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Leading as a function of management

Unit: Leadership and Management

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August 2025

1 Questions
Question 1
GRITTY HARVEST INITIATIVE CO-OPERATIVE SOCIETY (GHICS)

​ ​​​​In the year 2014, the Arid and Semi-Arid lands (ASALs) were grappling with persistent drought, low agricultural productivity and widespread food insecurity. In response, four counties in the ASAL region partnered with private agribusiness investors and several non-governmental organisations to form a co-operative society named Gritty Harvest Initiative Co-operative Society (GHICS) under the leadership of Ken Otieno. Their mission was to empower smallholder farmers by introducing innovative farming technologies and improving access to markets. The initial efforts focused on distributing drought-resistant seeds and providing mobile soil testing services to approximately 3,000 farmers. This modest start laid the foundation for broader ambitions. 

By year 2017, GHICS had expanded significantly to cover over 15,000 farmers. It introduced solar-powered irrigation systems in its pilot sites. These systems increased crop yields by an average of 30%, helping communities to mitigate the effects of erratic rainfall. The society also developed a mobile application that provided localised weather forecasts, pest control advice and best farming practices. This technology proved popular among farmers, many of whom had limited access to extension services. Encouraged by these successes, GHICS launched a digital input-credit programme in the year 2019. This initiative enabled farmers to access seeds, fertilizers and other inputs on credit, payable via mobile money platforms. The programme significantly increased input uptake and was hailed as a transformative approach to smallholder financing. Such innovations helped GHICS secure a Sh.1.5 billion grant from international donors in year 2023, intended to scale the project to benefit 50,000 farmers across the whole ASAL region. 

The expanded programme sought to digitise input distribution through biometric verification, expand solar irrigation into various counties and deploy an integrated software platform to track farm yields, input usage and real-time market prices. These ambitious goals placed heavy demands on management, technology and community relations. Julius Kimanzi, an agronomist with over 15 years in government agricultural extension, was appointed as the society’s chief executive officer (CEO) to replace Ken Otieno who had reached the retirement age of 60 years. Julius Kimanzi introduced a strong culture of strict supervision and centralised decision-making. Influenced by assumptions that employees needed close oversight to work effectively, he insisted on daily reporting from field officers and personally controlled key decisions from the headquarter. 

One of Julius Kimanzi’s early initiatives was to implement a satellite imaging system to identify eligible farmers for programme inclusion. Although this innovation improved efficiency on paper, it was introduced without consulting employees, county governments or local community leaders. This top-down approach alienated many stakeholders who felt excluded from decision-making processes. Tensions started to build and escalated quickly. Political leaders accused GHICS of undermining their authority and ignoring the social and economic priorities of local populations. Community elders and farmer groups viewed the project as an external imposition rather than a partnership. Protests erupted in several counties, leading to boycotts of irrigation installations. Equipment worth Sh. 100 million was vandalised, causing delays and increased costs.

Despite these clear signs of community resistance, Julius Kimanzi refused to delegate authority or engage in meaningful dialogue with local leaders. He forbade field officers from negotiating with communities, fearing loss of control and potential data tampering. The effect on staff morale was severe; several senior extension officers resigned, citing unprofessional management and disregard for local knowledge. The project timeline slipped, with only 40% of planned irrigation installations completed by the end of the year. Operational expenses rose by 25% and financial audits showed alarming inefficiencies: for every Sh.100,000 spent in some counties, only Sh.35,000 in measurable benefits was realised, compared to Sh.95,000 in more efficient counties. 

 Adding to the problems, the co-operative society faced a legal challenge when it was discovered that the software platform used for managing farmer data was adapted from an open-source code without securing the appropriate licenses. This oversight exposed the co-operative society to intellectual property infringement risks, which jeopardised current donor funding and raised concerns about data security and ownership rights. Donor agencies issued warnings that ongoing operational and legal shortcomings could threaten future support. Internally, the Board of Directors expressed concern over Julius Kimanzi’s leadership style, noting that his McGregor’s Theory X-inspired micromanagement failed to adapt to the politically sensitive environment which required collaboration, trust-building and empowerment. 

