- Entrepreneurship Studies
- Industrial Relations
- Human Resources Management
- Macro Economics
ENTREPRENEURSHIP
STUDIES:
- What is feasibility study?
Answer: It is an analysis of the viability of an
idea.
Osuagwu
(2002) defined feasibility study as an investigation into the potential outcome
of the project. It is a planning
document which is used to develop an acceptable business plan for a project.
Answer: 1. It give focus to the project and outline
alternatives 2. it narrows business alternatives 3. It identifies reasons not
to proceed or proceed 4. It enhances the probability of success 5. It provides
quality information for decision making 6. It helps in securing funding from
lending institutions.
Reason(s)
not to do Feasibility Study
1.
We know it is feasible 2. Why do feasibility Study 3. It is a waste of time 4. Why not just hire a
general manager who can do the study
- Feasibility study is a critical step in the business assessment process. Do you agree? Why?
Answer: (The
reason(s) for feasibility study will do for this answer)
- Explain the line (if any) between feasibility study and Business plan
Answer:
Feasibility study is not a business plan. It provides an investigation
function. It addresses the question of
“is this a viable business ventures”? The business plan provides a planning
function. The business plan outline the
actions needed to take the proposal from “idea” to “reality”.
- What do you understand by the term executive summary as a component of a feasibility study report?
Answer: Is
an overview of what the report is about.
It is the key points or aspect of the project.
- Discuss the elements that constitute the executive summary of a good feasibility study report.
Answer: 1.
Explain if the report is to establish, expand or consolidate a new or existing
idea, business project 2. Give a brief description of the business idea 3. Give
details of the product or service 4. Indicate to who the product or service
would be sold 5. Show the first year’s estimated sales and net profit as
follows:
. Capital
Assets xxxx
. Working
Capital xxxx
Total xxxx
. Finance
being introduced by you xxxx
. Finances
required from outside sources xxxx
Total xxxx
6. Show the finances required 7. Give details
of the people involved in the setting up and the running of the business 8.
Provide details of how the organization will be constituted e.g. Sole Trader,
partnership, limited liability etc.
- Prepare a brief, but concise feasibility analysis, for any business Venture of your choice.
Answer. Feasibility consist of The Executive Summary
which we have detailed above and Main body which is as follows: 1.
Introduction/Background – introduce the project, state the vision &
mission, state the objectives of the project/business 2. Project Description
– Describe the idea of the business, location of the business and why is to be
sited there etc. 3. Market analysis – demand and supply of the
product/service, the position of the industry as it relates to size, pricing,
costs etc the competing the project will
come up against, what strategy to use to achieve the projected sales 4.
Sponsorship and Management – Explain the origins of the formation of the
firm, the legal form under which the project will be organized, determine the
manpower cost & requirements 5. Technical Aspect of the Project –
Plant and Machinery requirement, production process, raw materials inputs,
infrastructure, environmental analysis, project timelines etc. 6. Financial
Aspects of the Project – cost of the project, sources of financing, equity
contribution, short and long term financing, Cash flow projection 3-5 years,
profit and loss projections, projected balance sheet 7. Legal & Regulatory
Framework – identify your legal responsibilities, registration of the
company, taxes, licenses and permits 8. Project Risk Analysis – identify
the potential risks, strategy to mitigate the risks 9. Economic and Social
Justification – List all the benefits that accrue to the economy and society,
employment generation, provision of products & services
- Go/No-Go Decision – is one of the most critical in business development. It is the point of no return.
- What is a Business Plan?
Answer: A
business plan is a blue print that maps out the business strategy for entering
the markets and explains the business to potential investors.
Gumpert
(1997), defined a business plan as a road map, a statement of strategy or any
other relevant conceptual label. Hisrich
and Peters (2002) defined business plan as a written document prepared by the
entrepreneur that describes all the relevant external and internal elements
involved in starting a new venture.
- What is the format of a good business plan?
Answer:
1. A vision Statement- purpose and goals of the business 2.
The People – yourself and other managerial staff and their CV 3. Your Business Profile – define and
describe your intended business 4. Economic Assessment –provide a
complete assessment of the economic environment, explain how your business will
be appropriate for the regulatory agencies and demographics. 5. Cash Flow
Assessment – one year cash flow, capital requirements. 6. Include your marketing plan and expansion
plans.
- List and explain the Do’s and Don’ts of a good business plan
Answer: Do’s:
1. Prepare a complete business plan 2. use the business plan template furnished
in each session 3. complete sections of your business as you proceed 4. Research
– use search engines to find business plans that are available on the internet
5. Package your business plan in an attractive kit 6. Submit your business plan
to experts in your intended business 7. Spell out your strategies on how you
intend to handle adversities 8. Spell out the strengths and weakness of your
management team 9. include a monthly, one year cash flow 10. Modify your
business plan frequently
Don’ts:
1. Be optimistic on the high side in
estimating future sales 2. Be optimistic on the low side in estimating future
costs 3. Disregard or discount weaknesses in your plan 4. stress long-term
projections 5. Depend entirely on the uniqueness of your business or the
success of invention 6. Project yourself as someone your re not 7. Be everything
to everybody. 8. Proceed without
adequate financial and accounting know-how 9. Base your business plan on a
wonderful concept 10. Skip the step of preparing a business plan before
starting.
- Creating a business plan is an essential step for any prudent entrepreneur to take, regardless of the size of the business. Explain.
Answer: it can assist the entrepreneur to
organize and direct his business ideas 2. It can help the entrepreneur to set goals
and objectives 3. It is a means of attracting investors to the business 4. it
can act as a means to attract any form of funding needed by the business.
- Compare Business Plan with Feasibility Study
Answer
is given above.
- Prepare a brief but concise Business Plan for any small business of your choice.
Answer: No 15 has the answer to this but you need to
do a little writing.
- Typical Structure for a Business Plan
Answer: Cover page and table of contents 2.
Executive summary 3. Business description 4. Business environment analysis 4.
Industry background 5. Competitive analysis 6. Market analysis 7. Marketing
plan 8. Operations Plan 9. Management summary 10. Financial Plan 11.
attachments and milestones.
