Advanced Diploma Past Papers September 2010

The Institute of Administrative Management
Level 5 Advanced Diploma in Administrative

Management
Examination paper
September 2010
Unit 1: Administrative systems in the organisation
Date: 06 September 2010
Time: 09:30 – 12:30
Time Allowed: 3 hours. Allocation of marks

as shown on the
This paper is divided into four sections. paper.
ONE question must be attempted from each section.
Graph paper is included in the centre of the exam

script.
Questions follow.
Please do not turn the paper over until told to do so by the invigilator
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Section A: Problem solving and analysis
1. Metaphors are often used to illustrate the meaning of situations, thus providing
a graphic image that is widely understood.
a. Identify and describe the five system metaphors used within organisations.
(10 marks)
b. Explain concisely how rich pictures are used, including identifying how a
problem could be recorded as a rich picture.
(15 marks)
2. Decision-making can be complex and cannot be separated from the culture,

environment, politics and emotions within which decision makers operate.
a. Describe in detail the grid which was developed to provide managers with a
process of choosing systems methodologies.
(15 Mark)
b. Explain concisely how this grid works, using two examples to support your
answer.
(10 marks)
Section B: Designing effective systems
3.
a. Outline the main focus of Total Quality Management (TQM), and detail the
pre-requisites for TQM to be fully and effectively embedded within
organisations.
(13 Mark)
b. Explain concisely the six levels of adoption of TQM identified by Dale and
Lascelles.
(12 marks)
4.
a. Examine the international quality standard ISO 9000, and explain its origin,
focus and applicability to various organisations.
(10 marks)
b. Discuss the strengths and weaknesses of these quality standards and provide
a sound argument (either for or against) that they consistently provide high
quality goods or services.
(15 marks)
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Section C: Performance improvement and monitoring
5.
a. Outline how the concept known as the ‘value-chain’ can be applied within an
organisation in order to improve performance.
(10 marks)
b. Discuss why organisational processes are interconnected and often difficult to

unravel. Answers should explain why managers are often tempted to
identify, measure and evaluate those forms of organisation data that are
more evident.
(15 marks)
6.
a. Outline the use of Key Performance Indicators (KPIs) and explain how they
are used and why it may be difficult to establish effective performance
indicators.
(12 marks)
b. Discuss why organisations measure performance and why both ‘quantitative’
and ‘qualitative’ measures should be used.
(13 marks)
Section D: Systems approaches and models
7.
a. Explain the concept of a system, including the relationship between elements
and the notion of a boundary.
(10 marks)
b. Discuss in detail the concept developed by Peter Checkland and explain its
approach and value to problem-solving within organisations.
(15 marks)
8. Define the six properties of good decision analysis models, and discuss the
contribution of computer software when using such models. Your answer must
show a clear understanding of decision analysis models, including their strengths
and weaknesses.
(25 marks)
©2010 IAM
Management
Marking guide
September 2010
Unit 1: Administrative systems in the organisation
Time: 09:30 – 12:30
Time Allowed: 3 hours. Allocation of marks

as shown on the
ONE question must be attempted from each section.

script.
Questions follow.
Please do not turn the paper over until told to do so by the invigilator.
©2010 IAM
Ad
Section A: Problem solving and analysis
1. Metaphors are often used to illustrate the meaning of situations, thus providing
a graphic image that is widely understood.
a. Identify and describe the five system metaphors used within organisations.
(10 marks)
b. Explain concisely how rich pictures are used, including identifying how a
problem could be recorded as a rich picture.
(15 marks)
Marking guide (LO 2)

a.
This question allows candidates to describe the five system metaphors:
 machine – the mechanistic approach of organisations, with a closed system view
and standardisation of processes, predictable and routine operations
 organism – the term organism implies an open relationship with changing
environment, and the organisation behaving like a living system and adapting to
the external environment
 brain – emphasises active learning, thinking about the organisation as being
inventive with a focus on decision-making and information processing
 culture – emphasises shared values or beliefs. Organisations are complex
systems and challenge is long-term survival
 politics – focuses on power and how power is obtained and used within
organisations, and how different interests are reconciled.
One mark for each of the metaphors listed with a further mark for a brief explanation
of what each means. They must describe fully how these metaphors are used within
organisations to describe various processes that take place.
(10 marks)
b.
A further eight marks are available for explaining fully and concisely how rich
pictures are used – they are used during the expression of a problem situation – the
finding out stage. There are no rules for their development but hard and soft
information must be included. They are produced without structure, although they
show patterns, relationships, arrangements and connections.
(8 marks)
With a further seven marks available when a complete explanation of how a problem
could be recorded as a rich picture.
(7 marks)
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2. Decision making can be complex and cannot be separated from the culture,
environment, politics and emotions within which decision makers operate.
a. Describe in detail the grid which was developed to provide managers with a
process of choosing systems methodologies.
(15 marks)
b. Explain concisely how this grid works, using two examples to support your
answer.
(10 marks)

a.
Flood and Jackson (2003) developed the System of Systems Methodologies (SOSM)
in order to provide managers with a process of choosing system methodologies
relevant to the problems they face.
Problem contexts are seen as being affected by two key variables:

 nature of the system
 and nature of the participants.
The candidate should explain the SOSM grid with increasing divergence of values
from unitary, pluralist to coercive and increasing complexity, simple to complex. It
would be helpful and allow two marks if the candidate was to present this
diagrammatically, and explain what each of the values actually means:
 unitary – participants have common interest and beliefs
 pluralist – participants have basic compatible interests but don’t share same
values and beliefs
 coercive – participants have no common interests and hold conflicting values and
beliefs.
(2 marks for diagram)
Simple – small number of sub-systems

Complex – large number of sub-systems
(2 marks)
Candidates must provide this full explanation to gain remaining eleven marks and
explain how hard and soft systems relate to the model.
(11 marks)
b.
A further ten marks are available when two examples are used successfully to
demonstrate the use of the grid. Clearly examples can be chosen from the
candidate’s own experience or from their reading in respect of this topic area.
(10 marks)
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Section B: Designing effective systems
3.
a. Outline the main focus of Total Quality Management (TQM), and detail the
pre-requisites for TQM to be fully and effectively embedded within
organisations.
(13 marks)
b. Explain concisely the six levels of adoption of TQM identified by Dale and
Lascelles.
(12 marks)

a.
TQM focuses on zero defects and depends upon a customer-focused corporate style
of management that encompasses the whole organisation in a shared vision of
quality.
The emphasis is on a commitment to continuous improvement with organisations

adopting a systematic approach to the development of high-quality products/service
while responding to customer requirements or demands.
A full and concise explanation of this concept, including the relevant theorists
associated with it such as Deming (1981) and Juran (1988) must be provided.
The candidate must demonstrate a complete appreciation of theory and relevant

theorists. They must show that the underlying concept behind the theory is that
both internal and external customers must be satisfied in the development of
products or delivery of services. The cost will then be recognised as appropriate by
the customer. Organisations are seen as succeeding when quality is taken for
granted.
Candidates must understand that Deming focused on statistical process control and
Juran developed a planning approach to quality improvement in sequential stages:
 determine Goals
 evaluate Performance and compare goals
 identify resources required
(8 marks)
With a further five marks for explaining the need for:
 top management commitment
 a shift in culture
 need to be embedded within the value system of the organisation
 engaging all employees in improving their performance
 Integration with all processes and functions.
(5 marks)
b.
Finally twelve marks are available for not only providing the names but also an
explanation of each of the six levels identified by Dale and Lascelles (2003):
 uncommitted
 drifters
 tool-pushers
 improvers
 award-winners
 world-class.
The candidate should include an explanation of what each means
One mark for each level identified and one mark for brief explanation.
(12 marks)
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4.
a. Examine the international quality standard ISO 9000, and explain its origin,
focus and applicability to various organisations.
(10 marks)
b. Discuss the strengths and weaknesses of these quality standards and provide
a sound argument (either for or against) that they consistently provide high
quality goods or services.
(15 marks)

a.
The candidate must provide a full explanation of ISO 9000 as a quality standard
British Standard is BS5750. They must explain how these standards allow
organisations to apply for external assessment and accreditation through a process
of certification, often a pre-requisite to market entry.
The focus of the standard is on how the service or product should be delivered or
manufactured so that there is little or no variability in the standard and customers
can therefore be assured of the consistency of the service or the goods.
A total of ten marks are available for providing a full explanation as above, which
must include an appreciation of the external assessment and accreditation process of
certification, the focus on how the service or product should be delivered and an
understanding from the candidate of an organisation that has applied this standard
etc.
(10 marks)
b.
A further seven are available for explaining the strengths and weaknesses of these
standards.
Strengths including:
 commitment of employees to continuous improvement
 seen by customers as achieving and maintaining a certain quality standard
 ensures organisations continually review quality and processes associated with
quality
 decrease in the number of complaints
 documentation aids processes for training and development of staff.
Weaknesses including:
 costly bureaucratic process to achieve accreditation
 if standard is set low then quality will be low.
Then a further eight marks are available for providing a full argument either for or
against the standards as a guaranteed quality standard.
(15 marks)
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Section C: Performance improvement and monitoring
5.
a. Outline how the concept known as the ‘value-chain’ can be applied within an
organisation in order to improve performance.
(10 marks)
b. Discuss why organisational processes are interconnected and often difficult to

unravel.
(15 marks)

