A Warm Welcome

from the Executives,Staff and Tutors of

Cambridge International College - Britain

STUDY & TRAINING GUIDE

FOR MODULE ONE ON
COMPUTERS & IT IN
BUSINESS & MANAGEMENT
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 STUDY GUIDE FOR MODULE ONE
A full ‘Study & Training Guide’ will accompany the
Study or Training Manual(s) you will receive soon by airmail post or courier.
This Study Guide - like all our Study & Training Materials - has been written by
professionals; experts in the Training of many hundreds of thousands of ambitious
men and women in countries all over the world. It is therefore essential that you:-

 Read this Study Guide carefully and thoroughly

BEFORE you start to read and study Module One,
which is the first ‘Study Section’ of a CIC Study &
Training Manual you will receive for the Program for
which you have been enrolled.

 Follow the Study Guide exactly, stage by stage and

step by step - if you fail to do so, you might not succeed
in your Study & Training or pass the Examination for
the CIC Diploma.

 STAGE ONE

Learning how to really STUDY the College’s Study & Training Manual(s) provided -
including THOROUGHLY READING this Study Guide, and the full ‘Study & Training
Guide’ which you will soon receive by airmail post or courier.

 STAGE TWO

Studying in accordance with the professional advice and instructions given

 STAGE THREE

Answering Self-Assessment Test Questions/Exercises

 STAGE FOUR

Assessing - or having someone assess for you - the standard

of your answers to the Self-Assessment Test

 STAGE FIVE

Preparing for your Final Examination

 STAGE SIX

Sitting the Final Examination

Remember: your CIC Program has been planned by

experts. To be certain of gaining the greatest benefit from
the Program, it is essential that you follow precisely each
one of the SIX stages in the Program, as described above.

STAGE ONE is your thorough reading of this ‘Study Guide’

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 ABOUT CIC STUDY & TRAINING MANUALS
A CIC Study & Training Manual (which comprises 6 Modules - the first Module of which
follows) supplied by the College as part of your Program is NOT simply a text book. It must
therefore not be read simply from cover to cover like a text book or another publication. It
MUST be studied, Module by Module, exactly as explained in the following pages. Each CIC
Study & Training Manual has been designed and written by specialists, with wide experience
of teaching people in countries all over the world to become managers, administrators,
supervisors, sales and accounting personnel, business-people, and professionals in many
other fields.

Therefore, it is in your own best interests that you use the Study & Training Manuals in
the way CIC’s experts recommend. By doing so, you should be able to learn easily and
enjoyably, and master the contents of the Manuals in a relatively short period of time - and
then sit the Final Examination with confidence. Every Study & Training Manual is written
in clear and easy to understand English, and the meanings of any “uncommon” words,
with which you might not be familiar, are fully explained; so you should not encounter any
problems in your Studies and Training.

But should you fail to fully grasp anything - after making a thorough and genuine attempt
to understand the text - you will be welcome to write to the College for assistance. You
must state the exact page number(s) in the Study & Training Manual, the paragraph(s) and
line(s) which you do not understand. If you do not give full details of a problem, our Tutors
will be unable to assist you, and your Training will be delayed unnecessarily.

Start now by reading carefully the following pages about Stages Two, Three and Four. Do
NOT, however, start studying the first Study & Training Manual until you are certain you
understand how you are to do so.

STAGE TWO - STUDYING A CIC MODULE

STEP 1

Once you have read page 1 of this document fully and carefully, turn to the first study
section - called Module One - of Study or Training Manual One.

Read the whole of Module One at your normal reading pace, without trying to memorise
every topic covered or fact stated, but trying to get “the feel” of what is dealt with in the
Module as a whole.

STEP 2

Start reading the Module again from the beginning, this time reading more slowly, paragraph
by paragraph and section by section. Make brief notes of any points, sentences, paragraphs
or sections which you feel need your further study, consideration or thought. Try to absorb
and memorise all the important topics covered in the Module.

STEP 3

Start reading the Module again from its start, this time
paying particular attention to - and if necessary studying
more thoroughly - ­those parts which were the subject of
your earlier notes. Do not pass on to other parts or topics
until you are certain you fully understand and remember
those parts you earlier noted as requiring your special
attention. Try to fix everything taught firmly in your mind.

Note: You might not wish to, or be able to, carry out Steps 1, 2 and 3 one after the other.
You could, for instance, carry out Steps 1 and 2 and then take Step 3 after a break.

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 STAGE THREE - ANSWERING SELF-ASSESSMENT TESTS
STEP 4

When you feel that you have fully understood and learned everything taught in the whole
Module (and if necessary after a further careful read through it) turn to the Self-Assessment
Test set at the end of it, and read the Questions/Exercises in it carefully. You do not have
to attempt to answer any or all of the Questions/Exercises in the Test, but it is best that you
do so, to the best of your abilities. The reasons for this are:-

 By comparing your answers with the Recommended Answers printed in the Appendix at
the end of the Module (or after the final Module in a Manual) you will be able to assess
whether you really have mastered everything taught in the Module, or whether you need
to study again any part or parts of it.

 By answering Questions/Exercises and comparing your attempts with the Recommended

Answers, you will gain experience - and confidence - in attempting Test and Final
Examination Questions/Exercises in the future. Treat the Self-Assessment Tests as
being ‘Past Examination Papers’.

Professional Advice on Answering Self-Assessment Test

(and Examination) Questions and Exercises
1. You may answer the Questions/Exercises in a Self-Assessment Test in any order you
like, but it is best that you attempt all of them.

2. Read very carefully the first Question/Exercise you select, to be quite certain that you
really understand it and what it requires you to do, because:

 some Questions/Exercises might require you to give full “written” answers;

 some Questions/Exercises (called “multiple-choice questions”) might require you only

to place ticks in boxes against correct/incorrect statements.

In your Final Examination you could lose marks if you attempt a Question/Exercise in
the wrong way, or if you misread and/or misunderstand a Question/Exercise and write
about something which is not relevant or required.

3. Try to answer the Question/Exercise under ‘true Test or Examination conditions’, that
is, WITHOUT referring back to the relevant section or pages of the Module or to any notes
you have made - and certainly WITHOUT referring to the Recommended Answers. Try to
limit to about two hours the time you spend on answering a set of Questions/Exercises;
in your Final Examination you will have only two hours.

4. Although you are going to check your Self-Assessment

Test answers yourself (or have a friend, relative or
colleague assess them for you) practise writing
“written” answers:-

 in clear, easy-to-read handwriting;

and

 in good, grammatical language.

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 STAGE FOUR - ASSESSING YOUR ANSWERS
STEP 5

When you have answered all the Questions/Exercises set in Self-Assessment Test One to
the best of your ability, compare them (or ask a friend, relative or a colleague/senior at work
to compare them) with the Recommended Answers to that Test, printed in the Appendix at
the end of the Module (or the last Module in a Manual.) In any case, you should thoroughly
study the Recommended Answers because:-

 As we have already explained, they will help you to assess whether you have really
understood everything taught in the Module;

and

 They will teach you how the Questions/Exercises in subsequent Self-Assessment Tests,
Progress Tests and in your Final Examination should be answered: clearly, accurately
and factually (with suitable examples when necessary) showing your knowledge and
understanding, with details and explanation, and how they should be planned and well-
laid out for maximum effect and marks.

MARKS AND AWARDS

To assist in the assessment and grading of your answers, the maximum number of marks
which can be earned for each answer to a Self-Assessment Test Question/Exercise is stated
in brackets at the end of each one.

The maximum number of marks for any one Test is 100.

Your answers should be assessed fairly and critically. Marks should be awarded for facts
included in your answer to a Question/Exercise, for details, explanations and descriptions,
for presentation and for neatness. It is not, of course, to be expected that your answers will
be identical to all those in the Appendix.  However, your answers should contain the same
facts, although they might be given in a different order or sequence - and any examples
you give should be as appropriate to the Questions/Exercises as those given in the relevant
“Recommended” Answers.

Add together the marks awarded for all your answers to the Questions/Exercises in a Self-
Assessment Test, and enter the total (out of 100) in the “Award” column in the Progress
Chart which you will find with the full ‘Study & Training Guide’ when you receive it. Also
enter in the “Matters Requiring Further Study” column the number(s) of any Question(s)/
Exercise(s) for which you did not achieve high marks.

