E2 Managing Performance (Online) CIMAPRA19-E02-1-ENG Exam Questions

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


2. X is a manufacturing company that has achieved long term success by understanding the structure of its industry, and where necessary changing its strategy in order to achieve improved performance by outperforming its competitors.

Success has depended on the company exploiting the underlying economic factors (such as economies of scale) better than its competitors and maintaining this over time, so achieving sustainable competitive advantage.

Researchers would call this an "outside-in" approach to strategy, with the company choosing a strategy that responds to the challenges and changes posed by the external environment.

Which type of strategy is X adopting?


3. Barney (1991) identified four criteria necessary for a resource to be classed as unique and thus give competitive advantage. One of these is that it shouldn’t be substitutable and another is that it should be rare.

Which TWO of the options below make up the list of four?


4. The concept of core competences is key to successful outsourcing strategy. Organisations should:


5. China, Korea, Japan and Vietnam are high context cultures.

In business relationships in high context cultures, which THREE of the following are typical?


6. H is the owner of a motorcycle dealership in Los Angeles which provides sales, repair and servicing of very large motorcycles, typically with engines larger than 1000cc. Over the years H has built up a renowned team of highly skilled technicians that are experts in this particular size of motorcycle. H believes that their skills are rare and difficult, if not impossible, to imitate by any competitor in the region.

Despite this advantage the company has been suffering from declining profits in the past three years and the marketing consultant has advised H to change the focus of the company towards small 50cc mopeds and scooters – because that "is clearly what the market is now wanting".

The change being proposed is:


7. Which of the following is NOT a benefit of a good audit system?


8. With reference to Herzberg’s motivation-hygiene concept (two-factor theory) relating to employee motivation, which of the following is a correct interpretation of his findings?


9. 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?


10. Mintzberg describes various forms of strategy and labels each form.

Which of the following options contains the correct matching of label with description?


11. Based on the Tuckman model of team development, identify the stage when team relationships should start to harmonise and the team agrees on normal work patterns and the best way to tackle the work ahead of them. Job roles and relationships within the team are also agreed.


12. J has been appointed project manager for a multimillion dollar upgrade to factory computer systems for his international organisation.

The organisation has decided to adopt the PRINCE2 project management methodology, of which J has knowledge from a previous post, but this was some time ago and his knowledge may need updating.

In order to achieve maximum success, J realises he will need to ensure that problems encountered at each phase of the project are used to inform later stages of the project.

Advise J at which stage of the project lessons learned should be recognised and applied to later stages, in order to prevent recurrence during the project:


13. In terms of Porter’s Diamond model, a DEMAND condition as applied to the brewing industry in Germany would be which of the following?


14. There are many implications for an organisation when using PRINCE 2 for managing projects.

Which of the following statements are correct?


15. According to Porter, there are THREE generic strategies through which an organisation can generate superior competitive performance.

These are:


16. Which of the following is the concept whereby a manager has a right to exercise power on behalf the organisation?


17. Many public companies remain committed to the rational approach to strategic decision making believing that the long term advantages outweigh the disadvantages.

Which TWO of the following factors are considered to be advantages of the rational approach?


18. "The ability to exert influence and make someone act according to your own preferences" is the definition of which of the following?


19. The Thomas-Kilmann model suggests five conflict handling strategies.

Which THREE of the following are part of the model?


20. Setting a mission is the first stage of the rational approach to strategy setting.

According to David, which THREE of the following are useful areas to include in an organisation’s mission statement?


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


22. 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?


23. A highly complex IT project is being tackled by a self-managing team of three technical specialists who had never met each other before.

At first they argued constantly for nearly two days over the best way to tackle the work and what technical software tools to use. Finally these issues were resolved, the team went out for dinner together and they agreed how best to share the workload between them.

After this point, the productivity improved dramatically and good work progress was made.

All was going well until two days later when another IT specialist turned up unexpectedly.

This person was far less experienced than the other three.

The new arrival explained that he would be taking over as project manager and immediately started to give explicit orders to the team.

In the context of Tuckman’s team development theory, which interpretation fits the facts of the scenario.


24. Q has been appointed as the Commercial Director of a medium-sized publishing company that is facing strong competitive pressures in difficult trading conditions. Q is surprised to find that the firm is pursuing the formal/rational approach to strategy development.

