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Project and Relationship Management

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Total Questions : 210

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Question # 1

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.

Discussion 0
Question # 2

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.

Options:

A.  

Anxiety about job security

B.  

New system appears less rewarding

C.  

Fear of loss of power or status

D.  

Fresh challenges from new responsibilities

E.  

Improved financial rewards

F.  

Increased promotion opportunities

Discussion 0
Question # 3

Which of the following statements are not true based on Stalk, Evans and Schulman's principles of capability-based competition?

Select ALL that apply.

Options:

A.  

Generating new ideas are core to business success.

B.  

It is the process that is important and not the product or market.

C.  

The business processes create value.

D.  

It is important to invest in skills and processes, not business functions.

E.  

The CEO leads the development of capabilities.

F.  

Capability is developed from internal and external factors.

Discussion 0
Question # 4

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

 

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

Options:

A.  

The activities which need to be completed before the next activity can start.

B.  

The resource usage variance for each activity.

C.  

The activities which can't overrun without delaying the whole project.

D.  

The probable time for each activity.

Discussion 0
Question # 5

A number of managers in an organisation approach change using a variety of techniques. Manager A focuses on staff training. Manager B provides large bonuses for effective project management. Manager C

restructures his team to reduce headcount. Manager D lays out the financial problems in the business and why change is unavoidable. Manager E calls his team together to openly discuss the issues. Manager F calls

for ideas from his team to make the change happen.

Based on Beer and Nohria's change theory, which of these managers can be described as Theory 0 managers?

Select ALL that apply.

Options:

A.  

Manager A

B.  

Manager E

C.  

Manager F

D.  

Manager B

E.  

Manager C

F.  

Manager D

Discussion 0
Question # 6

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.

Discussion 0
Question # 7

For complex projects, Gantt charts have limitations.

Which THREE of the following apply?

Options:

A.  

They do not reveal team problems due to unexpected delays

B.  

They do not help in the coordination of resources and networking requirements

C.  

They do not show the degree of completion for each phase of the project

D.  

They do not provide objective activity times

E.  

They do not allow the calculation of precise completion times

Discussion 0
Question # 8

Harvey Maylor created a project life cycle model based on four discrete and sequential stages. This is known as the 4D model. One of the stages involves the following activities:

 

- Documentation must be completed. Contracts, letters, accounting records etc. must be filed properly.

- Project systems must be closed down, including accounting systems - only after all costs have been settled.

- Handover to the client/end users must take place, and where appropriate obtain sign-off to signify that the contract is complete.

- Review the project to provide project staff with immediate feedback on performance.

 

To which stage of the 4D model do these activities apply?

Options:

A.  

Define the project

B.  

Design the project

C.  

Deliver the project

D.  

Develop the process

Discussion 0
Question # 9

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?

Options:

A.  

Learning and growth

B.  

Internal business

C.  

External issues

D.  

Competitors

E.  

Financial

F.  

Customer

Discussion 0
Question # 10

Which of the following are classed as part of the move stage of Lewin's model of change?

Select ALL that apply.

Options:

A.  

Make sure the process is well managed and co-ordinated

B.  

Ensure details of the changes occurring are communicated effectively

C.  

Make sure everyone is given the necessary skills

D.  

Ask people what their problems are and how they feel the change should proceed

E.  

Focus on the reasons for change so people understand and accept it

F.  

Deal with the issues of individuals to overcome personal concerns and objections

G.  

Develop rewards for indhoduals following the new approaches after the changes

Discussion 0
Question # 11

Kotter and Schlesinger devised a theoretical framework which set out six inter-related approaches to deal with resistance to organisational change.

 

One approach involves management taking a simplistic and authoritarian approach by instructing staff to comply with changes. This compulsory method is derived from the formal authority that senior management possesses. Senior managers often have the right to do this based on employment laws and regulations.

 

Select this type of approach as identified by Kotter and Schlesinger.

Options:

A.  

Power/coercion

B.  

Participation

C.  

Education and communication

D.  

Manipulation and co-optation

Discussion 0
Question # 12

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

Discussion 0
Question # 13

As part of a project to refurbish a large hotel chain, the wiring of the computer network was subcontracted to a specialist IT organisation. In relation to managing risk in the project this approach can be referred to as:

Options:

A.  