GRADES

Here is a guide to the grade your Self-Assessment Test

Work has achieved, based on the number of marks
awarded for it:

50% to 59% PASS

60% to 64% HIGH PASS
65% to 74% MERIT
75% to 84% HIGH MERIT
85% to 94% DISTINCTION
95% to 100% HIGH DISTINCTION

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 The Examiner who assesses your Final Examination answers will take into account
that English might not be your national or main language. Nevertheless, to be able to
assess whether you really have learned what we have taught you, he or she will need
to be able to read and understand what you have written. You could lose marks if the
Examiner cannot read or understand easily what you have written.

5. Pay particular attention to neatness and to layout, to spelling and to punctuation.

6. When “written” answers are required, make sure what you write is relevant to the
Question/Exercise, and concentrate on quality - demonstrating your knowledge and
understanding of facts, techniques, theories, etc. - rather than on quantity alone. Write
fully and clearly, but to the point. If you write long, rambling Final Examination answers,
you will waste time, and the Examiner will deduct marks; so practise the right way!

7. The Questions set in our Self-Assessment and Progress Tests should be treated as
being “Past Examination Questions”. Therefore, you should read and study carefully
the ‘recommended answers’ we provide because they form an integral and essential
part of the Study & Training Program as a whole. Read the wording of each Question/
Exercise carefully, and note, in particular, how our answer to each is presented and
explained fully and clearly - not too briefly; whilst at the same time being detailed, but
not over-long and rambling. To gain high marks, your own answers should certainly be
no shorter or less detailed than our Recommended Answers.

It is important that your own answers to Test and (in due course) Examination Questions/
Exercises are presented in a similar clear, detailed and easy to read style, to ensure
that you receive the best possible marks and award in due course for your Examination
Work. Brief, incomplete answers, or lists of unexplained “bullet points”, are not sufficient
to gain good marks. It is better for you to write in more detail than too little, so long as
your answers are clear and relevant. Include examples where helpful, and use wisely
all the “time allowed” (usually two hours) in which to write full, well-explained answers.
Plan your answers, and ensure that you answer all sections or parts of each question.

An Assessor needs to be shown by your answers that you really have understood what
we have taught you in the Modules - and that you could implement and use the various
subject-matters in practical work situations - so make sure your answers demonstrate
that!

8. When you have finished writing your answer, read through what you have written to see
whether you have left out anything, and whether you can spot - and correct - any errors
or omissions you might have made.

Warning: some Questions/Exercises comprise two or more parts; make certain you
have answered all parts.

9. Attempt the next Question/Exercise in the Self-

Assessment Test in the same manner as we have
explained in 1 to 7 above, and so on until all the
Questions/Exercises in the Test have been attempted.

Note: There is no limit on how much time you spend on

studying a Module before answering the Self-Assessment
Test set on it, and some Modules are, of course, longer
than others. You will, however, normally need to spend
between twelve and fifteen hours on the thorough study of
each Module - and that time may be spread over a number
of days if necessary - plus approximately two hours on
answering the Self-Assessment Test on each Module.

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STEP 6

Study again thoroughly the section(s) of the Module relating to the Question(s)/Exercise(s)
to which your answers did not achieve high marks. It is important that you understand where
or why you went wrong, so that you will not make the same mistake(s) again.

STEP 7

When you receive the complete Study or Training Manual One** from the College by airmail
post, ‘revise’ - study again - Module One printed in it, and then turn to Module Two and
proceed to study it thoroughly in exactly the same way as explained in Steps 1, 2 and 3
in this ‘Study Guide’.

When you have completed your thorough study, follow steps 4, 5 and 6 for the Self-
Assessment Test on Module 2. 

Continue in the same way with each of Modules 3, 4, 5 and 6 until you have attempted
and assessed your work to Self-Assessment Test 6, and have completed the study of Study
or Training Manual One. But - and this is important - study the Modules one by one;
complete Steps 1 to 6 on each Module before you proceed to the next one (unless during
the course of your reading you are referred to another Module).

**Note: When you receive Study or Training Manual One by airmail post or courier, it will
be accompanied by a 24-page ‘Study & Training Guide’ (containing a ‘Progress Chart’)
which you MUST read very carefully before starting your study of Module Two.

Above are scenes from a Graduation Ceremony held in Egypt attended by

College Vice Principal, David Lawson, who presented awards to CIC Members
from Egypt, Saudi Arabia, Kuwait, Qatar, Libya, Yemen (middle left) and Nigeria
(bottom left)

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 STUDY & TRAINING MANUAL ON

COMPUTERS & IT IN
BUSINESS & MANAGEMENT
Module one
CONTENTS

Module 1 - Computers and the Functions of Management 9

The importance of management

The role of information in decision-making
Computers as an effective tool for management
Principles of management
The functions of management:
planning
organising
co-ordinating
motivating
controlling
The objectives of enterprises
The profit motive
Policies and policymaking:
the interpretation and implementation of policies
Research and planning
Organising and organizations
Coordination and managerial communication
Setting standards
Controlling and maintaining records
Motivation and mentoring
The functions of management in practice

Recommended Answers to Self-Assessment Test One 21

You will find the Contents/Syllabus of what you will learn in Modules 2 to 12
of this Program starting on page 23

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 Module One
COMPUTERS AND THE
FUNCTIONS OF MANAGEMENT
Purpose of this Module: Aims and Objectives
This Module identifies and describes five functions of management, and shows the similarities
across all levels of management. The Module then shows how the actions of management will
vary between different levels of management. Throughout the Module, the potential of computers
to assist and aid management are introduced, and the importance of human-decisions and
human-skills is emphasised.

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Introduction

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Effective management is a vital factor in any business if it is to continue to operate, to grow
and to be successful. Regardless of how good the products or services are that a business

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provides, and regardless of how much capital is invested in it, unless that business is well and

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capably managed it will ultimately fail to prosper or, indeed, to survive.

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The evolution of technology able to handle, store and analyse huge amounts of information
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- sometimes called ‘data’ - has been harnessed by effective managers in an attempt to gain a

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competitive edge, either by streamlining their internal processes or by making their decision-
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making processes much more sensitive to the factors they know affect their respective businesses.

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The term ‘Information Technology’ is commonly used to refer to the use of computer systems
in decision making and managerial support.
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m se rn

Information Technology (IT) in the worlds of commerce and industry has had a huge impact
at all managerial levels. When correctly implemented, computer systems can store, retrieve,
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organise, analyse and report on information in a fraction of the time - and to a much greater
degree of accuracy - than could ever be achieved “manually” by human effort alone. In many
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organizations there will be an IT department which is responsible for the smooth running of
existing systems and for promoting the best use of IT to support the organization’s aims and
objectives. In small organizations it might be the manager or owner who is responsible for IT
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matters, or a ‘computer literate’ member of staff might be delegated that responsibility; in either
case, the expertise, help and advice of an external IT company is also commonly called upon
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to ensure that IT is used to support and achieve organizational goals.

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The Role of Information in Decision-Making

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Professional and effective management is an activity which involves more than simply
monitoring the internal processes of a business. It is about guiding the business through
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differing trading conditions and about reacting to changes in technology and wider society.

To do so requires information, which is the vital resource which any manager needs in order
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to make plans and to set objectives, to organise and to co-ordinate the implementation of those
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plans, to control and monitor the results, and to make decisions accordingly. If the information is
incomplete or out of date - as to costs, trends, time factors, resources or any of the many other
important elements of a project - the manager cannot make meaningful or effective decisions.

If plans or decisions are based on imperfect or incomplete information, the monitoring of

their implementation will only partially reflect the true situation, and the end result could be far
removed from the original objectives which led to the creation of the plan.

To illustrate the importance of information on the decision-making process, consider a simple

project: a salesperson undertaking a motor car/automobile journey to a potential new client
whose office is in a location not previously visited by the salesperson. Before setting out, the
driver of the vehicle - the salesperson - should assess the following factors:-

 What route is the best one to take?

 How far is it - the distance - to the destination?

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  How long will it take to reach the destination?

 Does the vehicle have sufficient fuel to reach the destination,

or should its tank be filled before setting out?

The assessment of each of these factors depends on the answers to another series of
questions: these answers depend on the information available.

The first two of the above factors can be assessed by referring to a road map or using a
GPS (satellite navigation system) and/or any guidance or instructions provided. However, if
any of those is incomplete or inaccurate or is out of date - for instance, the road layout might
have changed, or there might be “diversions” - or is unclear, the decision made could well be
a wrong one, resulting in wasted time and an unnecessary extra distance travelled.