- Identify the various short-term sources of business financing
Answer: Short
Term Bank Loans 2. Overdraft 3. Trade Credit 4. Bill of Exchange 5. Factoring:
6. Promising Note/Commercial Paper:
- List the various Government initiatives/programmes targeted at developing entrepreneurship in the last two decades
Answer: National Directorate of Employment (NDE),
2. National Poverty Eradication Programme (NAPEP), 3. National Agricultural
Cooperative and Rural Development Bank
4. Small and Medium Enterprises Equity Investment Scheme (SMEEIS), 5.
Micro Credit Fund (MCF), 6. Bank of Industry (BOI), 7. Nigerian Export Import
Bank (NEXIM), 8. Commercial Banks’ and Merchant Bank’s Credit to Small Scale
Enterprises
- briefly explain the mandate of the programmes (listed in 17 above)
Answer:
The mandate is to help entrepreneurs access finances which is one of the
critical factors for the growth that the entrepreneurs need. The mandate is to support financially, the
needs of the entrepreneurs, owners of micro, small and medium enterprises
(MSMEs) and to fight poverty in the country.
Explain
the following terms: (a) Accounting Rate of Return (b) Pay Back Period (c) Risk
Free Rate and Risk Premium
Answer: The accounting rate of return (ARR) method
uses accounting information as revealed by financial statements to measure the
profitability of the investment proposals.
The accounting rate of return is obtained by dividing the average income
after taxes by the average investment.
The average investment would be equal to the original investment plus
salvage value (if any) divided by two.
Payback
or payoff or payout period refers to the length of time required
for the cash earnings on a given investment to return the original cost to the
owner.
The
Risk Free Rate: is the
basic exchange rate assuming certainty of future flows of cash. There is no probability of default on the
investment. The only sacrifice on the
part of the lender is that the forgone the use of his money for a period and he
is therefore, expecting the pure rate of interest. The pure rate of interest is the price
charged for the exchange between current and future consumption. Two variables affect the RFR namely, the subjective
and objective variables.
Risk
Premium: The investor in real world is not certain of
the amount of income he will receive, when he will receive it, or if he will
receive it all. This additional required
return is refers to as the risk premium in addition t the nominal RFR.
Risk
Premium is affected by a composite of all uncertainties, ranging from business
risk, financial risk, and liquidity risk.
ANSWERS
ARE IN BOLD
- Entrepreneurship development in Nigeria in the 21st Century is said to be faced with a myriad of barriers. List two such barriers: i. Poor Recording ii. Geographical immobility of Entrepreneurs
- List two ways in which the government can surmount the problems of entrepreneurship development in Nigeria: i. Government should create enough employment to absorb the huge surge in working age people ii. Building confidence in the local economy through political, economic and military stability.
- Entrepreneurs can overcome the obstacles for running a business through one of the following a. Developing proper business plan to take care of succession b. Device means of exploiting their customers c. Operate under a harsh condition
- One of the suggested strategies to overcome entrepreneurship barriers is: a. Favourable government policies and program b. Pessimism c. Not mindful of risk
- Community is: a. a group of people living in the same geographical area and sharing things in common b. People living in different parts of the state with different goals and aspirations c. People acting differently with themselves.
- List the two types of community: i. Geographical community ii. Ethical community
- Community participation is all about the coming together of community members to act separately. True or False? False
- The contributory factor to community participation is a. Community quarrel b. Community fracas c. Community talk d. community enmity
- Community talk is the process of interaction, discourse and critical evaluation of members of entrepreneurial activities. True or false? True
- Level of participation includes: a. Information, Consultation and deciding together b. Hard decision, poor implementation c. Not acting together.
- Who is an entrepreneur? According to Bolton and Thompson, An entrepreneur is a person who habitually creates and innovate to build some thing of recognizable value around perceived opportunities.
- Employee relation is a term used to describe the regulation of staff management relationship. Yes or no? Yes.
- A good rapport is not needed between managers and the employees in an organization. True or False? False
- Who is to build Trust and Confidence in an organization? a. the Proprietor b. The State c. The President d. The religious leaders.
- Participation serves as a vehicle fro the following except. A. Psychological satisfaction b. Motivation c. Mobilization d. Mistrust
- Community Participation is a bottleneck to entrepreneurship development in a developing country like Nigeria. True or false? False
- The primary or basic socialization agent is: a. The clan b. The village c. The family d. the lineage
- The survival of an organization depends upon effective employee relations and commitment. Yes or No? Yes
- The delegation of authority is paramount for the survival of an organization. True or False? True
- Distinguish between feasibility and viability studies: Feasibility studies seek to answer the question, will the project be possible? And will it be practical? While viability studies seek to answer such questions, will the benefit of the project justify the cost and will it be financially worthy to undertake the project?
- List two feasibility indicators i. Physical ii. Legal
- List two viability indicators i. How much will the project cost? Ii. How will the cost be secured?
- List the two approaches to writing feasibility study i. Theoretical Approach ii. Practical Approach
- Mention two elements in drawing feasibility studies i. Project Background ii. Operational Structure
- Management is the act of running an organization. True or False? True
- List two importance of sourcing raw materials internally i. It reduces cost of transportation ii. It also reduces time and cost of delivery
- Mention two components of sales strategies i. Types of Channel of distribution the company will like to use ii. Determination of where storage depots would be located
- What do you understand by project financing? By project financing, we mean the process or means by which an entrepreneur source for funds/capital for the take off of a business venture or enterprise
- List two sources of project finance? i. Private or Owners Capital ii. Institutional Capital
- Project identification is the first phase of project cycle. True or False? True
- Project preparation is; a. the terminal end of the project b. the beginning of the project c. the initiation process when a project has been identified d. the source of the project.
- Project implementation involves the scheduling of various activities required to operationalized a project. Yes or No. Yes
- The success of project implementation requires the following except: a. Political commitment b. careful preparation c. fund availability d. unfavourable environment
- List two problems confronting implementation a. Financial problem b. Management problem c. technical problem d. labour problem. All options are correct
- The importance of ex-post evaluation is to ascertain the reasons for projects apparent success or failure. True or false? True
- Investment is the current commitment of funds for a period of time to derive a future flow of fund that will compensate the investor for the fund that are committed, for the expected rate of inflation, and also for the uncertainty involved in the future flow of fund. Yes or No? Yes
- What is a return on an investment? A. Increase of raw materials b. Increase in wealth resulting from investment c. Decrease in the acquisition of capital d. Enough capital to stall a business.
