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CIMA E2 Dumps

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Total 185 questions

Managing Performance Questions and Answers

Question 1

Which of the models below identifies triggers for change from the macro environment?

Options:

A.

Michael Porter's Five Forces

B.

Michael Porter's Diamond

C.

LoNGPEST

D.

Ansoff's Growth Matrix

Question 2

The advantages of effective delegation include which THREE of the following?

Options:

A.

Workloads of managers are reduced with subsequent reduction in stress.

B.

The aspiration through eventual promotion of subordinates who accept delegated duties must be met.

C.

Managers are left free to carry out non-routine tasks while passing on more routine tasks to subordinates.

D.

Training of subordinates is assisted by the delegation of tasks and is thus a very effective method of training.

E.

Effective delegation can be achieved by assigning agreed tasks, specifying performance levels and ensuring they are understood.

Question 3

Which THREE of the following would be considered as reasonable expectations of the mentoring process, for the mentee?

Options:

A.

Career enhancement

B.

Solving all problems

C.

Support with new challenges

D.

Discipline would be dispensed if they make a mistake

E.

Personal development

Question 4

The difference between the latest event time and the earliest event time in a project network analysis is referred to as:

Options:

A.

Critical Activity

B.

Float

C.

Critical Path

D.

Node

Question 5

Porter's Diamond model suggests that there are four factors which determine national competitive advantage.  The four are listed below. Which has the incorrect definition?

Options:

A.

Factor conditions: includes the availability of raw materials and suitable infrastructure.

B.

Firm strategy, structure and rivalry: if the home market is very competitive, a company is more likely to be world class.

C.

Demand conditions: the goods and services have to be demanded internationally.

D.

Related and supporting industries: these allow easy access to components and knowledge sharing.

Question 6

F Company is an international fast food company and is committed to the rational model for strategy.

 

A senior team has carried out a comprehensive study of the environment in which it currently operates, its resources, distinctive competences and a corporate appraisal. The mission and objectives have been set in accord with stakeholder directives, which are based on twin objectives to grow profits by 5% year on year and become one of the top 100 global brands.

 

The team has generated a short-list of different strategic initiatives which it believes may deliver the primary objectives required by the stakeholders. Each initiative has been examined separately on its merits in terms of feasibility, suitablity and acceptablity. As many factors as possible have been taken into account such as market analysis, economic growth and competitors.

 

In terms of the rational model, select the actions that the company has now carried out:

Options:

A.

Strategic analysis / options generation / options evaluation

B.

Strategy selection / options evaluation / implementation of strategy

C.

Strategy selection / options generation / strategic choice

D.

Strategic analysis / options evaluation / implementation of strategy

Question 7

The purpose of PEST analysis is described by which of the following?

Options:

A.

To examine the competitive forces at work in the industry.

B.

To determine the strengths and weaknesses of the organisation.

C.

To assess the power of the internal stakeholders.

D.

To assess the threats and opportunities posed by the wider environmental forces.

Question 8

GG, the new CEO in an organisation, was surprised to find out that the company does not undertake competitor analysis. He was told that, as the organisation operates in a very dynamic market,  things change too quickly to make analysis worthwhile.

 

Choose from the following the option that presents why competitor analysis is important.

Options:

A.

It allows the organisation to use the budget that the Marketing Department has been allocated so it doesn't lose it in the future.

B.

It is an activity that satisfies the senior managers' requests.

C.

If competitor analysis is not undertaken a new competitor could have entered the market and could reduce the sales of the organisation.

D.

It can help the company to market its products.

Question 9

A company is currently at the stage of organising the data which is captured within the big data process. What will they need to do next in order to complete all stages?

Select ALL that apply.

Options:

A.

The data will need interpreting, so it can be used to answer questions and help illustrate results

B.

The data will need to be illustrated in a clear and digestible format

C.

A search system will need to be implemented in order to search across the vast data landscape

D.

Data must be shared, allowing the relevant people access to the information produced

E.

The type of data needed will be identified and proxosion made for recording it

F.

Proxosion needs to be made to retain the vast amounts of information the big data process produces

Question 10

What event occurs between the second and third stages of Gido and Clement's Project Life Cycle?

Options:

A.

An agreement to proceed with the project is made

B.

A request for a proposal is made

C.

Several solutions are proposed

D.

The identification that there is a need a project

E.

A feasibility study is undertaken

F.

Project objectives are identified

Question 11

Which THREE of the following are determinants of national competitive advantage outlined in Porter's Diamond?

Options:

A.

Demand Conditions

B.

Factor Conditions

C.

Related and Competitive Industries

D.

Firm, Strategy, Structure and Rivalry

E.

