive advantage can be created and maintained.
ii. Of the department mentioned in Kasupe company, which one is a core
competence and state why? (2 Marks)
Production and Operations because it is its main reason for existence in the
business such that if production of water is made more efficient and effective than
competitors, it will have a direct and huge bearing on it profits, eventually
becoming a market leader.
83. A laissez faire leadership style occurs when all power is passed onto the staff. Briefly
explain two conditions under which this style can be effectively applied. (4 Marks)
 If workers are highly skilled and able to work independently.
 If workers clearly know the goal being pursued.
84. Management consulting firms are rightly regarded to be business, yet it is argued that bad
economy equals good economy for the consulting firms. Briefly explain why this
argument is advanced.
 Businesses that are affected by the struggling economy need to do something
different because if they don’t, they could risk shutting down.
This is when a management consulting firms come to the rescue. They provide
advice on how these struggling companies can restructure their businesses or
employ business strategies to counter and survive in the ailing economy.
All this is done at a cost, providing good business to the management consulting
firms.
85. firms which have to fight for survival. Briefly explain two ways in which these firms can
apply Kay’s distinctive capabilities to gain competitive advantage. (4 Marks)
 Reputation
Reputation is very important in business, more so in management consulting as clients
often engage a consultant based on reputation.
A consultant striving for competitive advantage should therefore focus on building
reputation on the market.

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This can be done by not diversifying into fields of which the consultant does not have
competence, offering warranties on services provided, advertising, etc.
This eventually builds a brand name which no competitor can replicate, and clients will
engage the consultant despite other consultants offering same quality of services for less.
 Innovation
Innovative business firms are proven successful in the long run as they are always up to
date with their customers hence constantly relevant on the market.
A business consulting firm seeking to achieve competitive advantage must always be
innovative in finding new solutions to ever changing client problems.
This makes the firm a trend setter, making competitors struggle to keep up in the race.
86. Briefly provide two ways in which an experienced and observant consultant can sense
potential problems or opportunities that are not immediately apparent in a client
organisation. (4 Marks)
 The way people talk to and about each other,
 Respect for hierarchical relations,
 The cleanliness of workshops and offices,
 The handling of confidential information,
 The courtesy of the receptionist.

SECTION D: ESSAY QUESTIONS


SECTION INSTRUCTIONS:
THIS SECTION CARRIES 60 MARKS.
EACH QUESTION CARRIES 20 MARKS.
ANSWER TWO QUESTIONS IN THIS SECTION.
THE FIRST QUESTION (86) IS COMPULSORY, AND CHOOSE ANY OTHER TWO IN
THIS SECTION________________________________________________________________

87. Many quarters have argued that in the Malawian context, Management Consulting cannot
legitimately be regarded as a profession. Using Hyman’s analysis, advise four issues that
need to be addressed for Management Consulting to be legitimately be regarded as a
profession.
i. Authorities must establish a satisfactory registration procedure for both
experienced and apprentice consultants.
ii. The protection by law of the term ‘consultant’ just as doctors’, lawyers’ and other
professions are protected by laws established by the state.
iii. There should be an established system of training and examinations, just like
other professional bodies.
iv. A disciplinary body governing ethics has to be established.
88. Discuss the three types of Management Consultants and their approaches in solving client
problems.
i. Brain/Rocket science:
These management consultants are innovators and are creative in using their
expertise to coming up with new ways of solving new problems that exist in their
client organisations. They usually recruit new graduates from top universities to
maintain innovativeness.

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ii. Grey hair:
These are management consultants who rely on proven vast experience gained in the
industry through solving client problems existing in a variety of sectors.
iii. Procedural/Process:
These consultants depend on applying processes that are proven to achieve a solution
to a problem. They are meticulous in following procedures, which might at one point
in time were a rocket science. They are mostly engaged in the implementation stage
to ensure adherence of procedures and processes.
89. Discuss Kay’s distinctive capabilities and how they can be used by a business to achieve
competitive advantage.
i. Reputation
Reputation is very important in business, more so in management consulting as clients
often engage a consultant based on reputation.
A consultant striving for competitive advantage should therefore focus on building
reputation on the market.
This can be done by not diversifying into fields of which the consultant does not have
competence, offering warranties on services provided, advertising, etc.
This eventually builds a brand name which no competitor can replicate, and clients will
engage the consultant despite other consultants offering same quality of services for less.
ii. Architecture
This is how a business firm is organised to get things done as effectively as possible. It is
a network of contractual relationships which defines the firm.
It is basically a structure that forms the business firm.
These are third-party connections, employees, customers as well as the chain of
command of the business firm.
In order to be competitive in the industry, a management consulting firm must take effort
to build this part of the business with great care so as it becomes unique in easy and
quick response to client demands.
iii. Innovation
Innovating business firms are proven successful in the long run as they are always up to
date with their customers hence constantly relevant on the market.
A business consulting firm seeking to achieve competitive advantage must always be
innovative in finding new solutions to ever changing client problems.
This makes the firm a trend setter, making competitors struggle to keep up in the race.

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90. External consultants are mostly engaged not only for their expertise but also because of
the expectation of their objectivity. Discuss four ways on how external consultants can
maintain the reputation of unbiasedness and ability to work objectively. (20 Marks)
i. Technical independence: Such that the consultant is able to formulate technical
opinion and advise on the client’s business processes, disregarding the client’s
belief’s and wishes on the same.
ii. Administrative independence: The consultant should not be compromised by being a
subject of the client’s administrative authority, for example by being a subordinate to
the client in administrative hierarchy.
iii. Financial independence: The consultant shall at no point be a monetary beneficiary
of actions that the client would take following the work carried out.
iv. Political independence: the client organisation’s managers and employees should
not be able to influence the consultant through political power and connection. This
also includes influence due to club and other associations membership.
v. Emotional independence: The consultant needs not be personal but purely
professional. Advice should be given regardless of personal feelings arising from
friendship, empathy.

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