Q is now preparing a presentation to the Board to change the basis of strategy development to an emergent approach.

Which THREE arguments could Q use in the presentation?


25. James argues that performance appraisal has its roots in three substantiated psychological principles, meaning that people work / learn / achieve more when they are given the opportunities.

Which of the following does NOT apply?


26. Many companies use Critical Path Analysis (CPA) to manage projects.

Which TWO of the options below could be identified from a CPA diagram?


27. 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:


28. A Company is undertaking a project for the first time and has given the Finance Manager the task of managing the project. He has been advised to use PERT, as it will help him with his Critical Path Analysis (CPA).

What information will the calculation using PERT provide the Finance Manager with to use in his CPA?


29. Conflict has heightened between the departments of a textile manufacturer, following a recent decision by the manager of the cloth inspection department to a tightening up of the inspection standards. She insists that the quality of output has to improve if the organisation is to remain competitive.

This has resulted in some staff being idle more frequently and the sight of this idle time has frustrated the management and other employees in the weaving department, due to the direct link between time and bonus payments.

Using the Thomas-Kilman Conflict Mode Instrument, which of the following would be the most appropriate method of resolving the conflict in this situation?


30. 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?


31. Michael Porter identified four determinants of national competitive advantage, one of which is Factor conditions. A company has the following 4 factor conditions.

According to Porter, which will give the company a sustainable competetive advantage?


32. Projects carried out using the PRINCE2 methodology are always set out in a series of distinct and sequential stages.

Which of the following is NOT a valid reason for a planned break between stages?


33. 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:


34. X Company’s Board of Directors uses its expertise to develop future strategies. The Board defines objectives that need to be achieved and then, through formal proactive planning and careful analysis, it selects the most appropriate means to achieve them.

Which method of strategy formulation is the Board using?


35. In the model of the organisational iceberg, which of the following is NOT one of the hidden elements?


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


37. 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?


38. 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?


39. KK manufactures mobile phones and it possesses an inimitable resource in the mobile phone market in which it currently competes.

Which of the following best describes this type of resource?


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


41. 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?


42. The Managing Director of a large golf complex is using Drucker’s five questions to help develop a new strategy.

Which of the following statements does not answer one of Drucker’s questions?


43. V is the owner of a small jewellery business which deals exclusively in pearls. The business has built up an excellent network of suppliers which deliver a steady stream of high quality pearls to its workshops, where a team of highly skilled craftsmen turn basic pearls into items of jewellery. V feels that no other company has such a talented and valuable workforce and believes their skills are rare and difficult if not impossible to imitate. They are the key to the company’s sustainable competitive advantage and success.

What is the approach to strategy which proposes that competitive advantage is achieved from the organisation’s unique assets or competences?


44. Four orthopaedic surgeons in a busy hospital department have very different work habits. Each has their own team of medical technicians who are used to the surgeons’ personal preferences and are very comfortable with their routines; they basically do the same things every day. This way of working has gone on for several years.

When a new administration manager suggested that they train all of the technicians to work with all the surgeons this led to significant resistance from all of the parties involved. The technicians were concerned that they would no longer be able to perform their usual daily tasks.

On the basis of the scenario what would be the main cause of their resistance?


45. Hersey and Blanchard developed a theory of situational leadership which suggested that successful leaders should change their leadership style according to the maturity of the subordinates they are leading. This includes an assessment of their professional ability and their readiness to undertake set tasks.

Based on this theory, which leadership style would be best suited to a subordinate showing the highest levels of maturity, readiness, ability and willingness to tackle the work available?


46. Several researchers have identified strong connections between corporate culture and resistance to organisational change.

Which TWO of the following are likely to be most resistant to organisational change:


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

Which THREE of the following apply?


48. The ability to negotiate is an important management skill.

Which approach to negotiation is less likely to result in future further conflict?


49. Which of the following are classed as part of the move stage of Lewin’s model of change? Select ALL that apply.


50. A company is considering introducing a new product into the market but has been advised to undertake some qualitative research prior to doing this. The marketing manager is uncertain as to what information it will get from this type of research.

Which of the following can be identified by carrying out qualitative research?


51. The new Chief Executive of P Company has recently announced that there will be significant changes made to how the company operates. He has stated that his vision for the company cannot be achieved within the existing organisational paradigm.