- Business risk is the ability of low of income in a business. True of False? True
- List two ways in which one can invest: a. In sating b. In companies c. In debt securities d. In real estate. All options are correct
- Feasibility studies is necessary before a business takes off. True or False? True
- Mission statement aims at stating or explaining the reasons or objectives for embarking on a project. True or false? True
- List two types of business ownership you know a. Sole Proprietor b. Partnership c. Corporation d. Limited Liability corporation. All options are correct
- List the tow kinds of market research you know a. Universal b. Primary c. Secondary. d. O level
- What is competitive environment? Competitive environment implies the availability of other entrepreneurs producing similar or close substitute goods seeking ways to outdo the other in order to get the most attention of the customers.
INDUSTRIAL
RELATIONS
Why
is it important for management and the union of workers to maintain cordial
relationship?
Answer: Cordial relationship between the union of
workers and management so that the workers will be highly motivated to put in
their best and assist the organization to achieve its objectives.
Define
Trade Union?
Answer: A
trade union is a continuous association of wage earners for the purpose of
maintaining or improving the conditions of their working lives.
Why
do workers unionise?
Answer:
Workers Unionise for the following reasons: 1. To improve their working
conditions 2. To interact and share opinions 3. To derive psychological
satisfaction 4. As a means of educating members 5. as a legal platform to
negotiate with employees.
What
led to the formation of the Railway Workers Unions?
Answer:
The Railway Workers Union was formed among other reason: 1. As a break-away
from the Civil Service Union which was considered too soft-spoken and not
responsive to economic issues 2. As technician and craftsmen to protect the
interest of the workers.
What
are the Functions of NECA (Nigeria Employers Consultative Association)?
Answer:
The functions of NECA are as follows: 1. For labour-management relations 2. As
an advisory body to employers 3. Representing employers before government on
labour matters.
What
are the objectives of Trade Unions?
Answer:
The objectives of trade unions include the following: 1. Fair wages for every
workers 2. Good working conditions for every workers 3. To have a legal
platform for the protection of workers.
What
are the main features of the Factories Act 1956?
Answer:
The main features of the Factories Act 1956 are; 1. Comprehensive guidelines
for the safety, health and welfare of workers 2. Registration of a factory by
obtaining a certificate before operation.
How
do professional and their requirements affect the labour market?
Answer:
Some professions have specific requirements such as; 1. A period of
housemanship by doctors 2. Registration by the professional body, eg. COREN, 3.
Passing a prescribed set of examinations to qualify as a member e.g. ICAN or
ANAN for accountants.
What
do you understand by industrial relations?
Answer:
Industrial Relations cover the coming together of people to work for a living,
the difficulties that arise between them in the process, how their relations,
including working conditions and wages are regulated and the organizations that
are set up for the protection of the different interest arising from working
relationship.
What
factors led to the formation of trade unions in Nigeria?
Answer:
The factors that led to the formation of trade unions in Nigeria include: 1.
The introduction of wage employment and the need for wage earners to come
together to fight for improved conditions of their work 2. Awareness of the
disparity in the treatment of the white workmen and the nations 3. Worsening
conditions of work and the rising cost of living.
Give
reasons to support the formation of unions by workers?
Answer:
Workers want to unionise; 1. for economic reason, that is to earn better means
of living 2. Social reasons - come together and share opinion, feelings etc 3.
for psychological satisfaction – a sense of comradeship 4. To create an avenue
to educate members 5. To have a legal platform to protect the interest of
workers 6. To guide the behaviours of members 7. To amass the numerical
strength required to form a pressure group.
The
rapid increase in trade unions in Nigeria was as a result of the 1938 Trade
Union Ordinance. How did the ordinance influence this increase?
Answer:
The Trade Union Ordinance 1938 required workers to register so as to be
recognised for collective bargaining purposes 2. The ordinance allows workers
who are up to fifty in number to register and form a union.
Discuss
the thee actors in industrial relations and the importance of each actor?
Answer:
The three actors in industrial relations are: 1. The workers union 2. The
employers 3. The government or its agencies.
Each
of the actors have definite roles to play, the workers union is out to protect
the interest of its members. The
employers are out to increase profits for their organizations and reduce costs. The government is the mediator between the
conflicting interests of the workers and the employers.
Discuss
union behaviour and the factors that contribute to such patterns of behaviour?
Answer:
Union behaviour ranges from being soft spoken, radical and militant, the
leadership of unions and the bodies to which they are affiliated affect the
behaviour of such unions. The economic,
political and strength of the unions also affect the behaviour of such unions.
What
are some the labour laws in operation in Nigeria?
Answer:
Some of the labour laws in operation in Nigeria include: 1. Registration of trade unions 2. contract
of employment 3. Contractual age 4. Safety of workers 5. Laws on the welfare
and health of workers 6. Wage legislation
What
are the factors in the labour market that affect industrial relations
practices?
Answer: The factors in the labour market that affect
industrial relations practices include: 1. Supply of labour as affected by the
population-size, growth rate and structure 2. Demand for labour – demand by
various agencies both government and private and various sector as they compete
for the available labour 3. Professional requirements for registration, period
of housemanship and passing some prescribed examinations. 4. The sector in
which an industry or organization is as this affects the attractiveness or
otherwise of the organization or sector to workers 5. comparability of
conditions of service by workers in various sector and organization for
effective bargaining.
Defend
government intervention in industrial relations matters
Answer: Government intervention in industrial
relations matters is necessary because: 1. government is the single largest
employer of labour and should therefore be concerned as an employer 2. law and
order has to be maintained and government is the sole authority for this 3.
government is expected to make regulatory rules on industrial relations matters
4. Employment has to be regulated 5. labour matters cannot be left to the
forces of demand and supply alone hence government’s intervention 6. the
sovereignty of the nation has to be protected hence industrial relations cannot
be left to external influences and different ideological differences.
What
were the reasons for the 1945 General Strike and why did it receive nation wide
support?