Firm Infrastructure

F.

Technology Development

Question 12

Which of the following statements are not true about Gantt Charts, Resource Histograms and Work Breakdown Structures?

Select ALL that apply.

Options:

A.

Critical activities can be identified using Gantt Charts

B.

A Work Breakdown Structure will help to produce a clear list of individual tasks involved to complete each project element

C.

Statement of Work (SOW) outlines the objectives against which Work Packages must be measured

D.

Work Breakdown Structures cannot be used to determine resource requirements

E.

Gantt Charts clearly identify key activities that must be completed before others begin

F.

Resource Histograms are particularly useful where there are complicated resources to manage

G.

Resource Histograms graphically show the resources required over the term of the project

Question 13

The type of culture typified in an organisation where there is a clear hierarchical structure, formalised rules for decision making and clearly defined jobs is called a  

Options:

A.

Task Culture

B.

Person Culture

C.

Power Culture

D.

Role Culture

Question 14

Which of the following best describes generic competitors?

Options:

A.

Competitors which compete for the same income as the company.

B.

Competitors which compete with products which, although technically quite different, satisfy the same needs.

C.

Competitors which have similar goods but not necessarily the same size or structure organisation.

D.

Competitors which have similar size and structure and offer similar products to the same customers. 

Question 15

A building project for developing new homes to customers' own specification is behind schedule and will incur penalty payments if the next milestone is not achieved on time.

 

Which of the following strategies would be appropriate in order to get the project back on track and that will not compromise customer satisfaction and could still minimse the overall cost of development?

 

Select All that apply.

Options:

A.

Motivate labour resources to work smarter.

B.

Identify activities that are not adding value.

C.

Reduce the specification for the project build.

D.

Consider increasing the number of builders working on the project each day.

Question 16

Which term best describes the structure where the finance function is carried out by an external party?

Options:

A.

Internal outsourcing

B.

Business process outsourcing

C.

Shared service centre

D.

Embedded function

Question 17

The manager of Company A has decided to upgrade the IT systems in 18 months time. Although the employees understand the need and benefits from the change there is still some resistance from fear of the unknown and a question mark over the security of their jobs.

 

Which TWO of the methods below for dealing with change are most appropriate under these circumstances?

Options:

A.

Coercion

B.

Education and communication

C.

Facilitation and support

D.

Participation

Question 18

Staff in Company A are sceptical that the new IT system being purchased will be properly implemented.

 

Which of the change management options below should management use to break down the resistance against the new system?

Options:

A.

Coercion

B.

Participation

C.

Manipulation

D.

Facilitation

Question 19

Which of the following initiatives and schemes should be undertaken as a formal project?

 

Select ALL that apply.

Options:

A.

A head office relocation for an insurance company, involving the move to a new office for 250 staff.

B.

A long term health initiative which will put in place procedures to immunize every child in a country as they reach the age of three.

C.

Managing a national political campaign prior to an election.

D.

The design and launch of a new online order service for a global manufacturing company.

E.

A boat building company building motor yachts for a small market, generally building about three per month.

Question 20

The Board of organisation Y has authorised an upgrade to its computerised finance system.

 

The Finance Director, X, has been tasked with managing this project.  X has been requested to consult with stakeholders, in order that a Project Initiation Document (PID) may be produced.

 

What are the TWO main uses of a PID?

Options:

A.

To ensure that the project is broken down into work packages and a Work Breakdown Structure be produced.

B.

To produce a risk assessment of both internal and external risks that are likely to effect the project, and alternative actions to reduce the risks.

C.

To ensure that the project has a complete sound basis before any major commitment to the project.

D.

To act as a base document against which the project can be managed for progress, change management issues, and ongoing viability issues.

Question 21

John is a young management accountant who, after completing his examinations recently, was put in charge of a small established accounts department.

 

At his first progress review with his superior, he was very confident and enthusiastic about numerous initiatives. John expressed disappointment that his staff were so reactionary and uncooperative.

 

It would seem most of the staff reporting to John are dissatisfied about his leadership. The younger ones are frightened of him and they say he his always in a hurry. The older ones who have worked in the department for years are worried about John's risky decisions. Others resent him and are frustrated that John never listens to their ideas.

 

Which behaviour should John adopt to improve motivation in the department?

Options:

A.

John should dismiss the older staff and send the younger staff on training and take on an autocratic style of management.

B.

John should create time for one to ones with his staff and take on a participative style of management. Improving communication with regular briefings.

C.

John should not do anything as he will see things settle down over time and take on a more laissez-faire style of management.

D.

John should hire some external business consultants to overhaul the working practices and find solutions to get the department back on track.