a.
This question gives candidates the opportunity to explain the concept of value-chain
and how they are used and applied within organisations.
Candidates must explain that they were developed by Porter in 1980 and allow
organisations/managers to analyse the costs and assets linked to individual activities
to determine any correlation.
This is a move away from the traditional method of managing costs. This concept
allows organisations to examine their routines and processes.
Candidates must explain primary and secondary activities and upstream and down
stream activities. A clear, concise and complete explanation of how this concept
works should allow up to ten marks.
(10 marks)
b.
A further eight marks are available when candidates discuss and explain why
processes are often interconnected within organisations e.g. HR function and often
make complete and discrete application of the model difficult to implement.
Candidates must provide a thorough understanding of how this model is

implemented and drawbacks to implementation such as that detailed.
(8 marks)
A further seven marks are available when candidates explain that data such as
production costs, ROI etc are often measured and evaluated more because they are
more readily available than say management style, leadership, employee
commitment etc.
A very thorough understanding must be provided to allow the full seven marks to be
afforded.
Answers should explain why managers are often tempted to identify, measure and
evaluate those forms of organisation data that are more evident.
(7 marks)
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6.
a. Outline the use of Key Performance Indicators (KPIs) and explain how they
are used and why it may be difficult to establish effective performance
indicators.
(12 marks)
b. Discuss why organisations measure performance and why both ‘quantitative’
and ‘qualitative’ measures should be used.
(13 marks)

a.
Candidates must explain what KPIs are and how their usage in organisations has
developed over time. They can be used to predict future performance. The KPIs
chosen must be measurable and capable of validation.
Organisations must choose the right things to measure and interpret them correctly.
They must explain why managers often find it difficult to establish the correct
indicators and how they will change over time.
Up to twelve marks are available for explaining how this concept has developed, how
they are used and the drawbacks to using them such as difficulty in establishing the
indicators and how they change over time.
(12 marks)
b.
A further thirteen marks are available when candidates discuss at length that both
qualitative and quantitative measures need to be used to provide a complete picture
of organisational performance. They should go on to explain how measuring
performance allows managers within organisations to review the efficiency and
effectiveness of their organisation and take action as necessary.
They must explain that quantitative measures on their own do not allow a complete
picture of organisational health to be ascertained. They must then go on to explain
how it is often other measures relating to customer satisfaction, and employee issues
such as innovation and learning that allow a complete and concise picture to be
ascertained.
(13 marks)
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Section D: Systems approaches and models
7.
a. Explain the concept of a system, including the relationship between elements
and the notion of a boundary.
(10 marks)
b. Discuss in detail the concept developed by Peter Checkland and explain its
approach and value to problem-solving within organisations.
(15 marks)

a.
This question gives candidates the ability to consider the concept of a system and
how this notion has further developed in recent years.
A systems approach to problem-solving tends to holistic; looking at the whole

problem situation as opposed to the reductionist approach which looked at isolated
parts of the problem situation.
Candidates must explain this emergence of systems theory and then be able to
explain the concept of systems comprising of elements and then the boundary
dividing the system from its environment.
This question focuses on soft systems methodologies SSM and thus candidates must
demonstrate a thorough and complete understanding of this concept. A thorough
and concise explanation such as this would allow ten marks to be awarded.
(10 marks)
b.
A further ten marks are available for explaining the seven stage participative process
as developed by Checkland including an explanation of each:
 situations considered problematic
 problem situation expressed through a rich picture
 root definitions of relevant, purposeful, activity systems (catwoe)
 conceptual models of the relevant systems named in the root definitions
 comparison of the conceptual models with the real world
 identification of changes that are systematically desirable and culturally feasible
 action to improve the problem situation.
This must include a complete understanding of this concept and then a further five
marks are available for comparing it with other models such as Operational Research
model (OR), Systems Analysis Model (SA), Systems Engineering Model (SE) or
systems dynamics model, appropriately explained.
(15 marks)
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8. Define the six properties of good decision analysis models, and discuss the
contribution of computer software when using such models. Your answer must
show a clear understanding of decision analysis models, including their strengths
and weaknesses.
(25 marks)

The answer needs to demonstrate an understanding of what decision analysis models
are and the contribution they make to decision making within organizations.
Daellenbach and McNickle (2005) defined six properties of good models:

 Simple, easy to understand and use
 complete, including all significant aspects of the problem situation
 easy to manipulate and communicate with
 adaptive, reasonable changes in inputs and/or the structure of the problem
situation
 appropriate for the situation studied, producing relevant outputs at the lowest
cost and within time-frame
 producing information that is relevant and appropriate for decision making.
Each should be identified and explained by use of an example.
Defining and explaining these six properties would allow twelve marks to be awarded
when appropriate.
(12 marks)
Candidates must go on to explain that mathematical and logical models are

appropriate for the use of computer software.
Answers could usefully refer to the types of decision support models that are
available and suggest when examples of these might be used.
 Mathematical and logical modelling approaches use quantitative models within a

hard systems approach and are often seen as Management Science.
 Computer simulation software can be used to carry out experiments on how a
system could operate, particularly where there is a significant volume of
complexity, uncertainty and variability:
o Operational Research Model (OR) – based on a rational choice between
alternative responses, used for complex problems
o Systems Analysis Model (SA) – a systematic form of enquiry examining
costs, effectiveness and the risk of alternative strategies. It analyses
complex systems through a step by step approach.
o Systems Engineering Model (SE) – uses a well-defined model that ensures
optimum use of resources, detailed systems analysis and optimal system
design to find a solution to a given problem.
o Systems Dynamics model – developed by Forrester after looking at
failings of OR model. He saw systems as feedback processes
demonstrating a specific and orderly structure, but recognising that cause
and effect might be far away from each other. This model uses the
human mind to define the problem and to identify factors influencing the
problem, and recognises feedback loops prior to building, testing and
experimenting with the computer model.
Candidates must provide a thorough understanding of how this type of models works
and how they compare to interpretative modelling. A complete explanation of this
level would provide thirteen marks when appropriately explained and compared.
(13 marks)
©2010 IAM
Management
Examination paper
September 2010
Unit 2: Strategic issues in administration
Time: 09:30 – 12:30
Time Allowed: 3 hours Allocation of marks

as shown on the
One question must be attempted from each

section.

script.
Questions follow.
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Section A: The organisational environment
1. Evaluate how managers respond to change drivers. Use examples to support your
answer.
(25 marks)
2. Consider the cultural implications of internationalisation/globalisation on an

organisation with which you are familiar.
Explain the cultural influences that affect that organisation.

(25 marks)
Section B: Introduction to strategic thinking
3. Imagine you are a senior manager of a struggling organisation. Suggest ways and
techniques of gathering information to make decisions on the strategy required to
make the organisation successful. Give reasons for your choices.
(25 marks)
4. Evaluate how an organisation decides on its strategic capability. Use specific

examples to support your answer.
(25 marks)
Section C: The customer focused organisation
5.
a. Identify and explain the main stages in the development of new products.
(15 marks)
b. Discuss how the development of new products might be supported by the
organisation.
(10 marks)
6. Explain the steps that should be followed when conducting market research and
identify the different techniques that can be used.
(25 marks)
Section D: Managing change and culture
7. Imagine you are the administrative manager of your organisation. Using examples,
explain how you will contribute to creating an ethical culture within your organisation.
(25 marks)
8.
a. Identify the main reasons for organisational change.
(8 marks)
b. Explain why resistance to change might occur and the action managers can take
to reduce or remove such resistance.
(17 marks)
©2010 IAM
Management
Marking guide
September 2010
Unit 2: Strategic issues in administration
Time: 09:30 – 12:30

as shown on the
One question must be attempted from each

section.

script.
Questions follow.
©2010 IAM
Ad
Section A: The organisational environment

1. Evaluate how managers respond to change drivers. Use examples to support your
answer.
(25 marks)
Marking guide (LO 1.3.2)
Candidates should first explain that external drivers are not themselves controllable by
individual managers, though responses to them and their impact within an organisation
can be mediated by good strategic management. Responding to internal drivers is
generally easier as management has far more influence over the drivers and responses
to them.
(3 marks)
Before managers plan responses, the forces acting on the organisation should be
evaluated using a framework such as the Lewin’s Force Field Analysis (1947). This goes
beyond the identification of the change drivers, to examine the forces restraining the
organisation. Their impact can be predicted only if the valence (strength) is also
estimated.
(4 marks)
Driving Forces can be classified into external and internal.
External:
 competition
 globalisation
 product life cycle
 technology and management gurus.
One mark each up to a maximum of four marks.
(4 marks)
Internal:
 economic survival
 customer expectations
 cost reduction
 employee morale
 dynamic charismatic individual
 strategic vision
 shareholders.
(4 marks)
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Restraining forces can also be categorised into individual and organisational.

Individual:
 fear of redundancy
 personal inconvenience
 loss of status
 career prospects
 habit, laziness
 fear of failure
 ignorance/lack of information.
(4 marks)
Organisational:
 bureaucracy
 lack of skills/training
 rigid structure
 lack of finance
 trade union power
 undue caution.
(4 marks)
Students can earn two extra marks for citing other appropriate frameworks.
(2 marks)
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2. Consider the cultural implications of internationalisation/globalisation on an

organisation with which you are familiar.
Explain the cultural influences that affect that organisation.