Required: 
(a) Explain FIVE limitations of the leadership style used by Julius Kimanzi at GHICS. 

(b) Identify FIVE risks GHICS is likely to face from the intellectual property issues related to its software platform. 

(c) Discuss THREE challenges GHICS faced due to control systems advanced by its CEO. 

(d) Evaluate FOUR demerits of introduction of centralised decision making to GHICS. 

(e) It is apparent that GHICS under Julius Kimanzi’s leadership did not analyse its political environment. Explain FOUR impacts of political environment to the co-operative society. 

(f) Assess FOUR ways through which quantitative thinking and analysis could guide GHICS decision-making regarding resource allocation. 


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December 2024

2 Questions
Question 2c
​​Evaluate THREE sources of power in an organisation.


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Question 3a
​​Describe THREE positive effects of organisational politics.


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August 2024

4 Questions
Question 1
​ ​​
PEAKVERTEX COMPANY LIMITED (PCL) 

Peakvertex Company Limited (PCL), a mid-sized manufacturing company, has been experiencing a decline in market share and profitability over the last five years. The company is known for its high-quality products, but it is struggling to innovate and adapt to changing market demands. Staff turnover rate is high with low employee morale and a noticeable lack of communication and collaboration across departments.

The board of directors has recently appointed Authur Mabuso as the new Chief Executive Officer. Arthur has a reputation for leading successful organisational transformations from his previous appointments in other companies. His leadership is predominantly transformational, characterised by his strong vision, inspirational communication and focus on employee development. He believes in creating a culture of innovation, empowerment and accountability.

Upon joining PCL, Arthur conducted a comprehensive analysis of the company’s operations, market position and employee satisfaction. The following issues were identified: 

  • Outdated product lines and lack of innovation. 
  • Siloed departments with poor inter-departmental communication. 
  • Low employee engagement and high staff turnover. 
  • Inefficient processes and lack of clear direction. 
Arthur’s first major initiative was to launch a company-wide transformation programme dubbed “PCL revamped”, aimed at revitalising the company’s culture, processes and market research. The programme includes the following components: 

  • Implementing cross-functional teams to drive product innovation and improve market responsiveness. 
  • Implementing leadership training programmes to develop current and future leaders within the organisation. 
  • Introducing initiatives to boost employee morale, such as recognition programmes, flexible work arrangements and open forums for feedback. 
  • Streamlining operations by adopting new technologies and improving workflow efficiencies. 
  • Implementing a client feedback loop to continuously improve service quality and strengthen client relationship.
However, Arthur faces the following challenges in implementing “PCL revamped”: 

  • Resistance to change from long standing employees. 
  • Aligning the diverse goals and expectations of various stakeholders. 
  • Maintaining operational stability while executing major changes. 
  • Ensuring quick adoption of new technologies and processes. 
  • Balancing short-term and long-term strategic goals.

Within the first six months, PCL revamped has shown promising results. Early innovations from the hubs have led to the development of two new product lines which are yet to be launched into the market. Employee engagement scores have improved and there is a noticeable increase in collaboration across departments. However, some resistance remains and Arthur is working on addressing these issues through continued communication and support. 

(a) Explain FIVE objectives of innovation hubs in the context of “PCL revamped”. 

(b) Suggest FOUR potential strategies that Arthur could use to overcome resistance to change among the long standing employees. 

(c) Analyse FOUR potential long-term impacts of the “PCL revamped” programme on the company’s culture and market position. 

(d) Evaluate THREE roles of leadership development in the success of “PCL revamped”. 

(e) Discuss THREE roles of client feedback in enhancing PCL’s service quality and client relationship. 

(f) Explain THREE differences between “strategic goals” and “operational goals” in the context of PCL. 

(g) Highlight FOUR ways in which the Chief Executive Officer may address the challenge of balancing short-term operational needs with long-term strategic goals. 

(h) Advise the Chief Executive Officer and his team on FIVE alternative pricing strategies that the company could adopt when introducing the new products.  


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Question 3b
​​Identify FIVE circumstances under which compromise can be used as a strategy in conflict resolutions.