Assessing the third factor depends on responses to the first two, combined with any other
information available on weather conditions, the state of the roads generally, likely traffic
congestion or otherwise, speed restrictions, roadworks, diversions, and similar relevant facts;

,
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and also on the type and condition of the vehicle and its speed and performance. Again, lack of
knowledge of any of those factors, or an incorrect assessment of either of the first two factors,
could lead to an inaccurate calculation of the travelling time involved - and as the journey is for

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business purposes, the foregoing inaccuracy might cause the salesperson to be late for the
appointment with the customer or potential client which could lead to loss of goodwill or failure

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to make a sale.

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As for the fourth factor, the salesperson needs an accurate answer to the second question,

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plus a knowledge of the capacity and performance of the vehicle and its present fuel situation, in
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order to decide whether to “fill up” (possibly at a higher price than necessary) or to risk running

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out of fuel on the way. Information about any refuelling services provided along the route could,
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if available to the driver, also have a bearing on the decision.

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This simple example illustrates two very important factors that are key to making business
br y, a

decisions:-
m se rn

 We constantly need information at our disposal in order to make even a relatively

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simple business decision. Clearly, then, the accuracy and availability of information is
supremely important to the manager whose decisions are so important and far-reaching!
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 It is the salesperson who must use judgement and experience to assess the information
before coming to any travel decision - or at least ask the sales team manager for advice on
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the planning and undertaking the travel journey. The quantity and quality of the information
to hand will clearly affect the ease and viability of any decision-making, but without personal
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judgement and knowledge the information is useless. A salesperson with no experience

of driving to client premises at all might not even know what questions to ask!
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You will see in later Modules how computer systems can be used to help compensate for a
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lack of personal judgement or experience, but for now you should appreciate that the essential
role of computers in management is to provide accurate and clear information immediately
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it is required.

It is the function of a manager to decide what information is needed and what form it should
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take; huge quantities of information not relevant to the subject in question is a hindrance rather
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than a help. Most importantly, it is the manager’s function then to assess the facts provided and
to use judgement and experience in order to make authoritative and well-founded decisions.

Computers are potentially an exciting enhancement of business and management skills within
an organization, and the imaginative use of computers can greatly increase the effectiveness
of managers and personnel alike. However, it is essential that computers are regarded only as
‘tools’ to be used to achieve more effective management, and never as a replacement for the
skill, judgement and leadership of a human manager.

The Functions of Management

It is important for you to understand clearly what ‘management’ is, and what functions are
involved in the performance of management in business. These functions are applicable to
management regardless of the size or activities of an enterprise, section or department for
which a manager has responsibility.

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 The work of any manager comprises two different aspects:-

 the ‘operational’ or ‘functional’ aspect which is concerned with the work to be performed
in a particular section or department or the enterprise as a whole;

and

 the ‘managerial’ or ‘human’ aspect which is concerned with the people who actually
perform that work.

The “operational” or “functional” work of different managers might vary considerably; thus,
the operational work of a factory manager will be very different from the operational work of a
sales manager or an office manager. Even the technical work of two IT managers working for
different enterprises will differ in many respects.

Although the “operational” or “functional” aspects of the work of different managers will
differ, the “managerial” aspect of the work of all managers must be similar - because it involves

,
managing the activities of other people.

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The management of people is an ART; men and women are unpredictable, and each person

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has his or her own different and complex character. The management of human beings requires
the provision of leadership for a group of people and much more. The people in the workgroup

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require training, advice and guidance, supervision and control, and their work must be so
organised and co-ordinated that they work together as a team to achieve a stated “objective”,

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and in the most efficient and economical way. That “objective” might be the production and/or

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sale of an item, or the provision of an efficient service. Only a skilled manager can weld his or
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her staff into an efficient team.

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The “managerial” aspect of any manager’s job can be divided broadly into five functions - or
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five types of activities. They are:-

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br y, a

Planning: This entails deciding how the predetermined objectives of the enterprise, or
m se rn

the department or section of it, should be achieved - in the most efficient and
economical way - in accordance with policy.
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Organising: This involves putting the “theory” (the plans) into “practice”, interpreting them,
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and so arranging the work to be performed that the objectives will be achieved
as laid down in the plans.
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Co-ordinating: This is closely related to organising, and must ensure that although different
personnel might perform different work, all their efforts mesh smoothly together
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and are directed towards achieving the common objectives.

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Motivating: This involves providing leadership for subordinates and also requires the
ability to inspire them to give of their best in achieving the objectives, by
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creating a good morale or working spirit amongst all the people employed
by the enterprise.
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Controlling: This comprises supervising the people employed, checking their work and
the machinery and equipment used, to ensure that the end products are the
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desired objectives; it also includes the recording of performances to provide

a guide for similar activities in the future.
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We shall examine the five functions of management in greater detail shortly, and see how
they interrelate and what they entail in actual practice. However, as they are all concerned with
achieving objectives, let us first consider what those might be and who decides what they are
to be.

The Objectives of Enterprises

Basically, objectives are the ‘goals’ which an enterprise aims to achieve; in fact the attainment
of the objectives set or laid down for an enterprise is the principal reason for the very existence
of that enterprise!

Before any enterprise is started or established, a person or a group of people has to decide
what that enterprise is going to do:-

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  Is it going to manufacture something - if so what?

 Is it going to buy and sell - if so what?

 Is it going to provide a service - if so what?

In many cases the “answer” to the initial question is fairly straightforward. For example, a
person might decide to open a bookshop and become a bookseller, or an experienced painter/
decorator might decide to set up his own business instead of working for other people. Many
enterprises start like this and then grow “organically”. As their sales or turnover increase they
realise that they need to expand, either to meet growing demand or to establish new functions
which will help maintain their “operability”, for instance a marketing section or an IT section.
At this point the owner(s) or management of the enterprise might need to undertake research
before deciding whether to produce or provide:-

 something which is not already available, or

,
 something which is likely to be able to compete successfully with similar goods or services

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which are already available.

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Numerous factors, such as financial and other resources which are available, the market potential,
facilities which will be required and so on, might have to be considered before a decision on

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viable objectives of an enterprise or project is finally reached.

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The Profit Motive ge ita na
In the private sector, the specific objectives of a business are combined with the objective

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of profit; the result of achieving the specific objectives of the business must be that its owners
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gain money.

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It is important for all managers to understand clearly what profit is and how it arises - after all,
br y, a

the performances of many managers are assessed by the profits earned by their businesses!
m se rn

A simple example will help to make the concept clear to you:-

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A shoemaker sells a pair of shoes he has made, and with the money he receives he buys food
w. J In

or clothing or buys materials or pays the rent of a workshop. What he has done is to exchange
his materials and labour for the materials and labour of other people; money is only the medium
which makes the exchange easier.
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In order to produce his shoes, the shoemaker has to make use of three resources: land,
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labour and capital, which are called the “factors of production”. Each is necessary, because:-
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 Without land there would be no place or workshop in which the shoemaker could work.
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 Without the shoemaker’s labour no shoes would be made.

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 Without capital there would not be the money which he needs to pay the rent of his workshop,
to buy leather, tools, nails, etc, from which to produce more shoes, and to feed and clothe
himself until the next shoes are made and sold.
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The shoemaker must be sure in advance that his production will bring back the money he
spends on materials, on labour, and on rent, and also bring a ‘return’ on the capital employed;
and it is this return which is called ‘profit’.

A return on capital in the form of profit is essential. That is because capital is, or is the result
of, previous production (cash, tools, nails, etc); if the shoemaker works so well that he sells his
products for more money than his immediate needs, he can use that extra money as capital to
finance more production.

Policies and Policymaking

Alongside the decision on the objectives of an enterprise, it is necessary to decide in broad

terms how and where those objectives will be achieved, that is, to lay down the basic policies
of the business.

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 In the case of the intending bookseller, the likely market (the potential customers) will be the
main consideration; will the business concentrate on novels, paperbacks and less expensive
publications or specialise on text books, technical publications and luxury books. Another
consideration would be whether to sell only new books and/or to buy and to sell second-hand
books.

 The owner must then decide ‘how’ the business is going to sell the books: by wholesaling,
retailing (over the counter sales), in bulk, by mail-order, via a website, or by a combination
of any two or more of those.

