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CIMA E2 Managing Performance Exam Practice Test

Demo: 31 questions
Total 185 questions

Managing Performance Questions and Answers

Question 1

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 2

Which type of culture, according to Charles Handy, is identified by an individual's tasks being clearly defined and their power coming from their position in the hierarchy? 

Options:

A.

Power Culture

B.

Task Culture

C.

Role Culture

D.

Person Culture

Question 3

A project team is engaged in a risk assessment process prior to the execution of a major project. One risk is assessed to be of low impact but medium likelihood (probability). In these circumstances the appropriate response is:

Options:

A.

Accept the risk, but monitor closely

B.

Negotiate the transfer of the risk to a third party

C.

Accept (tolerate) the risk without further action

D.

Take immediate steps to terminate the risk

Question 4

The task of C the project manager and his management team is to implement a new examination system. The success of the project depends on the expertise, skill and commitment of both C's project team and that of examiners contracted to produce examination material in a radically new format.

Which of the following leadership styles should C adopt in order to gain maximum commitment from both his project team and from the examiners contracted to produce the new examination material?

Options:

A.

Exploitative authoritative

B.

Benevolent authoritative

C.

Consultative

D.

Participative

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

The means by which competitive advantage might be gained differs, depending on whether a resource based approach or a positioning approach is adopted.

 

Which of the following options characterises the resource based approach?

 

Select ALL that apply:

Options:

A.

Superior profitability depends on the firm's possession of unique resources.

B.

Super normal profits result from either cost leadership, differentiation or focus.

C.

Competitive advantage derives from a firm's position in relation to its competitors, customers and stakeholders.

D.

Competitive advantage stems from some valuable asset or competence possessed by the firm.

E.

Organisations need to ensure they are continually monitoring the market place to make sure that their core competences are still valid.

Question 7

There are several techniques that can be used when planning a project. Which of the following best describes a Work Breakdown Structure?

Options:

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 8

According to Belbin, winning teams display which THREE of the following characteristics?

Options:

A.

A good range of mental ability spread across the team

B.

Individuals with no clearly defined role profile

C.

A match between team roles and personal attributes

D.

Abiltiy to compensate for role imbalances

E.

Individual members who are each able to fulfill all of Belbin's roles

Question 9

FF Ltd was established three years ago. Since then the company, which provides online financial advice, has experienced rapid growth and the management team has not really had the time to put management systems and procedures into place.

 

The organisation has asked you to look at the way in which the company deals with its disciplinary problems and procedures.

 

Choose from the following ALL that apply as recommended guidelines for drawing up a disciplinary procedure:

Options:

A.

Procedures should be written down to avoid misunderstandings.

B.

Staff should be provided with a copy of the procedures and relevant sections of the policy made clear.

C.

Discipline is all about punishment and it should state this in the policy document.

D.

Disciplinary procedures should consist of having informal chats outside of the organisation.

E.

Steps should be detailed to investigate complaints that might lead to legal action.

F.

Appeals procedures should be given as and when required as a last resort.

Question 10

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 11

Bob is the Finance Director of a manufacturing business selling luggage sucn as suitcases. He decides to undertake a business process re-engineering of the credit control function in order to achieve dramatic

improvements.

What wouldn't be classed as the main improvements bob expects to deliver?

Select ALL that apply.

Options:

A.

To change the culture of the team

B.

To improve security of information

C.

To automate the credit control process to reduce costs

D.

To improve the speed of the process to improve efficiency

E.

To reduce errors in credit control and produce more accurate information

F.

To do this in line with new sophisticated information systems

G.

To improve the motivation of the team

Question 12

P is an experienced engineer and project manager that has just been appointed to manage a complex multi-million pound engineering project. It is the start-up stage of the project and nothing at all has been done so far except for the design work. No other team members have been appointed.

 

P decides to start by firstly decomposing the full scope of the project into a hierarchy of work packages.