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Question 5b
​ ​ ​​Theories of change enhance the likelihood of successful change initiatives by addressing challenges, engaging stakeholders and aligning the organisation with its strategic objectives.


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Question 5c
​​Analyse FIVE ways that can be applied by organisations to manage employee performance.


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April 2024

3 Questions
Question 4a
​​Explain FIVE obstacles to change management.


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Question 1
​​HAVANNA TECHNOLOGIES ENGINEERING LTD. (HTEL) 

Havanna Technologies Engineering Ltd. (HTEL) is a 30-year-old family-owned manufacturing company with 250 employees. The company manufactures spare parts for the aviation industry. The immediate president of HTEL is Harold Barelli, an Italian who joined the company from the smaller enterprise in 2019. Harold Barelli aspired to be a great leader who would leave a rich legacy in the aviation industry.

Before Harold, the only other president of HTEL was the founder and owner of the company, Mark Lewis. Mark stepped down from the leadership of HTEL after reaching retirement age in accordance with the company’s policies. During his tenure, HTEL was bureaucratic and had a traditional and rigid organisational structure. Mark made most of the strategic decisions many times overstepping his Board of Directors. Despite his style of management, the company had a very rich hierarchical organisational culture.

After taking over from Mark Lewis, Harold embarked on transformation of HTEL to a modern company. He believed in involving employees in decision making as much as possible. Though he was a people’s person, Mark seemed not to have the right skills mix required of a Chief Executive Officer (CEO) of HTEL. He was however convinced that new technologies and advanced management techniques could make HTEL one of the best manufacturing companies in the country. To this end, Harold created a vision statement that was displayed throughout the company. The two page statement which had a strong democratic tone, described the overall purpose, direction and values of the company. 

During the first three years of Harold’s tenure as president, a major process re-engineering took place at the company. This was designed by Harold and selected few of his senior managers with the help of some consultants. The consultancy firm was not competitively sourced and had done no similar work before. One of the intentions of the re engineering process was to implement an advanced organisational structure to facilitate achievement of the new HTEL vision. Drastic Changes were made in the organisation. These changes affected all members of staff and how they worked. As part of the changes, the organisation structure was flattened and some offices merged. Some of the changes gave employees more control but less in some instances, where employees should have been given more power. There were some situations in which individual workers reported to three different bosses and other situations in which one manager had far too many workers to oversee.

Rather than feeling comfortable in their various roles at HTEL, some employees began to feel uncertain about their responsibilities and how they contributed to stated goals and vision of the company. Though the CEO had good intentions for the company, the re-engineering process did more harm than good. The overall effect was a precipitous drop in worker morale and productivity. In the midst of all the changes, the vision that Harold had for the company was lost. The instability that employees felt made it difficult for them to support the company’s vision. Employees at HTEL complained that although the mission statement was displayed throughout the company, no one understood the direction the company was going. 

To the employees at HTEL, Harold was an enigma. Harold claimed to be democratic in his style of leadership, but he was arbitrary on how he treated people. He acted in a non-directive style towards some people and he showed arbitrary control towards others. He wanted to be seen as a hands-on CEO, but he delegated operational control of the company to others while he focused on external customer relations and matters of the board of directors. At times, Harold appeared to be insensitive to employees’ concerns. He wanted HTEL to be an environment in which everyone could feel empowered, but he often failed to listen closely to what employees were saying. He seldom engaged in open, two way communication. HTEL had a long, rich history with many unique stories, but the employees felt that Harold either misunderstood or did not care about that history. Four years after arriving at HTEL, Harold stepped down as president after his operations officer ran the company into a large debt and cash flow crisis. His dream of building HTEL into a world-class manufacturing company was never realised.  

Required: 
(a) Harold Barelli believed to possess a certain leadership style. Drawing evidence from the case study, discuss FIVE characteristics of this leadership style. 

(b) Examine FIVE drawbacks to HTEL from its wide span of control.

(c) For each function of management, explain Harold Barelli’s inadequacies. 

(d) Harold Barelli failed as a leader, resulting to his stepping down as the president of HTEL. Discuss FIVE skills that Harold Barelli would have acquired, in order for him to become an effective leader. 