Although the changes are significant, due to increased competitive pressures, the Chief Executive has commented that changes will need to be made quickly.

Which of the following types of change will occur in P Company?


52. 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?


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


54. 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.


55. The advantages of embedding the finance function within the business unit include which THREE of the following?


56. Performance appraisal systems are designed to meet a number of objectives.

Which of the following is a positive objective of such a system?


57. X is a Project Manager who works in a matrix organisational structure with an authoritarian leadership style. Team members are seconded on a part-time basis to teams led by X, who will then contribute to their individual performance appraisals at the end of each year.

X requires all team members to follow exactly what he tells them without question because he has the authority to provide negative feedback in their performance appraisals. According to the French and Raven model, select the type of power that X is using in these circumstances.


58. A company, which is heavily reliant on its IT systems, experiences a critical problem affecting its just-in-time processes. The manager recognises an immediate need to change and upgrade systems, which he knows will meet resistance by some long serving staff.

Which of the following would be the most appropriate method for dealing with the resistance at this time?


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



Negotiation is an important skill for managers and their relationships with subordinates, stakeholders and suppliers. The negotiation process can be divided into four disctinct stages.

Place the following stages in the correct order:

61. The PRINCE2 project management methodology has consistent principles governing roles, plans, processes and risks.

Which TWO of the following statements are correct?


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


63. According to Mintzberg, a manager must exhibit which of the following skills in order to create the conditions for new ideas to flourish and strategies to emerge? Select ALL that apply.


64. The organisational iceberg describes which TWO levels at which culture operates?


65. 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.


66. 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


67. Leading and developing a high performing team that has only recently come together is a challenge requiring leaders to prioritise different issues and adopt different styles and tactics at different stages of team development.

At one point the leader will need to:

• confirm personal roles and responsibilities,

• plan the workload and agree working practices,

• ensure all sources of conflict have been resolved, and

• motivate team members to deliver their full potential.

With respect to the Tuckman model of team development, which is the stage where these leadership actions are most appropriate?


68. A large department store currently employs a total of 110 staff, of whom 72 are part-time hourly paid employees. The part-time employees generally work the same number of hours every week and have a stable pattern of work and regular income. During busy periods there is the opportunity for over-time, which is payable at 50% more than the normal hourly rate.

A new chief executive is aware that some part-time staff work much harder than others and intends to address the situation by moving all part-time staff onto zero hours contracts where no paid hours are guaranteed and the personal workload of each employee

is notified in advance each week. Overtime should be eliminated. In return, the basic hourly rate will be increased by 20% and there will be opportunities for promotion and new responsibilities.

News of these changes has caused considerable unrest. The HR Director knows that resistance to change will have to be managed very carefully and is using Lewin’s force field model as the framework for analysis.

Which restraining forces are present in the scenario? Select ALL that apply.


69. Which TWO of the following is the Business Strategy of an organisation mainly concerned with?


70. 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?


71. 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:


72. AW is a newly appointed manager of the accounts department in organizations. Her appointment has been well received by members of the department who recognise AW as a skilled and well qualified accountant.

However, AW has been frustrated by progress in departmental team meetings which tend to be unruly, unproductive and disorganised. AW recognises a need to improve the effectiveness of the meetings.

Which THREE actions should AW take in order to have more effective meetings?


73. The initial Balanced Scorecard design, defined by Kaplan and Norton, used four perspectives (or legs) for management control and the implementation of strategy.

What are the FOUR original perspectives?


74. Which of the following are influential drivers of outsourcing? Select ALL that apply.


75. Which of the following statements relating to negotiation are incorrect? Select ALL that apply.


76. 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.


77. In the UK there is a principles based approach to corporate governance.

Which THREE of the following statements are part of this approach?



Harvey Maylor defined four stages in the life cycle of a project. This became known as the 4D model.

Match the correct stage to each activity.

79. While initiating a project to relocate to a larger site, a company looked at how the project proposal fits with the current set up of the business. The premises are only 20 miles away and it is feasible that the current staff would travel to the new factory to work.

As part of the feasibility considerations, this represents which type of feasibility?


80. A company has a number of Strategic Business Units (SBUs), one of which operates in a market that is experiencing high growth. The SBU has only been in operation for a short while and therefore its market share relative to its competitors is small.

Which of the following is the most appropriate term for the SBU according to the Boston Consulting Group model?


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