Leadership and Management CPA Revision Kit (Question and Answer)


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This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to apply and demonstrate leadership and management skills to grow an enterprise under various circumstances and environments including under uncertainties.



A candidate who passes this paper should be able to:

  • Demonstrate an understanding of leadership techniques and management principles
  • Apply knowledge of leadership and management theories in organizations
  • Effectively undertake management functions
  • Make rational management decisions in an organisational context
  • Embrace and manage strategic change.



  1. Introduction to management
  • Nature of management
  • Importance of management
  • Levels of management
  • Multi-disciplinary nature of management
  • Roles of management as advocated by Henry Mintzberg
  • The changing roles of management and managers
  • Qualities of an effective manager
  • Management and administration


  1. Evolution and development of management thought
  • Classical approaches to management
    • Taylor’s view point
    • Fayol’s administrative theory
    • Max Weber’s bureaucratic theory
  • Behavioural management approach
    • Elton Mayo-Human relation theory
    • Abraham Maslow’s theory
    • McGregor’s X and Y theories
    • Mary Parker Follett’s Management theory
  • Modern management theories
    • Quantitative thinking
    • Systems thinking
    • Contingency thinking


  1. Leading as a function of management
  • Differences between management and leadership
  • Attributes and skills of a good leader
  • Delegation, responsibility and accountability
  • Power, authority and accountability


  1. Other Functions of management

Planning function:

  • Introduction to planning
  • Importance of planning
  • Planning process
  • Types of plans
  • Approaches to planning


Organising function

  • Meaning and importance of organising
  • Factors affecting the organising function
  • Process of organising
  • Principles of organising
  • Organisational structures


Staffing function

  • Meaning and importance of staffing
  • Staffing process
  • Factors that affect the staffing function
  • Components of the staffing function


Controlling function

  • Meaning and importance of control
  • Steps in the control process
  • Types of control
  • Controlling for organisational and employee performance
  • Tools for measuring performance
  • Essentials of an effective control system


  1. Environmental Analysis
  • Micro-environment
  • Macro-environment
  • Internal environment
  • External environment
  • Tools of environmental analysis


  1. Leadership approaches and strategy
  • Leadership traits
  • Leadership styles
  • Leadership skills
  • Formulation of an organisation’s strategic direction
  • Differences between transactional leadership and transformational leadership
  • Conflict resolution mechanisms
  • Ethics in leadership


  1. Decision making
  • Importance of decision making
  • Decision making models/approaches
  • Types of decisions
  • Decision making process
  • Problem solving skills
  • Decision making under different conditions
  • Challenges in decision making
  • Effective decision making


  1. Enterprise management
  • Meaning and concept of entrepreneurship
  • Intrapreneurship
  • Entrepreneurial development
  • Enhancing creativity and innovation in organisations
  • Methods of generating ideas
  • Introduction to business plan
  • Protection of intellectual properties


  1. Project management
  • Project management concepts
  • Characteristics of a project
  • Importance of projects
  • Features of projects and baseline surveys
  • Illustration of the Project life cycle
  • Project planning and organising
  • Project resources and costing
  • Project completion and evaluation


  1. Marketing management
  • Meaning and importance of marketing
  • Marketing management orientation/philosophies
  • Marketing mix
  • Development of marketing information
  • Marketing strategies
  • Marketing research and intelligence
  • International marketing and e-commerce


  1. Leadership and Strategic Change
  • Meaning of change
  • Theories of change
  • Types of organisational change
  • Managing resistance to change
  • Diagnosing the change context
  • Levers for strategic change
  • Methods of introducing strategic change
  • Problems of formal change programmes
  • Leading Change
  1. Case Studies in Leadership and Management Sample reading and reference material





April 2022 Question Four A

Examine three skills required by managers at different levels of management.   (6 marks)