 Clearly the ‘where’ is closely allied to the ‘how’ and to the objectives. If, in the case of the
bookshop, it is going to sell novels and paperbacks the shop needs to be located in a busy
street area where its window displays will attract the attention of many passers-by, who will
probably buy single copies of books for cash. On the other hand, if the shop is going to sell
mainly text books, it needs to be located in the vicinity of schools, colleges or a university,
but it need not be in a busy thoroughfare.

,
Within this simple example you can see how the ‘where’ and ‘how’ lead to a very practical

ge
consideration. If the shop is going to retail - to sell single copies of books - to, say, students
they will probably pay in cash at once. But if the business is going to sell in bulk (wholesale) to

lle
schools, it will probably have to allow its customers a “period of credit”, that is, it will have to sell
without receiving payment at once, and so immediately a policy of allowing credit customers

o
has been established - and in practice that will entail organisational backup. If the business
will be selling in bulk, the rent payable for space to store large numbers of books at a site also

co in l C
suitable for retailing, might be prohibitive and that might result in a policy of separating the

uk
wholesale and retail operations.
ge ita na

o.
This is a very simple, but clear, example of how objectives are determined and how
basic policies are laid down. In most practical business situations - and particularly those
id Br tio

.c
lle .
in manufacturing businesses - the proceedings and decisions will be far lengthier and more
complex. The additional factors to be considered will include whether to rent or purchase
ge
br y, a

premises; whether to have premises specially built, because the latest technology and machinery
m se rn

are to be employed, or whether tried and tested methods and machinery will be used which
make less specialised demands on premises; what methods or “channels” for distributing the
manufactured items will be used, and so on through a very long list.
ca er te
w. J In

Of course, objectives might have to be modified in the light of experience, market trends,
commercial viability, etc, after a business has been established. A business (or indeed any
enterprise) can only continue to exist for as long as there is a need for its products, or it can
ge

create a need for them.

id

Policies, being really the attitudes of the enterprise towards achieving its objectives, are
rather more flexible, and can be adjusted to deal with problems that might arise in attaining the
br

objectives, or as required by the operating position of the enterprise at a particular time. Such
modifications of objectives and adjustments to policy are made by the owner(s)/partners of a
m

business, or by its board of directors if it is a company.

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The Interpretation and Implementation of Policies

Once the initial objectives and the basic policies of an enterprise have been decided upon, the
w

actual achievement of those objectives is the responsibility of the members of the management
team. In other words, they have to set in motion the various activities which will actually gain
w

those objectives in practice. The management team must interpret and implement the policies
and in doing so they are translating the policies (theory) into action.

Now consider a larger organization; in addition to there being objectives for the enterprise
as a whole, there will be departmental or sectional objectives set by the board of directors,
with policies laid down for the attainment of them. Naturally, the objectives of a particular
department will be narrower in scope than those of the enterprise as a whole, but the role of
departmental or sectional management remains the same - to interpret the policies laid down
for that department, and to implement those policies to achieve those objectives.

Note that as a specialist, a departmental manager might be able to advise or influence the
board on framing objectives and defining policy. Good managers have an in-depth knowledge
of their own specialism, but also have a good understanding of the information requirements
of other departments, and they may use this to justify and improve their own operational
decisions, and to ensure they are feeding back the correct information to higher management.
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 This relationship might be repeated down through many levels in a very large organization.
For instance, a main department in a large organization may have many subsections each
with its own management team interpreting and implementing policy to meet its own narrower
objectives. The way in which this is explained and achieved at each level will vary. For example,
the board might set an objective to the head of the despatch department like this:

“Your department must ensure that all high-value, regular

customers have their orders fulfilled within one working day”.

To implement this, the departmental head needs to be able to define and identify “high-value,
regular customers” and implement the policy by setting an operational rule that guides an order-
processing section, like this:

“All received orders are assigned a priority code by the sales department, and
you must prioritise higher-priority orders over anything currently in the system,
and inform the customer-care department immediately if this cannot be achieved”.

,
So you can see that, stage by stage, the broad, overall objectives and the policies set by the

ge
board of directors, are broken down into the possibly very narrow range of tasks and activities to
be performed by each individual employee. Nevertheless, unless each department - including

lle
IT services - attains its set objectives, the overall objectives of the entire enterprise might not
be achieved.

o
The previous Sections have described how two main functions of management are concerned

co in l C
with the interpretation of policies and their implementation in order to achieve set objectives.

uk
There are three other functions which make up the five main functions of management.
ge ita na

o.
Research & Planning
id Br tio

.c
lle .
Planning is the activity concerned with making or formulating plans. Plans should be looked
upon as being routes to objectives. Clearly, as the types of objectives alter at each level in
ge
br y, a

an organization, so the type of planning required will alter.

m se rn

Top management (e.g. the board of directors) will be involved almost exclusively with long
ca er te

term strategic planning, for instance whether to try to create new markets, whether overseas
expansion is possible or desirable, capital projects such as new plant/machinery, lobbying
w. J In

government or regulatory bodies, and assessing the effects of planned legislation. All this
planning is proactive - in that it anticipates changes and instigates actions, and attempts to
ensure that the organization is not affected by unplanned events.
ge

Senior management (e.g. heads of factories, departments and facilities) will also undertake
id

strategic planning to ensure their respective departments can adapt (be proactive) but they
will also need to perform shorter-term tactical planning to ensure their departments adhere
br

to budgets and meet their objectives. This planning is mainly reactive in that it takes place
within the framework of the objectives set by top management (e.g. owners/partners/Board
m

of Directors). Senior management must ensure that top management receive the necessary
information on which to base its strategic planning.
Ca

Sectional management (e.g. supervisors and foremen) will rarely perform strategic planning,
but will be required to ensure that the information reported to senior management is suitable
w

and timely. So its planning will be mainly reactive operational planning such as the order in
which data is to be input or the sequence in which reports will be run out, or deciding what each
w

member of the workforce should be doing at any given time.

Once the objectives of an enterprise have been set by top management, planning is necessary
to work out how to achieve those objectives in practice within the framework of the policies
formulated. Although we are concerned in this Module with planning as a managerial function,
it must not be overlooked that planning is necessary in everyday living.

Even a shopping expedition might need some planning: what route to follow to get to the
shops; what form or forms of transport to take and when/where to change from one to another;
the order in which to visit shops, for instance to avoid purchasing the heavy items first and
having to carry them around all the other shops to be visited; how to get back home with the
parcels and bags of items bought, and so on.

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 In practice, a good deal of the planning which a manager is called upon to perform involves
making routine decisions, and is concerned with everyday matters; for example planning the
work of a team of IT department staff, which might be similar week after week.

Operational plans must be flexible so that they can quickly and easily be modified in the
light of events. For example, a manager might have decided how a section will cope whilst a
subordinate is on holiday, but also needs to plan for an unpredictable (but likely) event such as
another member of the section falling ill at the same time.

Much of such routine planning is an automatic process, requiring little conscious thought on
the part of the manager, as decisions will be based largely on past experience with similar, or even
with identical, problems. Other planning will require far more conscious thought, investigation
and research before decisions are reached, and the processes involved will be considered in
more detail in later Modules.

Organising and Organisation

,
Once the plans - the “theory” - have been formulated, a manager is involved in organising

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the physical resources at his disposal - staff, materials, machines and even the premises - to
ensure that the objectives are achieved as planned.

lle
Organising involves much more than simply instructing a given number of people to start

o
work:-

co in l C
 There must be an adequate and a competent workforce to perform all the work necessary.

uk
ge ita na
 Each person employed must know exactly what he or she is to do - and if necessary must

o.
be taught or trained to perform that work - how the work is to be done, when it is to be done,
and so on.
id Br tio

.c
lle .
 All the materials to be used must be readily available when and where they are needed.
ge
br y, a
m se rn

 All services and utilities necessary such as electricity, water, and fuel, must be provided.
ca er te

 The best machinery and equipment, within the financial resources of the enterprise, should
be available for use, regularly maintained and in perfect working order, and - if necessary -
w. J In

training must be given to those personnel who will operate it. 