(25 marks)

Candidates should firstly state the organisation chosen.
(1 mark)
A useful starting point is to explain the term ‘culture’. There are various examples
candidates can cite.
(2 marks)
Candidates can explain the cultural environment that affects the chosen organisation.
Organisational influences:
 political context
 legal system
 values/attributes
 religion
 education
 social system
 language.
One mark for each of the above with a further mark for each explanation relating to the
chosen organisation.
(14 marks)
Candidates should consider the implications of how technology has made

internationalisation/globalisation possible.
(2 marks)
Examples that students can use to support their answers are:

 same brand marketed differently
 global brands that are globally accepted
 what works in one culture may not in another.
(3 marks)
They can also distinguish between globalisation and internationalisation as attempted by

Vignali (2001).
(1 mark)
Globalisation
Developing strategies in the belief that the world is a single entity and so everthing can
be handled the same way.
(1 mark)
Internationalisation
Customising strategies depending on who you wish to do business with, which involves
grouping countries according to their culture, economies, politics, etc.
(1 mark)
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Section B: Introduction to strategic thinking
3. Imagine you are a senior manager of a struggling organisation. Suggest ways and
techniques of gathering information to make decisions on the strategy required to
make the organisation successful. Give reasons for your choices.
(25 marks)

Candidates should first explain that as an strategic manager they would require
information on organisational analysis, environmental analysis and competitor analysis.
(3 marks)
For organisational analysis, candidates should include:

 Kurt Lewins Force Field Analysis – This enables influences that are promoting or
inhibiting change to be identified, as a basis for producing action plans.
(2 marks)
 SWOT Analysis – Analysis of an organisation’s strengths, weaknesses, opportunites

and threats.
(2 marks)
For environmental analysis, candidates should include PESTLE analysis. PESTLE produces
an understanding of the external macro-environment and assist in gaining competitive
advantage. It identifies external factors that impact the organisation.
P = political
E = economic
S = societal
T = technological
L = legal
E = environmental.
(6 marks)
Candidates should comment that PESTLE is a useful checklist and provides a framework
to feed into a SWOT or force field analysis.
(1 mark)
Candidates can then discuss competitor analysis techniques such as:

 industry norm analysis; an assessment against standard sets of performance
measures for a whole industry sector.
(1 mark)
 benchmarking; assessment against market leaders or ‘most admired companies’ to

identify critical success factors and adopt best practice.
(1 mark)
 Porter’s five forces; identifying factors in the competitive environment that

collectively determine the profitability and strategic success of an organisation:
o threat of new entrants
o intensity of rivalry
o bargaining powers of buyers
o bargaining powers of suppliers
o threat of substitutes.
(5 marks)
Up to four further marks can be awarded for citing of relevant examples or theorists.
(4 marks)
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4. Evaluate how an organisation decides on its strategic capability. Use specific

examples to support your answer.
(25 marks)

Candidates should start by explaining that there are three parts to deciding on strategic
capability.
Identify core competences.

Core competences are activities of an organisation that makes a difference and gives the
company competitive edge, Needle, (2004). They form the basis of reputation with
customers. They may provide the basis for benchmarking exercises by other sector
members.
(4 marks)
Identify critical success factors.

These are factors that customers value most about a product, service or organisation and
which must be achieved to secure competitive advantage, Boddy (2005). At a strategic
level these include organisational capabilities such as flexibility and innovation.
(2 marks)
Kay (1993) identified three areas of competence crtitical to success:

 architecture (channels of communication and information exchange)
 reputation (quality, dependability, responsiveness)
 innovation (ability to generate new or differentiated products or services).
(4 marks)
Identify key performance indicators.

These are indicators that will be measured to determine if improvements put in place are
working or not.
(2 marks)
Once these are identified, organisations must ensure that these are addressed by
individual managers and their business units. Performance indicators are expressed as
outputs, related to objectives, targets and critical success factors against which a
managers contribution can be evaluated.
(2 marks)
Candidates should explain how organisations establish what the criteria is for the core
competences, critical success factors and key performance indicators. They should
include reference to SWOT, PESTLE, Lewin’s Force Field analysis. How organisations
interpret these results and create the indicators to assist in moving the organisation on.
(9 marks)
A further two marks can be awarded for citing examples.

(2 marks)
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Section C: The customer focused organisation
5.
a. Identify and explain the main stages in the development of new products.
(15 marks)
b. Discuss how the development of new products might be supported by the
organisation.
(10 marks)
Marking guide (LO 3.5)

Candidates can first explain that various analysis should take place prior to developing
new products such as SWOT, PESTLE, Lewin’s Force Field Analysis.
One mark each up to a maximum of three marks.
(3 marks)
Candidates should identify the main stages as:

 assess the demand (including, market research, feasibility study, market gaps, etc);
 obtain ideas (R&D, who can contribute to, etc)
 evaluate each idea(link to corporate plan, suppliers, demand, market size)
 develop one idea (resources, test marketing, timetabling training, purchase
equipment etc)
 launch product (forms of promotion, pricing policy, etc)
 evaluate success (consumer reaction, increased sales, etc).
Two marks each up to a maximum of twelve marks.
(12 marks)
Discussion should also be included to explore the proposition that new products may be
innovative (new/original), imitative (copies) or replacement (substitutes) and reasons
why each would be valid idea, when competitors are already in the market.
(6 marks)
Support from organisation can take the form of labour availability and cost, and
competitor’s reaction, corporate objections, compatibility and product mix, future market
growth, profit potential, length of life cycle, etc.
(4 marks)
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6. Explain the steps that should be followed when conducting market research and
identify the different techniques that can be used.
(25 marks).

The candidate should discuss the framework as indicated by Palmer (2004).
(1 mark)
 define the problem, research aims and objectives
 develop the research plan (how it will done)
 collect the data
 analyse the data
 present the findings
 make decisions
 review.
One mark each up to a maximum of seven marks.
(7 marks)
They should discuss that organisations need market research to understand their market
requirements in order to sustain their business. It provides them data on:
 developing new products
 developing new promotional campaigns
 find out what their competitors are doing
 identify the potential for moving into new markets.
(4 marks)
Good answers will include reference to Piercy (2002) who presented a list of ‘myths of
marketing information’ and the traps that lead to the wrong research being done and
wrong decisions being taken. It should be structured, planned and managed to avoid
waste of resources and/or collection of inappropriate data.
(2 marks)
Market research data can be gathered in many different ways:

 government publications
 professional body publications
 newspapers
 face to face interviews
 focus groups
 telephone surveys
 postal surveys
 email surveys
 companies that specialise in holding data and charge for access to it.
One mark each up to a maximum of nine marks.
(9 marks)
References should be made to data protection legislation and rules governing what data
can be held, for how long and for what purpose.
(2 marks)
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Section D: Managing change and culture
7. Imagine you are the administrative manager of your organisation. Usine examples,
explain how you will contribute to creating an ethical culture within your organisation.
(25 marks)

Candidates should identify the four main cornerstones to success:
 purpose
 people
 planet
 probity (meaning honesty).
(4 marks)
Candidates should explain that when trying to introduce a different culture into an
organisation they should first consider that the aim of modern organisations is to
reconcile the organisational purpose with the needs and feelings of people (staff,
customers, suppliers, local community, stakeholders, etc) with proper consideration for
the planet. Probity enables the other potentially conflicting aims to be harmonised so that
the mix is sustainable, ethical and successful.
(4 marks)
Traditional inward looking management and leadership skills, which historically

considered only the purpose of profit and methods for achieving it. Nowadays, with all
the legislation, health and safety, DPA, etc other criteria comes into play. Moreover,
performance, behaviour and standards are transparent globally; the whole world can see
and judge how leaders and organisations behave.
(4 marks)
An organisation needs to be seen as at least being ethical to survive.

(2 marks)
They would have to consider that the ultimate aim is to make profit but the profit has to
be made ethically. Unfortunately, short term profit can sometimes have a long term spell
of disaster. Once an organisation has a reputation for being somewhat unethical, it can
take years to recover if at all.
(3 marks)
Up to eight marks can be awarded for examples cited and depth of discussion.
(8 marks)
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8.
a. Identify the main reasons for organisational change.
(8 marks)
b. Explain why resistance to change might occur and the action managers can take
to reduce or remove such resistance.
(17 marks)

a.
Candidates should explain that organisations change when there is a perceived
performance gap. Their performance is believed to be out of line with their competitors
or when performance falls.
(3 marks)
This maybe when there are changes in:

 corporate objectives
 technology
 business processes
 new structures
 new products or services.
(5 marks)
b.
Managers have to be aware that there will be resistance to change and this occurs for
various reasons at all levels, which maybe:
 personal reasons (prejudice, fear of the unknown, unemployment, lack of self
confidence to learn new skills etc)
 communication reasons (not properly informed, mistrust, misunderstanding)
 social reasons (existing satisfaction with colleagues, systems, equipment, dislike of
new colleagues)
 economic reasons (new pay rates, new shift patterns, new working practices).
Two marks each.
(8 marks)
Managers have to use their skills to remove or reduce the effect of the above by:
 negotiation
 consultation
 training
 counselling
 involving the staff in decision making as much as possible
 good communications
 introduce employee feedback to contribute to the change process
 establish working parties or quality circles
 monitoring the effects of the change.
One mark each.
(9 marks)
©2010 IAM
Management
Examination paper
September 2010
Unit 3: Administrative management of resources
Time: 09:30 – 12:30

as shown on the
ONE question must be attempted from each

section.

script.
Questions follow.
©2010 IAM
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Section A: Managing projects
1.
a. Describe the two common errors which can occur due to inadequate planning or
oversight when drawing the network diagram.
(6 marks)
b. Draw a network to represent the following project details.
Activity Preceding Activity Duration

(Months)
A - 1
B - 2
C - 5
D A, B 7
E A 1
F D 2
G A,B 4
H E 1
I C,G,H 2
(15 marks)
c. Define and comment on the critical path identified.
(4 marks)
2. Claessens (2007) who, after reviewing much of the time management literature,
suggests time management is the ‘behaviours that aim at achieving an effective use
of time while performing certain goal-directed activities’. Evaluate this statement.
(25 marks)
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Section B: Managing financial resources
3. Examine how the different sources and amounts of finance required for an
organisation is influenced by factors such as the type of business, its success and the
state of the economy.
(25 marks)
4. Amber Ltd has to make a decision about whether to purchase Machine A or Machine
B. Machine A costs £175,000 and Machine B £160,000. Both machines are expected
to last five years. The cash flows from each machine are as follows:
Machine A Machine B
£ £
Year 1 50,000 60,000
Year 2 50,000 60,000
Year 3 50,000 30,000
Year 4 30,000 20,000
Year 5 25,000 20,000
DISCOUNT FACTORS
Number of
4% 6% 8% 10% 12%
Years
1 0.961 0.943 0.926 0.909 0.893
2 0.925 0.890 0.857 0.826 0.797
3 0.889 0.840 0.794 0.751 0.712
4 0.855 0.792 0.735 0.683 0.636
5 0.822 0.747 0.681 0.621 0.567
a. Calculate the payback period of each machine.