Reduce

B.  

Avoid

C.  

Transfer

D.  

Accept

Discussion 0
Question # 14

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.

Discussion 0
Question # 15

Drawbacks of the formal top-down approach to strategy include which THREE of the following?

Options:

A.  

It is too infrequent, typically every three to five years, to allow the business to adapt to changes in the business environment.

B.  

Even when a firm is involved in a range of industries and has a unique core competence, there is no guarantee of competitive advantage against more focused players.

C.  

The approach assumes that the strategist is able to make reliable assumptions about the future but as critics point out, this is not always possible.

D.  

Organisations need to be continuously monitoring their marketplace to ensure that their core competences are still providing a competitive advantage.

E.  

The formality of the approach constrains the development of radical innovative strategies. 

Discussion 0
Question # 16

A large firm of chartered accountants decide to outsource all its IT and network support services to a specialist IT service provider based in a neighbouring town. From the list below, which are potential outcomes to the firm as a result of this decision?

 

Select ALL that apply.

Options:

A.  

The firm becomes a more complex organisation.

B.  

Specialist IT knowledge within the firm may be lost.

C.  

Internal IT costs at the firm will increase year on year.

D.  

Urgent IT issues at the firm may not be resolved as quickly.

Discussion 0
Question # 17

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:

Options:

A.  

 H is a partnership of professionals with similar training, background and expertise. Power lies in senior individuals who generally believe themselves to be more important than the business. Co-operative and consistent behaviour is unusual.

B.  

E is a small entrepreneurial firm controlled by an owner-manager. There are few rules and little bureaucracy. The firm can react quickly and decision making by the owner will be swift.

C.  

F is a large bureaucratic organisation, structured by function. Staff working in F tend to be preoccupied with fulfilling their narrow job duties, with an emphasis on consistent, day-to-day routines.

D.  

G is a project-based organisation where flexible teams are formed to solve particular problems. G is characterised by teamwork, flexibility and a strong commitment to making things happen.

Discussion 0
Question # 18

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:

Options:

A.  

from a resource-based view to a positioning approach.

B.  

from a resource-based view to an incremental approach.

C.  

from a positioning approach to a 'market driven' strategy.

D.  

from a positioning approach to a rational model.

Discussion 0
Question # 19

The Finance Director in an organisation has suffered from some criticism in her management approach, in particular her poor communication methods. For example, using finance jargon in her emails and sending messages out of normal office working hours.

 

This has lead to some of the members of staff being demotivated.

 

Which of the following possible recommendations would improve the communication situation present in this organisaion?

 

Select ALL that apply.

Options:

A.  

Arrange meetings whereby the Finance Director is the facilitator and an agenda is set which ensures clear objectives are established and action points noted and followed up.

B.  

Send the members of staff on an away day event to improve morale.

C.  

Have a glossary of key terminology, e.g. the meaning of the financial information abbreviations.

D.  

Recruit a new Finance Director.

E.  

Ensure the appropriate channels of communication are used to suit the situation and timing of responses is allowed.

Discussion 0
Question # 20

The role of competitor analysis, according to Wilson and Gilligan is threefold.

 

Which of the following does NOT apply?

Options:

A.  

To generate insights into competitors' past, present and future strategies.

B.  

To provide in-depth understanding about customer preferences which can aid product development and marketing strategies.

C.  

To help management understand their competitive advantages and disadvantages relative to competitors.

D.  

To give an informed basis for developing future strategies to sustain or establish advantages over competitors.

Discussion 0
Question # 21

X is a major energy company and has discovered substantial onshore shale gas reserves in a rural part of the country. With new "fracking" technology, underground gas production could be profitable, provide jobs for local people and boost the local economy. This would require the purchase of large areas of land, without which the projects could not proceed.

 

Although local landowners were generally pleased to sell land to X at high prices, the reactions of local residents were less favourable as they were very concerned about the environmental impact.

 

Although their powers were limited, their influence on local councils was more significant. Every new fracking site was subject to strict planning controls and local councils controlled this process.

 

Using Mendelow's stakeholder management theory, which stakeholder group should be categorised as high interest/low power - with a strategy of "keep informed" (unless their power and influence start to increase)?