 The premises must be so laid out to provide the maximum efficiency and convenience, and
ge

to allow a smooth flow of work. For example, desks, filing cabinets, computer hardware,
printers and electrical points must be positioned to utilise the available amount of space in
id

the most effective layout, to avoid wasted effort, duplication and unnecessary movement. The
most effective layout is one which allows safe, comfortable working and which contributes
br

to efficiency.
m

Organising can be summarised as the managerial process of ensuring that:

Ca

the right personnel, the right materials and the right equipment are in the right places at
the right times and in sufficient quantities so that work will proceed in accordance with
the formulated plans, without delays, hold-ups or stoppages.
w
w

Co-ordinating

Co-ordinating is very closely linked to organisation and very frequently it is an essential

continuation of organising.

Co-ordinating involves:

ensuring that all efforts move smoothly together in the same direction, that is, towards the
common objectives. It might entail liaising with and co-ordinating the activities of other
firms and agencies.

Co-ordination is as crucial at top management level as it is at junior management and

supervisory levels. For example, the managing director or general manager must ensure that
15
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the efforts and activities of all the various departments of an enterprise are in harmony, and
that there is active co-operation between them. There would be no point, for example, in the
sales department endeavouring to sell items not yet in production, or the production department
manufacturing products which the sales department is unable to sell or for which there is no
“market”!

Good relations and communications between departmental managers must be developed

and fostered so that they all work together in harmony. Similarly, a junior manager, supervisor
or foreman must co-ordinate the work of all subordinates so that although different people
might be performing different tasks, work will flow smoothly and continuously from one person
to the next, and that the person at each stage knows how and when to alert others to potential
failures in the flow, and how to react to a stoppage in flow, whether from within the section, or
from another department or section.

A Case Study of Co-ordination:

In an office, one clerk might draft or dictate a letter, which then has to be passed to a

,
typist; after it has been typed or word processed, the letter has to be passed to another

ge
person for checking and signing, and the letter then has to find its way to the despatch
department for franking, after which it will finally be posted. Furthermore, the copy of

lle
the letter and that to which it is in reply will have to be correctly filed for future reference.

o
Five or six or more people might be involved in this simple operation, but their different

co in l C
tasks must be so planned, organised and co-­ordinated that the efforts of each mesh

uk
together like gearwheels.
ge ita na
Delays and backlogs would ensue if the clerk drafted or dictated fifty of sixty letters

o.
before passing any to the typist - who might be sitting idle waiting for typing work, and
id Br tio

.c
so on down the line.
lle .
ge
Later Modules will show you how computers have revolutionised - and are still revolutionising
br y, a

- business practice so that the tasks used as an illustration in this case study might no longer
m se rn

be relevant to modern business practice, but the principles still apply - it is important to realise
that co-ordination does not simply “happen” by itself - it has to be planned. Fig.1/1 shows the
ca er te

relationships between planning, organising and co-ordinating.

w. J In

Fig.1/1. the relationship between planning, organising and co-ordinating.

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OBJECTIVES
id


POLICY
br


m

PLANNING
Ca

 
ORGANISING  CO-ORDINATING
w

So far, this Module has considered the functions of management and how the information
w

flows within an organization might indicate a logical management structure, but management
is also concerned with ensuring that objectives are met, and taking corrective action when
they are not. So there are corresponding actions of management to ensure that objectives
are met. These actions are setting standards, controlling operations, maintaining records, and
motivating personnel.

Setting Standards

A standard in this context means a level to be aimed at, or a measure with which others must
conform, or by which the accuracy of others is judged. A simple example is a business letter:
certain standards will be laid down which it must meet: concerning the type, size and colour
of paper on which it is to be typed or printed; the layout of the typed or word processed work,
the position of the addressee’s name and address, the date and reference (if any); whether
paragraphs are to be indented; whether the signer’s name and/or designation will be typed -

16
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and the typed letter will be expected to reach certain standards of neatness, without spelling
mistakes, erasures, smudges or over-typing.

Of course, standards apply in everyday life, too: the laws of a country are the standards by
which citizens have to abide; students and trainees are expected to attain certain standards
of work and their examination work will be assessed against set standards or levels; to pass a
driving test a certain level of proficiency must be possessed, and so on.

In management, standards are a measure of the performance of a process or a routine or of

equipment, and they are used as a comparison to check that one item or process matches - in
quantity or quality - that which is set as the standard. The standards set might not represent
perfection, but they represent the best method or item that can be produced at a given time
within limits imposed by such factors as cost, equipment available, quality and availability of
materials.

The management of an enterprise will establish its own standards for the various types of
work performed, and for its end products; although in most countries there will be legislation

,
to ensure that various products meet certain quality or safety standards; and of course often

ge
consumers will indicate the standards which they expect from products. Standards apply in
virtually all enterprises, whether they are industrial, commercial, trading or distributive, service-

lle
providing or are state-owned.

o
Standards must also be flexible so that they can be amended in the light of circumstances;
for instance, changes in consumer demand, rising costs, or technological developments.

co in l C

uk
All employees are human beings, with human failings, and their efforts cannot simply be
ge ita na
“switched” on or off like a light bulb. Their knowledge of the standards expected of them can

o.
help them judge when they might be failing to meet those targets, and in those circumstances
employees look towards, indeed depend upon, their supervisors and managers for “direction”
id Br tio

.c
and corrective action. lle .
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br y, a

Controlling
m se rn

Controlling is the action of management which checks whether what was planned to happen
ca er te

actually does happen and, if necessary, ensures that corrective action is taken - and without
delay.
w. J In

Within this framework it can be seen:-

ge

 That the work of all employees must be supervised and checked (and further instruction,
guidance or training given when required.)
id

 That all operations or processes must be checked or inspected, with performances being
br

measured against the targets set in the plans and against set standards.
m

Controlling includes ensuring that employees perform the work allocated to them in accordance
with standard operational procedures and with no wastage or duplication of time, effort or
Ca

materials.

Maintaining Records
w

An important part of the action of controlling entails the maintaining of records of

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performance. Such records, whether they are concerning sales, production, output, etc, are
vital as a guide to future planning and in the setting of new or revised standards. Daily or weekly
or monthly reports to higher management provide vital information which enables control to be
exercised over all activities of the organization, and assists in the co-ordination of the efforts of
the organization as a whole.

Motivation and Mentoring

The objectives of an enterprise - however automated or computerised it might be - can be

achieved only through the efforts of people; and people need to be motivated - induced,
persuaded, prevailed upon (but not forced) - in a humane and understanding way to give of
their best.

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Motivation involves:

encouraging people to work well and willingly in the most economical manner in the best
interests of both the enterprise and their own best interests.

However, what motivates one person or group of people might not motivate another, and
therefore the most effective managers and supervisors tend to be those who interact and
empathise with their team, and understand that:-

 Financial reward is merely an incentive rather than a motivation for many people, although
the end result - greater effort or better performance - might appear to be the same.

 Many people today are interested in gaining more from their employment than just money;
they tend to look for what can be termed “job satisfaction”, doing jobs which they enjoy, in
which they feel that their skills/abilities are being utilised to the full, and that they have a role

,
ge
which can affect and influence their management.

 Many people are interested in the likelihood of receiving training - increasing their IT skills

lle
and knowledge, for example.

o
 Some people enjoy working in a group; and “group behaviour” can greatly influence the

co in l C
performance of all the members of a workgroup.

uk
 The prospects for promotion - achieving positions of responsibility and authority or status
ge ita na
- are important to some people (and they will be motivated to do their best to prove their

o.
suitability for promotion.)
id Br tio

.c
lle .
 Some people might want jobs in which they can use their initiative or can get away from

ge
being “desk bound” or from being tied to a routine or to regular hours.
br y, a
m se rn

 Many people are interested in “recognition” or various other rewards.

ca er te

Additionally, organizations reflect the societies in which they are grounded, and many are
able to offer flexible working arrangements which in themselves can be a significant motivation.
w. J In

So the range of motivators can be great, and normally a combination of these might stimulate
a particular person or group of people. However, a manager must endeavour to get the best
from each individual member of his or her team, and that might require motivating different
ge

members in different ways, whilst still motivating the team as a whole.

id

This requires the building of a good ‘working atmosphere’ based on a spirit of trust and co-
operation between management and the workforce. Good working conditions help in generating
br

a good working relationship. And although a junior manager or supervisor might have little
control over working conditions such as salaries/wages, overtime, and holidays, his or her
m

subordinates must be able to trust their superior to represent their interests when necessary.
A good manager will mentor his or her subordinates to help them meet standards, and also to
Ca

help plan their career paths where appropriate.