 

Secondly P intends to create a structure showing the reporting relationships and communications channels for the entire project team.

 

Thirdly, P  plans to embark on a systematic process of identifying all the individual elements that comprise the total cost of the project in order to calculate a bottom-up budget.

 

Select the structures that P will adopt in the correct order.

Options:

A.

Work Breakdown Structure / Organisation Breakdown Structure / Cost Breakdown Structure

B.

Organisation Breakdown Structure / Work Breakdown Structure / Cost Breakdown Structure

C.

Organisation Breakdown Structure / Cost Breakdown Structure / Work Breakdown Structure

D.

Work Breakdown Structure / Cost Breakdown Structure / Responsibility Assignment Matrix

Question 13

The scientific management theory of management suffers from a number of problems. Which THREE of the following apply?

Options:

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 14

 

Examine the network diagram shown and identify ALL of the statements below that are true.

Options:

A.

Task C is a predecessor of E

B.

Task G may begin when either Task B or Task F have finished

C.

When Task A is complete, three tasks may begin

D.

Task D is a successor to F

Question 15

Which TWO of the following are soft elements of culture highlighted in the McKinsey 7-S Model?

Options:

A.

Shared Values

B.

Strategy

C.

Systems

D.

Staff

Question 16

A leader of a new project at a marketing agency believes that good leadership requires focus on both the task needs and individual needs.

Based on Adair's action-centered leadership theory, which of the following skills is the leader less likely to have due to this?

Select ALL that apply.

Options:

A.

Setting performance standards

B.

Checking performance against plan

C.

Controlling quality of work

D.

Training and mentoring

E.

Building team spirit

F.

Ensuring communication within group

Question 17

According to Kotter's process of change, what is the purpose of building a guiding coalition?

Options:

A.

To give the change direction and focus.

B.

To ensure all key stakeholders are brought into the process.

C.

To communicate the long-term vision and strategy.

D.

To enable actions by removing barriers.

E.

To cement the change in the culture of the organisation.

F.

To generate short-term wins.

Question 18

The role of the project sponsor involves which THREE of the following?

Options:

A.

Provides resources for the project and is responsible for the budget.

B.

Ensures project objectives are achieved.

C.

Provides support and senior management commitment to the project.

D.

Initiates the project and ensures that a business case exists to justify the project.

E.

Makes decisions relating to system resources.

Question 19

From the following options, choose the appropriate ways of overcoming barriers in the communication process, from the perspective of the sender.

 

Select ALL that apply.

Options:

A.

Ask questions

B.

Give feedback

C.

Have a definite, clear objective

D.

Consider their contribution

E.

Plan the communication

F.

Seek feedback

Question 20

Which THREE of the following are advantages of empowerment?

Options:

A.

It reduces operational costs by eliminating unnecessary layers of management.

B.

It requires a clear vision and a learning environment for both management and employees.

C.

It helps generate innovative solutions that benefit both the department and the company.

D.

It requires feedback on performance from a variety of sources.

E.

It provides for greater job satisfaction, motivation and commitment.

Question 21

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 22

Which of the following are examples of problems associated with group working?

 

(i) The Abilene paradox

(ii) Synergy

(iii) Risky Shift

(iv) Groupthink

(v) Conformity

Options:

A.

All of the above

B.

(i), (iii), (iv) and (v)

C.

(i), (ii), (iii) and (iv)

D.

(ii), (iii), (iv) and (v)

Question 23

According to Hofstede (1990) a company that values tradition, education and training is said to have which of the following cultural dimensions?

Options:

A.

Collectivism

B.

Feminine orientation

C.

Long term orientation

D.

Low power distance

Question 24

Which TWO of the planning tools listed below show the minimum completion time of a project?

Options:

A.

Gantt Charts

B.

Resource Histograms

C.

Network Diagrams

D.

Milestones

Question 25

Japanese team working based on the Japanese production model, and widely copied around the world, possesses which THREE of the following characteristics?

Options:

A.

