1.

a) List and explain the four Basic Functions of Management (10 marks)

Management can be described as a series of activities focused on utilizing an organization's resources

such as human, financial, physical and information to achieve its goals by implementing the four
fundamental functions of management. The primary purpose of management is to ensure that work is
carried out effectively and efficiently within the organization. There are four basic functions of
management in organization;

i. Planning

Planning involves establishing the goals of the organization and outlining the necessary steps to achieve
these primary objectives. It also offers a thoughtful and structured framework for businesses to
formulate and implement strategies for the upcoming three to five years. Managers are responsible for
setting goals for both individual employees and the entire organization, as well as creating action plans,
strategies, and allocating resources to accomplish these goals.

ii. Organizing

Organizing is the process of arranging resources and tasks in a structured manner to achieve the goals of
an organization efficiently and effectively. Organizing helps in defining roles, responsibilities, and
relationships within the organization, leading to improved productivity and overall success. The
organization process includes various aspects such as detailing of work tasks, division of work among
different individuals or teams, departmentalization to group related functions together, and other
elements to ensure smooth operations and coordination within an organization.

iii. Leading

Leading, in the context of management and leadership, refers to the process of influencing and guiding
individuals or groups towards the achievement of organizational goals. Effective leadership involves
inspiring and motivating others to work towards a common vision, setting clear direction, and providing
guidance and support to help individuals reach their full potential. Leadership encompasses a variety of
skills and qualities, including communication, decision-making, problem-solving, and emotional
intelligence. A good leader is able to inspire trust and confidence in their team, foster collaboration and
teamwork, and create a positive work environment that encourages innovation and growth.

iv. Controlling

Controlling organizational activities to maintain specific performance levels within acceptable

boundaries. Offers organizations insights into their performance relative to their objectives. Offers a
means to fine-tune performance to ensure organizations progress in the desired direction.There are
typically three main levels of control in an organization:

 Strategic control: Strategic control is the highest level of control such as the CEO and board of
directors, are responsible for strategic control.

 Tactical control: Tactical control is the middle level of control and focuses on implementing the
strategies and plans set at the strategic level eg middle managers and department heads.

 Operational control: Operational control is the lowest level of control and involves day-to-day
decision-making and management of routine activities eg front-line supervisors and employees.

1.b) List and explain the 3 levels of managers in an organization (10 marks)

A manager is an individual within an organization who is responsible for overseeing a team or a specific
area of the business. Managers are tasked with planning, organizing, directing, and controlling resources
to achieve organizational goals and objectives. They are responsible for making decisions, setting
priorities, allocating resources, and ensuring that tasks are completed efficiently and effectively.
Managers also play a key role in motivating and developing their team members, providing guidance,
feedback, and support to help them succeed in their roles. Each level of management has distinct
responsibilities and plays a vital role in the functioning and success of an organization.

i. Top-level managers

Top managers are responsible for setting the overall direction, vision, and goals of the organization. They
are tasked with making strategic decisions that impact the organization as a whole. Top managers focus
on long-term planning, evaluating the organization's performance, and ensuring that the organization is
adapting to external changes. Examples of top managers include CEOs, presidents, and members of the
board of directors.

ii. Middle-level managers

Middle managers are responsible for implementing the strategies and policies devised by top
management. They act as a link between lower-level employees and top management, conveying
information up and down the organizational hierarchy. Middle managers are involved in decision-
making processes, resource allocation, and goal setting within their departments. They play a key role in
translating high-level organizational objectives into actionable plans at the departmental level.

iii. Front-line managers

First-line managers are responsible for overseeing the day-to-day operations and activities of non-
managerial employees. They are often referred to as front-line managers or supervisors. Their main
duties include assigning tasks, monitoring performance, and providing on-the-job training. First-line
managers are crucial in ensuring that operational goals are met efficiently and effectively.

2.a) What is decision making? Explain 3 types of decision making. (10 marks)

Decision making is the process of selecting one option from a group of options. The decision-making
process involves understanding and defining the decision situation, identifying different choices,
selecting the most suitable option, and implementing it. There are three main types of decision making:

i. Organizational vs. Personal Decisions

Organizational decisions are made by managers or leaders within an organization with the primary goal
of advancing the interests and objectives of the organization as a whole. These decisions are typically
made after considering various factors such as the organization's mission, goals, values, and resources.
On the other hand, personal decisions are individual choices or preferences made by individuals that are
based on personal values, beliefs, and desires. These decisions are typically made in personal or non-
professional contexts and do not directly impact the organization. Personal decisions can range from
everyday choices such as what to eat for lunch to more significant decisions such as where to live or
what career path to pursue.

ii. Programmed vs. Unprogrammed Decisions

Programmed decisions are routine, low-risk decisions that can be easily made and standardized into
procedures. On the other hand, unprogrammed decisions are non-routine, high-risk decisions that
require thorough analysis and evaluation of costs versus benefits before a decision is reached. The
complexity and level of difficulty involved in unprogrammed decisions often result in a longer decision-
making process compared to programmed decisions. It is important for individuals or organizations to
recognize the nature of the decision at hand in order to apply the appropriate decision-making approach
and ensure the best possible outcome.

iii. Strategic vs. Tactical Decisions

Strategic decisions impact the long-term survival, growth, and competitiveness of the organization and
are made at the top level with significant risks. Tactical decisions are operational choices made by lower-
level executives and carry less impact on the organization.

2.b) List and explain the steps in the decision making process. (10 marks)

The decision-making process is a systematic series of steps that individuals or groups follow to identify
and choose the best course of action among multiple alternatives. The typical decision-making process
consists of the following steps:

i. Identify the decision: The first step is to clearly define the decision that needs to be made and the
desired outcome.
ii. Gather information: In this step, relevant information is collected and analyzed to understand the
problem, identify possible alternatives, and assess potential outcomes.

iii. Identify alternatives: Based on the information gathered, a list of possible alternatives or solutions
is generated.

iv. Evaluate alternatives: Each alternative is carefully evaluated based on criteria such as feasibility,
effectiveness, cost, and potential risks.

v. Make a decision: After evaluating the alternatives, a decision is made by selecting the best option
that aligns with the desired outcome.

vi. Implement the decision: Once a decision is made, it is put into action by developing a plan,
assigning responsibilities, and executing the chosen course of action.

vii. Monitor and evaluate: The final step involves monitoring the implementation of the decision,
assessing its effectiveness, and making adjustments as needed to achieve the desired results.