There must also be two-way communication within the enterprise, and all employees must
w

be kept informed about matters which affect their jobs and livelihoods. The effects of the
w

introduction of computerisation into an enterprise, or the development and expansion of an

existing computer system are good examples of situations in which personnel need to be “kept
informed” and, where feasible, encouraged to participate. Management must be able to effect
change, but sometimes change such as the introduction of a new computer system can be
perceived by some employees as threatening to their current job and security, and so managers
need ‘soft’ employee-centred skills which allow them to present change in a positive way.

Job security is important in forming a good working atmosphere and encouraging employees
to work well. Threats of dismissal or layoffs might sometimes induce better efforts in the short-
term, but they are not to be recommended in modern management, and they are more likely
to result in disgruntled workers and in disputes.

People working in an organization want to know that they are looked upon not as mere “working
units” or “production units” but as human beings, and that their manager(s) and supervisor(s)
are genuinely interested in them as such. They require - and expect - an evenhanded, fair,

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unbiased approach from their managers, in addition to that essential quality which is called
“leadership”.

It is important for all persons who are involved in management and supervision to appreciate
that successful motivation by a good manager or supervisor produces a measure of self-discipline
in his or her subordinates; they will have sufficient self-respect, and loyalty to their senior, to
work well and willingly, and without needing constant supervision. So proper motivation instils
a good mental attitude towards work, which mere financial incentives cannot buy.

The Functions of Management in Practice

In practical everyday management, the five main functions might not always be apparent
or be recognisable as being “distinct” from one another. That is because together they form
one continuous process, in which the individual functions blend, run into and interrelate with
one another. That is as it should be; management is not a rote (static, fixed or automated) job
which a person can perform by executing a list of tasks step by step, but is a task in itself which
flows, without great conscious thought; stemming from a manager’s or supervisor’s experience,

,
training and understanding of human nature.

ge
You will, no doubt, have spotted the enormous value of computers to a manager in the

lle
performance of each of the five functions of management, and those advantages are expanded
upon in later Modules.

o
It is therefore essential for managers to remember always that:

co in l C

uk
 Computers are only an aid to good and effective management and administration.
ge ita na

o.
 Computers are in no way a replacement for management and administration as performed
by human managers.
id Br tio

.c
lle .
As will be shown in later Modules, a computer can process information, retrieve and sort
ge
br y, a

it, and provide answers, statistics, analyses and reports. But a computer cannot replace the
m se rn

personal expertise of a human manager in actually making use of that information. It is only
the human manager who can build and train an efficient team, and motivate all the individual
ca er te

members of it to work well and willingly in the best interests of the enterprise. The effective
manager can do this by:
w. J In

 developing good working relationships with staff, other managers and ‘stakeholders’;
ge

 setting good examples for subordinates to follow;

id

 dealing with team members fairly and with respect as fellow human beings.
br

In summary, a computer cannot undertake the managerial (human-related) aspect of any

manager. It is the human manager who must skilfully motivate a team, and is most suited to
m

planning, organising, co-ordinating and controlling their efforts. Crucially, only the human
manager can provide leadership.
Ca

w
w

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 SELF-ASSESSMENT TEST ONE
Recommended Approaches to these Questions - against which you may compare your answers
- will be found in the Appendix, which starts on the next page. The maximum mark which may
be awarded for each Question appears in brackets at the end of the Question. Do NOT send
your answers to these Questions to the College for examination.

No.1. Describe the information required to plan and execute an everyday task, an event, or an
operation with which you are familiar. Give full background information on how the information
you have identified might be affected by other factors. Note: the task does not need to involve
computers. (maximum 30 marks)

No.2. Describe the specific qualities that good managers will need to display and which can
benefit any business, whether it is computerised or not. (maximum 20 marks)

No.3. Explain the difference between the objectives and the policies of a business or enterprise.

,
ge
(maximum 20 marks)

No.4. (a) Briefly explain the two main categories or aspects that comprise the work of a manager.

lle
(maximum 10 marks)

o
(b) List and briefly describe up to three functions or actions within each main category.

co in l C
(maximum 10 marks)

uk
No.5. Place a tick in the box against the one correct statement in each set.
ge ita na

o.
(a)
Up to date, accurate information is important in business because:
id Br tio
1 a manager needs to know what his or her subordinates think about him or her.

.c
lle .
2 without it a manager cannot make informed, useful decisions.

ge
3 data is constantly changing and without it company profit cannot be calculated.
br y, a

4 a business cannot employ good personnel without it.

m se rn

(b) The essential role of computers in management is:

ca er te

1 to make work easier for personnel.

2 to provide a good medium for typed personal letters.
w. J In

3 to provide accurate, clear information as and when it is needed.

4 to bring the business into the computer-literate world.
ge

(c) A standard as applied by management is:

1 concerned with ensuring all equipment is up to date.
id

2 a rule to ensure that all employees perform a full working day.

3 a level of attainment or quality which can be assessed against predetermined measures
br

laid down.
4 the most economical way to achieve a result.
m

(d) Plans in business are:

Ca

1 concerned with deciding how an enterprise can achieve its objectives.

2 provided by the staff who have ideas about new facilities.
3 drawings depicting the layout of a company’s building.
w

4 inflexible as all personnel must follow them exactly.

w

(e) Co-ordination involves:

1 ensuring that all colours and decoration in the office match.
2 the level of efficiency of a company’s directors and managers.
3 ensuring that all efforts are geared towards attaining the common objectives of a
business.
4 deciding the working hours for personnel so that maximum efficiency is reached.

(2 marks for a statement correctly ticked - maximum 10 marks)

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 Appendix

RECOMMENDED APPROACHES TO
SELF-ASSESSMENT TEST ONE
Notes for the Member: The style in which an answer to a Question is written and presented might
differ from Member to Member, but our Recommended Approaches to answering the Questions
always show you a good structure and any specifics which should have been included in a top
class answer. No answer can be “perfect”, and there is always more detail or insight that Members
could include in their answers. Our Recommended Approaches are prepared in such a way as to
demonstrate that the purpose of the Question has been understood, and it is YOUR understanding of
the subject matter which YOU will need to demonstrate in due course to your Tutor and/or Examiner.

,
So DO study and learn from our Recommended Approaches to the Questions to gain good marks

ge
in Progress Tests and/or in your Final Examination.

TEST ONE

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No.1. You would gain marks for choosing examples which allows them to be broken down into

o
clearly identifiable questions which would elicit information which can feed into a decision, or which

co in l C
may help identify further factors. The Module text described some questions a motorist planning a

uk
journey might ask. In the same way, someone organising a class reunion some years after leaving
school might need to ask:-
ge ita na

o.
* How will I contact everyone? Is my recall complete - can I remember the names of everyone in
id Br tio
my class? An initial move would be to contact the school to establish whether the school keeps

.c
lle .
records of all its students and their last known contact details. Some schools and/or “former students
associations” operate websites to enable former students to maintain contact with each other.
ge
br y, a
m se rn

* What type of event would suit the greatest number of people? Are many likely to be married with
children, and hence is there a need to choose a date and time so that they can get childcare?
ca er te

* Are a large number of ex-classmates likely to have moved away, and will they need accommodation
organised? Will there be transport considerations? If so, choosing a date might need to avoid times
w. J In

when travelling is more difficult (seasonal weather, public or religious holidays.)

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* Finally, what demand exists? Are there enough ex-classmates who think it is a good idea and are
willing to expend some effort on contacting others with whom they have kept in touch?
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A clear link between each question identified and possible factors indicates a high quality answer,
although there need not necessarily be a one to one relationship - several questions may feed into
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one factor.
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No.2. This Question required you to distinguish between operational/functional management and the
people-centred qualities that mark out exceptional managers. Your answer should have shown you
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understand that the Question is about the people who are managers. It should have briefly described
the range of functional attributes (good analysis skills, the ability to plan, research & co-ordinate, the
ability to set and monitor standards etc.) The “softer” skills which contribute to “leadership” should
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have been described, such as fairness, transparency, consistency, the ability to motivate and mentor
(or to recognise the ability in others and delegate accordingly.) An exceptional answer would also
w

refer to the ability to explain and implement organisational changes such as computerisation.

For example: Management roles exist to meet the operational or functional aspects of the work
to be performed, and to oversee the human aspects of these. Operational factors can be complex,
but managing these is normally a matter of setting, observing, and implementing policy, and of
setting, defining, and following standard operating procedures. These technical factors require the
manager to be organised and capable of planning and communicating with various levels of staff.
The manager must be able to set standards and to ensure they are met.

