Choose four (4) of the following questions and answer them in short essay format. All questions are worth equal marks. (12.5 marks each)

QUESTION 1 (12.5 marks)
Discuss the key factors in the international environment that managers of emerging global organisations look to as threats to their international operations. Provide examples as appropriate.

-Politic
-Economic
-Social issue
- Technology

QUESTION 2 (12.5 marks)
What are Porter’s competitive forces in an organisation’s environment? Explain them and provide examples to illustrate your answer.

1. Competition in the industry - : What is important here is the number and capability of your competitors. If you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if no-one else can do what you do, then you can often have tremendous strength.

Eg : AirAsia competition is Malindo air, they are in same industry.

2. Potential of new entrants into industry - Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.

Eg : Airline industry has low threats of new entrants because it is very hard to set up airline company.

3. Power of suppliers - Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are.
Eg : AirAsia supplier is Boeing, Oil company. The power of suppliers is high because AirAsia do not have many suppliers for airline spare parts.

4. Power of customers - Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, then they are often able to dictate terms to you.

Eg: The power of buyers are low because AirAsia provide one of the most affordable air fares. Buyers do not have many choices but to buy Air Asia ticket. Because Mas Airlines is expensive.

5. Threat of substitute products - This is affected by the ability of your customers to find a different way of doing what you do – for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power.

Eg :Buyers can travel by bus or train instead of airplane. But if the location is far and time consuming, people have to take airplane. So, the threat of substitute products is low.

QUESTION 3 (12.5 marks)
What is the difference between organisational structure and organisational design? Outline the six elements of organisational design.

Organizational Structure

Organizational structure is the skeleton of an organization. It is an expression of who is performing the various functions and tasks of a company and how these people relate to one another. Organizational structure encompasses a list of the various job positions, titles and duties of a business, and the reporting structure or chain of command among them. Structure is a statement of the current state of affairs, not the ideals, intentions or betterment of an organizations. Organizational structure does not include "shoulds."

Organizational Design

Design in an organization is much the same as for buildings, clothing and vehicles -- it's a plan. When a company's leaders develop plans for how their company should function or would perform better, they undertake the business of organizational design. Good design takes inventory of all the tasks, functions and goals of a business, and then develops groupings and orderings of job positions, departments and individuals to best and most efficiently achieve those ends. Usually, designs are expressed through an organizational chart, which helps players throughout an organization understand functions and power relationships.

Organizational design is best defined as "the process of aligning an organization's structure with its mission," according to business experts at Mind Tools. Companies have specific goals and objectives toward which they work. They divide projects, tasks and responsibilities in ways that are most effective in achieving these goals. Specific employees must oversee and control the flow of work to meet crucial project deadlines. Companies usually identify six key elements when deciding how to design their organization.

1. Departmentalization
One key element of organizational design is departmentalization. Companies usually group their companies into different departments. These departments usually specialize in certain areas to provide various types of expertise to the organization. Two common types of departmentalization are functional and product departmentalization. Functional structures are when companies center departments around functions, such as marketing, finance, accounts payable and engineering. Product structures are used by companies that have many extensive product lines, including department stores and high-tech companies. Departments are divided by product categories, including housewares, sporting goods and hardware, for example.

2. Hierarchy of Authority
A company would accomplish little without a hierarchy of authority. A hierarchy of authority determines who is in charge of certain elements and who their direct reports are, according to professor Craig W. Fontaine of Northeastern University's College of Business Administration. A hierarchy of authority ensures that every director, manager or employee is held accountable for specific projects or tasks. The CEO or chief executive officer usually sits atop the hierarchy in most companies.

3. Span of Control
Span of control is the number of people in which managers, directors or high-level executives are in charge. A marketing director who oversees the work of five managers in his department has a span of control of five people. Each manager may, in turn, be responsible for the work of several analysts or coordinators. Span of control can vary in size among companies. Managers are usually in charge of fewer employees in smaller companies versus larger corporations.