Answer:
The reasons for the 1945 General Strike include: 1. the worsening economic
conditions leading to the demand for a cost of living allowance (COLA) increase
2. the awareness by native workers on their worsening conditions.
Give
reasons for the inability of trade unions to unite under one umbrella
Answer:
Trade Union could not write under one umbrella because: 1. there were
ideological differences among the various unions 2. the multiplicity of unions
made it impossible to write 3. there were leadership struggle 4. unions have
different political leanings.
Define
collective bargaining- is to reach agreement on terms and conditions of service
through a process of negotiations between employers and employees through their
respective accredited representatives.
Discuss
the various techniques of collective bargaining
Answer: The various techniques of collective
bargaining are; 1. Issue by issue 2. Package (all together) 3. Rap-up approach
What
are the four stages in the statutory machinery for the resolution of disputes?
Answer: The four stages in the statutory machinery for
the resolution of trade disputes are: 1. conciliation 2. arbitration 3. inquiry
and 4. the National Industrial Court
What
are the effects of a strike action on the worker?
Answer:
The effects of a strike action on the worker are as follows: 1. loss of earning
and means of living 2. personal injury or death in some cases 3. arrest,
detention or imprisonment 4. could gain fame or become a hero
What
are the factors that affect the use of collective bargaining?
Answer:
The factors that affect the use of collective bargaining include: 1. Lack of
compromise by union members and management 2. Lack of confidence in unions 3.
Militant and confrontational posture of union representatives 4. Government
policies on fixing wages 5. Lack of unity among unions
What
are the problems faced by trade unions in Nigeria?
Answer:
The problems faced by trade unions in Nigeria include: 1. Poor funding 2. low
level of education of union leaders 3. Leadership struggles 4. Ideological
differences and affiliation 5. Proliferation of unions 6. Government
intervention 7. Union involvement in politics 8. Management problems – funds
etc.
How
does government intervene in industrial relations matters?
Answer:
Government Intervenes in industrial relations matters in the following ways: 1.
By making laws, rules and regulations to guide and control industrial relations
actors 2. by educating workers and employers on industrial relations matters 3.
government sets up fact finding and advisory bodies to resolve trade disputes
4. government intervenes in industrial relations matters through judicial
methods e.g. Industrial Arbitration Panel and National Industrial Court 5.
Government controls the excesses of unions and employers
Why
was it difficult to form a central labour organization in Nigeria?
Answer: It is difficult to form a central labour
organization in Nigeria because of: 1. leadership struggle and rivalry 2.
Ideological differences and affiliation 3. large number of unions
Is
government justified in banning some unions such as ASUU and NLC? Give reasons
Answer: Reasons to justify banning of unions; 1.
leadership struggle and rivalry 2. Mismanagement of union funds 3. Ideological
differences 4. to maintain industrial peace and harmony
Reason
against: 1. Freedom of association infringed 2. Confiscation of union funds and
property
Discuss
the machinery of collective bargaining
Answer: The machinery of collective bargaining can be
discussed under three headings: 1. preparation of demands 2. presentation of
demands 3. preparation for negotiation
Discuss
the resolution of trade disputes in Nigeria
Answer:
The resolution of trade disputes is as follows: i. the grievance is made known
to management ii. Internal machinery is used to resolve the dispute iii. The
local union secretary, then the national officials would be involved iv. If
settlement effort fail, the matter is referred to the minister of labour who
could appoint a conciliator and refer the matter to the Arbitration Panel and
finally to the National Industrial Court.
As
dispute need not to go through all these stages. At whatever level it is satisfactorily resolved
the matter is terminated.
What
is the likely effects of strike actions on the employer?
Answer:
The likely effects of strike actions on the employer are as follows: i. loss of
revenue as a result of stoppage of work ii. Destruction of property such as
machinery equipment of company premises iii. Waste or spoilage of materials
such as perishable raw materials or finished goods iv. Dented image of the
company as it cannot serve its customers.
What
are the advantages of the adoption of collective bargaining?
Answer:
Adoption of collective bargaining has the following advantages; i. it is a
meaningful method of determining the conditions of work ii. Union and
management operate as partners; iii. Industrial harmony is enhanced iv. It
bring about justice and fair play
The
Government is the major actor in industrial relation in Nigeria, do you agree?
Answer: This is partly because the
government is the only political
organisation of society that has authority to regulate the activities of all
other groups in the country for the purpose of maintaining law and order,
social justice and liberty. In the area
of industrial relations, the role of the government forms part of its broader
responsibility for its commitment to social order. In this respect, the government has responsibility
for promoting industrial peace and harmony in the workplace, a condition that
is absolutely necessary for sustained growth and development.
The
position of government as the single largest employer, complements its
sovereign power and control of industrial relations, both of which enable the
government to establish the rules and norms, and a wide range of other matters
relating to employment relations through its legislative, adjudicative and
administrative functions.
What
is strike?
Answer: It is a partial or full cessation of work by
the employee with common understanding for the purpose of compelling an
employer to agree to terms or conditions
of employment.
Types
of Strikes:
a.
Work to Rule, b. Hit and Run or Rotating Strike , c. Sympathy Strike, d.
General Strike, e. National Strike, f. Wild Cat Strike.
MACRO
ECONOMICS
Explain
the Transaction motive for money
Answer:
Transactionary motive is looked at from the part of consumers who want income
to meet household expenditure. Secondly,
businessmen want money from time to time to meet current needs.
Differentiate
between precautionary motive and speculative motive for holding money
Answer: Precautionary motive for holding money is to
provide for any unforeseen contingencies while speculative motive for holding
money serves as a store of value like the precautionary motive but in its own
case, they need motive in anticipation of future changes in bond prices with a
view to making profit.
Explain
Milton Friendman’s adjustment mechanism.
Answer:
Milton Friedman’s adjustment mechanism states that, an increase in the supply
of money will result in increased expenditures for financial and real assets
for services.
Explain
supply side economics
Answer:
The supply-side economists support a reduction in tax rates in order to provide
greater incentives to work, save and invest.
a.
Define Inflation, b. explain the term inflationary gap as invested by Keynes,
c. Inflationary process.