(6 marks)
b. Calculate the internal rate of return (IRR) for each machine.
(14 marks)
c. Advise the company on which machine to purchase.
(5 marks)
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Section C: Managing expenditure
5. Extract from a standard cost card for part no 123x:
Standard Cost / Unit

Raw materials 56 kgs @ £8kg £448
Direct labour hours 10 hours @ £8.5 per hour £85
Actual results for the period

Production 125 parts
Actual materials used 7,250kgs at a cost of £56,550
Direct wages paid £11,480 for 1,312 hours
a. The direct material price and usage variances.

(10 marks)
b. The direct labour rate and efficiency variances.
(10 marks)
c. Provide reasons for these variances calculated.
(5 marks)
6. Examine the main attributes of inventory control.

(25 marks)
Section D: Managing facilities
7. Assess the contribution of a facilities manager in designing sustainability and

delivering corporate social responsibility.
(25 marks)
8. As a facilities manager for an organisation experiencing financial difficulties write a

report to the Board of Directors identifying areas where savings can be made without
compromising the level of facilities management provided.
(25 marks)
©2010 IAM
Management
Marking guide
September 2010
Unit 3: Administrative management of resources
Time: 09:30 – 12:30

as shown on the
ONE question must be attempted from each

section.

script.
Questions follow.
©2010 IAM
Ad
Section A: Managing projects
1.
a. Describe the two common errors which can occur due to inadequate planning or
oversight when drawing the network diagram.
(6 marks)
b. Draw a network to represent the following project details.
Activity Preceding Activity Duration

(Months)
A - 1
B - 2
C - 5
D A, B 7
E A 1
F D 2
G A,B 4
H E 1
I C,G,H 2
(15 marks)
c. Define and comment on the critical path identified.
(4 marks)
Marking guide (LO 1.1, 1.1.2, 1.1.3)

a.
Sometimes due to inadequate planning or oversight, errors can occur when drawing the
network diagram. Firstly, looping, this occurs when an activity already drawn appears to
depend on a later one.
(3 marks)
The second is dangling; a dangling activity, other than a final activity, is one which is not
followed by another. This later error breaks the rule of dependency governing the logic of
a network diagram. This rule states that all events except the first and last, must have at
least one activity finishing at and one activity starting from them.
(3 marks)
©2010 IAM
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b.
D
2 2 99
B 7 F
2 2
00 A 1 7 E 2 8 4 G 11 11
1 1 H
1
I 2
5 C 6 9
Five marks for use of logic dummy, five marks for correct timings and five marks for
correct layout. A maximum of five marks to be given for incorrect attempts.
(15 marks)
c.
Critical path is activities B, D, F.
(2 marks)
The critical path is the path taken by those activities which have no float. Critical
activities therefore, have no flexibility, and must start and finish on time in order for the
project to be completed on time.
(2 marks)
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2. Claessens (2007), after reviewing much of the time management literature, suggests
time management is the ‘behaviours that aim at achieving an effective use of time
while performing certain goal-directed activities’. Evaluate this statement.
(25 marks)
Marking guide (LO 1.4, 1.4.4)

Claessens suggests these behaviours are wide-ranging and fall into three types:
 assessment behaviours
 planning behaviours
 monitoring behaviours.
(6 marks)
The most popular time management techniques fit into these three types of behaviours
as follows:
 assessment behaviours – judging what the time is, estimating how long it will take to
do something, reflecting on how much time has passed
 planning behaviours – setting goals, planning tasks, prioritising, writing lists
 monitoring behaviours – assessing progress.
To maximise the benefits of time management some of the techniques in each of the
three categories of behaviour need to be practiced without just focusing on techniques
from one category.
Time management behaviours are related to performance, job satisfaction and stress.
Planning activities can give a sense of control over our time which then in turn leads to
the individual experiencing a reduction in stress and an increase in job satisfaction.
Claessens has shown that planning and other time management behaviours can directly
enhance performance and job satisfaction and reduce stress because they help to
distribute effort and energy better i.e. actually be more efficient.
(9 marks)
Francis-Smythe & Robertson, 1996 suggest that we each have our own unique ‘time
personality’ – preferences about how we deal with five different aspects of time:
 Planning, do you like to plan your day in advance, maybe write a to-do a list or just
let it happen?
 Punctuality, are you always on time for things or might you have a tendency to be
late?
 Polychronicity, do you like to have several things on the go at any one time or do you
prefer to finish one thing before starting the next?
 Time awareness, are you generally aware of what the time is or can you easily ‘lose’
hours?
 Impatience, do you get irritated standing in a long queue or do you make the most of
the time by chatting to people or reading a magazine?
(5 marks)
The way in which an individual prefers to handle time is likely to determine which time
management techniques will suit them best.
©2010 IAM
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Typically time management techniques can be arranged by time management behaviours

as follows:
Assessment:
Phone calling/responding, E-mail responding, Open door policy, handling meetings and
interruptions, avoiding procrastination, delegating, saying ‘no’, judging what is important
and what is urgent.
Planning:
Setting goals, breaking tasks into smaller tasks, writing lists, setting schedules and
deadlines, prioritising.
Monitoring:
Checking progress, reviewing objectives, reviewing schedules, checking resources.
(5 marks)
©2010 IAM
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Section B: Managing financial resources
3. Examine how the different sources and amounts of finance required for an
organisation is influenced by factors such as the type of business, its success and the
state of the economy.
(25 marks)
Marking guide (LO 2.1.1, 2.1.2)

This question requires candidates to explain why organisations require finance, together
with how the success of the organisation determines its sources and the impact of the
economy in terms of employment, public and consumer spending and level of interest
rates.
The most appropriate sources of finance available to both private sector and public sector
organisations should then be identified.
Basically a company needs money for capital expenditure and working capital.
In the private sector internal sources include retained profit - profit made being
reinvested into the business; controlling working capital - reducing costs, delaying
outflows and speeding up inflows; sale of assets - assets the company owns can be sold
and then leased back which frees up a large amount of capital in the short term.
(3 marks)
External sources of finance include:

 increasing trade credit, delaying payments on purchases for as long as possible
 factoring
 overdraft
 grants
 venture capital
 debentures
 loan
 share issues
 owners savings
 leasing.
(5 marks)
The public sector refers to both central and local government, and provides services to
the public such as education, health and defence. The finance for these services normally
comes from taxes but any other funds have to be borrowed.
Local Government Source of Finance

Government funding
Council tax
Rent from properties
Income from business units
Central Government Source of Finance

Treasury bills
Gilt-edged securities
National savings
Public private partnerships
A public private partnership (PPP) is a partnership between the government and private
sector organisations to provide services or build facilities for the public.
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Private finance initiative (PFI) enables the public sector to buy services which give best
value. The private partner builds, designs, finances and operates the facility and the
public sector pays for the service.
(5 marks)
A further four marks for discussion of how the source and amount of finance required for
a business is influenced by the success of the company, its profitability, ROCE, gearing
ratio, etc.
Eight marks for discussion on the impact of the economy, levels of employment,
spending, borrowing, interest rates and inflation, etc.
(12 marks)
©2010 IAM
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4. Amber Ltd has to make a decision about whether to purchase Machine A or Machine
B. Machine A costs £175,000 and Machine B £160,000. Both machines are expected
to last five years. The cash flows from each machine are as follows:
Machine A Machine B
£ £
Year 1 50,000 60,000
Year 2 50,000 60,000
Year 3 50,000 30,000
Year 4 30,000 20,000
Year 5 25,000 20,000
DISCOUNT FACTORS
Number of
4% 6% 8% 10% 12%
Years
1 0.961 0.943 0.926 0.909 0.893
2 0.925 0.890 0.857 0.826 0.797
3 0.889 0.840 0.794 0.751 0.712
4 0.855 0.792 0.735 0.683 0.636
5 0.822 0.747 0.681 0.621 0.567
a. Calculate the payback period of each machine.

(6 marks)
b. Calculate the internal rate of return (IRR) for each machine.
(14 marks)
c. Advise the company on which machine to purchase.
(5 marks)
Marking guide (LO 2.3, 2.3.1, 2.3.2)

a.
Payback for Machine A is 3 years 10 months.
(3 marks)
Payback for Machine B is 3 years 6 months.