4. Geography
Geography is another important element of organizational design. Smaller companies may sell their products on a local or regional basis. They typically start in markets within their own state, expanding to other areas as profits increase. Certain geographic areas may be more practical for smaller companies. For example, a manufacturer of surfboards would likely market to customers who live near oceans.

5. Customers
Companies also align their organizations to better service specific customers. A small software company, for example, may sell financial software to consumers, corporations, banks and hospitals. Software implementation and set-up may be different in each type of company. Therefore, certain account executives and customer service reps may required for each type of customer.

6. Special Projects
Companies sometimes design their organizational structure around special projects. These projects may run for short durations, such as three months to a year. For example, a small consumer products company introducing a new line of gluten-free breads may temporarily assign certain employees from different departments to spearhead the efforts. The project team may then be dispersed after the product has sold successfully for a while.

QUESTION 4 (12.5 marks)
A contingency approach to leadership seeks to explain the relationship between leadership styles and specific situations. Describe Hersey and Blanchard’s situational leadership model. Provide examples to illustrate your answer.

Assumptions

Hersey and Blanchard (1999) and other books suggest leaders should adapt their style to follower development style (or 'maturity'), based on how ready and willing the follower is to perform required tasks (that is, their competence and motivation).
There are four leadership styles (S1 to S4) that match the development levels (D1 to D4) of the followers.
The four styles suggest that leaders should put greater or less focus on the task in question and/or the relationship between the leader and the follower, depending on the development level of the follower.

Style

|Leadership style in response to follower |Follower development level |
|development level | |
| |Low |
| |High |
| | |
| |R4 |
| |R3 |
| |R2 |
| |R1 |
| | |
| |Task / directive behavior |
| | |
| |Low |
| |High |
| | |
|Relationship / supportive | |
|behavior | |
|High |S3 |
| |Partici- |
| |pating |
|Low |S2 |
| |Selling |
| | |
| | |
| | |
| |S4 |
| |Dele- |
| |gating |
| | |
| | |
| | |
| | |
| |S1 |
| |Telling |
| | |

S1: Telling / Directing

Follower: R1: Low competence, low commitment / Unable and unwilling or insecure
Leader: High task focus, low relationship focus
When the follower cannot do the job and is unwilling or afraid to try, then the leader takes a highly directive role, telling them what to do but without a great deal of concern for the relationship. The leader may also provide a working structure, both for the job and in terms of how the person is controlled.

The leader may first find out why the person is not motivated and if there are any limitations in ability. These two factors may be linked, for example where a person believes they are less capable than they should be may be in some form of denial or other coping. They follower may also lack self-confidence as a result.
If the leader focused more on the relationship, the follower may become confused about what must be done and what is optional. The leader thus maintains a clear 'do this' position to ensure all required actions are clear.

S2: Selling / Coaching

Follower: R2: Some competence, variable commitment / Unable but willing or motivated
Leader: High task focus, high relationship focus
When the follower can do the job, at least to some extent, and perhaps is over-confident about their ability in this, then 'telling' them what to do may demotivate them or lead to resistance. The leader thus needs to 'sell' another way of working, explaining and clarifying decisions.
The leader thus spends time listening and advising and, where appropriate, helping the follower to gain necessary skills through coaching methods.
Note: S1 and S2 are leader-driven.

S3: Participating / Supporting

Follower: R3: High competence, variable commitment / Able but unwilling or insecure
Leader: Low task focus, high relationship focus
When the follower can do the job, but is refusing to do it or otherwise showing insufficient commitment, the leader need not worry about showing them what to do, and instead is concerned with finding out why the person is refusing and thence persuading them to cooperate.
There is less excuse here for followers to be reticent about their ability, and the key is very much around motivation. If the causes are found then they can be addressed by the leader. The leader thus spends time listening, praising and otherwise making the follower feel good when they show the necessary commitment.

