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CIMA CIMA-E2 - Questions & Answers

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Question 1
Multiple choice

The scientific management theory of management suffers from a number of problems.

Which THREE of the following apply?

A.

Because under scientific management employees are trained to do just one part of a job they can become bored, motivation declines and labour turnover increases.

B.

Managers may find that as the organisation grows in size there are increasing demands on their time and that it is therefore necessary to employ others to undertake supervision of day to day tasks.

C.

The approach assumes that people are only motivated by money but the evidence is that people are motivated by other things such as job satisfaction and a sense of achievement.

D.

This appoach depends on employees strong identification with management goals but this can sometimes be difficult to achieve.

E.

The approach leads to quality problems because the use of monetary incentives can lead employees to rush their work and be less careful in the completion of their tasks.

Question 2
Single choice

Which of the following statements does NOT help characterise Quinn's notion of logical incrementalism?

A.

The alternative to having a long-term strategic plan is not having a plan at all, or having a series of short-term plans as a replacement.

B.

Generally managers know where they want to go and initially work out a few integrating principles that help guide the company's overall actions.

C.

Strategy is a step by step learning process which proceeds from early generalities toward later specifics, clarifying the strategy as events permit and dictate.

D.

Managers consciously keep their decisions small and flexible. In the early stages they avoid precise statements that might impair their flexibility to seize new opportunities.

Question 3
Single choice

Under UK law, the case of constructive dismissal occurs in which of the following situations?

A.

Because the role of the employee has become redundant.

B.

Because of resignation by the employee due to the conduct of the employer.

C.

Because of a reason related to the employee's capability or qualifications.

D.

Because a statutory duty or restriction prohibited the employment being continued.

Question 4
Single choice

An organisation manufacturing cosmetics was set up five years ago and has since grown considerably.

The organisation did not have clear strategies and as such any approaches emerged. The directors feel a
new way to strategy setting would be more appropriate; one that could offer a more thorough, intended,
deliberate approach.

Which of the following is a suitable approach to developing strategy for this organisation?

A.

Rational Strategy

B.

Resource based strategy

C.

Emergent strategy

D.

Shareholder strategy

Question 5
Single choice

JJ is the project manager implementing a new software system in the customer services department of a large manufacturing organisation.

As part of the new ways of working, JJ is introducing changes to the working hours of the customer services team.

The customer services team is not happy with the changes and is complaining that it does not report to JJ, so why should it have to adapt its working hours.

This is an example of:

A.

Triggers for change

B.

Resistance to change

C.

Tolerance of change

D.

Acceptance of change

Question 6
Single choice

There are several techniques that can be used when planning a project.

Which of the following best describes a Work Breakdown Structure?

A.

A technique which can be used with critical path analysis to deal with uncertainties and risk within the project.

B.

A set of documents identifying each stage and task to be performed during development, defining a hierarchy of work prior to the allocation of tasks.

C.

A method of scheduling tasks using a chart on which bars represents the relative length of the task.

D.

A technique to arrange activities required to achieve the project objective, agreeing the objectives and determining exactly the project aims.

Question 7
Multiple choice

Which THREE of the following are benefits of having strong discipline and grievance procedures in place?

A.

Cost savings due to legal costs being avoided.

B.

Staff have higher morale and are more motivated.

C.

Any staff who don't perform as required can be dismissed without risk of legal action.

D.

Company meets its legal requirements.

Question 8
Single choice

During the early part of the twenty first century, B enjoyed considerable success by providing a large

selection of popular movies to rent on DVD, from convenient high street retail stores. Unfortunately, B was slow to adapt to the switch from "bricks" (i.e. stores) to "clicks" (i.e. internet-based services) and was rapidly overtaken by D and other internet-based movie services.

This is an example of a firm that enjoyed considerable success in the past, responds too slowly to changes in the external environment and perseveres for too long with the strategy that once served it very well.

Which of the following best defines this practice?

A.

Strategic drift

B.

Strategic stretch

C.

Transformational change

D.

Deliberate strategy

Question 9
Single choice

An organisation undertakes a planned strategy and it is currently at the stage of completing a strategic analysis.

It has defined what it is seeking to achieve, identified the strengths and weaknesses of the company and has undertaken a corporate appraisal.

What stage of its strategic analysis has the organisation failed to carry out?

A.

An external analysis of the business's environment

B.

Identification of strategic options

C.

Identification of functional policies

D.

Making strategic choices

Question 10
Single choice

A major innovation has occurred in the automotive industry. Wheels are now available which are guaranteed to not wear for at least five years.

Ben runs a chain of garages that sell new and second hand parts for cars, buses, trains and planes. His competitors are slow to react to the new innovation so Ben decides to follow an emergent approach to strategy.

Which of the following actions is Ben likely to take?

Select ALL that apply.

A.

Ben changes his original business plan and responds to the innovation by stocking the new wheels in his garages.

B.

Ben undertakes an analysis of the automotive industry before making a decision on whether to invest in the new wheels.

C.

Ben immediately purchases all the wheels available and then generates a plan to market them.

D.

Ben decides to purchase 100 units of the new wheels and will closely monitor how many of these sell.

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