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Question 4b
​​Explain FOUR situations where McGregor’s theory X is least applicable in an organisation.


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December 2023

5 Questions
Question 2a
​ ​​Enumerate FIVE characteristics of transactional leadership style.


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Question 2b
​​Explain FIVE challenges associated with delegation of duties.


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Question 2c
​​Suggest FIVE demerits of charismatic leadership in an organisation.


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Question 3b
​​Describe FIVE shortcomings of Abraham Maslow’s theory of motivation.


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Question 5a
​​Examine FIVE benefits of contingency theory of leadership to an organisation.


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August 2023

1 Questions
Question 1

​​MARINA COMPANY LIMITED (MCL) 

Marina Company Limited (MCL) is a multinational company whose headquarters are in New Delhi, India. The company established its offices in Kenya in the year 2012 and currently operates in 15 other countries across the globe. The company specialises in solar technology and offers alternative power solutions in remote areas where main electric power cannot be accessed easily. The vision of MCL is “to power the world and bring comfort to the forgotten”.

The company manufactures most of the appliances centrally in India and then ships them directly to its global markets. At the initial stages of establishment, MCL collaborated with technical institutes to train technologists who assembled and maintained the appliances. The company’s after-sale service approach has boosted its customer base globally. Any major repair was referred back to New Delhi.

In the year 2013, MCL hired a business analyst to carry out a worldwide business analysis with the aim of identifying countries where new offices could be set up. This decision would be based on a wide variety of factors. Globally, MCL customers were classified according to geographical regions. Africa region was the largest, with MCL present in five countries. The company had enjoyed monopoly status in the countries where it operated for a long period of time. 

From the year 2018, competition has been building up where some companies have been able to offer more advanced and better products. This has led to MCL’s bottom line being impacted adversely. The competitors’ products are imported as a complete portable set, and do not require local assembly. The marketing model used by competitors borrows heavily on multi-level marketing and therefore embraced by MCL customers. Perception associated with companies such as MCL which sell in large quantities undermines quality selling. The competitors introduced new modes of selling including hire purchase and loaning for the appliances. These modes were quickly adopted by customers. 

Peter Quick joined MCL in the year 2020 as the head of sales, Africa region, at a time competition was very stiff and the financial position of the company was very low. Major customers that had remained loyal to MCL were shifting their loyalty. By the year 2021 the competition grew exponentially as new entrants joined in with cheaper and more technologically advanced appliances.

Khan Ho, the global operations general manager, whose office is in New Delhi, planned for a brainstorming workshop in the year 2022 for all the regional sales heads to advise on the way forward. The regional sales managers were required to provide scientific responses to the problem, guided by facts and the unique challenges in each of their regions. Khan Ho expected that the workshop would yield remedies to the effects of fierce competition and the way forward would be arrived at. 

In preparation for the workshop, Peter Quick and his team carried out an in-depth internal and external analysis of MCL, studied the competitors’ strengths, customers behaviour, market volatility, competitors and products differentiation. In the analysis, it was undisputable that some of MCL’s appliances were unique and effective in the market. 

To enable him understand the reasons behind the customers shift in loyalty, Peter Quick purchased some of the competitors’ products and shipped them to the company’s main laboratories in India for detailed analysis of their constituent parts. The laboratory report revealed that 70% of the competitors’ products comprised of MCL’s products components. The only major differentiating factor was the logo, colour and packaging. Most of the competitors were buying MCL’s products, adding on a few improvements, re-branding, packaging and selling the products in the market as their own. 

In his presentation, Peter Quick noted that the assignment was complex and weighty. To enable him have a logical presentation during the workshop, he classified his findings in the following categories: marketing strategies, production and operations, human resource, ethics and morals, and legal issues. 

The workshop recommended certain measures to be undertaken. These measures included: • To broaden the customer base • Top management to implement e-marketing strategy 
  • The company to re-classify their customers according to products 
  • MCL to reduce cost for their products
  • Litigation and court action against companies that had used MCL’s patent illegally.   
By the beginning of this year, the company’s bottom line had started showing a positive increase. Customers were trickling back in and it is expected that by the end of the year, the company will have regained its lost market share. 