Answer:
Inflation can be defined as a persistent rise in the prices of commodities.
This
is a situation where there is excess of anticipated expenditures over the
available output at base prices.
Distinguish
between mark-up theory of inflation and the Bottle-Neck Inflation
Answer:
Mark-up inflation described a situation where inflation is built up by excess
demand for commodity or increase in wage rates.
Explain
the concept of Phillips’s Curve
Answer:
Philip’s Curve shows the relationship between inflation and unemployment, because
when there is inflation, money wages invariably go up under trade union
pressure.
With
illustration, explain the trade-off between degree of unemployment and
wage-price rise.
Answer: If
money wages rise by 9%, the real wages will rise by only 6%. That is, the greater the level of
unemployment, the lower is the rate of price inflation.
If
the rate of annual average productivity of growth goes up, there will be a
corresponding decline in both prices and wages.
This should be explained with the help of a diagram.
Discuss
the nature of inflation in a developing economy
Answer: In
the developing countries, an increase in investment does not create additional
demand but a corresponding increase in the supply of output cannot be taken for
granted.
The
problem of unemployment is due largely to the dearth of real capital.
National
income can be increased but unemployment cannot be removed by accumulating more
real capital.
The
increase in capital formation requires an increase in the level of investment.
There
is acute shortage of finance which made the Less Developed Countries resort to
deficit financing.
Discuss
the various types of unemployment
Answer: 1. Structural Unemployment – An addition of
the labour force cannot be absorbed in productive employment due to shortage of
instruments of production.
- Seasonal Unemployment – This is due to the seasonal character of a particular productive activity that makes people unemployed during the slack season.
- Frictional Unemployment – This exist when there is unsatisfied demand for labour but the unemployed workers are either not fit for the jobs available or are not in the right place to meet this demand.
- Cyclical Unemployment – This is due to deficiency of aggregate effective demand.
Discuss
the nature of unemployment and solutions in the developing countries.
Answer: Unemployment is caused by deficiency of
capital stock in relation to the needs of the growing labour force.
Employment
in the agrarian sector is not growing rapidly, the rural population is very
high. People engaged in occupations
which are below their work capacity.
Solutions
to the problem of Unemployment in the less developed countries;
- A faster rate of capital formation
- High investment incentives
- Adequate fiscal policy
- Sound monetary policy.
Discuss the
role fiscal policy in an economy
Answer: 1. To improve efficiency of productive
capacity
2.
Maximisation of national income.
3.
To increase employment
4.
To maintain economic stability and price stability
Enumerate the
Dear Money and Cheap Money policies as an objective of monetary policy.
Answer: Dear money means high rate of interest
and cheap money means a situation of low rates of interest.
Discuss the
significance of a neutral money in an economy
Answer:
Neutral money policy is based on the philosophy of laissez-faire. It is associated with Prof. F. A. Hayek. The policy neutralises or eliminates the
dislocating and disturbing influences caused by the creation or expansion of
money.
Creation of
money causes inflation. Contraction of money causes deflation.
Name two
differences between the Keynesian and the Classical theory.
Answer:
Keynes theory relates to macro-economics but classical theory dealt with
individual hence micro-economics, Classical theory is based on the conception
of static economy while keynes’s is a dynamic economy hence more realistic.
Critically
examine the Keynesian economic system.
Answer:
Keynesian theory is described as depression economics because it dealt with
general depression in the early thirties.
Secondly, it
is a theory more applicable to a capitalist economy.
It is
indeterminate in interest function and inadequate in the theory of consumption
What is demand
for money? Explain the transactions motive for holding money
Answer:
Demand for money or liquidity preference means the demand for money to hold
Individuals hold money for different purposes
The three motives upon which money is
held are
a.
Transactions motive – which is for day
to day business activity
b.
Precautionary motive-which is to guide
against any sudden expenses. People hold
money to provide for risks such as sickness, accident and so on.
c.
Speculative motive of holding money is
to take advantage of market movements in regard to the rate of interest.
Explain Milton
Friedman’s demand for money function.
Answer:
Friedman described money as a way of hold wealth
Wealth
could always be held in form of bonds, equities, human capital and so on.
Money
held depended upon tastes and preferences of individuals among other things.
According
to Milton Friedman, money depreciates in value during inflation resulting
in less money being held by the
individuals.
An
anticipated high inflationary rate decreases the demand for real money.
In
his adjustment mechanism, it was stated that, an increase in the money supply
will always result in increased expenditure.
An increase in money supply leads to
a significant increase in aggregate demand and the price level.
Increase in money supply affects the
price level in the long run which will again result in higher rates of
inflation. Consequently, low output is
produced.
Explain the theory of inflation as
propounded by Professor Schultze
Answer: Prof. Schultze
propounded the Demand-composition inflation.
According to him, cost push and demand pull inflation are inadequate to
explain what inflation is all about.
He explained that, it is the rapid
shift in the composition of demand that leads to a general price rise, even
without an increase in the overall aggregate demand or a general increase in
the level of wages.
It is a change in the composition of
the demand which is responsible for inflation and not either increase in
aggregate demand or a cost-push in wages.
Explain the Phillips’ Curve relation
Answer: Phillips’ curve concluded that there was a
close link between the level of unemployment and the rate of wage increase.
A stable relationship was discovered
over the whole period between the rate of wage increase and the percentage of
unemployment.
This can also be considered a
relationship between inflation and unemployment.
Phillips’ Curve may be used for
establishing actual relationship between unemployment and the increase in money
wages.
Phillips introduced an empirically
measurable relationship between the rate of wage increase and the rate of
increase in unemployment into economic analysis.
Suggest
solutions to the unemployment problems in less developed economy
Answer:
(a) Faster rate of capital formation
(b)
Adequate fiscal policy
(c)
Sound monetary policy
(d)
A controlled population
(e)
Improved Medical services
What are the
importance of fiscal policy to an economy?
Answer:
(a) To improve the efficiency of
productive capacity of the economic system.
(b)
maximisation of the national income
(c)
To increase employment opportunities
(d)
To maintain economic stability
Discuss the
major objectives of the monetary policy
Answer: (a) To
safeguard the country’s gold reserves.
