Section A – This ONE question is compulsory and MUST be attempted
1 The Darby Motor Company manufactures toy cars and was established at the beginning of the twentieth century by
David Darby, whose grandson John Darby still owns the company. The company has grown to employ a total of 2,500
staff with five senior managers and 20 supervisors, each of whom has responsibility for a separate department. A long
established business with a traditional product range, the Darby Motor Company has evolved into a traditional,
bureaucratic, formal type of organisational structure based on rules, procedures and standardisation.
The company has recently experienced problems. Production levels are low and attempts to improve production levels
have been made in all departments, but their supervisors are having problems reaching the expected performance
levels. John Darby has decided to hold a series of meetings with both levels of management. Initially he found that
the supervisors were unhappy with and sceptical about the value of the meetings.
It became apparent that the level of morale of all staff was low. Lack of facilities, pressure of work and uncertain
procedures were the main grievances. There appeared however to be a deeper problem, that of mistrust between the
staff as a whole and senior management. The mistrust was more apparent between the senior management and
supervisors. The reason for this was unclear. In addition, the workforce as a whole regard the supervisors as poor at
managing their departments, disregarding new work practices and required performance standards. The supervisors
said that their position in general was unclear, despite the size of the organisation. There were no clear lines of
authority, command or responsibility which allowed them to make decisions for their departments. Some supervisors
simply regarded themselves as menial and unrecognised, referring to funding shortages, unrealistic targets, little
recognition of their position, no job descriptions and lack of training, all of which are required to meet the new
Job security has also become an issue. The changes in production and hoped for improved production levels have
led to rumours of eventual cutbacks in staff. Rumours are especially strong amongst the supervisors. They worry that
they might be replaced by new, younger staff that would be better trained, more adaptable and better able to use
modern production equipment.
The problems have manifested themselves in high labour turnover, in addition to the problems already outlined, was
blamed on low salaries, lack of opportunity for personal advancement and working conditions, which were worse for
some employees than others.
The owners have asked you to examine the problems the supervisors are having in reaching the performance expected
of all staff.
(a) Explain how Herzberg’s theory of motivation might help to explain the attitude of the supervisors.
Section B – FOUR questions ONLY to be attempted
2 Many writers suggest that organisational success can be predicted.
Briefly describe the characteristics that according to Peters and Waterman, are common to successful
3 The selection interview remains the primary means through which organisations recruit new employees.
(a) Explain the purpose of the selection interview. (4 marks)
(b) Explain the advantages and the disadvantages of:
(i) the face to face interview; (6 marks)
(ii) the panel interview. (5 marks)
4 All business organisations need trained employees, yet individuals learn in different ways.
(a) Briefly describe the four stages in Kolb’s experiential learning cycle. (4 marks)
(b) Describe the four learning styles identified by Honey and Mumford and their implications for training
programmes. (11 marks)
5 Motivation is fundamental to the task of management.
(a) What is meant by a ‘content’ theory of motivation? (5 marks)
(b) What is meant by a ‘process’ theory of motivation? (5 marks)
(c) What is meant by an ‘equity’ theory of motivation? (5 marks)