Skills required by managers at different levels of management

  1. Conceptual skills: Conceptual skills refer to the ability think in abstract and to visualize the organization in a holistic manner. These skills enable a manager to see the relationship between forces in the environment that other people cannot see. It is the ability to think creatively and understand complicated or abstract ideas. These skills are critically important to the top-level management since the top management is responsible for positioning the entity as a whole strategically in its external environment. They also responsible for formulating the vision and the long-term goals of the enterprise as a whole. These responsibilities imply that the managers should be able to see beyond time and space. The conceptual skills are moderately important to the mid-level managers and less important to the lower level managers.
  2. Diagnostic skills: Diagnostic skills refer to the ability to understand and interpret the underlying issues beneath a phenomenon and to draw answers from the underlying issues. The skills are critically important to the top-level managers, moderately important to the mid-level managers and less important to the lower level managers.
  3. Technical skills: Technical skills refer to the proficiency in handling the techniques of a given trade such as accounting techniques, engineering techniques and others. Technical skills are the knowledge and capabilities to perform field-specific, specialized tasks. They are practical, and often relate to mechanical, information technology, mathematical, or scientific tasks.
  4. Human relation skills/interpersonal skills/soft management skills: Human relations skills relate to the ability to deal with and work with other people. it is the ability to build up cooperative, work teams, secure cooperation of staff and to handle diversity. The manager needs to know how to manage relationships between himself and his subordinates, as well as manage the relationships among those who work under him. The manager should also know how to develop relationships with his superiors, and coordinate relationships across the hierarchy. The manager should to be able to build good relationships with customers, and see things from the customers’ perspective.
  5. Political skills: Political skills relate to the ability to have your own way without appearing to be egotistic or self- centered. It is the ability to get your own share of power and use it without fear of losing it. These skills will enable a manager to establish the rigid connections then skillfully use these connections for the advantage of the firm.
  6. Communication skills: This is the ability to communicate effectively. Management involves working with people and through people. In addition, managers are the conduits of all communication flows in and out the organization. It is therefore important for managers to had exemplary communication skills. Some of these communication skills include: listening ability; empathize, communicate precisely and concisely as well as provide information on a timely basis.



December 2021 Question Five B

Analyse four arguments against management as a profession.        (4 marks)



Arguments against management as a profession

  1. A profession is based on an approved body of knowledge which requires rigorous intellectual training which takes a considerable period of time. Hence management is not a profession.
  2. Professions typically require a significant period of hands-on, practical experience in the protected company of senior members before an individual is recognized as a professional. After this provisional period, continuous education toward professional development is a mandatory requirement hence management is not a profession.
  3. Entry into a profession is restricted by an association of members, membership of which is restricted to people with common training and attitude thus management is not a, profession.
  4. In a profession the emphasis on service to others. In relation to this, a professional involves great responsibility. Professionals deal with matters of vital significance to their clients and are hence entrusted with great responsibilities and obligations. Professionals therefore owe a duty of care to their clients, breach of which can cause grave damage to the client. Arising from the duty of care is accountability, Professionals are personally accountable for the quality of their work with the client. Management may not quite fit in this perspective of a profession as it does not focus on service to others but rather it involves manipulating the organizational resources with a view of optimize their use in order to maximize profits and achieve other organizational goals.
  5. In a profession there is a code of ethics that regulates the behavior of the members of the profession thus management is not a profession.
  6. A profession maintains an experimental attitude towards information and is constantly in search of new information through research and practice. Thus, management is not a profession



What are the four managerial functions and how do they interrelate with each other?


The four managerial functions are:-

a) Planning – (Decision making, looking ahead). It is the determining of organisation’s goals and deciding how best to achieve them. Managers think through their goals and actions in advance, that their actions are based on some method, plan or logic, rather than on a hunch. It is the basis by which:-

  • The organisation obtains and commits the resources required to attain its objectives
  • Members of the organisation carry on activities consistent with the chosen objectives and procedures.
  • Progress towards the objective is monitored and measured so that corrective action can be taken where such progress is unsatisfactory.

b) Organising – (harnessing, combining, co-ordinating resources). While planning provides the framework in terms of organisational goals, organising refers to the process of arranging and allocating work, authority and resources among an organisation’s members so that they can achieve the organisation’s goals effectively and efficiently.

It entails setting or designing the organisational structure that suits the organisation in terms of its resources and gaols. Students will note organising should necessarily follow after planning.

Management cannot organise without any idea as to the purpose of such an exercise, thus tasks and positions are allocated after an organisation has established its direction (planning)

The organisational structure defines the reporting levels within an organisation and provides a hierarchy of formal positions

c) Leading: – (Directing, supervising, overseeing, guiding, motivating). This entails directing, influencing and motivating the task related activities and efforts of organisational members to achieve set goals of an organisation.