Required: 
(a) Discuss THREE possible reasons why MCL engaged the services of a business analyst. 

(b) Evaluate FOUR internal factors that could have played part in impacting on MCL’s bottom-line.

(c) Examine FOUR ways in which MCL could apply Michael Porter’s generic competitive strategies to regain its competitive advantage. 

(d) (i) Identify the leadership style applied by Khan Ho in the case. 

     (ii) Analyse FOUR characteristics of the leadership style applied by Khan Ho in (d) (i) above. 

(e) (i) Explain the type of thinking that Peter Quick used, to address the problem. 

     (ii) Analyse FOUR steps followed in the thinking process described in (e) (i) above. 


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April 2023

3 Questions
Question 3a
​With reference to management: 

(i) Explain the term “power”. 

(ii) Distinguish between “legitimate power” and “reward power”.


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Question 5a
​​Explain FIVE benefits of conflicts in an organisation.


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Question 4b
​​Explain FIVE essentials of a sound motivational system that might aid in reducing high rate of staff turnover in an organisation


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December 2022

1 Questions
Question 1
​FATUMA APIO 

 Fatuma Apio has such a strong leadership presence that it would be difficult to talk about Bora Association of Manufacturers (BAM) without mentioning her name. For close to a decade now, press conferences, newspaper commentaries, trade and investment talks associated with BAM always had a permanent fixture that was its Chief Executive Officer (CEO), Fatuma Apio.

As she exits BAM due to end of her term of service, her charisma as a superstar CEO may become a difficult feat for the incoming CEO, Musa Mapito, to emulate. Fatuma Apio is well known in the manufacturing industry due to her signature look. She dresses in Ankara coats, which are quite uncommon in this part of the world. Fatuma rose through the ranks having joined BAM as the head of policy, research and advocacy in the year 2005. She took over the leadership mantle of BAM in the year 2012 after the Board of BAM pushed out its then CEO, Bakari Mapelu due to lackluster performance. BAM had always been a high performing organisation and the Board felt that Bakari Mapelu lacked the right skill set, decision style and values to steer BAM forward. In Fatuma Apio, the Board saw a leader with the “right package” of skills, values and abilities and a person who could build a strong leadership team in the organisation. To them, Fatuma Apio was an idealist who had an unquenchable thirst for learning and growing. They knew that she would influence the other leaders and employees of BAM to follow suit. This would then result in a healthy organisational culture necessary for the success of BAM. Fatuma Apio believed in and implemented Elton Mayo’s Human Relations Movement Theory at BAM. Without a doubt, Fatuma was a transformational leader.

Fatuma Apio’s farewell party was quite emotional since members of staff felt like one big united family, and her separation with BAM was unimaginable. Fatuma had a knack for recruiting the right staff and developing them to their highest potential. She had what it took when it came to staffing. No wonder BAM became so successful during her tenure to the envy of many organisations. She ensured that BAM had a progressive staffing policy. The policy encouraged employees to have a work life balance. In her final speech, she narrated her experience as a newly appointed CEO where most of her time was spent at the workplace. “I used to work late into the night and during weekends at the expense of my young family. This can be challenging to many of us and requires a lot of discipline and a solid support system. Luckily, I had great support from my husband. I highly discourage such a work ethic. You should always create time for your families. I know of situations where, such a work ethic has led to conflicts at the family level and the repercussions experienced at the workplace,” she told the employees.

As one of the few women CEOs, and just in her 40s, her advice to young women aspiring to be top executives is simply to acquire knowledge and competence, saying it is the best investment one can make. “Knowledge will aid you in making great strides in all the areas you are passionate about. Most importantly, self-discipline and responsibility shall steer you to the right path,” she says. What she likes most about the industry now is that more women are taking up leadership positions than ever before. “Unfortunately, the game is already rigged, particularly on what is expected of women in leadership and their ability to hold such positions,” she added. 