(b)
Price stability
(c)
Exchange rate stability
(d)
Elimination of cyclical fluctuation
(e)
Achievement of full employment
(f)
Accelerating economic growth
What are the
differences between the Keynesian and the classical economic system.
Answer:
(a) To the Classical economist, the
economy was in a state of full employment
To
Keynes, there was seldom full employment and the equilibrium was mostly at
less than full employment
(b) Keynes’
theory relates to macro-economics while classical economics dealt with
individual aspects of the economy and was micro-economics.
(c) The
Classical theory is based on the conception of static economy whereas Keynes
theory is dynamic
(d) Keynes
integrated the theory of money with the theory of value and output.
The
classical economist segregated these theories from one another and dealt with
them as if they were unrelated to one another.
(e) The
classical economist believed in orthodox fiancé and balanced budgets. But Keynes was of the opinion that budget
should reflect the financial situation and should vary as the situation
demands.
HUMAN
RESOURCES MANAGEMENT
Discuss the
nature and scope of human resource management
Answer: The nature of human resource management
is that it is concerned with the totality of the worker in terms of the welfare
and condition of the work place.
The scope of human resources
management can be summarised thus:
(i)
Personnel Planning
(ii)
Recruitment selection and placement
(iii)
Training and development
(iv)
Reward and compensation structure
(v)
Health and safety
(vi)
Employee and labour relations
(vii)
Human resource research
What factors
should be included in a human resource policy?
Answer: The factors to be included in the human
resource policy are:
(i)
Remuneration
(ii)
Security
(iii)
Opportunity
(iv)
Status
(v)
Justice-equity and fair play
(vi)
Democracy
(vii)
Social and educational development
Outline the
main sources of recruitment of staff into an organization in Nigeria.
Answer: The main sources of recruitment of staff
into an organization in Nigeria are:
(i)
Advertisements
(ii)
Schools
(iii)
Labour unions
(iv)
Professional associations
(v)
Staff notice board
(vi)
Private employment agencies
(vii)
Public employment agencies
(viii)
Unsolicited applications
(ix)
Walk-ins
Distinguish
between recruitment and selection of staff in an organization
Answer: Both are staffing functions. Recruitment
is concerned with getting a sufficient pool of prospective employees. While selection involves the actual
engagement process involved in turning a prospective employee into employee of
an organization.
A selection
procedure in order to be meaningful must follow a set pattern. Critically discuss this set pattern.
Answer: The selection process is enunciated
thus:
(i)
Preliminary screening
(ii)
Application form
(iii)
Test
(iv)
Interview
(v)
Reference check and testimonials
(vi)
Medical examination
(vii)
Final decision – time
Outline the
factors you would consider in writing a job description.
Answer: The factors to be considered in writing
a job description are discussed below:
(i)
Title of the job
(ii)
Location of the job
(iii)
Job grade and salary scale
(iv)
Principal duties and responsibilities
(v)
Position of the grade in the
organization
(vi)
Conditions of employment
(vii)
Training required
(viii)
Overall purpose of the job
What is job
analysis?
Answer: Job analysis embraces all the elements
involved in performing the job. It
includes the identification of the task performed, the machine and equipment
utilised as well as the materials, products and services.
Discuss the
methods or techniques of staff appraisal known to you
Answer: The methods or techniques of staff
performance appraisal or evaluation known to we are:
(i)
Merit rating
(ii)
Written assessment pattern
(iii)
Management by objectives
Discuss
Management by Objectives (MBO) as a performance appraisal techniques.
Answer: The purpose and importance of staff
appraisal in modern organization are as follows:
(i)
Evaluation: To enable the organization
know the worth of each employee in order to share out money, promotions etc.
fairly.
(ii)
Auditing: To discuss the work
potential, both present and future of individuals, departments and organizations.
(iii)
Constructing succession plans: For
manpower and corporate planning or utilising job achievement or redesign
information.
(iv)
Discovering training needs: By finding
out in-adequate job performance that could remedied by training and development
(v)
Motivating staff: To reach
organizational standards and objectives
(vi)
Checking the effectiveness of
personnel procedure and organisational practice.
Discuss the
types of reward systems in modern organisations.
Answer: The types of reward systems in modern
organizations are:
(i)
Time rates
(ii)
Day rates
(iii)
Piece rate
(iv)
Bonus Schemes
(v)
Profit Sharing
(vi)
Employee benefits
Account for
the changes in the reward structure in Nigeria.
Answer: The reward structure in Nigeria changed
dramatically in 1976 with the introduction of government income policy
guidelines and the subsequent inflation rate that ravaged the country during
that period.
What
do you understand by job evaluation?
Answer: Job evaluation is the systematic and
logical technique for producing an acceptable pay structure. It is a way of relating rewards to job.
What
are the methods of job evaluation?
Answer: The methods of job evaluation are:
(i)
Job ranking
(ii)
Classification
(iii)
Factor comparison
(iv)
Point rating system
What are the
objectives of company manpower planning?
Answer: The objectives of manpower planning in
an organisation are:
(1)
To mitigate employees
(2)
To ensure optimum use of human
resources currently employed
(3)
To prepare employees for performing
various roles, jobs and task assigned to them
(4)
To assess future and present skills
needed
(5)
To bring into focus competency talent
and skill gaps of employees in performing future roles and tasks assigned to
them.
(6)
To set into motion measures to control
to ensure the availability of resources at all times.
What
information would you need to begin the task of constructing a company manpower
plan?
Answer: The information required are:
(i)
Knowledge of present inventory of
human resource
(ii)
Knowledge of the demand in the future
in terms of quantity and quality of human resource
(iii)
Analysis of the labour supply
(iv)
Analysis of the corporate objectives
(v)
Expansion or reduction of departments
within the organisation
(vi)
Aggressiveness of the management in
terms of innovation and technology.
Distinguish
the objectives of training and development
Answer: Training relates to the total
acquisition of knowledge and skills, while development is concerned with
changes in attitudes and behaviour.
Training is more concerned with low level manpower while development is
concerned with high level manpower.