These technical operations must be supported by the ability to motivate and co-ordinate. Good
managers will naturally have the skills to implement the technical and operational aspects, but
exceptional managers will motivate and inspire their subordinates by being fair, transparent wherever
policy allows, good at encouraging and recognising potential, and by being seen to consistently
apply the same standards to everything and everybody they deal with.

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CIBMod1(20X8) © CAMBRIDGE INTERNATIONAL COLLEGE ISBN 0 948182 17 2
 Exceptional managers will be able to introduce organisational or operating change to an enterprise
by “bringing people with them” rather than by being seen to impose change, for instance, computerising
an enterprise might worry people or cause them to feel threatened by it, but the good manager
effectively addresses and allays their concerns as early as possible.

No.3. This Question was also intended to test your ability to distinguish and describe two closely
linked concepts. The description of objectives should be about the “what” a business is aiming to
achieve (profit, economic sustainability, products and services, markets) and the description of
policies should be about “how” these will be achieved. Some policies will be purely operational
and literally describe procedures, whilst other policies will be more aspirational and might include a
commitment to equal opportunities, or to minimising impact on the environment. For example:

An objective of a business or enterprise is a description of what the enterprise is seeking to do. A

policy is a statement of how that will be achieved. For instance, an objective might be to “make and
sell our specialist product to such a high quality that demand keeps growing and the business makes
enough money so that investment can be made in extending the plant, and enough of a dividend
can be paid to investors so as to ensure future funding”. As this example shows, objectives can be
related, and may consist of several objectives.

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A policy exists to help guide management so that objectives are reached. One way of meeting
the objective that “demand keeps rising” might be to “reduce the marketplace cost of our products

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compared to our competitors’ by selling only through the internet so that distribution and retail costs
are kept to a minimum”. A policy may also try to explain the ethos of a company, for example the
objective that the product will be “of high quality” might be addressed by a policy that “we will only

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use raw materials sourced from sustainable sources” or “where we establish factories, we will ensure

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access to education and training for our employees as we believe a properly trained workforce is

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better motivated and produces higher quality work.” These policies might also be underpinned
by market research; for instance, many consumers in affluent societies are happy to pay a small
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premium to ensure that the environmental impact of buying a product is minimised.

o.
id Br tio
No.4. This Question is related to No.2, but is subtly different, in that it is designed to test your

.c
lle .
understanding of what constitutes management. In fact, the wording of part (b) gives you a clue to

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what is expected in part (a). So a good answer to part (a) needs to identify the distinction between
br y, a

the functions of management and the actions of management. A good answer to part (b) will list and
m se rn

briefly describe three functions (from planning, organising, co-ordinating, motivating and controlling)
and three actions (from setting policy, setting standards, keeping records, maintaining discipline and
ca er te

effectiveness). For example:

w. J In

(a) Generally, management exists to ensure that the policies of the organization are implemented in
such a way so that its main objectives can be met. Management thus consists of a series of “functions”
which describe what it is that management is doing, and a series of actions which describe how
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management is doing it. So a function of management is partly an explanation of why a managerial

role exists e.g. “the factory or section cannot operate unless someone has responsibility for organising
the staff rotas”. An action is the tangible operation that a manager undertakes to meet that (and
id

other) functions, e.g. keeping records which indicate which personnel are available for which shifts.
br

(b) Example functions include:

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(1) Planning, for instance ensuring that staff rotas can be covered for the next 3 months.
Ca

(2) Co-ordinating, for instance, scheduling maintenance work for times that do not affect other
operations.
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(3) Motivating, for instance, ensuring that staff rotas are adhered to by operating flexible working
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shifts subject to meeting staff rota requirements.

Example actions include:

(1) Keeping records, for instance, noting absences, illness or persistent non-adherence to staff rotas.

(2) Maintaining discipline, by being seen to act upon instances of non-adherence to rotas or workplace
rules.

(3) Setting standards, for instance, any employee who maintains adherence above a certain level
is allowed a particular privilege.

No.5. The correct statement in each of the sets selected and ticked.

(a) 2  (b) 3  (c) 3  (d) 1  (e) 3 

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 WHAT YOU WILL LEARN ABOUT
COMPUTERS & IT IN BUSINESS & MANAGEMENT
IN MODULES 2 TO 12 OF CIC’s TRAINING PROGRAM

Module 2 - Computers in Business and Administration

The place and use of machines in business and administration

The beginning, first generation technology
Mass technology:
typewriters and word-processors
analogue photocopiers and fax machines
digital processing and multi-purpose machines
Technology in business and industry
The rise and development of the computer:
second generation: mainframe computers
programming languages and business logic
third generation: minicomputers
computer programming
fourth generation: microcomputers
the PC revolution and the PC standard
characteristics of fourth generation systems:
variety and personalisation
compatibility, graphical user interfaces, WIMP
Artificial intelligence
Decision support systems and heuristics
Characteristics of computers:
speed
storage and retrieval of data
diligence
accuracy
meta-data, validation and verification of data
Limitations of computers:
the manager’s role in their proper use
The use of computers in a variety of business situations

Module 3 - Computer Systems: Hardware

Case study of information flow within a business

operations to be performed - manual operation
the computerised version:
information flow between departments
the advantages
Digital information - The Building Blocks of a Computer System
Extending representations of information:
the importance of context
Storage of digital information
The central processor (CPU)
Linking it all together:
controllers, processors and clocks
Interfacing the CPU with peripheral equipment
Random access memory:
difference between sequential and random access
Memory management:
memory-mapping and memory cache
Tuning and refining the system

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 Getting started - activating a system
Bootstrapping:
basic input output system (BIOS)
read only memory
revision and patching
Order management software
Hardware components:
Input devices: keyboard, mouse, trackball, voice recognition, scanner
Output devices: barcodes and barcode readers, printers, VDUs
Recent developments:
solid-state storage, 64 bit multi-core processors
tablets and hybrids, computer and human interaction
Appendix: Number Systems and their Application to Digital Computing

Module 4 - Computer Systems: Software and Data

Stand-alone or turnkey systems:

practical application
Operating systems:
multi-user systems
the clockface analogy
Interrupt-driven and priority operating systems
Distributed systems and local processing
Where should data exist?
orthogonality
Programming tools
Pseudo-code and high level languages:
COBOL and BASIC
Compilers and interpreters
Specialised high level languages:
business applications
Searching and reporting
Exporting and sharing data and objects
Modern operating systems, user identifications, passwords
Stored procedures and macros

Module 5 - Practical Uses of Computer Systems

Best practice
Measurable objectives
effectiveness and efficiency
process control
historical profiles
Operational intelligence
face to face operations
business tools and mobility
web-based operations
Website customer use of computers and PDA screens:
navigation principles
alternative screen layouts
complementary marketing
Examples of why businesses computerise operations:
estate agency and property management
hotel and catering industries
brokerage (insurance or stocks and shares)
retail: clothing and footwear
gambling: pools, lotteries, totalisers and bingo
professional sport: coaching and fitness analysis
The link to business intelligence and insight

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Module 6 - Computers and Management Information

Functions of management and practical uses of computers

Case Study:
background
the need to modernise
information needs for decision making
forecasting and planning
sales graphs:
linear curves and exponential curves
profitability forecasts
the role of computers in forecasting and analysis:
spreadsheets:
from where the information derives
information flow diagrams
profit ration per week
comparison of costs and income
additional factors:
gate price per unit
delivered units
summary of factors defining the current position
competitors’ sales
business models and scenario modelling:
income forecasting
gate price derivation
3D line-graphs, stacked column graphs, multi-column graphs
Business Intelligence:
knowledge about the customer:
demographic profiling
Predicting customer preferences:
estate agents and mortgage brokers
online industries:
online leisure, online shopping, online booking and reservations

Module 7 - Computers and Communication

Communication defined:
formal definition and example
components of communication
Communication in business and management:
internal and external communication
lines of communication
Communication terms, devices and protocols
telecommunications
telephone systems; end-to-end systems; analogue and digital
broadband digital communications; modems, fibre optics
global networks, distribution points
The internet
routing, dedicated links
IP numbers, transmission control protocol/internet protocol
universal resource locators (URLs) and web requests
ports, http://, protocols, session variables
error checking and resilience: file level and data-packet
bandwidth: network speed and throughput
compression and streaming
Computer Mediated Communication
electronic mail (email) and simple messaging service (SMS)
fax and optical character recognition (OCR)
video-conferencing
Business Communication Overview