S4: Delegating / Observing

Follower: R4: High competence, high commitment / Able and willing or motivated
Leader: Low task focus, low relationship focus
When the follower can do the job and is motivated to do it, then the leader can basically leave them to it, largely trusting them to get on with the job although they also may need to keep a relatively distant eye on things to ensure everything is going to plan.
Followers at this level have less need for support or frequent praise, although as with anyone, occasional recognition is always welcome.
Note: S3 and S4 are follower-led.

Discussion

Hersey and Blanchard (of 'One Minute Manager' fame) have written a short and very readable book on the approach. It is simple and easy to understand, which makes it particularly attractive for practicing managers who do not want to get into heavier material. It also is accepted in wider spheres and often appear in college courses.
It is limited, however, and is based on assumptions that can be challenged, for example the assumption that at the 'telling' level, the relationship is of lower importance.

QUESTION 5 (12.5 marks)
Managers faced with ethical choices have a number of approaches that they may use to guide their decision making. Discuss the various approaches to ethical decision making, providing examples to help explain your answer.
Business owners often face difficult ethical dilemmas, such as whether to cut corners on quality to meet a deadline or whether to lay off workers to enhance profits. A current ethical debate concerns the use of extremely low-wage foreign workers, especially in the garment industry.
The intense pressures of business may not always allow you the luxury of much time for reflection, and the high stakes may tempt you to compromise your ideals. How will you respond? No doubt, you already have a well-developed ethical outlook. Nevertheless, by considering various approaches to ethical decision making, you may be better able to make the right choice when the need arises.
The subject of business ethics is complex. Fair-minded people sometimes have significant differences of opinion regarding what constitutes ethical behavior and how ethical decisions should be made. This article discusses four approaches that business owners can use to consider ethical questions. The method you prefer may not suit everyone. Hopefully, by considering the alternatives, you will be able to make decisions that are right for you.
Utilitarian
The utilitarian approach to ethical decision making focuses on taking the action that will result in the greatest good for the greatest number of people. Considering our example of employing low-wage workers, under the utilitarian approach you would try to determine whether using low-wage foreign workers would result in the greatest good.
For example, if you use low-wage foreign workers in response to price competition, you might retain your market share, enabling you to avoid laying off your U.S. employees, and perhaps even allowing you to pay your U.S. employees higher wages. If you refuse to use low-wage foreign workers regardless of the competition, you may be unable to compete. This could result in layoffs of your U.S. workers and even your foreign workers, for whom the relatively low wages may be essential income. On the other hand, using low-wage workers may tend to depress the wages of most workers, thus reducing almost everyone’s standard of living and depressing their ability to purchase the very goods you and others are trying to sell.
Moral Rights
The moral rights approach concerns itself with moral principles, regardless of the consequences. Under this view, some actions are simply considered to be right or wrong. From this standpoint, if paying extremely low wages is immoral, your desire to meet the competition and keep your business afloat is not a sufficient justification. Under this view, you should close down your business if you cannot operate it by paying your workers a "living wage," regardless of the actions of your competitors.
Universalism
The universalist approach to ethical decision making is similar to the Golden Rule. This approach has two steps. First, you determine whether a particular action should apply to all people under all circumstances. Next, you determine whether you would be willing to have someone else apply the rule to you. Under this approach, for example, you would ask yourself whether paying extremely low wages in response to competition would be right for you and everyone else. If so, you then would ask yourself whether someone would be justified in paying you those low wages if you, as a worker, had no alternative except starvation.
Cost-Benefit
Under the cost-benefit approach, you balance the costs and benefits of taking versus not taking a particular action. For example, one of the costs of paying extremely low wages might include negative publicity. You would weigh that cost against the competitive advantage that you might gain by paying those wages.
Conclusion
In our complex global business climate, ethical decision making is rarely easy. However, as a business owner, you have several models available for analyzing your ethical dilemmas. Sometimes one approach will be more appropriate than another. If you take time to consider the various possibilities, you are more likely to make a decision you believe is ethically correct.