Question 22

W is the supervisor of the house-keeping team in a large hotel. X, a member of the team, is consistently late to work which means that other team members have to perform extra work. A number of team members have also complained to W about X's aggressive behaviour. Two months ago W spoke to X informally about these issues and for a short period things improved.

 

But it is now clear that X is again displaying unacceptable behaviour and upsetting colleagues. W knows further action must now be taken to deal with the situation.

 

With reference to the disciplinary process, which is the best course of action for W to take?

Options:

A.

Write a formal letter to X stating that if the unacceptable behaviour does not stop immediately X will be dismissed without further notice.

B.

Issue a formal verbal warning via a formal interview, with a record of the interview kept on file.

C.

Reduce the paid hours allocated to X as a temporary punishment until the behaviour improves.

D.

Speak to X informally in a private office and ask that X improves their behaviour and apologises to colleagues.

Question 23

Many analysts and researchers have written about understanding resistance in order to bring about successful and enduring changes in an organisation.

 

One writer wrote that "An issue is held in balance by the interaction of two opposing sets of forces - those seeking to promote change (driving forces) and those attempting to maintain the status quo (restraining forces)".

 

Select this writer.

Options:

A.

Kurt Lewin

B.

John Kotter

C.

Rosabeth Kanter

D.

Peter Drucker

Question 24

A manager is introducing a new bonus scheme into the business that will affect ail employees.

Using Likert's model he follows a benevolent authoritative style of management.

Which of the following best describes the way he introduced the new bonus scheme?

Options:

A.

He made the decision to introduce the new scheme and enforced it ctcross the business with no discussion or debate.

B.

He makes the decision to introduce the new scheme and sells the idea to employees in order to get buy-in.

C.

He asks for suggestions on whether to introduce the scheme but makes the final decision

D.

He allows staff to make the decision but offers support and advice.

Question 25

Identify ways in which an orgnisation can undertake qualitative research.

 

Select ALL that apply.

Options:

A.

Conducting a focus group

B.

Carrying out observations

C.

Calculating ratios on sales data

D.

Carrying out interviews

E.

Studying organisations operating statements

Question 26

A low cost airline is operating three flights a day between two industrial cities in neighbouring countries. The cities are 300 km apart and the terrain between the two countries is mostly flat grasslands. The two cities are also linked by motorways and a railway line.

 

At first the airline enjoyed first mover advantage and generated healthy profits for three years. But more recently, the airline is experiencing intense competitive pressures, reduced passenger numbers and lower returns. The airline directors are using Porter's Five Forces framework to analyse the nature and severity of the various competitive forces being experienced.

 

In the context of this model which of the following forces would be considered as a threat of a substitute product or service?

Options:

A.

High speed rail connection between the two cities

B.

National airlines competing in low cost markets

C.

Foreign airline now offering a service on this route

D.

Corporate customers driving down ticket prices

Question 27

After undertaking competitive analysis, a company has assembled the information and is now in a position to benchmark its performance against that of its competitor. A manager has been asked to carry out strategic benchmarking, but he is unsure of what information he should use.

 

Which TWO of the options below could be used to undertake Strategic Benchmarking?

Options:

A.

% Market Share

B.

% return on Non Current Assets

C.

% late deliveries

D.

% sales returns

Question 28

Someone who is assertive and uncooperative is using which conflict handling strategy?

Options:

A.

Competing

B.

Avoiding

C.

Collaborating

D.

Accommodating

Question 29

A project manager is calculating the budget cost of a single project task called "Server Configuration".

 

This task is estimated to last 8 weeks and requires the full-time services of two software consultants, both for the entire duration of the task.

One consultant commands an inclusive rate of $400/day and the other $40/hour based on an eight hour day. Fixed hardware costs of $12,000 have also been estimated for the task.

 

Calculate the total budget cost for the task (ignoring any other resources or costs) - assuming a five day working week.

 

Give your answer as a whole number.

 

The total cost is $    .

Options:

Question 30

Various methods of communication are available, including face to face, by telephone or online.

 

Which THREE of the following interactions are best conducted face to face?

Options:

A.

Discussion of the proposed strategy for the company between its senior managers.

B.

Booking hotel accommodation.

C.

Conducting a training session on how to administer life-saving first aid.

D.

Purchasing a well known brand of printer cartridges.

E.

Arranging the details of a joint venture with a new partner from a foreign country.

Question 31

A Company achieves its competitive advantage by adopting a positioning view to strategy setting.

 

Which TWO of the technical models below are most suited to this approach?

Options:

A.

Michael Porter's Value Chain.

B.

PESTEL analysis.

C.

Michael Porter's Five Forces model.

D.

Resource Audit.

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Total 185 questions