The leadership function is distinct from planning in that it involves dealing with people. It should be borne in mind that leading function necessarily follows after organising. Managers are given authority and responsibility as well as confirmation of their levels in the company through that organisation function. It should therefore follow that you cannot effectively lead without knowing:

Who to lead? Where you belong in terms of the various departments of the organisation. How much authority is bestowed upon you, and finally. Who you report to in the organisational hierarchy.

d) Controlling :- (Monitoring, Evaluating, Checking, Making sure). This process is the ultimate management function and it evaluates the efficiency and effectiveness of the other management functions. The control function is concerned with ensuring that the action s of the organisation’s members does move the organisation towards its stated goals.

It is sometimes referred to as the process of monitoring progress towards achievement of goals. The controlling function entails:-

  • Establishing standards of performance and how it will be measured
  • Measuring current performance
  • Comparing actual with standard performance, and
  • Taking corrective action where deviations from stated goals are detected.

Through the control function, the manager keeps the organisation on its chosen track through timorously investigating and correcting and deviations from set standards


Complete copy of LEADERSHIP AND MANAGEMENT REVISION KIT is available in SOFT ( Reading using our MASOMO MSINGI PUBLISHERS APP) and in HARD copy 

Phone: 0728 776 317

Email: info@masomomsingi.co.ke


Explain three ways of classifying managers


Ways of classifying managers

a) Managers can be classified by management levels were we have:-

  • First line managers also known as operations managers or just line managers. These are responsible for the work of employees only and as such do not supervise any managers. They are the lowest management level in the organisational hierarchy, being directly responsible for the supervision of non-managerial staff. First line managers’ activities tend to focus mainly on the day to day running of the organisation and they focus on the activities of sub-units such as departments and sections thereof.

Typical titles of first line managers are: foreman, supervisor, operations managers etc

  • Middle managers (also known as tactical managers or management control level). This may incorporate more than one level in the organisation. They are primarily concerned with directing the operations of lower level management. In addition they are also responsible for implementing and interpreting the policies formulated by the top management level. Thus they are intermediaries between top management and lower level management.

Typical titles include: Branch managers, Regional managers, senior managers etc.

  • Top management (also known as strategic managers or corporate level managers). Top managers probably account for a relatively small group of executives who control the organisation. They are thus responsible for establishing the organisation’s goals, strategies and operating policies. In addition, they also represent the organisation to the external environment e.g. by meeting with government officials, other business executives, other institutional heads etc.

Activities undertaken at this level are thus of a long term nature and mainly guide the organisation’s conduct with the environment. They tend to focus on the organisation as a whole, with emphasis on both the present and the future scale of operations

Typical titles are: Chief Executive Officer, Managing Director, and General Manager etc.

b) Management can also be classified according to the scope of activities

  • Functional Managers- These are responsible for just one speciality organisational activity e.g. the finance manager (responsible for finance) and the human resources managers (responsible for the human resource function) this level of management may be likened to that of operational management for they are also responsible for the day to day running of the organisation as well as the direct supervision of subordinates.The people headed by a functional manager are engaged in a common set of activities
  • General Managers. Unlike functional managers, general managers oversee the complex units e.g. subsidiaries or independent operating divisions. In this case they will be responsible for all the activities of that unit such as marketing, production etc. Thus the general manager will be in charge of the functional managers falling under his sub-unit or division.



State and explain three managerial roles as identified by Henry Mintzberg. Clearly identify how each is subdivided.



Managerial roles as identified by Henry Mintzberg and how each is subdivided


These roles relate to how a manager interacts with others i.e. subordinates, peers, supervisors and outsiders. They include the roles of:-

  1. Figurehead: – As a figurehead, the manager performs certain ceremonial roles, which are of a legal nature. Typical example include welcoming visitors, attending subordinates’ weddings and performing ribbon-cutting ceremonies as well as taking customers to lunch. In this case, managers are symbols and as such personify an organisation’s successes and failures.
  2. Leader: – Managers are accountable for the actions of their subordinates as well as their own. It therefore follows that by showing subordinates how to perform under pressure, what hours they should work, promoting, etc, managers will be performing the role of leader.
  3. Liaison: – In the liaison role, managers must learn to work with everyone both within and outside the organisation who can help them achieve their goals. This role necessitates establishing networks of contacts and creating obligations among the people with whom the manager interacts. In this instance, managers also act as a contact person and his activities include those of writing correspondences, replying customer enquiries, etc. Thus liaison role enables the manager to win support for his/her proposal.