QUESTION 6 (12.5 marks)
A current issue for HRM involves the changing nature of careers, and the evolving dynamic of relationships between employers and employees. Discuss the major issues involved in the changing nature of careers, and the HR issues in the new workplace. Provide examples as appropriate.

Human resources (HR) issues commonly experienced by employers include establishing productivity, recruiting employees, arranging and carrying out training, and preventing discrimination. Workers in personnel management also face challenges such as resolving conflicts and keeping workers safe. Establishing and distributing benefits, encouraging and maintaining diversity, and handling outsourcing are major concerns as well. How each business deals with its specific human resources issues depends on the HR manager or director as well as company policy. No matter what approach a business takes, addressing these issues usually is an ongoing process.

Productivity

A primary goal of a human resource department is to manage and organize employees so that they can be as productive as possible, as this generally leads to more revenue. HR personnel, therefore, think very critically about the number of people per shift, team assignments, motivational offers like bonuses, and keeping morale high. These factors can have strong correlations, so the difficulty is how to make changes in one area without overly affecting another. It can be challenging to make modifications and “correct” arrangements that don’t strain the company’s budget.

Recruitment

Personnel management workers have always been responsible for at least some aspects of employee recruitment. They have to find methods, such as attending job fairs and sending out promotional mailings, to generate interest in particular positions and the company as a whole. Many companies face an even bigger problem in this area, however, because globalization means that companies are competing with each other around the entire world rather than just one small area or country. Modern employees also are looking for jobs that provide more of a balance between employment and family. Companies sometimes need to offer more in terms of benefit packages or incentives, as well, because people increasingly look for jobs that reduce their risks in unstable economic situations.

Training

Training is needed in virtually every business and industry because every company has its own policies and procedures employees must follow. It is HR’s responsibility to figure out how to conduct the training so that operations are not interrupted or strained. The department also determines how training sessions and seminars factor into the company calendar and budget. Coordinating with third parties involved in the training is also necessary, in some instances.

Discrimination

Companies often value diversity because it provides different modes of thought and experiences that can generate new ideas and better productivity. It also fosters a sense of equality that is well-suited to teamwork. Businesses look to their HR departments to build diversity into the workplace, as those in personnel management generally are responsible for company recruitment, hiring, promotion, and termination. Many places have laws that make various forms of discrimination in the workplace illegal, so human resources workers have to recruit and train in a way that follows both legal and business standards. Since more employees are aware of their rights, a modern HR department may also need to handle a potential increase in complaints about discrimination.

Conflict Resolution

Even though members of personnel management departments work hard to find employees who are a good fit for the company’s culture, the wide range of personalities, experiences, and skill sets found in the workforce mean that some conflicts are bound to happen. Investigating complaints of verbal or physical harassment is common, but other conflicts, such as those involving broken promises from managers, stolen property, and other problems, also occur. This is one of the biggest human resources issues for companies because it is almost always cheaper to retain an employee than to find and train a new one. If HR doesn’t resolve conflicts when they are present, resignations or firings can result, which ultimately costs the company money.

Safety

Workers often use equipment that, if not properly used, can result in accidents or health problems. Even something like a desk that is not ergonomically positioned can be a potential injury source. The HR department has to take this into account when it organizes workers. It also investigates allegations of unsafe equipment or managerial direction.

Benefits

Virtually all companies offer some benefits to employees, either to appear competitive or to comply with local, regional, or national regulations. HR directors work with the heads of companies to create benefit policies and packages. Common employee benefits include health insurance, life insurance, a dental plan, and employee product discounts. When employees are terminated, their benefits usually are too, so HR must keep records of the exact hiring and termination dates of each employee.

Outsourcing

Outsourcing refers to companies giving work to independent contractors outside the company rather than to in-house employees. Independent contractors are freelance workers who pay their own taxes and insurance. Outsourcing is one of the most common human resources issues, as many businesses are hiring freelancers rather than creating more overhead costs by taking on additional in-house employees. Overhead costs include equipment and workspace as well as benefits such as medical insurance.