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E2 CIMA Project and Relationship Management Free Practice Exam Questions (2025 Updated)

Prepare effectively for your CIMA E2 Project and Relationship Management certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.

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Total 210 questions

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

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

Because of the severity of actions of the employer an employee takes the decision to resign. This could be classed as which of the following?

A.

Calculative dismissal

B.

Wrongful dismissal

C.

Redundancy

D.

Constructive dismissal

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:

A.

Reduce

B.

Avoid

C.

Transfer

D.

Accept

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.

Which of the following best describes the purpose of Michael Porter's Five Forces model?

A.

To examine the macro environment to identify any triggers for change.

B.

To examine the internal environment to identify the strengths and weaknessness of the business which can be used to gain competitive advantage.

C.

To indentify the profit potential from the industry to determine whether to enter or remain in the industry.

D.

To analyse the stakeholders of the business and their power and interest in order to manage them effectively.

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

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.

Project team X is not performing as well as the project manager hoped it would given that the members have been working together for the best part of 6 months. Project procedures are being refined and the project manager is on the point of passing control and decision-making authority to team members. The members are also beginning to operate together as a cohesive team.

 

Which stage in Tuckman's model of team development has team X now reached?

A.

Storming

B.

Performing

C.

Norming

D.

Forming

An employee of a company has been asked to explain the difference between a Grievance and Disciplinary Action. The employee knows the definitions of both and, whilst they have two examples of actions which would result in Disciplinary Action, they can only think of one circumstance which may result in a Grievance, and this is Discrimination.

 

Which of the following could the employee use as an additional example of a Grievance? 

A.

The employee is regularly absent.

B.

The employee feels that they have not been considered for promotion because of their age.

C.

The employee entered a restricted area.

D.

The employee feels that they have been given an unfair appraisal.

Which of the following statements relating to negotiation are incorrect?

Select ALL that apply.

A.

There are always at least two parties present in any negotiation process.

B.

Negotiation occurs when parties prefer to search for an agreement rather than openly fight.

C.

Negotiation takes place when there are no established set rules for resolving the conflict, or the parties prefer to work outside of an established set of rules to reach a solution.

D.

The negotiation process isn't always voluntary and a contract of agreement should be signed.

E.

The bargaining phase is the last stage of the negotiation process.

F.

The preparation phase is the first stage of the negotiation process.

With respect to the management of quality on projects, which of the following statements is true?

A.

The only actions required are to inspect the final deliverables and reject items that do not meet specifications.

B.

A key responsibility of a project manager is to ensure that design specifications are met.

C.

The central theme of project quality is to exceed the expectations of the client by building to the highest standards.

D.

Most project processes produce outputs with no variation in quality characteristics.

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.

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?

A.

Information for human resource planning.

B.

Involvement in the setting of tasks and goals.

C.

Adequate feedback as to how they are performing, in other words knowledge of results.

D.

Clear attainable goals so they know what to strive for.

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? 

A.

Power Culture

B.

Task Culture

C.

Role Culture

D.

Person Culture

The ability to negotiate is an important management skill. Which approach to negotiation is less likely to result in future further conflict?

A.

Lose - Win

B.

Win - Lose

C.

Lose - Lose

D.

Win - Win

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:

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

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?

A.

% Market Share

B.

% return on Non Current Assets

C.

% late deliveries

D.

% sales returns

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?

A.

Resource-based view

B.

Emergent strategy

C.

Rational strategy model

D.

Free-wheeling opportunism

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.

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

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.

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.

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?

A.

Define the project

B.

Design the project

C.

Deliver the project

D.

Develop the process

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Total 210 questions
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