(3 marks)
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b.
Year 4% Machine Machine 10% Machine Machine
Discount A B Discount A B
factor factor
0 1.0 -175,000 -160,000 1.0 -175,000 -160,000
1 0.962 48,100 57,720 0.909 45,450 54,540
2 0.925 46,250 55,500 0.826 41,300 49,560
3 0.889 44,450 26,670 0.751 37,550 22,530
4 0.855 25,650 17,100 0.683 20,490 13,660
5 0.822 20,550 16,440 0.621 15,525 12,420
NPV 10,000 13,430 NPV (14,685) (7,290)
(6 marks)
IRR Machine A = 4 + 6 (10,000/24,685) = 6.43%

(4 marks)
IRR Machine B = 4 + 6 (13,430/20,720) = 7.89%

(4 marks)
Although 4% and 10% used in study guide example, the candidate may choose another
value e.g. 12%.
c.
Machine B has the higher IRR, lower initial investment and lower payback period.
One mark for each attribute identified.
(3 marks)
Machine A has steadier cash inflows but with a higher initial investment and a lower IRR.
(1 mark)
Company is advised to invest in Machine B.

(1 mark)
©2010 IAM
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Section C: Managing expenditure
5. Extract from the standard cost card for part no 123x:

4. the direct material price and usage variances
(10 marks)
5. the direct labour rate and efficiency variances.
(10 marks)
Standard cost/Unit
Raw materials 56 kgs @ £8kg £448
Direct labour hours 10 hours @ £8.5 per hour £85
Actual results for the period

Production 125 parts
Actual materials used 7,250kgs at a cost of £56,550
Direct wages paid £11,480 for 1,312 hours
c. Provide reasons for these variances calculated.

(5 marks)

a.
Direct Material Price Variance
AQ (SP – AP)
(2 marks)
7250(8 – 7.8) = £1450 (F)

(2 marks)
Direct Material Usage Variance

SP (SQ – AQ)
(2 marks)
8(7000 – 7250) = £2000 (A)

(2 marks)
Check: - AC – SC = £56,550 - £56,000 = £550 (A)

(2 marks)
b.
Direct Labour Rate Variance
AH (SR – AR)
(2 marks)
1312(8.5 – 8.75) = £328 (A)

(2 marks)
Direct Labour Efficiency Variance

SR (SH – AH)
(2 marks)
8.5(1250 – 1312) = £527 (A)

(2 marks)
Check: - AC – SC = £11,480 - £10,625 = £855 (A)

(2 marks)
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c.
Possible Reasons for Variances
Direct Material Price Variance Direct Labour Rate Variance

Change in purchase price Increase in wages
Change in delivery costs ‘Non standard’ grade of employee
‘Non standard’ material
purchased
Direct Material Usage Variance Direct Labour Efficiency Variance

Waste or scrap excessive Slow employee
Defective material Employee delayed by breakdowns,
Rejection of completed work no materials etc
Pilferage Poor working conditions
‘Non standard’ material used Employee restricts output
Incorrect booking of material Employee injured or ill
usage Quality of supervision
‘Non standard’ grade of employee
Incorrect booking of labour hours
(5 marks)
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6. Examine the main attributes of inventory control.

(25 marks)
Marking guide (LO 3.3, 3.3.1, 3.3.2, 3.3.3, 3.3.4)

The level of inventory, or stock, held at any given time can be a critical factor for an
organisation. The cost of holding too much stock can mean the difference between
profitability and failure, whilst holding too little can result in inefficiencies in production
and potentially loss of customers. Inventory control involves the ordering, storage and
delivery of a range of goods or items.
(2 marks)
The main attributes of inventory control are as follows:

 ensuring stock is available
 to meet demand
 to facilitate ordering in economic quantities
 to take advantage of bulk purchasing discounts
 to compensate for any fluctuates in lead time (the time taken for the supplier to
deliver the goods after the order has been placed)
 to avoid stockouts/stockout costs
 to meet possible shortages in the future
 to buy when the price is low and expected to rise.
One mark for each attribute identified plus one further mark for development.
(16 marks)
The objective of inventory control is to maintain stock levels so that combined costs;
holding costs, ordering costs and stockout costs; are kept to a minimum.
Inventory control finds policies that minimise associated costs.
(2 marks)
Two common stock control policies used are the fixed order quantity system (also
referred to as the reorder level system) and the periodic review system.
The economic order quantity (EOQ) is the number of items that should be included in a
single order so that total inventory costs are minimised.
Pareto or ABC analysis is sometimes referred to as the ‘80/20 rule’ and suggests that
80% of stock items need 20% attention, while the remaining 20% of items need 80% of
attention.
The just-in-time (JIT) approach to stock control involves the elimination of any
unnecessary stock. With just-in-time significant savings can be made in inventory costs,
reduced holding costs, little wastage and improved cash flow.
(5 marks)
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Section D: Managing facilities
7. Assess the contribution of a facilities manager in designing sustainability and

delivering corporate social responsibility.
(25 marks)

Corporate social responsibility (CSR) and sustainability has been driven by a number of
factors, including increased legislation, rising energy costs and the media attention
drawn by environmental issues such as climate change. CSR is essentially about how a
business takes account of its economic, social and environmental impacts in the way it
operates, maximising the benefits and minimising the downsides.
(5 marks)
Facilities managers have a key role to play in contributing to CSR, as they can translate
the high-level strategic change into day-to-day reality for people in their work or living
space. Facilities managers know how buildings work in practice, and the facilities
management approach emphasises sustainability, long-term thinking and life-cycle
costing.
Reducing greenhouse-gas emissions and improving energy performance is a key

component of sustainable development. Facilities managers can help to achieve
organisation and government targets on energy-efficiency and reductions in carbon-
dioxide emissions as they control heating, cooling systems, lighting and, increasingly, all
electronic appliances and information technology in their buildings.
(5 marks)
It is widely accepted that there is a need to take action on climate change by reducing
carbon emissions.
The facilities manager has a significant role to play in reducing carbon emissions by
improving energy efficiency of buildings through better energy management and
maintenance.
Improving employee’s awareness of the energy used can by achieved by installing and
using meters to provide an accurate picture of electricity use. Strategies can be agreed
for heating and cooling. Facilities managers can provide advice on simple energy saving
measures such as lighting controls.
Facilities managers can endeavour to reduce energy consumption in the areas of the
building they directly control e.g. reducing the need for heating in stairwells, lighting
controls (daylight and presence controls) in corridors and toilet areas.
A proactive maintenance schedule for plant should ensure that it is always running at
maximum efficiency. Replacing of existing plant for more energy efficient alternatives can
be influenced by the facility manager.
(10 marks)
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Facilities managers should have an enhanced understanding of the business’s

infrastructure and with the potential to build effective relationships with employees they
can play an important role in helping to deliver environmental improvements to
businesses e.g:
 agreeing effective systems for waste reduction, treatment and disposal
 implementing effective water management measures
 energy consumption – having good measures in place to reduce environmental
impact and reduce energy bills
 reducing paper consumption
 recycling of paper, aluminium, glass and general waste by providing central recycling
areas.
(5 marks)
©2010 IAM
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8. As a facilities manager for an organisation experiencing financial difficulties write a

report to the Board of Directors identifying areas where savings can be made without
compromising the level of facilities management provided.
(25 marks)
Marking guide (LO 4.2.1, 4.2.3, 4.2.5, 4.2.7, 4.3.4)

Candidates need to respond in the format of a report.
An appropriate format would be:

 title
 terms of reference
 analysis/discussion
 conclusions
 recommendations.
(9 marks)
Typical areas might include:

 assets that can be disposed off
 sale and lease back of properties
 review of contracts/SLAs to ascertain can these be terminated or re-negotiated
 review of in house versus outsourcing provision of services currently provided
 re-tendering of some services to ensure greater value for money
 energy efficiency
 greater control of heating and lighting systems and their usage monitored
 recycling
 waste management
 insulation of buildings
 minimisation of water usage
 selecting products that are either reusable, easy to dispose of or from materials that
are not in short supply
 planned preventative maintenance – this is proactive and more effective in achieving
cost savings and energy efficiency.
Two marks for eight of the above or similar areas.

(16 marks)
©2010 IAM
Management
Examination paper
September 2010
Unit 4: Human resource management and practice
Time: 09:30 – 12:30

as shown on the
One question must be attempted from each section.

script.
Questions follow.
©2010 IAM
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Section A: HRM in context and practice
1. According to Truss et al, (1997) the ‘hard and soft models of HRM are based on
contrasting views and ideas of management control strategies and human nature’.
Evaluate the two models of HRM, and using work based examples to support your
answer, identify the features of each model that would be most suitable in today’s
business environment.
(25 marks)
2. Using work based examples to support your answer, analyse the importance of
employee relations and the key aspects that comprise the employment relationship.
(25 marks)
Section B: Leading and motivating teams
3. According to Tuckman and Jenson, (1997) groups are formed in a staged way.
Analyse this model, using work based examples to support your answer.
(25 marks)
4. You have been asked to deliver a presentation to a group of students attending a

Diploma in Management programme, entitled ‘evaluate the differences between
management and leadership’. Describe what you would say and provide work based
examples to make your presentation relevant and interesting.
(25 marks)
Section C: Learning and development
5. According to the CIPD (2002), learning theory can be classified into four clusters.
Using work based examples to support your answer, evaluate the four theories of
learning.
(25 marks)
6. You have been asked to write an article for the IAM magazine entitled ‘Evaluate the
importance of CPD and lifelong learning to individuals and organisations’. Outline
what you would say and provide work based examples to enhance interest and
understanding of the concepts.
(25 marks)
Section D: Performance and reward
7. In your role as HR manager you have been asked to write a report to the Chief
Executive which ‘evaluates two organisational performance measures’. The report
should include your recommendation and justification on which measure would be
the most appropriate for an organisation of your choice.
(25 marks)
8. Counselling can be an effective strategy for managing performance.
a. Analyse this statement.