Assignment of tasks to work units rather than individual workers.

B.

Established to solve non-conventional problems.

C.

Composed of multiskiiled workers.

D.

Normally temporary and depend on the demands of new projects.

E.

Supervisors' roles seen as models for workers and act as a buffer between labour and management.

Question 26

Which of the following best describes the resource based view of strategy?

Options:

A.

Carrying out a SWOT analysis to set strategy.

B.

Recognising that competitive advantage stems from some unique asset or competence possessed by the organisation.

C.

Recognising competitive advantage stems from scanning the environment.

D.

Setting a strategy by creating the conditions for new ideas to flourish.

Question 27

Organisational change can be promoted by many different triggers. Which THREE of the following are external triggers of change?

Options:

A.

Activities and innovations of competitors

B.

Appointment of new chief executive officer

C.

Shifts in local, national and international politics

D.

New legislation and government policies

E.

Factory relocation to be closer to suppliers and markets

Question 28

A large multinational organisation, with financial processing centres in several countries in which it operates, has chosen to consolidate these activities on one site or, in other words, into a Shared Service Centre (SSC).

 

Which THREE of the following are drawbacks of an SSC?

Options:

A.

Business relationships are weaker. The SSC may not be able to build strong relationships with the business area, which may result in a deterioration of performance in the business area.

B.

The accountants can feel isolated within the business and may develop their own ways of working which may not constitute best practice. Without a larger team around them, they may not be able to develop the acquired skills and knowledge.

C.

It distances the accountants from everyday decision-making in that he/she will be unlikely to have day to day contact with the business area which the SSC supports. The outcome may be that the accountant is unable to provide up-to-date information for decision-making.

D.

Loss of business knowledge as the finance function within the SSC may not have a detailed knowledge of each part of the business.

E.

Lack of knowledge may occur because there is less sharing of knowledge which can be achieved within a larger more diverse team. Best practice may not be employed and practices within some business areas may become outdated.

Question 29

P is a chartered management accountant working for a large project engineering company. P's functional superior is the Chief Management Accountant.

 

However for about two thirds of the time available, P is seconded to work with various project teams on a concurrent basis under a matrix organisation structure. This has turned out to be a demanding job role for P, with a number of disadvantages.

 

Select ALL the disadvantages that apply.

Options:

A.

Tensions arise between the priorities of the projects and the functional department.

B.

Building close relationships with functional colleagues may be inhibited.

C.

Flexible project commitments might lead to an unstable work pattern.

D.

Training and development opportunities might be missed due to project commitments.

E.

Exposure to project management skills beyond management accountancy.

F.

Developing close relationships with other discipline specialists.

Question 30

A publishing business prints thousands of books every week. The Managing Director employed Taylor's Principles of Scientific Management in order to run the business efficiently. Which of the following would not have

been initiatives he would have introduced into the business?

Select ALL that apply.

Options:

A.

There was a focus on rewarding teams on each of the print presses for good performance

B.

Jobs were re-allocated on a monthly basis to maintain motivation

C.

Procedures were quickly adapted for flexibility when volumes increased

D.

All roles on the printing presses were analysed and the optimum method of working identified

E.

The employees on the production line were selected based on their physical capability to operate heavy print presses

F.

The managers spent most of their time planning the production to make it as efficient as possible

G.

Workers on the print presses followed the set procedures so need little supervisions

Question 31

Max is a quiet member of staff who likes to receive all the details before making decisions in the workplace.

 

He is very satisfied with the way he works currently and is reluctant to change the way he works when you suggest implementing a new system to deal with enquiries. These changes form a major part of his work allocation.

 

Which would be the most appropriate methods to deal with any resistance to change you may experience from Max?

 

Select ALL that apply.

Options:

A.

Coercion

B.

Manipulation / Co-optation

C.

Participation / involvement

D.

Education

E.

Facilitation / support

F.

Negotiation / agreement

Demo: 31 questions
Total 185 questions