MNO2602
May June Portfolio Exam 2026
Unique number:
Due date: 26 May 2026
QUESTION 1
1.1 Social environment of a globalising organisation
The social environment refers to the human and cultural setting in which a globalising
organisation operates. When a business enters another country, it must understand local
language, business manners, customer buying habits, communication styles and social
expectations. A product or service that works well in South Africa may need changes in
another country because people may value quality, time, service and trust differently. This
means managers must adjust quality decisions to fit the local society. (Dirkse Van
Schalkwyk and Hammann 2019)
1.2 Difference between prevention, appraisal and failure costs
Prevention costs are the costs a business carries before mistakes happen. These costs
include training, planning, better design and process improvement so that defects are
avoided early. Appraisal costs arise when the business checks whether quality requirements
, QUESTION 1
1.1 Social environment of a globalising organisation
The social environment refers to the human and cultural setting in which a
globalising organisation operates. When a business enters another country, it must
understand local language, business manners, customer buying habits,
communication styles and social expectations. A product or service that works well in
South Africa may need changes in another country because people may value
quality, time, service and trust differently. This means managers must adjust quality
decisions to fit the local society. (Dirkse Van Schalkwyk and Hammann 2019)
1.2 Difference between prevention, appraisal and failure costs
Prevention costs are the costs a business carries before mistakes happen. These
costs include training, planning, better design and process improvement so that
defects are avoided early. Appraisal costs arise when the business checks whether
quality requirements are being met, for example through inspection, testing and
measurement. Failure costs happen when quality has already failed. Internal failure
costs arise before the product reaches the customer, while external failure costs
arise after the customer has received the product or service. External failures are
usually more serious because they can damage trust, reputation and future sales.
(Dirkse Van Schalkwyk and Hammann 2019)
1.3 Forms of power in leadership
Leadership depends on influence, but that influence should not only sit with the
leader. Shared power helps followers feel trusted and able to contribute to quality
improvement. Expert power comes from knowledge, skill or experience that others
respect. Reward power exists where a leader can give benefits, recognition or better
opportunities for good performance. Coercive power is based on the ability to
discipline or punish people who do not follow rules. Referent power comes from
personal attraction, respect or the leader’s ability to inspire loyalty. Legitimate power
comes from the official position held by the leader. In quality management, the most
useful power is not fear based. It is power that helps employees speak, solve
problems and support shared goals. (Dirkse Van Schalkwyk and Hammann 2019)
May June Portfolio Exam 2026
Unique number:
Due date: 26 May 2026
QUESTION 1
1.1 Social environment of a globalising organisation
The social environment refers to the human and cultural setting in which a globalising
organisation operates. When a business enters another country, it must understand local
language, business manners, customer buying habits, communication styles and social
expectations. A product or service that works well in South Africa may need changes in
another country because people may value quality, time, service and trust differently. This
means managers must adjust quality decisions to fit the local society. (Dirkse Van
Schalkwyk and Hammann 2019)
1.2 Difference between prevention, appraisal and failure costs
Prevention costs are the costs a business carries before mistakes happen. These costs
include training, planning, better design and process improvement so that defects are
avoided early. Appraisal costs arise when the business checks whether quality requirements
, QUESTION 1
1.1 Social environment of a globalising organisation
The social environment refers to the human and cultural setting in which a
globalising organisation operates. When a business enters another country, it must
understand local language, business manners, customer buying habits,
communication styles and social expectations. A product or service that works well in
South Africa may need changes in another country because people may value
quality, time, service and trust differently. This means managers must adjust quality
decisions to fit the local society. (Dirkse Van Schalkwyk and Hammann 2019)
1.2 Difference between prevention, appraisal and failure costs
Prevention costs are the costs a business carries before mistakes happen. These
costs include training, planning, better design and process improvement so that
defects are avoided early. Appraisal costs arise when the business checks whether
quality requirements are being met, for example through inspection, testing and
measurement. Failure costs happen when quality has already failed. Internal failure
costs arise before the product reaches the customer, while external failure costs
arise after the customer has received the product or service. External failures are
usually more serious because they can damage trust, reputation and future sales.
(Dirkse Van Schalkwyk and Hammann 2019)
1.3 Forms of power in leadership
Leadership depends on influence, but that influence should not only sit with the
leader. Shared power helps followers feel trusted and able to contribute to quality
improvement. Expert power comes from knowledge, skill or experience that others
respect. Reward power exists where a leader can give benefits, recognition or better
opportunities for good performance. Coercive power is based on the ability to
discipline or punish people who do not follow rules. Referent power comes from
personal attraction, respect or the leader’s ability to inspire loyalty. Legitimate power
comes from the official position held by the leader. In quality management, the most
useful power is not fear based. It is power that helps employees speak, solve
problems and support shared goals. (Dirkse Van Schalkwyk and Hammann 2019)