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CIBMod1(20X8) © CAMBRIDGE INTERNATIONAL COLLEGE ISBN 0 948182 17 2
 advantages of non-electronic communications
practical managerial considerations of email:
advantages, disadvantages, supervision

Module 8 - Computers and Accounting

The need for accurate and timely accounts:

operational intelligence
strategic decisions
investors, shareholders, stakeholders
Manual bookkeeping systems
double-entry, ledgers, accounts
audits and tax trails
Computerised accounting systems
master records, orthogonality,
data entry, procedures, audit log
modules, business requirements
examples of computer generated reports
Financial data flows
real and notional transfers, transactional ledger
Computer generated reports
uses, benefits
User-configurable software
standardisation, flexibility, regulations
accountancy software

Module 9 - Digital and Printed Media -

Beyond Word processing and Desktop Publishing

Traditional print media

Word processing:
producing word processing documents
static features:
page set-up, tabbing, column guides, paging, fonts, etc
dynamic features:
search and replace, spelling and grammar checks,
review and collaboration tools
concordance and research tools
Desktop publishing:
business use, specialists, print agencies
Publishing software
examples, Microsoft Publisher
Graphic design and colour theory
colour wheels, colour relationships
copy-writing
Digital media
web-servers, web-browsers, websites,
directories, mark-up languages, html tags
content management systems (CMS)
tweets, blogs, social media
Web site production teams:
content, designers, engineers, developers, quality assessment

Module 10 - Business Continuity: Choosing and Defining a Computer System

Business continuity
Systems life-cycle:
planning specifying and sourcing computer systems
implementing, testing and accepting computer systems
running, maintaining and reviewing computers systems

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CIBMod1(20X8) © CAMBRIDGE INTERNATIONAL COLLEGE ISBN 0 948182 17 2
 Waterfall model
Drives towards computerisation:
expansion, competition, research, funding, staff, experience
Choosing a computer system:
scale and scope: project brief
feasibility: technical and management issues
requirements: proposers, stakeholders, project boards, external experts
pilot/prototype: fit for purpose
specification: instructions, testing strategy, agreement criteria
project planning: project execution and control, timelines, interdependencies
project software
financial terms, penalties
Project management companies
Joint project committees:
communications, deadlines, modularising tasks, documentation
workstreams, integration
wireframe diagrams, visual concept prototypes
technical and functional specifications
Test plans, acceptance criteria plans, black-box testing
Post acceptance planning
Case study

Module 11 - Business Continuity:

Delivering, Testing and Introducing a Computer System

Delivering a computer system:

procuring hardware and software
building and developing functionality
creating and configuring the system environment
Testing a computer system:
assuring components work as defined
assuring interworking
ensuring functionality is delivered
Introducing a computer system:
maintaining uninterrupted operations
system validation
Water-fall stages:
build and integration
formal specifications, specialisms, lead technical specialists, systems architect
quality assurance
compliance, sub-systems, integration and regression testing
go-live
big-bang, parallel running, transition, phased deployment
Build and integration
sub-project teams, skill sets, team-work, cooperation
Management and administration of project work
project build infrastructure
automated push and pull
development repository software
checking work compiles
Case study
Agile approach to project management
Role of the managers, knowledge domain
Project pitches and presentations
Quality assurance and user acceptance testing (UAT)
release candidates, risk-logs, tests-cases, test-suites
Testing:
accessibility, external QA and UAT, parallel, simulated, capacity, security
Training, training plans, staff morale

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Module 12 - Business Continuity:
Efficient Running and Maintenance of a Computer System

Emergency and operational planning

identifying risks
types of events which can affect operations
Preparing sites for computer systems
operations rooms, server rooms, plant rooms, communications rooms
Maintaining electrical supply
generated supply, battery supply
spikes, surges, UPS
prioritising systems and functions
Back-up communications supplies
Catastrophic hardware failure
data back-up systems: NAS, RAID
back-up procedures; dangers of not having them; back-up software
hardware purchasing strategies
Disaster recovery
policies, procedures, infrastructure
load-balancers
Physical security
temperature and humidity
remote desktop connection (RDC)
access policies, CCTV, entrance/exit points, key-pads, codes
Cyber-attack
denial of service attacks, reasons for attacks, preventing attacks
encryption, personal identification numbers (PIN), secondary authentication
staff awareness and training
Operating practice and procedures
office-use only, passwords, encryption
Folders and permissions systems
Domain administrators
Staging deployments
Managerial adherence to governance and regulation

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CIBMod1(20X8) © CAMBRIDGE INTERNATIONAL COLLEGE ISBN 0 948182 17 2
 ASSOCIATED PROGRAMS YOU MIGHT LIKE TO STUDY NEXT

Diploma in Business Management & Administration

This Program trains existing, new and future managers to run
businesses successfully; it is essential for anyone seeking
administrative or managerial posts in business, and for people
running businesses. A business manager or administrator
must be proficient in managing finance, accounts, human
resource, purchasing, marketing, inventory, computer systems,
communications and very much more. This Program teaches
expert skills and knowledge to ensure efficiency, competence
and profitability in modern business, industry and commerce.

Major Topics Covered in this Diploma Program include:

 The business plan. Capital and the financing of businesses, sources of capital, share
issues; working capital, cash and funds flow; revenue, income, expenditure, overheads.
 Business units: sole-proprietors, partnership firms, limited liability companies, the board
of directors; business organisation; the business environment, trading enterprises; factors
in business location. Starting a business or taking over an existing business, goodwill.
 Planning and forecasting in business; competition, location, knowledge and skills, market
potential; budgeting, budgetary control, credit limits, credit control, discounts: trade, quantity.
 Management of personnel: job analysis, recruiting, selecting, inducting, training, controlling,
remunerating. Motivating personnel. Occupational health and safety. O & M studies.
 Selling, sales and marketing management, market research, the marketing mix,
advertising, sales promotion, publicity and PR; pricing policy; office management,
delegation of responsibility; structure, charts; control and standards; communicating.
 Production management, market, technology, manpower, factories, costing; purchasing,
logistics, storage & control of stock, stock records, stock levels, stocktaking, spot checks.
 Accounting & financial records, final accounts: trading accounts, profit & loss accounts
balance sheets, computing profits, ratios, break-even analysis, liquidity and cash flow.
 Business communications; computer systems, IT, data security, telecommunications.

Diploma in International Business & Trade

Export and import trading can be rewarding and profitable when
conducted professionally with an effective international marketing
strategy. The Program teaches how to research and select potential
new overseas markets, how to reduce risks and overcome barriers,
how to cost, price and make available products which will sell in
target countries. It deals with direct and indirect exporting, types of
intermediaries; methods of financing international trade, methods of
payment; modes of transport & logistics; currency, documentation,
insurance, customs procedures, tariffs and taxes, and much more.

Major Topics Covered in this Diploma Program include:

H Domestic and international trade. Countries’ needs for imports and exports: visible &
invisible trade, balance of payments. Manufacturing, service, creative industry sectors.
H Researching and selecting potential new markets, segmentation, marketing strategy.
Tariffs, trade barriers, languages, culture, customs, product labelling, packaging, packing.
H Entry routes to overseas markets: direct and indirect exporting, buying houses,
representatives or agents, licencing, joint ventures, franchising. Formulating export strategy.
H Costing and pricing exports, incoterms. Sale contracts: offers, acceptance. Documentation:
quotations, orders, invoices, bills of lading, airwaybills. Customs tariffs, duties and taxes.
H Payments for imports and exports, exchange controls, currency restrictions, letters of
credit, bills of exchange. Financing overseas trade: credit, loans, forfaiting, factoring.
H Modes of transport, freight forwarders, containerisation, export packaging, shipping marks,
freight insurance, premiums, exclusions, export credit agencies, export credit insurance.
H Marketing mix and devices: advertising, promotion, publicity materials. E-commerce, web-
based advertising and promotions, social media, viral marketing. Trade fairs and shows.
H Import business: consumer research, selecting the right products, costs of importing,
sourcing reliable suppliers. Arranging finance and payments. Customs clearance agents

ASK THE COLLEGE FOR MORE INFORMATION ABOUT (AND THE FEES FOR)
THESE PROGRAMS, OR VISIT WEBSITE www.cambridgecollege.co.uk
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