Options:

A.  

Local residents

B.  

Local landowners

C.  

Local Councils

D.  

Directors of X

Discussion 0
Question # 22

DD is in charge of a group of twelve people involved in complex work. The group work together amicably and DD's leadership is valued. DD is supported by KK, who often deals with the group on behalf of D

D.  

 

Recently KK resigned for family reasons, along with another member of the group who became despondent with change and DD has now recruited new members to the group.

 

DD has found the group dynamics have changed and various members complain about what they are expected to do.

 

Which of the following is the least appropriate approach that DD should adopt to ensure the group reverts back to its former cohesiveness?

Options:

A.  

Break the group into smaller teams and allow the groups to evolve again.

B.  

Introduce a series of team building training sessions.

C.  

Become directly involved in structuring the progression of the group, influencing the development of roles.

D.  

Emphasise the need for a new approach by carrying out disciplinary procedures for the individuals who are complaining.

Discussion 0
Question # 23

The Phase model of change, otherwise known as 'N step recipes for change', has come in for considerable criticism.

 

Which THREE of the following are common criticisms of this model of change?

Options:

A.  

There can be no 'one best way' or simple recipe for change management.

B.  

This approach to change is over complex, overwhelmingly confusing and thus unmanageable.

C.  

The model does not capture the complex, untidy and iterative nature of the change process.

D.  

The approach does not lend itself readily to the identification of practical recommendations for the effective management of change.

E.  

The approach does not encourage a critical perspective with regard to what is being changed, the outcomes and the ways in which change can maintain and reinforce power differences.

Discussion 0
Question # 24

Which of the following statements relating to disciplinary sanctions should not be true?

Select ALL that apply.

Options:

A.  

Disciplinary action follows breaking of clearly laid out known rules

B.  

Sanctions stop behaviour quickly

C.  

Every disciplinary case is treated differently depending on the situation

D.  

The "act" is the focus not the person

E.  

Sanctions always begin with a format written warning

F.  

The disciplinary process is often endorsed by trade unions

Discussion 0
Question # 25

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?

Options:

A.  

Technical

B.  

Social

C.  

Environmental

D.  

Economic

Discussion 0
Question # 26

Stimulating conflict can provide benefits for the organisation. Select ALL of the following that apply.

Options:

A.  

Moderate levels of conflict will prevent an organisation from stagnating.

B.  

It is a means by which to bring about innovation and change.

C.  

It facilitates bringing problems to the surface so that they can be dealt with.

D.  

It brings about a much higher level of tension that might be constructive.

Discussion 0
Question # 27

Identify the benefit of using PRINCE2:

Options:

A.  

Behavioural change processes are considered

B.  

Well controlled project

C.  

All projects completed on time and to budget

D.  

Clearly defined interpersonal skills

Discussion 0
Question # 28

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?

Options:

A.  

Customers

B.  

Shareholders

C.  

Markets

D.  

Philosophy

E.  

Suppliers

F.  

Government

Discussion 0
Question # 29

AW is a newly appointed manager of the accounts department in organisation S.  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?

Options:

A.  

Produce an agenda at the meeting

B.  

Determine the purpose of the meeting

C.  

Publish lengthy and detailed minutes

D.  

Manage the plan of action

E.  

Establish who should attend

F.  

Allow attendees to talk through issues with each other independent of the chairperson

Discussion 0
Question # 30

What are the disadvantages of a divisional organisational structure? Select ALL that apply.

Options:

A.  

Knowledge may not be shored between different divisions

B.  

Divisions may end up competing with each other

C.  

Potential duplication of activities may occur

D.  

There may be a lack of specialisation on a particular product

E.  

It con be difficult to undertake expansion in the form of new divisions

F.  

It is difficult to develop managers due to a lack of responsibility in their roles

Discussion 0
Question # 31

In order to compete successfully Company A needs to change. It needs to become more innovative and generate new ideas to get ahead of the competition.

 

Which of the strategies below, relating to conflict management (Mainwaring 1991), would help Company A to achieve this?  

Options:

A.  

Conflict reduction

B.  

Conflict orchestration

C.  

Conflict suppression

D.  

Conflict resolution

Discussion 0
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