These relate to the manager’s tasks of receiving and communicating information. Managers need information to make quality and informed decisions.

Similarly other people, both within and outside the organisation rely on information received from and / or transmitted through the manager. Mintzberg identifies the following three informational roles that managers have to undertake:-

  1. Monitor: – Managers are constantly and actively seeking for information from both inside and outside the organisation that may be useful to the organisation. They establish a network of contacts through which they get information. In addition they ask subordinates for information where the subordinates are more informed.Where possible, they also obtain information from unsolicited sources. It is because of this role, therefore that managers are often said to be the most informed people in an organisation
  2. Disseminator: – Here managers will be responsible for contributing important information to subordinates. The manager has to make sure that subordinates have all the information to ensure that they carry out their duties efficiently and effectively. This role may also be thought of as a communication role, especially combined with the role of monitor.
  3. Spokesperson: – Managers in this instance are responsible for transmitting information to the outside world. Literally put, managers are said to be the organisation public relations managers (officers). Typical activities include, among other things, replying letters from customers, giving speeches on behalf of the organisation etc.



According to Mintzberg, information is the basic input for managerial decision-making. The following are four decisional roles:-

  1. Entrepreneur: – Managers try to improve performance of their sub-units as if they are the actual entrepreneurs. Examples include situations when managers make decisions that will maximise shareholders’ wealth and add value to the organisation, thus, managers act as entrepreneurs whenever they act in the best interest of the providers of capital. They make decisions that will minimise costs and maximise returns.
  2. Disturbance Handler: – This is the role of problem-solving. In this case the manager is expected to take care of ‘sticky’ situations. Thus the manager is expected to come up with solutions to difficult situations. The role of disturbance handler requires both the analytical and conceptual skills. Good examples of disturbance handlers (which the manager has to deal with) could be industrial actions (strikes), low performance, high employee turnover etc.
  3. Resource Allocator: – The role of the resource allocator entails all the activities that the manager undertakes to minimise revenue and minimise costs. It is primarily concerned with the activities relating to allocating resources (human physical or otherwise) among the organisational members. For instance, a manager is expected to make decisions, say, on the best way of utilising resources such as that the revenue of the organisation reaches the desired targets.
  4. Negotiator: – As negotiators, managers spend a lot of time bargaining for a better deal for their sub-units or for the organisation as a whole.

Typical examples include bargaining with workers for salary increases, bargaining with suppliers for cheaper materials etc. Thus, negotiating requires the application of various managerial skills such as interpersonal, diagnostic, technical, etc





August 2023 Question Three B

Elton Mayo and his team found a way to improve productivity by creating a healthy team spirit environment between workers and supervisors labeling it “Hawthorne Effect”.

In view of the above statement, describe FIVE features of the Hawthorne Experiments.  (10 marks)


The Hawthorne Experiments were a series of studies conducted at Western Electric’s Hawthorne Works plant in Cicero, Illinois, between 1924 and 1932. The studies were led by Elton Mayo and a team of researchers, and they sought to investigate the relationship between working conditions and worker productivity.

The Hawthorne Experiments are famous for the Hawthorne Effect, which is the phenomenon of increased worker productivity in response to increased attention from supervisors or researchers. However, the experiments also revealed a number of other important findings about the nature of work and the relationship between workers and their supervisors.

The important features of the Hawthorne Experiment are:-

  1. Social System Perspective: The Hawthorne Experiments highlighted that a business organization is not solely a techno-economic system but also a social system. It emphasized the importance of considering the social and psychological aspects of the workplace.
  2. Psychological and Social Needs: The experiments revealed that employees are motivated by not only economic incentives but also by psychological and social wants. Human behavior in the workplace is influenced by feelings, emotions, and attitudes.
  3. Cooperative Attitudes: Management should foster cooperative attitudes rather than relying solely on command and control. Building positive relationships and trust with employees is essential for effective management.
  4. Participation and Communication: Participation of employees in decision-making and problem-solving processes is crucial. To achieve participation, an effective two-way communication network is necessary for employees to have their voices heard.
  5. Employee Satisfaction and Productivity: The experiments established a link between employee satisfaction and productivity. Management should take a keen interest in ensuring that employees are satisfied and motivated, as this contributes to higher output.
  6. Group Psychology: Group dynamics and psychology within informal workgroups play a significant role in a business organization. Recognizing the importance of informal group effort is essential for effective management.
  7. Morale and Productivity: The neo-classical theory of management, influenced by the Hawthorne Experiments, emphasized that employees are not merely machines but have emotional and psychological needs. High employee morale is seen as a key factor in achieving higher productivity.