(6 marks)
b. Evaluate the three stages of the counselling process and highlight any potential
difficulties that may arise within each stage. Put forward your recommendations
on how these difficulties may be overcome and provide work based examples to
support your answer.
(19 marks)
©2010 IAM
Management
Marking guide
September 2010
Unit 4: Human resource management and practice
Time: 09:30 – 12:30

as shown on the
One question must be attempted from each section.

script.
Questions follow.
©2010 IAM
Ad
Section A: HRM in context and practice
1. According to Truss et al, (1997) the ‘hard and soft models of HRM are based on
contrasting views and ideas of management control strategies and human nature’.
Evaluate the two models of HRM, and using work based examples to support your
answer, identify the features of each model that would be most suitable in today’s
business environment.
(25 marks)

Candidates may define HRM as ‘resource centred, directed mainly at management’s
needs for human resources to be provided and deployed. Demand rather than supply is
the focus of the activity. There is greater emphasis on planning, monitoring and control
rather than mediation. Problem solving is undertaken with other members of the
management on HR issues rather than directly with employees or their representatives’
Torrington et al., (2005). The development of HRM from personnel management has
produced a number of models and theories, two of which are the hard and soft forms.
(3 marks)
Answers should highlight that the soft model is based on viewing the individual as a
human being, utilising human talent and capability and generating commitment from
employees.
(1 mark)
Other features include:

 generating a motivated, skilled and harmonious workforce
 generating commitment to the organisation and its goals, objectives, strategies and
organisational culture
 winning individual hearts and minds
 treating human beings as humans and not as a resource or commodity
 generating two way communication between management and the workforce to
promote commitment and harmony.
Five marks for highlighting each with a further five marks available for an evaluative
element and/or example.
(10 marks)
The hard model of HRM which advocates that individuals are an organisational resource
and should be treated as such.
(1 mark)
Key features include:

 the alignment of human resource strategy with business strategy
 promoting the flexible workforce
 individuals are a resource to be exploited
 the resource based view is a conduit for managerial control.
Four marks for highlighting each with a further four marks available for an evaluative
element and/or example.
(8 marks)
There are clear distinctions between the two approaches. The soft approach reflects the
personnel management model; the hard approach mirrors the HRM model. In practice
both models are utilised to ensure that individuals, as a resource and as human beings,
are encouraged to be as productive and efficient as possible.
(2 marks)
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2. Using work based examples to support your answer, analyse the importance of
employee relations and the key aspects that comprise the employment relationship.
(25 marks)

Candidates should highlight that the employment relationship refers to the formal and
informal relationship that exists between employers and employees. Torrington et al.
describe employee relations as being responsible for preventing or alleviating conflict and
ensure a harmonious working environment is facilitated. In addition answers should
highlight that the employment relationship has the potential for conflict and it is
important that managers exercise a degree of influence and control to facilitate the
completion of key business activities.
(2 marks)
This is important in:

 helping to achieve stability in employee relations by channelling discontent through
agreed procedures
 increasing productivity and utilisation of labour; increasing co-operation and
commitment to embrace change
 minimising disruption at work and reducing the likelihood of overt conflict.
Other appropriate examples would be acceptable.
(2 marks)
Answers should analyse the following.

The employment relationship can include:
 the contractual relationship; the employee and employer owe each other various
duties and obligations, including the employers duty to provide a healthy and safe
working environment
 negotiation and collective bargaining; the process of determining employee terms and
conditions of employment by bargaining between employers and unions
 employee involvement and communication; employees are encouraged to participate
in problem solving and decision making with employers
 discipline and grievance; formulation of policies and procedures to manage conflict
and disagreements between stakeholders in the employment relationship.
 The psychological contract is a positive contract and it forms a key part of the
employment relationship. It promotes employee satisfaction, commitment and leads
to enhanced performance.
Three marks for highlighting each area above, subtotal fifteen marks with a further five
marks available for examples and evaluative element.
(20 marks)
Answers may conclude by stating that employee relations should be linked to the
corporate strategy of the business and should be proactive.
(1 mark)
©2010 IAM
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Section B: Leading and motivating teams
3. According to Tuckman and Jenson, (1997) groups are formed in a staged way.
Analyse this model, using work based examples to support your answer.
(25 marks)

Answers may highlight that groups enable large tasks to be broken down into component
parts and facilitate the sharing of essential knowledge and experience. Schein suggests
that groups get together for a specific purpose and that they have some shared identity,
particularly in achieving common goals, but not necessarily those of the organisation. He
defined a group as any number of people who: interact with each other; perceive
themselves to be a group; interact with each other towards achieving goals or aims.
(4 marks)
Candidates should analyse the stages in group formation:

 forming; collection of individuals, probably strangers who are unaware of each other
or each other’s motives and are vying for group roles and the leader position
 storming; awareness of each other, open airing of views, personal goals and agendas
come to the surface, interpersonal conflict may be present
 norming; ground rules are established, focus on the task is stronger, co-operation
becomes evident
 performing; group begins to perform effectively, procedures and structures are in
place, members become supportive and trusting
 adjourning; group may be disbanded because of task completion.
Two marks for the identification and description of each stage, sub total ten marks, two
marks for an evaluative element and example of each stage, sub total ten marks.
(20 marks)
Candidates could conclude by stating that according to Tuckman and Jenson (1997) the
group becomes a team only when they reach the fourth stage – performing.
(1 mark)
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4. You have been asked to deliver a presentation to a group of students attending a

Diploma in Management programme, entitled ‘evaluate the differences between
management and leadership’. Describe what you would say and provide work based
examples to make your presentation relevant and interesting.
(25 marks)

Answers should highlight that leadership and management are often used
interchangeably, but there are differences between the two activities. According to
Rollinson (2002), a manager can be defined as ‘a person formally appointed to a role in
the hierarchy, associated with which is the formal authority to direct the actions of
subordinates. Among other things, the role is concerned with some combination of
planning, organising, directing and controlling the activities of human resources towards
the achievement of set objectives’.
The key word in this definition is ‘authority’. This is by virtue of the managers’ position.
However to exercise this authority effectively, many managers rely on a certain degree of
personal power or charisma to influence others to conduct various tasks and activities.
(4 marks)
Management is more usually viewed as getting things done through other people in order
to achieve stated organisational objectives. The manager may react to specific situations
and be more concerned with solving short term problems.
(1 mark)
In contrast , Rollinson defines a leader as ‘someone who occupies a role which involves
conforming to a set of behavioural norms and expectations emanating from followers, in
return for which they confer on the leader a degree of power that allows the leader to
influence their actions’.
Here, the key word is the power or ability to ‘influence’. Without this, leaders could not
cope to be effective in their task. The emphasis of leadership is on interpersonal
behaviour in a broader context. It is often associated with the willing and enthusiastic
behaviour of followers and does not necessarily take place within the hierarchical
structure of the organisation.
(4 marks)
Candidates may provide examples which could include, a manager:

 administers-a leader innovates
 maintains- a leader develops
 focuses on systems and structure-a leader focuses on people
 keeps an eye on the bottom line- a leader has an eye on the horizon
 does things right- a leader does the right things.
One mark for the identification of each, subtotal five marks, one mark for the evaluation
of each, subtotal five marks and one mark for an example of each, subtotal five marks.
(15 marks)
Answers may conclude by stating that despite a continuing debate on differences

between management and leadership, there is a close relationship between them. Today,
there is an increasing tendency to emphasise the interrelationship between management
and leadership and to see them as more synonymous.
(1 mark)
©2010 IAM
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Section C: Learning and development
5. According to the CIPD (2002), learning theory can be classified into four clusters.
Using work based examples to support your answer, evaluate the four theories of
learning.
(25 marks)

Candidates may highlight that research has found that different people learn in different
ways, at different stages, by different methods and at different speeds. This suggests
that organisations and learning and development professionals need to gain an
understanding of how and why individuals learn and the impact this can have on the
organisation as a whole. Bass and Vaughan define learning as ‘a relatively permanent
change in behaviour that occurs as a result of practice or experience’.
This practice or experience can be gained experientially while learning on the job. The
change in behaviour can be demonstrated through improvements in work practises and
standards, being able to use more complex machinery and the utilisation of higher skills
and competences.
(4 marks)
Answers should evaluate the how according to CIPD (2002) learning theory can be
classified into four clusters.*
 Learning as behaviour:
Centred on the behavioural psychologists (behaviourists) who advocated that any
alteration in an individual is as a direct result of external stimuli and the resultant
consequences of those events. Skinner concluded that desired behaviours can be
reinforced through the application of rewards –conditioning the individual to perform
various acts repeatedly. These experiments were mainly carried out with animals.
 Learning as understanding:
Concentrates on learning as a rational and conscious process. Cognitivists view
learning as a process of understanding, intuition, developing mental models and the
construction of patterns of reality based on what is going on in the environment. In
this way, individuals absorb information, internalise it and then interpret it as
knowledge. Theorists such as Gagne advocated that learning could be stored away for
future use but only after it had been acquired.
 Learning as knowledge construction:

Constructivist theorists advocate that individuals are active rather than passive
agents in their own learning experience. They believe that knowledge is personal to
the individual and does not exist in the environment. As such, knowledge is in
individuals’ heads rather than existing in the public domain. Individual knowledge is
therefore based on personal experience and how these experiences are used to gain,
enhance and exploit new knowledge.
 Learning as social practice:

Learning theorists such as Bandura, see learning as effective when it can be
transferred to a social setting. Social interaction may give rise to more effective
learning, as it facilitates shared learning experiences. Senge also suggests that team
learning is an activity enables individuals and the organisation to be more effective,
as individuals share each others’ visions, mental models and experiences. These are
then transferred, via knowledge management initiatives, for the organisation to use
and exploit.
*Candidates should give more detail.
©2010 IAM
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Three marks for the identification of each subtotal twelve marks. Two marks available
for examples and an evaluative element within each cluster subtotal eight marks.
(20 marks)
Candidates may conclude by stating that the theories presented give an indication of how
different methods can be utilised to facilitate an environment or the conditions that are
conducive to learning.
(1 mark)
©2010 IAM
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6. You have been asked to write an article for the IAM magazine entitled ‘Evaluate the
importance of CPD and lifelong learning to individuals and organisations’. Outline
what you would say and provide work based examples to enhance interest and
understanding of the concepts.
(25 marks)

Candidates should highlight that CPD is a process whereby individuals take responsibility
for their own continuous learning and knowledge acquisition. Lifelong learning was
defined by the European Commission (2001) as ‘all purposeful learning activity
undertaken on an ongoing basis with the aim of improving knowledge, skills and
competence’. This definition emphasises the engagement in formal and informal
learning, aimed at the continuous acquisition of learning and knowledge.
(2 marks)
Lifelong learning differs from CPD, as it not specifically geared towards the development
of professionalism, although it could lead to enhanced professionalism if such an
objective is sought.
(1 mark)
Answers should evaluate CPD which according to CIPD (1999) has the following
characteristics:
 continuous, learning never ceases, regardless of seniority and age
 professional, it focuses on personal competence in a professional role and ensures
that professionals remain up to date in a changing world. It also emphasises the on-
going appreciation of new concepts, laws, skills, organisational forms and other
influences
 concerned with development because its ultimate goal is to improve personal
performance and enhance career progression.
One mark for the explanation of each, subtotal three marks, with a further mark
available for each example given, subtotal three marks, one mark for each evaluative
element, sub-total three marks.
(9 marks)
The key to lifelong learning is to make learning opportunities more accessible and
available to all employees at all stages of their career. The importance of lifelong learning
could include:
 to help develop a knowledge based global economy
 stimulate long term economic growth
 continuous development of skills, knowledge and understanding are essential for
employability and career enhancement
 to help develop basic and key skills.
One mark for the explanation of each, subtotal four marks, one mark for each example
given subtotal four marks and then one mark for each evaluative element subtotal four
marks.
(12 marks)
Candidates may conclude by stating that CPD and lifelong learning are two important
activities that enhance both individual and organisational performance. They can lead to
enhanced employability and motivation and improved productivity.
(1 mark)
©2010 IAM
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Section D: Performance and reward
7. In your role as HR manager you have been asked to write a report to the Chief
Executive which ‘evaluates two organisational performance measures’. The report
should include your recommendation and justification on which measure would be
the most appropriate for an organisation of your choice.
(25 marks)

Candidates may highlight that according to Armstrong and Baron (1998), the
measurement of performance is important because ‘if it can’t be measured it can’t be
managed’. They state that: ‘Measurement is an important concept in performance
management. It is the basis for providing and generating feedback, it identifies where
things are going well to provide the foundations for building further success and it
indicates where things are not going so well so that corrective action should be taken’.
(2 marks)
Answers should evaluate two of the most widely recognised and used performance
measures, the Balanced Scorecard and the Business Excellence Model (EFQM).
The Balanced Scorecard (BSC)

Definition:
‘a strategic planning and management system used to align business activities to the
vision statement’, Kaplan and Norton.
It is a set of measures that allows managers to have a comprehensive view of the

business by measuring business performance in four ways:
 finance: return on investment, cash flow, return on capital employed, financial results
 customer: delivery/quality performance to customer, customer satisfaction and
retention rate, customer percentage of market
 internal business processes: number of activities and duplicate activities per function,
process alignment
 learning and growth: is there the correct level of expertise for the job?, employee
turnover, job satisfaction, learning opportunities.
Two marks for the identification of each sub total eight marks, with two marks available
for an evaluative element.
(10 marks)
Producing a scorecard enable business activities to be linked to strategic goals and allows
individual performance to be linked to overall strategic activities. It can also result in;
improved processes, motivated/educated employees, enhanced information systems,
enhanced monitoring of progress and greater customer satisfaction.
(2 marks)
The Business Excellence Model (EFQM)

The business excellence model is a self assessment framework for measuring the
strengths and areas for improvement of an organisation across all of its activities. The
model focuses on whether customer satisfaction has been achieved in nine areas:
leadership, people management, strategy, partnerships and resources, process, people
results, customer results, society results and key performance results.
Three marks plus two marks available for an evaluative element.

(5 marks)
©2010 IAM
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Thomas (1995) states that the model can help businesses manage performance by
developing a greater awareness of how business results are achieved and can help to
align business and organisational objectives. The model can also help businesses keep up
to date with latest thinking by providing a framework for comparison with other
organisations.
(3 marks)
Three marks available for recommendation and justification of which model to use for an
organisation of choice.
(3 marks)
©2010 IAM
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8. Counselling can be an effective strategy for managing performance.
a. Analyse this statement.

(6 marks)
b. Evaluate the three stages of the counselling process and highlight any potential
difficulties that may arise within each stage. Put forward your recommendations
on how these difficulties may be overcome and provide work based examples to
support your answer.
(19 marks)

a.
Candidates may highlight that all employees will not perform optimally at all times.
Therefore the organisation must formulate strategies for dealing with underperformers
promptly and effectively, to ensure that their non performance does not have an adverse
effect on others or on the organisation as a whole.
According to Armstrong and Baron (2002), managing underperformers should be a

positive process that is based on feedback. Handy (1998), believes that success should
be applauded and failure forgiven and the underperformer should be given every
opportunity to redress the situation.
(3 marks)
One of the strategies identified by Armstrong and Baron for managing underperformers is
to offer counselling. However it is important to highlight that this is only one option open
for consideration, counselling could be considered along with other strategies. The
counselling process is aimed at helping people to help themselves; it is not about
apportioning blame or for the manager to identify solutions to the problem. However this
may not be appropriate in all circumstances and could be dependent on the nature of the
issue, the employee concerned the competence of the line manager and resources
available.
(3 marks)
b.
Candidates should evaluate the three stages of the counselling process as identified by
Armstrong and Baron:
 Recognition and understanding; recognising the indicators of problems and issues
 Empowering; enabling employees to recognise their own problem or situation and
encouraging them to express it
 Resourcing; managing the problem, which will include the decision on who is best
to act as a counsellor – the manager or the specialist or an outside resource.
Two marks for the identification of each, with one mark for an evaluative element of each
subtotal nine marks.
Two marks available for the identification and solution of potential difficulties of each
subtotal six marks, three marks available for work based examples.
(18 marks)
Candidates may conclude by stating that it is also important, where possible, to use
trained counsellors. This may help the individual concerned to open up and confront
problem areas.
(1 mark)
Please note: other appropriate quotations/definitions and examples are acceptable

throughout.
©2010 IAM
Institute of Administrative Management
Management
Month Year
Case study 2
Scenario
©2010 IAM
MSC Medihealth
MSC was formed in 1995 and is a large British pharmaceutical company with about 2% of
the world pharmaceutical market. It employs 40,000 people in fifty different countries
with 12,000 working in sales and marketing, 8,000 in production, 6,000 in research and
development with the rest spread across the other areas of the company. This in itself
presents a particular challenge in managing a diverse workforce and ensuring an equality
of opportunity within the company.
The pharmaceutical industry is of particular social and political importance because of its
close connection with health as its products are likely to affect the lives of everyone.
Drugs can be the difference between life and death and have a substantial influence on
life style, particularly persons with chronic illness, many of whom, especially in developed
countries, are elderly. Healthcare is expensive and demand for it is growing faster than
the ability of governments and healthcare purchasers to pay for it.
This industry is highly regulated and new drugs must be approved before they can be
made available. Products fall into two categories:
 prescription drugs that are only available to patients if they are prescribed by a
medical professional
 generic drugs which patients can buy over the counter.
MSC whose business is medicine and healthcare discovers, develops, makes and sells
drugs. Its portfolio includes vaccines as well as anti-virals and its successful drugs are
sold all over the world.
MSC has adopted a new business strategy and operating model for these products. This
strategy is carried out by sales and marketing staff operating as brand teams, each of
which is responsible for developing and maintaining a brand. Each team is autonomous
and has full responsibility for all aspects of the brand including innovation and marketing.
MSC has an operational excellence programme which is intended to encourage

operational efficiency across the manufacturing sites. It is based on lean manufacturing,
the use of technology and global procurement systems including the use of e-
procurement techniques such as electronic auctions.
However, in the last three years MSC has come under severe pressure from competitors
in terms of pricing, ethical standards, inefficiency and complacency. Chairman Louis
Masson is acutely aware of the high cost attached to providing prescription drugs. Whilst
the profit on these can exceed 30%, the research and development aspect can be
enormous.
Prices for the same drugs differ across the world. In Europe where there is a
government run health organisation, as the only buyer they have some bargaining power
but elsewhere in the world, drug prices are much higher.
Not all prescription drugs are available worldwide as poorer countries cannot afford to
buy. Some poorer nations have tried to manufacture a locally produced alternative but
have been prevented from doing so because of international ‘patent’ law. The amount of
marketing spent by MSC is large and this cost must also be factored into the selling
price. Without advertising doctors may not prescribe the drugs.
©2010 IAM Page 1

