Management Principles MCQ's PDF

lOMoARcPSD|46897691 Mangement principles MCQ's Management Principles (University of Limerick) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Soapymamager957 - ([email protected]) ...

lOMoARcPSD|46897691 Mangement principles MCQ's Management Principles (University of Limerick) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Management principles MCQ Week 2 – 12 Managers and management CHAPTER ONE 1. What is scientific management? Why is it so popular Emphasis the development of one best way of performing tasks through the application of science methods. Taylor & Bethlehem steel works. 2. What effect did the industrial revolution have on management? Organization's became larger and more complex, this led to the development of management techniques to cope with issues present by industrialization. 3. Compare and contrast scientific and administrative management. Scientific: One best way of management Administrative: personal experience. Focused on senior management & policy issues they faced. 4. What were the Hawthrone studies? Why were they so important to the development of management thought. To explore and design ways to increase productivity. 5. What are the main elements of bureaucracy? 6x main elements: Division of labour, Hierarchy, selection, career orientation, formlisation and impersonality. 6. How did system theory try and overcome the limitations of earlier approaches. It argues that organisations should be viewed as systems that transform inputs into outputs into the environment. They are a whole unit rather than historically being department orientated. 7. How does the contemporary approaches management differ from the classical approach. Contemporary: flexibility and teamwork, collaborative and employee participation Classical: Decision making Top–down, Hierarchy and a high emphasis on control and stability Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 The development of business in Ireland CHAPTER TWO 1. How did membership of the EEC in 1973 affect industrial policy? Promoting Ireland as an investment location, mainly in the USA. Could now be sold as a European base for foreign MNC’s. This opened the market for 250 million people from Irish companies. 2. Why were the changes that were introduced to the education system in the late 1960’s and early 70’s so important in later years? Free Secondary Education (1967): In 1967, Ireland introduced free secondary education and expanded access to technical and vocational training. This reform, spearheaded by Education Minister Donogh O’Malley, was a transformative step for Irish society. Impact on Business: Created a more educated workforce, which was crucial for industrial development and attracting foreign investment. Higher Education Developments: New institutions like the ‘IT’ Colleges were established to provide skills needed in industry. The expansion of higher education supported a shift toward skilled manufacturing and services. 3. What were the main strategies pursued by the IDA during the period 1980-86? Targeting High-Growth Sectors: Focused on technology, electronics, and pharmaceuticals. Shifted from labor-intensive to capital- and skill-intensive industries. Job Creation Focus: Prioritized securing investments that generated employment. Supported indigenous companies alongside multinationals. Regional Development: Promoted industrial estates in rural areas. Offered extra grants for investments outside Dublin. Incentive Packages: Provided grants, low corporate tax rates (10% for manufacturing), and R&D incentives. Tailored offers to attract multinational corporations. Ireland as a Gateway to Europe: Marketed EEC membership for access to the European market. Highlighted Ireland’s English-speaking workforce and political stability. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Infrastructure Support: Facilitated modern facilities, utilities, and transport to meet investor needs. 4. Why was the move to a social partnership model so important for economic and industrial recovery? The move to a social partnership model in Ireland during the late 1980s was a pivotal strategy for economic and industrial recovery. It represented a coordinated approach involving government, employers, trade unions, and later the farming community. This consensus-based framework helped stabilize the economy, restore competitiveness, and lay the foundation for the subsequent economic boom known as the Celtic Tiger. 5. Why was the Culliton report 1992 viewed as a watershed in the development of industrial policy? The Culliton Report (1992) was a watershed in Irish industrial policy because it shifted focus from grant-driven strategies to building competitiveness. It emphasized developing indigenous enterprises alongside FDI, aligning education and skills with industry needs, investing in infrastructure, and addressing cost competitiveness. These recommendations reshaped policy toward fostering sustainable, long-term economic growth. 6. How did EU membership affect economic and industrial policy during the 80’s & 90’s EU membership in the 1980s and 1990s transformed Ireland’s economic and industrial policy by providing Structural and Cohesion Funds for infrastructure and education, fostering an export-driven economy through access to the single market, and attracting FDI by offering a gateway to Europe. EU rules encouraged market-oriented policies, reduced subsidies, and modernized industrial strategies, while fiscal discipline and macroeconomic reforms supported stability and convergence, setting the stage for economic growth and euro adoption. The Global Business Environment CHAPTER THREE 1. Global business environment – why is it important for organisations to consider it? All organisations should be aware of developments on the international front in order to facilitate decisions on international expansion. To keep abreast of Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 developments that may lead to new entrants in the domestic economy. Components of external scanning: trends, competition, technology, customers, labour supply. 