Answers

9J–ENGIX
Paper T5

ACCA Certified Accounting Technician Examination – Paper T5

Managing People and Systems June 2009 Answers

Section A

1 C
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2 A
3 D
4 D
5 B
6 A
7 B
8 D
9 C
10 A
11 B
12 C

Section B

1 Business planning is used to assist individuals and groups within organisations to be effective in working towards the achievement
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of the organisation’s objectives. Planning allows managers to identify the objectives for which they are responsible and how far
they are being successful in achieving those objectives. It is an activity which must take place against the background of the
organisation’s environment and which must take account of the organisation’s internal strengths and weaknesses. Planning
involves decisions about what to do in the future; how to do it; when to do it; and who should do it. These questions are relevant
at all levels of organisational activity. At a strategic level this is about deciding what business the organisation should be in and
what its overall objectives should be. Strategic planning represents a systematic attempt to influence the medium and long-term
future of the business or enterprise by defining the overall company objectives and appraising the major factors within the company
and the environment which might affect the achievement of the objectives. The overall objective of planning at this level is to point
the direction in which an organisation is to move over a fairly lengthy period. Strategic plans should be sufficiently clear to be
evaluated in terms of whether they have been achieved or not, but they are not so specific that they tie the organisation down to
achieving objectives and meeting what could be impossible long-term targets in conditions of uncertainty. At a tactical level this is
about deciding how it should go about achieving its overall objectives: what products or services it should offer and how they will
be marketed, how it will organise work and so on. This is a lower level of planning and is often termed intermediate range planning.
The overall objective of tactical planning is to ensure that resources are obtained and used efficiently and effectively to accomplish
the organisation’s objectives. It includes decisions around organisation structure, financial budgets, staff requirements and product
sales mix. Decisions are usually based on financial analysis and performance reports and summaries of different operations. The
detailed control over each individual operation is exercised at the operation level. At the operational level this is about deciding
what needs to be done from day to day and task to task. This represents the lowest level of planning and involves line managers
and first line supervisors in the setting of specific tasks. Operational planning takes place within the context of broader management
plans. The focus of operational plans is upon individual activities and tasks, for example scheduling individual orders through a
production planning process.

2 One of the main differences between internal and external audit is the overall scope of the audit. The potential scope of an internal
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audit covers the total conduct of business. This includes the examination and evaluation of the adequacy and effectiveness of the
organisation’s governance, its risk management process, systems of internal control structure, and the quality of performance in
carrying out assigned responsibilities to achieve the organisation’s stated goals and objectives. The scope of the external audit is
usually confined to a financial and compliance audit to satisfy the statutory responsibilities of the external auditor, which requires
examination of the accounts and providing an opinion as to whether the financial statements produced provide a ‘true and fair
picture’. Additionally, at their discretion, the directors may commission a Value for Money audit of the administrative and
management operations. Over and above issues of scope, there are three other key differences between internal and external audit.
(a) Appointment. External auditors are appointed by the shareholders (although they are usually only ratifying the directors’
choice) and must be independent of the company, whereas internal auditors are usually employees of the organisation.
(b) Responsibility. External auditors are responsible to the owners (i.e. shareholders, the public, or Parliament in the UK), whereas
internal auditors are responsible to senior management.
(c) Objectives. The objectives for external auditors are defined by statute, whereas those for internal auditors are set by
management. In other words, management decide what parts of the organisation or what systems internal auditors are going
to look at and what type of internal audit should be carried out.

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 3 Henri Fayol classified five functions of management that apply to any organisation. They are planning, organising, commanding,
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co-ordinating and controlling. Planning involves selecting objectives and the strategies, policies, programmes and procedures for
achieving the objectives either for the organisation as a whole or for part of it. Organising is about establishing a structure of tasks
which need to be performed to achieve the goals of the organisation; grouping these tasks into jobs for an individual; creating
groups of jobs within sections and departments: delegating authority to carry out the jobs; and providing systems of information
and communication for the coordination of activities. Commanding is about giving instructions to subordinates to carry out tasks
over which the manager has authority for decisions and responsibility for performance. Coordinating is about harmonising the
activities of individuals and groups within the organisation, who may have different ideas about what their own goals should be.
Management must reconcile differences in approach, effort, interest and timing of these separate individuals and groups.
Controlling is about measuring and correcting the activities of individuals and groups, to ensure that their performance is in
accordance with plans. Deviations from plans are identified and corrected.