Fatuma encouraged women employees of BAM not to be bound by defined spaces. They should shine in their talent and skills to make a difference. “This concept continues to be demonstrated everyday as more women take up C-suite roles, more so in traditionally, male-dominated sectors, such as manufacturing,” she said. Fatuma added that, “BAM started the Women in Manufacturing Programme to provide a space for women to venture into the manufacturing space. We aspire to see more women participate in the sector in senior leadership roles, as owners and founders, and for young girls to see themselves as future industrialists”.

According to her, there were times when the issues she wanted to change took too long to materialise, but she remained steadfast. This taught her to be patient and resilient. “I have learnt that challenges fuel you to become more innovative,” she concluded. 

Required: 
(a) Fatuma Apio believed in and implemented Elton Mayo’s, Human Relations Movement theory at BAM. 
    
     With reference to the above statement, describe FIVE actions that Fatuma Apio may have taken, to implement the theory in her organisation. 

(b) Bernard M. Bass developed the transformational leadership theory in 1985 as a way to describe the psychological mechanisms that are used by leaders. 

     With reference to the above statement: 

     (i) Explain SIX personal traits that Fatuma Apio possesses that enable her to be regarded as a successful transformational leader. 

    (ii) Examine FOUR elements that make up a transformational leader, which came to be known as the 4 Is. 

(c) Enumerate SIX principles that BAM might have taken into consideration while developing a staffing policy. 

(d) Fatuma Apio encouraged BAM employees to always create time for their families to avoid conflicts. Conflicts in organisations also occur between line and staff management. 

    With reference to the above statements, assess FIVE possible sources of conflict between line and staff management of BAM.    


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August 2022

2 Questions
Question 4a
​​Examine four types of delegation of authority in an organisation.


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Question 1
​ ​ ​​
XYZ COUNTY 

In a week’s time after the conclusion of the general elections, Baridi Joto, popularly known as BD will be declared as governor elect of XYZ County by the electoral body since he was unopposed. He is the only gubernatorial candidate unopposed in the country.

BD will be taking over the leadership of the XYZ County at a time when nothing seems to work at the county. The county has been greatly mismanaged by the outgoing governor, Kipenda Pesa with his team. The population, especially in the two major towns of XYZ County, Kipeo and Makao has been declining at an alarming rate as many people have been migrating to other towns outside XYZ County in search of better prospects. Kipenda Pesa’s government has been highly bureaucratic and incompetent. His wife appears to wield more power than the governor and she influences how the county government is run. County employees follow her orders unquestionably to avoid trouble. Several large scale manufacturing plants in the county closed down while others have relocated to the neighbouring counties where the business environment is conducive. This has resulted in an increase in unemployment levels that further led to high crime rate in the county.

Many residents described Kipenda Pesa as a “lame duck” who could not make a decision without consulting his wife. As a result of the chronic bad decisions regarding the governance of XYZ County, the county is currently dysfunctional. Garbage is all over the streets, residents have no access to essential drugs in the county hospitals, educational facilities and county roads are dilapidated and some businesses have closed down due to high cost of doing business. Residents of XYZ county have become poorer under Kipenda Pesa’s reign. It is against this backdrop that Baridi Joto (BD), a renowned economist and consultant with an international organisation was approached by some opinion leaders to contest the position of governor and rescue the county. All the aspirants who had been nominated by their respective political parties stepped down in BD’s favour. 

BD has promised to offer visionary leadership in the county. Towards this course, he has developed a manifesto that if implemented, water shortages, bad and impassable roads, lack of drugs in hospitals, children dropping out of schools will be a thing of the past. He has promised to pay all the pending bills owed to XYZ County’s suppliers which run into billions of shillings. Pending bills have really affected small scale suppliers especially those who had borrowed money from financial institutions on the strength of local purchase orders and local service orders issued by the county. Many of them have closed down their businesses while others have seen their businesses auctioned. 

BD has promised to develop a county integrated development plan (CIDP) six months after he assumes office which will address most of the social problems faced by the residents of the county. Currently, there are no recreational facilities in the county. County staff are demotivated due to meagre and delayed salaries. They have been bearing the brunt of various jokes from their peers in other counties especially when they meet in county forums. BD will have to work extremely hard to ensure that the county staff work as one united team in his endeavour to return the lost glory of the county. He has a daunting task of completing projects which were half-way abandoned by his predecessor due to inadequate budgetary allocation and misuse of funds. BD inspires hope and everyone in XYZ County, including children are looking up to him to deliver them from many years of bad leadership.

