CIMA E2 Exam
Managing Performance (Page 3 )

Updated On: 26-Jan-2026

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.

  1. 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.
  2. Send the members of staff on an away day event to improve morale.
  3. Have a glossary of key terminology, e.g. the meaning of the financial information abbreviations.
  4. Recruit a new Finance Director.
  5. Ensure the appropriate channels of communication are used to suit the situation and timing of responses is allowed.

Answer(s): A,C,E



According to the Project Management Body of Knowledge as outlined by the Project Management Institute, there are nine key areas of project management.
Which of the following are areas identified by the PMI?

Select ALL that apply.

  1. Integration
  2. Resource Management
  3. Procurement
  4. Risk
  5. Quality
  6. Initiation
  7. Monitoring
  8. Option generation
  9. Review

Answer(s): A,B,C,D,E



T is a senior manager tasked with planning the move of the company headquarters from a city centre location to a rural estate location. More than 70 staff will be impacted by the move.

T feels confident that the practical aspects of the move have been addressed well but is unsure about the reaction from staff, some of whom may have to move house. He has decided to apply a well known model to analyse the situation.

Drivers in favour of change and resisting factors to change are all plotted out on a diagram and then analysed in depth.
What is the name of this technique?

  1. Lewin's Force-Field analysis
  2. Organization development theory
  3. Human resource strategy/planning
  4. Unfreeze-Change-Refreeze

Answer(s): A



Philip Kotler outlined four levels of competition being faced by most business organisations operating in competitive environments. He based the four levels largely on the degree of product substitutability. These are brand, industry, form and generic competitors.

Analyse the level and type of competition between a 5-star hotel in London (marketed as the "World's greatest hotel") and a global chain of hotels with hundreds of hotels across the world.

Select the level of competition that describes the nature of their competition.

  1. Industry competitors
  2. Generic competitors
  3. Form competitors
  4. Brand competitors

Answer(s): A



Which THREE of the following are advantages of empowerment?

  1. It reduces operational costs by eliminating unnecessary layers of management.
  2. It requires a clear vision and a learning environment for both management and employees.
  3. It helps generate innovative solutions that benefit both the department and the company.
  4. It requires feedback on performance from a variety of sources.
  5. It provides for greater job satisfaction, motivation and commitment.

Answer(s): A,C,E



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