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The Institute of Chartered Accountants of Pakistan 3 September 2014 3 hours – 100 marks Additional reading time – 15 minutes Business Management and Behavioral Studies Q. 2 BBC Limited has shown poor performance during the preceding five years in spite of the fact that the company owns substantial physical assets, including modern machinery for manufacture of a wide range of products. All the assets of the company are in good working condition and marketing respects for the products are also promising.

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However, the company’s organization structure is designed inappropriately and therefore has serious shortcomings and weaknesses which create impediments in its operations and are responsible for the company’s unsatisfactory performance. Identify and explain briefly the characteristics which would be apparent in the working of BBC Limited because of its inappropriately designed organizational structure. (08) Describe briefly the salient features of a Virtual Organization. (04)

Identify and describe any six leadership styles enunciated by Attainment and Schmidt. Identify the style Of leadership that is best suited for an organization which requires quick decision making and consists of highly competent staff at all levels. Give reasons for your choice. Footraces owns and operates a chain of eight high-class restaurants in different cities in the country. Employees at the restaurants include a manager, supervisors, kitchen crew, waiters and other supporting staff.

Footraces’ clientele comprises mainly of top executives/businessmen and fluent individuals who expect top quality food and attentive and courteous service at all the restaurants. The staff at the restaurants has to perform zealously during the peak lunch and dining hours as the restaurants operate at full capacity. Decisions concerning the business of Footraces have to be made at the following levels: (I) management team at the head office managers at the restaurants supervisory staff at the restaurants waiters and supporting staff at the restaurants.

Identify the levels and state briefly the reasons why you consider it appropriate to make the following decisions at these levels: reservations and assigning of tables to the customers selection of the standard menu for the restaurants offering suggestions regarding the choice of dishes to customers who seek advice decor of the restaurants, including selection of furniture & fixtures, wall paintings, crockery and staff uniforms procurement of perishable food items such as meat, seafood, chicken, vegetables, etc. At the different locations.