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Posted By: Nitin Bajaj - Editor Member Level: Diamond Posted Date: 25 Mar 2008
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2004 Madurai Kamaraj University M.B.A Business Administration PRINCIPLES OF MANAGEMENT Question paper
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A11 - M.B.A. DEGREE EXAMINATION, APRIL 2004
First Year
PRINCIPLES OF MANAGEMENT
Time : Three hours
Maximum: 100 marks
PART A —(3 x 20 = 60 marks)
Answer any THREE questions.
Each question carries 20 marks.
1. What do you mean by planning premises and describe the importance of planning premises?
2. How do you distinguish between Line and Staff functions?
3. Explain the elements and significance of Managerial Grid in training for leadership.
4. Discuss the theory of motivation advocated by Maslow.
5. What do you mean by performance appraisal and discuss its need and importance in an organisation?
PART B — (40 marks)
6. CASE:
Decision to Diversify
Frank Parks is the owner and President of Marine Fiber glass, Inc., a manufacturer of fiber glass fishing and leisure boats. The business is 11 years old and produces about 1,200 boats of various sizes and types each year.
The boat business is seasonal. At peak production periods, Marine employs 40 persons, including a sales manager and a production manager. However, during the off—season production is flowed down, the number of employees drops to about 23, and boats are stockpiled for the upcoming peak season.
Fixed expenses are relatively low, but plan and equipment are significantly underutilized in the offseason. Variable expenses, specifically materials costs, have been skyrocketing in the last two years, and labor costs have been steadily increasing.
Two months ago, Frank was approached by Goldikist Corporation, a large farm co—op organization, and was asked whether his company could manufacture fiber glass hog feeders. Goldkist indicated that they had received numerous requests for such a product and would purchase a sizable number each year if the demand was steady.
Three weeks ago, a representative from a large sports car dealership called Frank and enquired whether he could produce two or three styles of fiber glass tail fenders and hoods for replacement parts on sports car bodies.
Just yesterday, a truck dealership owner dropped by and asked whether Frank could manufacture two styles of truck bed covers that can be installed on a pickup truck for protection.
Marine Fiber glass is a profitable company. It is capable of making all the products requested and Frank is reasonably confident he can do so profitably.
Questions:
(a) What decision—making model or models should Frank use in deciding whether or not to diversify?
(b) Is group decision making appropriate here?
(c) Use Auchey’s overview to help Frank make a decision
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