2. Globalisation? The increasing and deepening interactions and connections between individuals, groups and organisations across the world. Ongoing economic integration – increasing interdependence and integration of economies, markets, natures and cultures. Opportunities and threats, pressure on natural resources. Rising populism and debates of de-globalisation. 3. Importance of trading alliances? Trading blocs involve close economic co- operation and integration between members, free trade, elimination of tariff barriers – allow money and goods to flow freely. 4. Emergence of BRICS – leading to shift in balance of economic power. Selling their abundant natural resources. Emergence of a large middle class in the BRICS nations, fueling economic growth and consumption. 5. Macro vs competitive environment – Macro: factors that affect all organisations, political, economic, technology, social-ethical context. Competitive environment: rivalry among existing customer – threat of new entrants, bargain power of buyers and suppliers, threat of substitute products and services. Planning CHAPTER FOUR 1. Explain why planning is one of the most important managerial functions. Planning is the process of establishing aims and objectives and choosing a course of action to ensure that they are achieved. Planning bridged the gap between where the organization is, and where it would like to be. 2. Distinguish between strategic, tactical and operational planning. Strategic: long term orientation, takes place at top level of the organization. Focus on the basic mission, objectives, internal analysis, developing strategic plans. Guide issues such as mergers. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Tactical planning: medium term orientation, operations of various parts of the organization at middle management levels. Formulating tactical plans to achieve strategic objectives. Operational planning: short term, day to day planning by front-line supervisors. Short term department targets, budgets and programmes of action geared towards the achievement of tactical plans. 3. Identify four types of plans and explain their importance to the planning process. Mission: makes clear and realistic business objectives possible. Lays the foundation for subsequent plans. Objectives: provide specific aims that the organization is to achieve within the broader framework of its goals, involves a specific timeframe. Objectives outline how the organization seeks to achieve its mission. Strategies: A programme of activities formulated in response to objectives. Strategy preparation means that the organization must examine its strengths and weaknesses and analyse external environment. Policies: general guidelines for decision making throughout the organization. Provide direction for managers who are using their judgement in achieving objectives. Procedures: plans that outline methods for handling certain situations. Rules: statements that prohibit or prescribe certain actions by specifying what employees can and cannot do. 4. Explain why the planning process is necessary. Planning process is important for examining all aspects of the organization to formulate strategy, guide future action, form a hierarchy of plans. Stages of planning process; defining corporate objectives, internal and external analyses, revising corporate objectives and formulating strategic, tactical and operational plans. 6. Conduct a SWOT analysis for an organisation with which you are familiar. Amazon: Strengths – low-cost structure and cost leadership, relationships with suppliers, global market leadership, global brand identity and reputation, continued revenue growth and good profitability. Weaknesses: low profit margins, lack of coverage in developing regions, business model could be limited, strict regulatory compliance. Opportunities: further start up acquisition, establishing a more physical presence. Threats: exposure to international risks, seasonality of business, potential security issues. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 7. What are the main advantages and disadvantages associated with the MBO approach? Advantages: the employee gains a clearer understanding of the goals they are expected to work towards. Planning should improve as there is greater commitment to goals. Disadvantages: if MBO isn’t sold properly throughout the organization, employees may feel they are being coerced. Focus objectives can lead the business to strive towards incompatible goals. 8. Find some recent examples of plans announced by organisations in Ireland and evaluate their nature and characteristics. 9. Explain why organisations engage in contingency planning. Contingency planning against unforeseen circumstances. 10. Explain the Miles and Snow typology for business-level strategies and apply it to a market sector with which you are familiar. Four categories of business-level strategy: prospector (explores new market opportunities, embrace change and rewards risk-taking), defender: defends existing operations and is less aggressive in style, analyzer, reactor- reacts to the changes introduced. 