Discuss
the techniques of training and development
Answer: The techniques of training and
development in modern organisations are:
(i)
Talk
(ii)
Lecture
(iii)
Job instruction
(iv)
Discussion
(v)
Role play
(vi)
Case study
(vii)
Exercise
(viii)
Projects
(ix)
In-tray
(x)
Business and management games
(xi)
Group dynamics
What is human
resource management?
Answer: Human Resource management is concerned
with the procumbent, development, compensation, integration and maintenance of
the personnel of an organisation for the purpose contributing towards
accomplishments of the organization’s major goals and objectives. Therefore human resource management is the
planning, organising, directing and controlling of the performance of those
operative functions – Edwin Flippo B.
Outline
the various stages in the procedure which might be followed by modern
organizations in selecting employees.
Explain the reasons for each
Answer: The procedure to sensed in selection
employees into an organization are:
(i)
Staff requisition is completed by the
requesting department for management approval.
(ii)
Upon approval by management, the
personnel department places an advertisement
(iii)
Short listed candidates are prepared
and tests arranged
(iv)
Test are conducted
(v)
Interviews are conducted
(vi)
References are obtained
(vii)
Medical examination
(viii)
Unsuccessful candidates are informed
(ix)
Successful candidates are sent letters
of employment and company records updated.
Discuss the
benefits of job specification.
Answer: A job specification can be described as
a lists of the personal requirements of a prospective employee that may fill
certain positions in an organisation.
The benefit of a job
specification is that it is used for the assessment of the attributes of
candidates for the job.
Discuss
the advantages and disadvantages of staff performance appraisal in today’s
organisations.
Answer: The advantages of staff performance
appraisal are discussed thus:
(i)
Provide a basis upon which the
employee knows he will be evaluated
(ii)
Motivates the employee by providing
feedback on how he is doing
(iii)
Provides information for management
decisions concerning improvements in remuneration, promotions, transfers and
dismissals.
(iv)
Can be constructive rather than
critical
(v)
Discovers the good and bad traits
among employees
(vi)
Forces the superior to face up to the
problems of poor performance and deal with them
(vii)
Enhances communication within the
organization
The
disadvantages of staff performance appraisal are discussed thus:
(i)
Performance appraisal programmes
demand too much from supervisors
(ii)
Standards and ratings tend to vary
widely and often unfairly.
(iii)
Personal values and biases can replace
organizational standards
(iv)
Appraisals are sometimes made on
personality traits rather than on performance
(v)
Some modern technique of staff
appraisal
(vi)
It may be subjective.
Discuss the
features of an efficient reward systems
Answer: The features
of an efficient reward systems are:
(i)
Competitiveness
(ii)
Recognition for solid work
(iii)
Equity
Is job
evaluation the solution to the central problem of wage and salary payment?
Answer: It is not because there are other issues
relating to wage and salary payment order than job evaluation. For example, in Nigeria, there are wages and
salaries discrepancies between an expatriate and a citizen.
What
steps need to be taken in order to develop a meaningful manpower plan?
Answer: Manpower planning entails the following
processes:
(i)
Human resource inventory
(ii)
Forecasting
(iii)
Training and development
(iv)
Implementation
(v)
Control and evaluation
Steps
necessary to develop a meaningful plan are highlighted thus:
(i)
Manpower planning must be recognised
as an integral part of corporate plan.
Hence the manpower planners must be aware of the company’s overall
objectives.
(ii)
Top management support is very
essential
(iii)
Manpower planning activities should be
centralised to enhance coordination
(iv)
One of the first priorities is the
training and better utilisation of existing staff.
(v)
The planning period should be long
enough to allow remedial actions to be taken
(vi)
Data collection, collation analysis,
planning techniques and the plans themselves need constantly to be reviewed and
improved in the light of experience and the dynamic business environment.
Discuss the
training and development process in today’s organisations.
Answer: The training and development process in
today’s organization are:
(i)
Identification of specific needs for
change
(ii)
Establishment of specific training and
development objectives
(iii)
Determination of appropriate methods
and media
(iv)
Implementation of programme
(v)
Evaluation of results
The above
process are subject to both the internal and external environmental factors
pervading in business organisation.
Identify
the most effective leadership style as applauded by Blake and Mouton.
Answer: The most effective leadership style as
applauded by Blake and Mouton is the 9.9 orientation – Team Management
Discuss
Fielder’s contingency theory of leadership
Answer: The Fielder’s contingency theory of
leadership states that the group’s performance will be contingent upon
situation for the leader, that is, the degree to which the situation provides
the leader with influence over this group members.
Discuss
the motivational techniques used in modern organization other than monetary
incentive
Answer: The non-monetary motivational techniques
used in modern organisation are enumerated thus:
(i)
Job enrichment
(ii)
Good communication system
(iii)
Job enlargement
(iv)
Participation
(v)
Leadership style
(vi)
Opportunity for self development and
promotion
Distinguish
between Maslow’s hierarchy of needs and Alderfer’s EGR theory on motivation
Answer: Maslow’s hierarchy of needs consists of
five basic needs of man, namely, physiological needs, safety needs, love needs,
esteem needs and self-actualisation needs.
While Alerfers compressed Maslow’s hierarchy of needs into three,
namely, existence, relatedness, and growth, resulting in his work being termed
“ERG” theory.
Discuss the
types of communication in an organization
Answer: There are two types of communication in
an organisation, namely formal and informal communication
Discuss
the importance of communication in today’s organization
Answer: The importance of communication in
today’s organisations are outlined thus:
(i)
Coordination
(ii)
Formulation of policies
(iii)
Implementation of Policies
(iv)
Motivation
(v)
Change
(vi)
Management
Define
a trade union
Answer: A trade union is defined as an
association of wage earners with an objective of protecting their rights and
improving their working conditions.
What
are the objectives of trade unions in Nigeria?
