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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

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?

A.

Delegating

B.

Telling

C.

Selling

D.

Participating

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?

A.

We will analyse the local market to ensure we are the best.

B.

We will offer state of the art facilities at affordable prices.

C.

We will target the fifty years plus demographic.

D.

We will utilise our knowledge in an attempt to improve our members golf skills and enjoyment of the sport.

E.

We will grow our revenues by 50% over the next three years.

F.

We will aim to constantly improve and update our course and the accompanying facilities.

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.

A.

Coercive

B.

Reward

C.

Referent

D.

Feedback

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?

A.

Customers

B.

Shareholders

C.

Markets

D.

Philosophy

E.

Suppliers

F.

Government

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.

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.

 Which of the following does NOT describe the theory of the transformational super-leader?

A.

Someone with the right personality, appearance and attributes.

B.

Someone who is caring, inspirational, visionary, ethical and a risk-taker.

C.

Someone with a style consistent with a hostile and rapidly changing environment, with the need to develop flexible organisational forms, to motivate knowledge workers and develop a learning organisation.

D.

Someone who has followed a leadership course at Harvard Business School.

According to Kurt Lewin, which of the following leadership styles was thought to result in the highest level of productivity and satisfaction?

A.

Authoritarian

B.

Laissez - faire

C.

Democratic

D.

Benevolent Authoritative

Q is a manager planning to introduce new workflow technology into a busy office environment. Q knows this will impact the work pattern of everyone in the office and is very concerned about the potential reaction from staff and how best to manage the change process.

 

Q decides to document all possible factors and concerns. A list of all the positive factors in favour of change is made in one column, and all the factors against the change in another column. This analysis will enable Q to decide how best to reduce the strength of the factors opposing the change, and/or increase the strength of the factors in favour.

 

Select the approach that Q is adopting.

A.

Force field analysis

B.

Incremental change

C.

Transformational development

D.

Stakeholder analysis

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

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.

University Z is about to take on a major project of changing from traditional written examinations to computer-based objective test questons.

 

Y is the systems manager at the university and has been appointed as the Project Manager. The university is very traditional in its management structure, whereby functional specialists manage each department.  However, for this project, Y considers that a matrix structure would be required. The Vice Chancellor is not convinced that a matrix structure would be appropriate.

 

There are a number of advantages of a matrix structure. Which of the following should Y use in his argument to convince the Vice Chancellor that a matrix structure is appropriate?

 

Select ALL that apply. 

A.

Responsibilities are clearly identified

B.

Decision making is improved

C.

Lateral communications are improved

D.

Reporting lines are clearly established

E.

Managers are exposed to organisation-wide problems

F.

Specialist are able to appraise other disciplines

DD organisation is a management consultancy company. Currently, although it has some clients in other countries, the activities of DD are mainly domestic. However the directors are keen to develop the business internationally.

 

The strengths of DD are recognised as it has a well-motivated team of professional consultants, and a very powerful analytical model for developing business solutions.

 

Which of the following best describes how this company can develop its business strategy to gain a competitive advantage?

A.

Competitive advantage can be gained by having a resource based view that stem from having unique assets and core competencies.

B.

Competitive advantage can be gained by carrying out a PEST analysis.

C.

Competitive advantage can be gained by using the BCG model.

D.

Competitive advantage can be gained from allowing strategies to emerge.

A company displaying creativity in its workforce, and an ability to react to the dynamic environment in which it operates, is most likely to avoid which of the approaches to strategy formulation listed below?

A.

Emergent

B.

Freewheeling opportunism

C.

Rational

D.

Incremental

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

 

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

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.

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

A.

Career enhancement

B.

Solving all problems

C.

Support with new challenges

D.

Discipline would be dispensed if they make a mistake

E.

Personal development

A company has used the Boston Consulting Group (BCG) matrix to plot the position of its products according to their relative market share and the growth of the market.

 

It has identified that it has several products under the heading of star.

 

Which of the following best describes its likely cash position? 

A.

Cash rich

B.

Cash neutral

C.

Cash negative

D.

This model doesn't consider the cash position

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?

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.

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

A.

focus on core competences and outsource non-core competences to external firms that can add more value.

B.

focus on non-core competences in order to drive down the cost of non value adding activities.

C.

focus on core competences by outsourcing these functions to external firms that can add more value.

D.

focus on non-core competences by applying transaction cost theory to external firms.

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

A.

German consumers are loyal and enthusiastic about German beer, and are keen to purchase new products. 

B.

Germany has a network of firms and suppliers that support each other in becoming stronger in the brewing industry.

C.

Germany has a number of strong foreign competitors in the brewing industry.

D.

Germany possesses a number of secret recipes in brewing that are not available to foreign competitors.

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.

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?

A.

Coercion

B.

Facilitation

C.

Participation

D.

Negotiation

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Total 210 questions
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