11. Explain the main differences between Porter's generic strategies. Differentiation strategy – make products and services unique and distinctive by enhancing product quality. Cost leadership – offer lowest-cost product by reducing manufacturing and other costs, example Lidl, Ryanair. Focus strategy – enables organisations to concentrate on specific regional market, product line or target market. Could have a differentiation focus, providing high- quality goods at a premium price, or cost leadership focus. 12. What are corporate-level strategies and why are they important for planning? Corporate level strategies extend across industries, concentrate on degree of diversification. Two types of corporate-level strategies: Related diversification: Produce a variety of products across various markets which are connected. Produces similar products, organisations pursing related diversification normally compete in the same market and have the same distributors, brand name. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Risk is more evenly distributed. Facilitates the development of synergy and allows organization to exploit its strengths. Unrelated diversification: production of diverse products across different markets with no logical connection. Hard to manage and control. Resulted in lack of synergy and lack of investment in R&D. Virgin Group adopts this approach. Decision Making CHAPTER FIVE 1. Importance of decision making Decision making is the selection of a course of action from a range of alternatives. Plays a role in planning, is fundamental part of management process. 2. Programmed vs non-programmed decisions. Programmed decisions are structured, routine, repetitive, occurring on a regular basis. Non-programmed decisions are new and unstructured, without established procedures for making them. Highly complex and occur at higher levels in the organization, require a degree of judgement. Example of decision: whether to expand into an unknown market. 3. Explain conditions under which a decision is taken. Decisions are taken under conditions ranging from complete certainty to risk and uncertainty. Certainty – decision is a certainty. Available alternatives and the costs/benefits are certain. Risk – decision is a gamble. Outcomes are unknown. Uncertainty – decision needs courage and is a gamble. Alternatives, likelihood of their occurrence and the outcomes are all unknown. 4. What do you understand by the term 'rationality' in respect of decision making? Rationality refers to a process of evaluating available evidence, considering all alternatives and making choices that lead to best outcomes. 5. Explain the term 'bounded rationality'. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Bounded rationality argues that decisions taken by managers are bounded by limited mental capacity, emotions and environmental factors over which they have no control. Notion that managers seek to satisfice, settle for an alternative that is satisfactory, rather than continuing to search for the optimal solution. BR recognizes that managers may not have full and complete information. BR concentrates on how managers actually behave when making decisions. 6. What role do political forces play in organisational decision making? Legitimate power originating from managers’ position within hierarchy. Reward power originates from the manager’s ability to withhold rewards from others. Expert power derives from the expert knowledge and information that an individual/manager has amassed. 7. Outline the advantages of group decision making. Brainstorming, the Delphi technique, nominal grouping. Allows for greater number of perspectives and approaches to be considered, increasing number of alternatives. Groups facilitate processing of a larger pool of information. Allows members to become involved, create sense of ownership and commitment. 8. Outline the disadvantages of group decision making. Longer to arrive at. More indecisive, lack of agreement among members. Levelling effect when an individual’s thinking is brought into line with the average quality of a group’s thinking. Groupthink when members’ strivings for unanimity overrides their motivation to realistically appraise alternative courses of action. 9. Explain the terms 'groupthink' and 'the levelling effect. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Levelling effect when an individual’s thinking is brought into line with the average quality of a group’s thinking. Groupthink when members’ strivings for unanimity overrides their motivation to realistically appraise alternative courses of action. 10. Evaluate group versus individual decision making. Group decision making is suited to some circumstances. Factors favouring individual and group decision making: short time frame, manager is dominant, decision does not directly affect the group. 11. How can group decision making be improved? Brainstorming, Delphi Group technique (avoid undesirable effects of group interaction), nominal grouping – restricts verbal interaction, members given a problem, period of discussion, which builds on idea. Organisational structure and design CHAPTER SIX 1. Explain the term ‘organising’ and organisational structure’ Organising: is the process of dividing tasks between groups, individuals and departments and coordinating their activities to achieve organisational goals. Organizational structure: Structural configuration - (shape and size) this includes divisions of labour, spans of control, Hierarchy and departmentalization. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Structural operation – the process of the structure and includes formalization, decision making, responsibility and authority. 2. Outline the most recent trends in organisational design. 4 main trends in organisational design have been developed in response to the realisation that bureaucracy can no longer cope with changing business environments. Hierarchical levels have been reduced, the division of labour has spread, teams have been introduced, and responsibility and decision-making authority have been pushed down to the organisation. 3. What structures has Mintzberg identified? A simple structure, a machine bureaucracy, a professional bureaucracy, a divisionalised structure and an adhocracy. 4. Why have bureaucracies become less efficient in the current business environment? It is primarily suited to stable and simple structures, the current environment is complex and instable, so bureaucracies have become less effective. 5. Why have organisations experimented with networks? Organizations experiment with networks to enhance collaboration, foster innovation, improve efficiency, and adapt to changing markets. Networks enable knowledge sharing, decentralized decision-making, and technological integration, while supporting agility, sustainability, and new business models. 6. Why are team-based mechanisms and project teams appealing to organisations? Team-based mechanisms and project teams appeal to organizations for their flexibility, innovation, and focus. They enhance collaboration, adapt to change, and drive targeted results while fostering accountability and engagement. Managing Human Resources CHAPTER SEVEN Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 1 What are the main phases in history of HRM in Ireland? Welfarists, Taylorists in early 1900s, Bureaucrats, Consensus negotiators in mid- 1900s, increased legislation in 1970s, more recently the increasingly strategic role in emergence of HRM. 2. Define HR planning HR planning is concerned with the quantity and quality of human resources available to an organization and how these are deployed to ensure effectiveness and efficiency. Phases: demand analysis, supply analysis, estimating deficits/surpluses, developing action plans. 3. What should be included in a job description and person specification? Job description is a statement of the main tasks and responsibilities of the job, current employees keep diary of their daily job activities, draw up job description accordingly, or job left to managers. Person specification sets out the skills, qualifications, knowledge and experience the individual should possess to best match the job. Take into account education and experience, general intelligence, interests, motivations, adjustment. 4. What are the major sources of recruitment? Internal sources – transfer, promotion, demotion. External sources – existing workforce recommendations, casual applications, employment agencies, advertising, contacts/ colleges. 7. Evaluate the universal approaches to the study of organizational design Fayol’s classical principles of management and Weber’s Bureaucracy – the preferred form of structure for business and government. Facilitate the allocation of scarce resources in an increasingly complex society. Bureaucratic structure advocated by Weber has following characteristics: division of labour, managerial hierarchy, formal selection, career orientation, formal rules and procedures, impersonability. 8. Discuss Mintzberg framework Five types of structure: simple, machine bureaucracy, machine bureaucracy, professional bureaucracy, divionalised bureaucray, adhocracy. He concludes that there must be a fit between the structure, the structural imperatives, the organisation’s strategy and components of the structure. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Leadership CHAPTER 8 1. Distinguish between leadership and management Leadership and management are distinct but complementary concepts: 1. Leadership focuses on inspiring, motivating, and guiding people toward a vision or goal. It emphasizes innovation, change, and creating a shared purpose. 2. Management centers on planning, organizing, and controlling resources to achieve specific objectives. It prioritizes structure, efficiency, and maintaining stability. 2. 10 key roles a leader should perform in an organisation Visionary: Define and communicate a clear vision and direction for the organization’s future. Motivator: Inspire and energize team members to achieve their best potential and align with organizational goals. Decision-Maker: Make informed and timely decisions that guide the organization and address challenges effectively. Change Agent: Drive and manage organizational change, fostering adaptability and innovation. Communicator: Ensure clear, open, and effective communication across all levels of the organization. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Mentor: Develop and nurture talent by providing guidance, feedback, and opportunities for growth. Conflict Resolver: Address and resolve conflicts constructively to maintain a harmonious and productive work environment. Ethical Role Model: Uphold and promote ethical standards and integrity, setting an example for others to follow. Collaborator: Foster teamwork and collaboration both within the organization and with external stakeholders. Strategist: Align team efforts with long-term goals, ensuring the organization remains competitive and focused. 