4 Conflict is the clash of opposing ‘forces’, including the personalities, interests, opinions or beliefs of individuals and groups. Conflict
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often arises within and between teams, because of a number of factors.

(a) Power and resources are limited (and sometimes scarce) in the organisation. Individuals and groups compete for them, fearing
that the more someone else has, the less there will be to go round.
(b) Individuals and teams have their own goals, interests and priorities – which may be incompatible.
(c) There may be differences and incompatibilities of personality between individuals, resulting in ‘clashes’.
(d) There may be differences and incompatibilities of work methods, timescales and working style so that individuals or teams
frustrate each other with apparent lack of coordination (especially if one person’s task depends on the other’s).
Differences and competition by themselves do not lead directly to conflict, they can be positive forces; however, they can escalate
or deteriorate into destructive conflict if:
(i) There is poor or limited communication: assumptions go unchallenged, misunderstandings are not clarified and feelings are
ignored.
(ii) There is poor coordination: working relationships are not managed or structured and so are subject to interpersonal problems
or unchecked competition.
(iii) There are status barriers: problems in the relationship are glossed over by the superior asserting authority.
(iv) Work demands put pressure on individuals and teams: competition may escalate, feelings may become less manageable
under stress and there may be little time allowed for interpersonal problem solving.

5 (a) Everyone in the organisation has some personal responsibility for health and safety; however managers and supervisors have
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specific roles and responsibilities. Senior managers are responsible for developing and implementing policies and can ensure
that appropriate procedures are in place for carrying out risk assessments and safety audits. Senior management can also
ensure that a coordinated approach to health and safety issues is maintained across the organisation. They also have a duty
to monitor and evaluate health and safety and to take any necessary corrective action. First line supervisors can have a major
influence as they are in immediate control of a situation and are usually in a position to take immediate action. They need to
be vigilant and safety conscious at all times. They are also directly responsible for ensuring that individuals are conscious of
health and safety hazards and do not take unnecessary risks. Supervisors are likely to be responsible for maintaining and
updating any safety manuals and notices in conjunction with HR departments. They should ensure that all employees under
their supervision are aware of things like fire exits and the location of fire extinguishers, safety equipment and of the named
first aider in the area.

(b) There are a number of things that individual employees might do in order to contribute to and promote a healthy, safe and
secure work environment, including the following. (Six only required)
(a) Be alert to potential hazards as they go about their work.
(b) Take responsibility for their own behaviour, in order to protect themselves and others.
(c) Cooperate with the employer’s health and safety measures; read instructions, follow procedures, perform drills etc.
(d) Keep themselves informed about health and safety issues relevant to the workplace.
(e) Undertake regular training as appropriate.
(f) Warn people who may be at immediate risk as a result of hazardous conditions or behaviours (for example if they see
someone about to do something dangerous).
(g) Take steps to minimise any hazards, for example by clearing areas of obstructions.
(h) Take steps to mobilise appropriate response procedures, e.g. by sounding alarms or calling a first aid officer.
(i) Inform appropriate people of hazards and potential hazards and the need for corrective action which might be beyond
the scope of their own authority.
Credit to be given for other valid points – avoiding repetition.

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 ACCA Certified Accounting Technician Examination – Paper T5
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Managing People and Systems June 2009 Marking Scheme

Section A

All 12 questions are worth 2 marks each.

Section B

1 2 marks for a clear and comprehensive explanation of business planning.

4 marks for explaining the key decisions at each one of the 3 levels. 1 mark only to be awarded if the level is identified but there
is no mention of overall objectives or of the types of decisions made.

2 5 marks for a discussion around the scope of internal and external audit. 3 marks each for explaining the differences associated
with appointment, responsibility and objectives.

3 Up to 3 marks for each function clearly explained, up to a maximum of 14 marks. 1 mark only to be awarded if a function is
identified but there is no explanation.

4 2 marks for each source of conflict outlined up to a maximum of 8 marks (1 mark only to be awarded if a source is identified only,
i.e. a simple list presented). 2 marks for each circumstance explained up to a maximum of 6 marks (1 mark only to be awarded
if a circumstance is identified only, i.e. a simple list presented).

5 (a) 7 marks for outlining the role and responsibilities of senior managers and 7 marks for outlining the role and responsibilities
of first line supervisors.

(b) 1 mark for each point listed up to a maximum of 6 marks.

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