August 2023 Question Five A

Max Weber’s model of bureaucracy is based on legitimate and formal system of authority.

With reference to the above statement, summarise FIVE characteristics of bureaucratic organisations.      (5 marks)



Characteristics of bureaucratic organizations based on Max Weber’s model of bureaucracy:

  1. Hierarchy of authority: There is a clear chain of command in a bureaucratic organization, with each level of authority having power over those below it. Example: A company’s CEO might have authority over the CFO, who might have authority over the accounting manager, who might have authority over the accountants.
  2. Division of labor: Employees in a bureaucratic organization are specialized in specific tasks. This allows them to become more efficient and productive. Example: One employee might be responsible for answering customer calls, while another employee is responsible for processing orders, and another employee is responsible for shipping products.
  3. Formal Rules and regulations: Bureaucratic organizations have a set of rules and regulations that govern the behavior of employees. These rules and regulations are designed to ensure that work is performed in a consistent and efficient manner. Example: A company might have rules and regulations about employee dress code, attendance, and behavior.
  4. Impersonality: Bureaucratic organizations are impersonal in the sense that they treat all employees equally and fairly, regardless of their personal characteristics. Example: A company might have a policy of promoting employees based on their performance, regardless of their race, gender, or religion.
  5. Meritocracy: Bureaucratic organizations promote employees based on their merit, rather than on their personal connections or other factors. Example: A company might have a policy of hiring employees based on their skills and experience, regardless of their connections or other factors.



April 2023 Question Five B

Discuss FIVE techniques of scientific Management as proposed by Fredrick Taylor. (10 marks)


Techniques of scientific management as proposed by Frederick Taylor:

  1. Functional Foremanship: Taylor believed that to improve operational activities, it is necessary to have tactical skills, intelligence, knowledge, education, energy, leadership, honesty, and good health. He knew that it is difficult for an individual to possess all these skills at a time. Therefore, he divided managerial activities into two parts, i.e., planning and production. Moreover, he suggested obtaining four clerks under each in charge who hold expertise in their respective areas so that charges are not overburdened.
  2. Work-study: The work-study was proposed to analyse the details of human work and investigate various factors like time study, motion study, fatigue study, and method study.
  3. Standardisation of tools and Equipment: Taylor suggested improving the standardisation of tools and couplings to reduce production costs and enhance material quality in the production process.
  4. Scientific task setting: Taylor felt the need to introduce a scientific task setting to decide a payday’s work for a worker. Eventually, the method can help prevent the workers from performing functions, not in their capacity.
  5. The scientific setting of wage rates: Fedrick Winslow Taylor suggested fixing workers’ wages to produce the standard output. Therefore, he gave an idea to introduce a different piece wage system.
  6. Scientific selection and training: A systematic selection procedure should be done so that the organisation can get its potential workers. It includes the employee’s selection, training, experience, and efficiency.
  7. Differential piece-rate plan: The different piece-rate plan was suggested to attract the workers to contribute to the organisation. Taylor suggested paying wages to the workers based on their capability and the amount of production done daily.



April 2022 Question Two A

Highlight six characteristics of a systems approach theory of management.    (6 marks)


Characteristics of a systems approach theory of management

  1. A system consists of interacting elements. It is set of inter-related and inter-dependent parts arranged in a manner that produces a unified whole.
  2. The various sub-systems should be studied in their inter-relationships rather, than in isolation from each other.
  3. An organisational system has a boundary that determines which parts are internal and which are external.
  4. A system does not exist in a vacuum. It receives information, material and energy from other systems as inputs. These inputs undergo a transformation process within a system and leave the system as output to other systems.
  5. An organisation is a dynamic system as it is responsive to its environment. It is vulnerable to change in its environment.

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