3. Effective leadership on an organisation Effective leadership in an organization involves inspiring and guiding teams toward a clear vision while fostering collaboration, adaptability, and innovation. It requires strong communication, emotional intelligence, and integrity to build trust and align efforts. By empowering others, resolving conflicts, and maintaining a results- oriented focus, effective leaders drive organizational success and create an engaged, motivated workforce. 4. What are the main problems with the trait theory of leadership The trait theory of leadership faces criticism for its lack of universality, as no set of traits consistently predicts effective leadership across contexts. It neglects environmental and situational factors, overemphasizes innate traits over learned skills, and often defines traits ambiguously. The theory also risks excluding potential leaders and overlooks the dynamic nature of leadership development. 5. What is the managerial grid The Managerial Grid, developed by Robert Blake and Jane Mouton, is a framework for understanding leadership styles based on two dimensions: concern for people and concern for production (or results). It is typically depicted as a grid with a scale from 1 (low) to 9 (high) on each axis. The model identifies five primary leadership styles: 1. Impoverished (1,1): Low concern for both people and production, leading to minimal effort and poor outcomes. 2. Country Club (1,9): High concern for people but low concern for production, focusing on relationships at the expense of results. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 3. Authority-Compliance (9,1): High concern for production but low concern for people, prioritizing results with little regard for employee satisfaction. 4. Middle-of-the-Road (5,5): Moderate concern for both people and production, seeking balance but potentially compromising effectiveness. 5. Team Leadership (9,9): High concern for both people and production, striving for employee satisfaction and high productivity simultaneously. The grid highlights the Team Leadership (9,9) style as the most effective, emphasizing the importance of balancing people-oriented and results-oriented leadership. It is a valuable tool for assessing and improving leadership effectiveness. 6. What is the contingency theory of leadership The Contingency Theory of Leadership suggests that effective leadership depends on the fit between a leader's style and the situation. Factors like leader-member relations, task structure, and position power influence success. It emphasizes that no single style works universally, highlighting the need for leaders to adapt to specific contexts. Motivation CHAPTER 9 1. What lessons does motivation theory have for practicing managers Understanding Individual Needs: Recognize that employees have diverse needs (e.g., physiological, social, or self-fulfillment) and tailor motivation strategies accordingly (e.g., Maslow's hierarchy of needs). Incentives Matter: Use both intrinsic and extrinsic rewards to drive performance, balancing financial incentives with meaningful work and recognition (e.g., Herzberg's two-factor theory). Goal Setting: Set clear, specific, and challenging goals to enhance motivation and performance (e.g., Locke's goal-setting theory). Fairness and Equity: Ensure fairness in rewards and treatment to prevent demotivation from perceived inequities (e.g., Adams' equity theory). Job Design: Structure jobs to include variety, autonomy, and opportunities for growth to keep employees engaged (e.g., Hackman and Oldham's job characteristics model). Continuous Feedback: Provide regular feedback to guide, encourage, and support employee progress (e.g., expectancy theory). Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Motivation is Dynamic: Recognize that employee motivation changes over time and adjust strategies to maintain engagement. 2. Compare three need theories of motivation. Compare and contrast the two about motivation at work Maslow's Hierarchy of Needs, Herzberg's Two-Factor Theory, and Alderfer's ERG Theory all address workplace motivation but differ in focus. Maslow suggests employees progress from basic needs (e.g., pay) to self-fulfillment, while Herzberg separates factors that prevent dissatisfaction (hygiene) from those that truly motivate (intrinsic). ERG is more flexible, allowing simultaneous pursuit of basic (existence), social (relatedness), and personal growth needs. Maslow and ERG highlight a range of needs, including social connections, while Herzberg emphasizes job enrichment. ERG’s adaptability suits dynamic workplaces, Herzberg focuses on job design, and Maslow provides a structured progression model. 3. Is pay a motivator Pay is a motivator for meeting basic needs, rewarding performance, and signaling value, but its effect is often short-term. According to Herzberg, it prevents dissatisfaction but doesn’t drive long-term motivation, which relies more on factors like meaningful work, growth, and recognition. 4. Distinguish between the different approaches to job design and highlight the aspects of each approach that were seen to be motivating. Scientific Management: Emphasizes efficiency with simple tasks and performance-based pay but can reduce long-term motivation. Job Enlargement: Adds task variety to reduce boredom but doesn’t increase responsibility. Job Enrichment: Increases autonomy and responsibility, enhancing growth and ownership. Job Rotation: Offers variety and skill development through role switching but may disrupt mastery. Socio-Technical Systems: Balances productivity with social needs, fostering teamwork and satisfaction. Job Characteristics Model: Focuses on variety, autonomy, and feedback to make work more meaningful. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Control CAPTER 10 1. Define control and explain its importance. Control is a final management function. It is the process of ensuring the efficient and effective achievement of organisational goals and objectives. 2. Explain the three steps in the control process The control process involves three steps: establishing performance standards, measuring and comparing actual performance and finally, acting where necessary. 3. Define and explain the various types of control an organisation can use. An orgainisation does not have automatic controls and therefore some form of control is needed to regulate its activities. There are three types of control. Feedforward control monitors inputs, concurrent control monitiors the transformation process and finally feedback control monitors outputs. 4. What are the characteristics of effective control Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Effective control systems are accurate, timely, relevant, and flexible. They are comprehensive yet cost-effective, easy to understand, action-oriented, and integrated with organizational processes. They also focus on preventing issues and ensuring alignment with goals. 5. Explain the concepts of variable and zero- based budgeting Variable budgeting adjusts expenses based on activity levels, offering flexibility for fluctuating operations. Zero-based budgeting (ZBB) starts from zero each period, requiring justification for all expenses, focusing on cost control and efficiency. 6. What is break even analysis and how can it be used as a control device. Break-even analysis calculates the sales volume needed to cover costs. As a control tool, it helps monitor performance, manage costs, set sales targets, guide pricing decisions, and assess financial risks, ensuring operations remain aligned with profitability goals. 7. Explain what GANTT chart and PERT chart analysis try to achieve. What is the difference between the two approaches? Gantt Chart Purpose: A Gantt chart is a visual project management tool that represents tasks or activities along a timeline. It is used to schedule, track progress, and manage project timelines. Key Features: Displays tasks as horizontal bars showing start and end dates. Allows managers to see task dependencies, milestones, and overall progress. Useful for managing simpler projects with a clear timeline. PERT Chart (Program Evaluation and Review Technique) Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 Purpose: A PERT chart is a project management tool used to analyze and schedule complex projects by mapping out tasks and their dependencies in a flowchart format. Key Features: Focuses on task sequencing and identifying the critical path (longest sequence of dependent tasks). Provides time estimates for each task (optimistic, most likely, pessimistic). Useful for managing complex projects with uncertainty in task durations. Differences Between Gantt and PERT Charts Aspect Gantt Chart PERT Chart Task scheduling and progress Task sequencing, dependencies, Focus tracking and time estimation Network diagram (flowchart- Format Bar chart (timeline-based) based) Complexity Suitable for simpler projects Suitable for complex projects Limited representation of task Highlights dependencies and Dependencies dependencies critical path Incorporates variable time Time Estimates Uses fixed start and end dates estimates Gantt Charts are ideal for visualizing project schedules and tracking progress over time. PERT Charts are better for analyzing task dependencies and estimating project timelines, especially for complex projects with uncertainties. Both tools complement each other and can be used together for effective project management. 8. How has advances in information technology shaped the control function Advances in IT have transformed the control function by enabling real-time monitoring, data-driven decision-making, and process automation. IT enhances efficiency through integrated systems like ERP, improves communication, strengthens security, and supports risk management with predictive analytics. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 These innovations make controls more accurate, transparent, and adaptable to organizational needs. 9. In the current business environment, what controls should an organisation focus on. In today’s business environment, organizations should focus on financial controls (budgeting, cost management), operational efficiency, cybersecurity, strategic alignment (KPIs, adaptability), and HR management (engagement, training). Emphasis should also be placed on risk management, regulatory compliance, and ESG controls to ensure sustainability and resilience in a dynamic market. Ratios 1. Current Ratio Formula: Purpose: Measures a company's ability to pay short-term liabilities with short-term assets. 2. Quick Asset Ratio (Acid-Test Ratio) Formula: Purpose: Evaluates the ability to meet short-term obligations using the most liquid assets. 3. Asset Turnover Ratio Formula: Purpose: Assesses how efficiently a company uses its assets to generate sales. Downloaded by Soapymamager957 - ([email protected])  lOMoARcPSD|46897691 4. Net Profit Ratio Formula: Purpose: Measures profitability as a percentage of sales. 5. Return on Assets (ROA) Formula: indicates how efficiently a company generates profits from its assets. 6. Debt-Equity Ratio Formula: Purpose: Shows the proportion of debt financing relative to shareholders' equity, indicating financial leverage. Downloaded by Soapymamager957 - ([email protected])