Answer: The objectives of a trade union in
Nigeria include the following:
(i)
To advance and protect the interests
of its members
(ii)
To speak with one voice on issues
affecting them
(iii)
To negotiate with the employer on the
improvement of the working conditions
(iv)
To see that working agreements between
employers and employees are carried out
(v)
To represent workers who have
grievances with management
(vi)
To make recommendations to the
employers on trade union matters
Outline the
causes of industrial accident in a workplace
Answer: The causes of industrial accident in a
workplace are outlined thus:
(i)
Defective equipment
(ii)
Improper safety devices
(iii)
Improper layout of equipment and its
wrong location
(iv)
Wrong lighting and illumination
(v)
Improper house keeping
(vi)
Inadequate protection of equipment
(vii)
Timings of different jobs
(viii)
Emotional and psychological situation
at work
(ix)
Wrong lifting of equipment
(x)
Improper moving of equipment
(xi)
Absence of motivation and unwanted
attitudes
(xii)
Inadequate experience
Discuss the
measures necessary for good industrial health in a modern organisation
Answer: The measures necessary for good
industrial health in a modern organisation are enumerated thus:
(i)
Proper lighting
(ii)
Avoidance of overcrowding in offices,
shops or factories
(iii)
Adequate drinking water for all
(iv)
Adequate lavatories for ladies and
gentlemen
(v)
Controlling of dust and fumes
(vi)
Proper removal of waste, etc
(vii)
Proper temperature and ventilation
(viii)
Cleanliness
(ix)
Provision of first aid appliances
(x)
A functional staff canteen
Discuss the
change process in today’s organizations
Answer: The change process in today’s
organisations should take the following steps:
(i)
Problem identification
(ii)
Problem definition
(iii)
Data collection and collation
(iv)
Problem diagnosis
(v)
Generation of solutions (options)
(vi)
Making a decision
(vii)
Action implementation
How do you
overcome the resistance to change in an organization?
Answer: The resistance to change can be overcome
in an organization thus:
(i)
Training and development
(ii)
Setting clear objectives
(iii)
Introducing the change gradually
(iv)
Education
(v)
Involvement of the people
(vi)
Identify and recognise the leaders of
the groups
Define group
and group dynamics
Answer: A group is made up of two or more person
who interact with one another in such a manner that each person influences and
is influenced by the other.
Group
dynamics describes how a group should be organised an conducted in other words,
it expresses group behaviour.
Evaluate the
characteristics of group dynamics
Answer: The characteristics of group dynamics
are thus:
(i)
Status system
(ii)
Role system
(iii)
Communication
(iv)
Norms and control
(v)
Group consciousness
What is Total
Quality Management?
Answer: Total quality management can be defined
as a customer focused performance enhancing tool in terms of leadership,
strategic planning, human resources development and management, work processes,
management information system, external customers, employees and stakeholders.
Discuss
the concepts of Total Quality Management
Answer: The concepts of total quality management
(TQM) are outlined below:
(i)
Achieve quality in everything, people,
process, product/services
(ii)
Do the right things right, first time
everything
(iii)
Continuously strive for improvement
(iv)
Have visceral commitment to, and
obsession for, customers who are both internal and external.
(v)
Strengthen the supplier – customer
chain
(vi)
Manage business through team building
and team working
(vii)
Flatten hierarchies and have stable
structures
(viii)
Reduce cost of bad quality by
investing substantially in cost of good quality
(ix)
Use a structured process when solving
business problems which should be tackled productivity
(x)
Use total quality tools to generate
hard facts to manage business rather than depend on opinions or whims.
(xi)
Provide quality leadership and
motivation to enable all employee to be committed to the Total Quality Process.
Explain the
situational theories of leadership
Answer: The situation theory of leadership
stipulates that there is no single best way to lead. It states that the appropriate leadership
behaviour depends on the circumstances at a given time. Prominent among these scholars are Tannenbaum
and Schmiet leadership continuum (1973). House Path goal theory (1971), Fielder
contingency Leadership theory (1974).
Assess
the validity and practical utility of: a. The hierarchy of needs theory, b. the
motivation-hygiene theory, and c. the expectancy theory
Answer: (a) The
hierarchy of needs as postulated by Abraham Maslow has some elements of
validity and practical utility in individuals and persons.
(b)
The same applies to the two factor
theory of Frederick Hertzerg
(c)
There is also some element of validity
and practical utility in the expectancy theory as propounded by Victor Wroom
Discuss the
communication process in an organization
Answer: The communication process thus:
(i)
Ideation
(ii)
Encoding
(iii)
Transmission
(iv)
Receiver
(v)
Decoding
(vi)
Understanding
(vii)
Feedback
What
are the procedure for trade dispute settlement in Nigeria?
Answer: The procedure for trade dispute
settlement in Nigeria are discussed thus:
(i)
The parties should make use of the
machinery in the establishment at the first instance
(ii)
If it fails, the parties should
appoint a Mediator
(iii)
If it fails, the Minister of
Employment, Labour and Productivity appoints a Conciliator
(iv)
If it fails, the Minister refers the
dispute to Arbitration, i.e. the Industrial Arbitration Panel (IDP)
(v)
If this fails, the Minister refers the
dispute to the National Industrial Court whose award is final and binding on
the parties to the dispute.
Outline the
areas that a safety officer must check to ensure that a company is safe and
healthy
Answer: The areas that a safety officer must
check to ensure that a company is safe and healthy are highlighted thus:
(i)
Slippery floors
(ii)
Poorly lit stairways
(iii)
Loose hand rails
(iv)
Defective ladders
(v)
Broken windows
(vi)
Tripping hazards
(vii)
Obscure exit lights
(viii)
Aisle obstructions
(ix)
Overheated motors
(x)
Fumes, leads, vapours
(xi)
Defective wiring
(xii)
Suppliers poorly stacked
(xiii)
Loose boards and containers
(xiv)
Inadequate waste containers
(xv)
Oily rags, paint cans
(xvi)
Poor safety clothes, shoes
(xvii)
Unsafe eye guards and face protection
(xviii)
Loose chains, cables and rigging
What are the
critical factors involved in managing change?
Answer: The critical factors in managing change
are the following:
(i)
Compulsion
(ii)
Personation
(iii)
Dialogue
(iv)
Consensus
(v)
Training and Development
Discuss the
benefits of Total Quality Management (TQM)
Answer: The benefits of Total Quality Management
(TQM) to an organisation are as follows
(i)
Increased customer loyalty
(ii)
Better customer service
(iii)
Enhanced profitability
(iv)
Improved efficiency
(v)
Committed and enthusiastic workforce
(vi)
Satisfied customers
(vii)
Satisfied stakeholders
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