Required: 
(a) Kipenda Pesa ran a highly bureaucratic county government. 

     With reference to the above statement, evaluate six drawbacks of bureaucracy that could have contributed to the ills at XYZ County. 

(b) Kipenda Pesa’s wife wields a lot of power and county employees follow her orders unquestionably. 

     (i) Identify Kipenda Pesa’s wife’s source of power. 

    (ii) Discuss six disadvantages of the use of power identified in (b) (i) above with respect the county government’s office. 

(c) Many small scale suppliers closed down their businesses or have seen their businesses auctioned due to failure of XYZ County to clear their pending bills. 

     Explain two external environment factors or aspects that might have contributed to the closure of businesses in XYZ County. 

(d) (i) State BD’s leadership style. 

     (ii) Examine five qualities of the leadership style stated in (d) (i) above.  


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April 2022

5 Questions
Question 3a
​​With reference to aspects of management, explain the following terms:

(i) Power.

(ii) Authority.

(iii) Accountability.

(iv) Responsibility.


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Question 7a
​​ Trust or lack of trust is an increasingly important issue in modern organisations.

With reference to the above statement:

(i) Explain the term "trust in leadership". 

(ii) Discuss ways in which leaders could build trust with their followers.


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Question 2c
​​ Summarise five arguments against using monetary incentives to motivate staff.


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Question 4b
​​A leader's primary responsibility involves accomplishing the tasks for which the group or organisation exists. 

With reference to the above statement, identify five methods that a leader may employ towards achieving the desired results.


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Question 4c
​​With respect to emotional intelligence skills, distinguish between the terms "self-awareness" and "self-regulation".


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Question 1
​​
​​EFD LTD. 

EFD Ltd is a cross-listed electric power distribution company. The company is planning to diversify into renewable and clean energy sources. When JL took over as CEO in 2020, EFD was a traditional, hierarchical, command-and-control workplace – a bureaucratic organisation. This is one of the few businesses in the region that is still able to operate a traditional company that provides control and stability. At the top of the organisational structure (below the board of directors) is the CEO and senior management. In the middle of the structure are middle managers and lower-level managers and at the broad base are employees. At EFD, top management make all the major decisions which are communicated to middle-level and low-level management. These managers must then implement the decisions among the rank-and-file workers. However, input is required or solicited from employees though ultimate authority rests with top management.

Through a preliminary study report on current management practices at EFD, JL is amazed by the primary advantage of a traditional organisation structure in 21st Century. It keeps decision-making authority in the hands of a few people within the business and in doing so, it eliminates confusion among employees about who is in charge and provides a clear message about what workers are expected to accomplish in the performance of their duties. Other key findings of the study are as follows: 

