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9609 · 2.3.1

Management and managers — practice questions

Practice and worked examples for 9609 Management and managers. Short previews only — attempt the full question in MarkScheme against the official scheme.

Worked example 1

A fast-growing food chain opens 20 new outlets in one year. Managers complain of inconsistent standards. Which management functions are failing and what should HQ do?

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Planning failure: Expansion without standard operating procedures and training plans.

Organising failure: Unclear roles — who inspects quality in each outlet?

Directing: Store managers need motivation tools (2.2.4) not just orders.

Controlling: No mystery shopper / audit system — cannot correct problems.

Action: Central ops manual, regional managers, KPI dashboards — balances control with local delegation (7.1.5).

Worked example 2

The production manager of 'WidgetCo' is reviewing last week's performance. The target output for the week was 2,500 units. The actual output was 2,350 units. The standard profit contribution per unit is $6. As part of the 'Controlling' function, calculate the output variance in units and its impact on profit. Suggest one action the manager could take, linking it to a management function.

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1. Calculate Output Variance: This is the difference between the planned target and the actual result.

  • Formula: Actual Output - Target Output
  • Calculation: 2,350 units - 2,500 units = -150 units (Adverse Variance)

2. Calculate Impact on Profit: This shows the financial consequence of the output variance.

  • Formula: Output Variance (in units) × Profit Contribution per unit
  • Calculation: 150 units × 6=∗∗6 = **900**
  • Conclusion: The failure to meet the output target has resulted in a $900 reduction in planned profit contribution for the week.

3. Suggest Management Action (linking to function):

  • Action: The manager should investigate the cause of the production shortfall. Was it due to machine breakdown, staff absence, or low motivation?
  • Management Function Link: This investigation is a core part of Controlling (monitoring performance and taking corrective action). If the cause was low motivation, the manager may need to use the Commanding/Directing function to implement a new incentive scheme (linking to motivation theory, 2.2.1).
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