Another aspect is ethical standards. MSC like its competitors does not release
information about its drugs until just prior to launch. This has the effect of preventing
new ideas being taken up by competitors. In addition, there has been considerable
public criticism about sales representatives not being well enough informed about their
medical properties and thus they cannot properly advise the doctors on their use. MSC
has also received a bad press for concentrating their efforts on drugs to treat medical
conditions prevalent in rich countries where they can charge high prices.
The cost for MSC to bring a new drug to the market is extremely high but as they can
charge high prices for the drug there is no incentive for the company to be efficient.
MSC is also finding it difficult to maintain a consistent supply of new drugs, especially
ones which break new ground, so they now find themselves facing much greater
competition with smaller, more focussed companies within the industry.
MSC has invested a considerable amount in ICT over the last five years. More use is
being made of computer simulations to monitor administering drugs and their behaviour.
All sales representatives have been issued with tablet PCs to enable them to answer
questions from doctors more fully. They are also experimenting with the possibility of
sending text messages to patients to remind them to take their medicine.
All MSC’s sales and marketing staff are required to undergo training to support their
development as brand teams - on the job, training by managers and web based learning.
They would then gain certification to state that they understand the sales and marketing
code. This is the when (is it appropriate), why (should a doctor consider it for a patient),
how (to administer it properly) model when making sales calls to doctors.
MSC has also developed a team resilience toolkit to help teams manage risks and
measure performance. It uses the term ‘resilience’ to describe the behaviours required
to cope successfully with the pressures of a rapidly changing environment. In 2009, 150
teams worldwide used the toolkit as a way to combat stress among team members.
Louis and his directors at MSC are particularly concerned about the possible lack of
growth in the future due to several of their most profitable drugs coming ‘off patent’.
They are seeking ways in which to reduce costs whilst maintaining their market share.
However, they lack the information needed being presented in the form of important
indicators of business performance. Also, they now have to interpret financial data for
the past four years before taking a number of decisions about the future direction and
operation of the company. (See appendix 1)
©2010 IAM Page 2

Appendix 1
MSC – Financial Data
2009 2008 2007 2006

(£m) (£m) (£m) (£m)
Total turnover
Pharmaceuticals 7146 8181 7995 7205
Cost of sales (4309) (4544) (4609) (4733)
Gross profit 2837 3637 3386 2472

Selling, general & administrative
expenditure (861) (897) (841) (840)
R & D expenditure (839) (791) (900) (651)
Operating profit 1137 1949 1645 981
Earnings per share 7.5p 7.7p 66.2p 50.3p
Current Market Price per share = £1.00
©2010 IAM Page 3

Level 5 Advanced Diploma in Administrative Management
Examination paper
September 2010
Unit 5 Case study 2
Time: 09:30 – 12:30

as shown on the
Candidates must answer all four questions paper.
Questions follow.
©2010 IAM
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1. Assess the extent to which business ethics have influenced the culture and strategy
of MSC.
(25marks)
2. Explain how techniques of competitor analysis could be used by MSC to gain a better
understanding of the competition it faces.
(25 marks)
3. Using the financial information provided, evaluate the stability and performance of
MSC to attract sources of finance.
(25 marks)
4. Advise MSC how they can ensure that diversity and equality of opportunity is
maintained throughout their global operations.
(25 marks)
©2010 IAM
Level 5 Advanced Diploma in Administrative Management
Marking guide
September 2010
Unit 5 Case study 2
Time: 09:30 – 12:30

as shown on the
Candidates must answer all four questions paper.
Questions follow.
Case Study Answers will be assessed against the following criteria:

 Knowledge of relevant theoretical concepts 20
 Critical reflection and analysis 20
 Evidence of wider reading 20
 Problem solving ability 20
 Practical application and organisational examples 20
100
Notes: In dealing with this case you are requested to make clear any:
 assumptions you feel necessary
 local circumstances if appropriate to your case.
©2010 IAM
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1. Assess the extent to which business ethics have influenced the culture and strategy
of MSC.
(25marks)
Marking guide (LO 1 and 4)

Unit 2 Strategic issues in administration
Business ethics refers to the values of the business and covers moral aspects of how
businesses operate. Five marks total for summary of business ethics
(5 marks)
Organisational culture –“way we do things around here”, Task oriented culture with
emphasis on bringing together the right resources and people to get the work done.
End does not justify the means – corporate responsibility – e.g. research into drugs for
developing countries – preferential pricing. Fifteen marks for influence of culture and
strategy
(15 marks)
Good responses will evaluate that MSC is mostly concerned with profit and corporate
responsibility and is a calculated response to a changed environment. Five marks for
overall assessment apropos of MSC.
(5 marks)
©2010 IAM
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2. Explain how techniques of competitor analysis could be used by MSC to gain a better
understanding of the competition it faces.
(25 marks)

Unit 2 Strategic issues in administration
The answer should profile types of competitors within the industry and drivers of
organisational change. Competitor strengths, market sector and products developments
could feature.
(5 marks)
Types of techniques for gathering intelligence about competitors and the industry market
should be given and examples applied to MSC:
 norm analysis
 benchmarking
 five forces.
Maximum of five marks for each technique.
(15 marks)
Good answers will identify the relevance of these techniques and highlight their
significance for strategic thinking.
(5 marks)
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3. Using the financial information provided, evaluate the stability and performance of
MSC to attract sources of finance.
(25 marks)

Unit 3 Administrative management of resources
The answer should identify different sources of finance and relate their appropriateness
to MSC. Both internal and external sources should be identified
Up to a maximum of eight marks for this area.
(8 marks)
Consideration should be given to the period, type and purpose of finance when assessing
its relevance to MSC. – supporting development, expand production, improve cash flow
etc.
Up to a maximum of eight marks for this area.
(8 marks)
Accounting ratios could be used to demonstrate company viability. –

A maximum of two marks for correct calculation of ratio up to a maximum of four marks
with a maximum of two appropriate ratios.
(4 marks)
Good answers could consider the political acceptability of different financing methods,
impact of ownership, potential takeover possibilities, etc.
Up to a maximum of five marks for this area.
(5 marks)
©2010 IAM
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4. Advise MSC how they can ensure that diversity and equality of opportunity is
maintained throughout their global operations.
(25 marks)

Unit 4 Human resource management & practice
A good response would start by outlining diversity and equal opportunities - explain its
impact/purpose both locally and at an international level. Mention could be made of
“fair trading”.
(5 marks)
Organisational differentness – main legislation should be identified:

 EPA
 SDA
 RRA
 DDA
 EU Regulations in terms of sexual orientation and religion or belief and their
implications for MSC.
This list is not exhaustive
Candidates could choose any three areas and develop these more fully with a maximum
of five marks for any one area which should include an explanation of their content and
how it would impact MSC directly.
Identification of more than three areas should be acknowledged but total marks must not
exceed fifteen.
(15 marks)
Good answers could provide a brief outline guide for global use in all their branches and
draw on policy, procedures and practice. Provide a brief bullet point policy (or
alternative)
(5 marks)
©2010 IAM

Advanced Diploma Past Papers September 2010

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The Institute of Administrative Management

Level 5 Advanced Diploma in Administrative

Unit 1: Administrative systems in the organisation

Date: 06 September 2010

Time: 09:30 – 12:30

Time Allowed: 3 hours. Allocation of marks

ONE question must be attempted from each section.

Graph paper is included in the centre of the exam

Section A: Problem solving and analysis

2. Decision-making can be complex and cannot be separated from the culture,

Section B: Designing effective systems

Section C: Performance improvement and monitoring

b. Discuss why organisational processes are interconnected and often difficult to

Section D: Systems approaches and models

Unit 1: Administrative systems in the organisation

Date: 06 September 2010

Time: 09:30 – 12:30

Time Allowed: 3 hours. Allocation of marks

ONE question must be attempted from each section.

Graph paper is included in the centre of the exam

Section A: Problem solving and analysis

Marking guide (LO 2)

Marking guide (LO 2)

Problem contexts are seen as being affected by two key variables:

Simple – small number of sub-systems

Section B: Designing effective systems

Marking guide (LO 3)

The emphasis is on a commitment to continuous improvement with organisations

The candidate must demonstrate a complete appreciation of theory and relevant

Marking guide (LO 3)

Section C: Performance improvement and monitoring

b. Discuss why organisational processes are interconnected and often difficult to

Marking guide (LO 4)

Candidates must provide a thorough understanding of how this model is

Marking guide (LO 4)

Section D: Systems approaches and models

Marking guide (LO 1)

A systems approach to problem-solving tends to holistic; looking at the whole

Marking guide (LO 1)

Daellenbach and McNickle (2005) defined six properties of good models:

Each should be identified and explained by use of an example.

Candidates must go on to explain that mathematical and logical models are

 Mathematical and logical modelling approaches use quantitative models within a

Unit 2: Strategic issues in administration

Date: 07 September 2010

Time: 09:30 – 12:30

Time Allowed: 3 hours Allocation of marks

One question must be attempted from each

Graph paper is included in the centre of the exam

Section A: The organisational environment

2. Consider the cultural implications of internationalisation/globalisation on an

Explain the cultural influences that affect that organisation.

Section B: Introduction to strategic thinking

4. Evaluate how an organisation decides on its strategic capability. Use specific

Section C: The customer focused organisation

Section D: Managing change and culture

Unit 2: Strategic issues in administration

Date: 07 September 2010

Time: 09:30 – 12:30

Time Allowed: 3 hours Allocation of marks

One question must be attempted from each

Graph paper is included in the centre of the exam

Section A: The organisational environment