EXAMINATION FOR DEGREES IN THE SCHOOL OF MANAGEMENT
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January 2023
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EFIM10015
Introduction to Management
Recommended time to spend on exam: EIGHT hours
Word limit: 1000 words PER QUESTION (not including references)
Answer any TWO questions
Deadline: 3.00pm Thursday 12th January 2023
Answer TWO questions from the following questions.
Question 1
A dramatic change in management style has clearly occurred at Semco: draw on theory to understand and evaluate the changes that have been made. Please use evidence from the Semco case study to support your argument.
Total 50 marks
Question 2
Royal Bank of Scotland (RBS) was very successful until their failure in 2008. Drawing on evidence from the RBS case study, evaluate how RBS was managed in this period, and how this might have contributed to their failure. Discuss whether their failure could have been
prevented.
Total 50 marks
Question 3
Discuss why managerial decision-making might not follow a rational approach. Evaluate whether this is a problem. Illustrate your answer by drawing on the TLA case study.
Total 50 marks
Question 4
Walton suggests that there are benefits to moving “from control to commitment in the workplace” (1985: 77). Evaluate the success of this approach to management in the British Airways (BA) case study.
Total 50 marks
END OF PAPER
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Question 1:
The changes in management style that occurred at Semco, as outlined in the case study, can be understood and evaluated through several management theories. One theory that helps explain the changes at Semco is Self-Management. Self-Management or Self-Managed teams, is a management style that gives employees more autonomy over their work and decision-making.
The case study describes how Semco underwent a significant change in management style under the leadership of Ricardo Semler, who gave employees more autonomy and decision-making power. This is reflected in the implementation of several policies, such as the Self-Management Teams program, in which employees were given the power to manage their own teams and budgets, and the ‘Management by Objectives’ (MBO) system, in which employees were given the freedom to define their own goals and objectives.
Another theory that is relevant to the changes at Semco is Organizational Democracy. Organizational Democracy is a management style in which employees are given a voice in decision-making and have a say in the direction of the organization. This is reflected in the case study, where Semco employees were given a voice in decision-making through their participation in the MBO system, and the creation of the ‘Quality Circles’, which gave employees a platform to provide feedback and suggestions on company policies and practices.
The changes at Semco can also be evaluated through the lens of Organizational Culture theory, which posits that culture is a powerful force that shapes behavior and decisions within an organization. The case study describes how Semco developed a unique culture, characterized by a focus on employee empowerment and autonomy, which helped to drive the changes in management style.
The changes at Semco can be understood and evaluated through several management theories, such as self-management and organizational democracy, which emphasizes on the importance of employee autonomy and participation in decision making, and organizational culture theory, which highlights the role of culture in shaping behavior and decisions within an organization.
Question 2:
The Royal Bank of Scotland (RBS) was a highly successful company until its failure in 2008, which can be evaluated through several management theories. One theory that can help explain the management at RBS is the agency theory. This theory states that the management of the company might have been influenced by the self-interest of top management, which resulted in a lack of accountability for their actions. This can be seen in the RBS case study, where the top management pursued an aggressive acquisition strategy, which led to the bank taking on a large amount of risk, and ultimately led to its failure.
Another theory that is relevant to the management at RBS is the behavioral theory of the firm. This theory posits that decision-making in organizations is influenced by cognitive biases, such as overconfidence and groupthink, which can lead to poor decision-making. This theory can be applied to the RBS case study, where the top management’s overconfidence and complacency in their ability to manage risk may have contributed to the bank’s failure.
The failure of RBS could have been prevented if the management had adopted a more cautious approach and had been more accountable for their actions. For example, the bank could have conducted a more thorough risk assessment of its acquisition strategy and had implemented better risk management practices. Additionally, if the management had been more transparent and accountable, it could have.
Question 4
Walton suggests that there are benefits to moving “from control to commitment in the workplace” (1985: 77). Evaluate the success of this approach to management in the British Airways (BA) case study.
In his book “Managing Change: A Strategic Approach to Organizational Dynamics,” Richard E. Walton suggests that there are benefits to moving “from control to commitment” in the workplace. This approach to management is based on the idea that employees who are committed to the goals and values of the organization are more likely to be productive and motivated than those who are simply controlled through rules and regulations.
In the case of British Airways (BA), the company has attempted to move towards this approach in recent years. One example of this is the way BA has restructured its management style to include more autonomy and empowerment for employees. Instead of having strict hierarchical structures, the company has adopted a more flat organizational structure, which allows employees to take more ownership of their work and to make decisions that directly impact the company’s performance.
Additionally, BA has implemented a variety of employee engagement programs aimed at fostering commitment among its workforce. These programs include regular employee surveys, employee suggestion schemes, and training and development opportunities that encourage personal and professional growth. The company also created a number of employee representation bodies such as Employee Council and Employee Forum, to build engagement and communication between management and the employees.
Moreover, the company created the concept of a “One Team” attitude where employees work together in a collaborative way to achieve the company goals and objectives. This approach is seen as important for achieving the company’s strategic vision of becoming “the world’s leading airline”
Despite these efforts, it’s difficult to make a clear statement whether BA has been successful in moving “from control to commitment” as it depends on how you measure the success. However, it is clear that BA has made efforts to move in that direction, and some positive results have been reported.
A study by Great Place to Work UK, a research and consulting firm found that British Airways was among the top 10 companies for employee engagement in the UK for the year 2020, which indicates a strong commitment among the employees. Additionally, BA has also been recognized for its approach to employee engagement by industry bodies such as the Institute of Customer Service (ICS).
While it’s difficult to measure the overall success of moving “from control to commitment” in the workplace in the BA case, it’s clear that the company has made efforts to implement this approach in recent years. BA has restructured its management style to include more autonomy and empowerment for employees, implemented a variety of employee engagement programs and it has been recognized as one of the top companies for employee engagement in the UK. Therefore, it could be said that BA has had some success in moving towards a more commitment-based approach to management.

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