  1. A bureaucratic context as found in EFD is characterised by job specialisation which enables employees to have a well-defined rules of productivity. 
  2. When the bureaucratic approach is implemented effectively, the impersonal nature of interactions that are established leads to a number of benefits. Equality is emphasised and stressed; friendships do not influence decisions that are made; and, the rules and regulations ensure that there are precise instructions for job functions and expectations. 
  3. Top managers in this company are in a position to make tough decisions although guided by efforts of the respective workforce. 
  4. Employees are empowered to make decisions without fear of the consequences as the decisions they make correspond to what the managers want. 
  5. The lines of communication are open, giving the organisation an opportunity to develop, and involving all the employees in the decision making process. 
  6. The idea of job specialisation brings some benefits to the organisation as it generates efficient, repetitive workflow. 
  7. Each department has particular powers enabling managers to monitor their employees more easily and ensuring that they stick to their tasks. 
  8. The employees are conversant of what is expected of them and what their powers are within the organisation. 
  9. The managers are organised into hierarchical levels where each level of management is in charge of its employees and overall performance. 
  10. Bureaucratic power is extremely autocratic and strict observance to rules may prevent the implementation of appropriate measures required to accomplish organisational objectives. 
  11. Employees hired get promoted based on their unskillfulness – a proficient manager will continue to be promoted until the moment they are incapable thus remaining to that position until they retire or die. 
  12. Due to the applicable rules and regulations, there is less autonomy to act or make personal decisions.
  13. Adapting to change in this type of organisation is very challenging – it takes time to come up with new rules, regulations and strategies to the new contexts that have transformed. 
  14. The employment to an office and the management of the various levels in this organisation are based exclusively on the grounds of technical proficiency. 
  15. Bureaucratic rules and regulations seem to be obstructive when unexpected situations occur. 
  16. In a subsequent strategy meeting with all the managers, JL makes the following observations: 
  17. That there are certain elements of management which are timeless, but environmental shifts also influence the practice of management. 
  18. That in recent years, rapid environmental changes have caused a fundamental transformation in what is required of effective managers. 
  19. Technological advances such as social media and mobile apps, the rise of virtual work, global market forces, the growing threat of cybercrime, and shifting employee and customer expectations have led to a decline in organisational hierarchies and more empowered workers which calls for a new approach to management that may be quite different from managing in the past.

 A decision is made during the meeting that instead of trying to promote ideas and innovations through traditional structures, EFD should align its structure in such a way that ideas and innovations can prosper. A committee of five members drawn from the three levels management is formed to study the shift from the traditional management approach to the new management competencies that are essential in today’s environment. 

Required: 
As a member of the strategy committee you are required to provide data by answering the following questions that relate to your terms of reference and in the context of the above case: 

(a) Through secondary research, identify and explain five management competencies that are becoming crucial in today’s face-paced and rapidly changing world. 

(b) Compare and contrast Max Weber’s bureaucratic theory and systems thinking in the context of management of an organisation. 

(c) Illustrate the process of how managers use resources to attain organisational goals through the functions of planning, organising, leading and controlling and briefly explain each function. 

(d) Advise the CEO of EFD on sources of leader power and the tactics that leaders use to influence others especially in time of organisational change.


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December 2021

2 Questions
Question 4a
​​Discuss the importance of leadership as a function of management.


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Question 1
​МАХСОM LTD. (ML) 

Maxcom Ltd. is a prominent company in cement production and has been in business for over ten years controlling the market almost in a monopolistic way. The company has project managers in its six branches with each branch employing approximately eighty workers. The Chief Executive Officer of Maxcom Ltd. has twice been voted as the best performer in the corporate sector category in various award ceremonies. For managerial positions, the company recruits higher than average persons with formal training and who have experience in respective fields. It is also compulsory for new heads of department to be coached and mentored by other senior managers. The Chief Executive Officer of Maxcom Ltd. always encourages branch and departmental heads to embrace the firm's culture of adopting transformative leadership approach in order to gain employee commitment. The company's culture and ethical leadership practice is further emphasised during leadership trainings organised for managers and departmental heads during every financial year.

In the last one year, Maxcom Ltd. has faced unpredictable challenges where more firms have joined cement production hence reducing its market share. Due to this competitive pressure, the company has embraced the latest technology to try and reduce the cost of production and shift from labour intensive to capital intensive approach. As a consequence, the manpower in most of the company branches has been reduced, a process that is painful for managers and employees. The overall aim of restructuring is to maintain clarity and consistency in pursuing the company's vision while still being competitive in a highly charged political environment.

Required: 
(a) Suggest five reasons why the leadership of Maxcom Ltd. (ML) seems to be spearheading the company in the right direction. 

(b) Discuss how the branch and departmental heads of ML could apply transformative leadership style to gain employee commitment. 

(c) In order to control the cost of production, ML shifted from labour intensive to capital intensive strategy. 

     Explain the costs that ML might have incurred during the restructuring process. 

(d) In most organisations, employees resist change especially when their jobs are at risk.  
     
      Examine five strategies that the management of ML could have adopted to overcome resistance to change.

(e) Assess five ways in which the political environment under which ML was operating could have influenced leadership and management practices at ML.


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