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?
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D
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Question 2
Multiple choice
Identify ways in which an orgnisation can undertake qualitative research. Select ALL that apply.
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A
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B
Carrying out observations
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C
Calculating ratios on sales data
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D
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E
Studying organisations operating statements
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According to Kotter's process of change, what is the purpose of building a guiding coalition?
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A
To give the change direction and focus.
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B
To ensure all key stakeholders are brought into the process.
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C
To communicate the long-term vision and strategy.
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D
To enable actions by removing barriers.
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E
To cement the change in the culture of the organisation.
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F
To generate short-term wins.
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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.
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B
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C
Transformational development
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D
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A large medical practice has decided to switch from using hand-written medical records to electronic ones. All 32 staff at the practice use hand-written medical records when performing their jobs and have expressed concerns about switching to the new electronic format. The practice manager has decided to firstly spend time unfreezing the employees' belief that the old way of recording patient records is adequate. The manager will then need to manage the transition by implementing the new electronic recording system. Finally, the manager will need to refreeze the new method of working into the culture of the practice and embed it as the normal way of working. Which analyst developed this three stage approach to change management?
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D
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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?
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A
The presence of hygiene factors are necessary in the workplace to prevent dissatisfaction.
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B
The absence of hygiene factors will inspire employees and improve motivation.
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C
The absence of hygiene factors will provide a better work environment and motivate employees.
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D
The presence of hygiene factors will increase employee morale and motivation.
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What is the main use of the Thomas-Kilmann Conflict Mode Instrument?
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A
It is a framework for assessing the causes of conflict in an organisation.
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B
It is a framework for assessing the symptoms of conflict in an organisation.
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C
It is a framework for classifying different ways of handling conflict.
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D
It is a framework for classifying the types of conflict in an organisation.
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Question 8
Multiple choice
Many companies use Critical Path Analysis (CPA) to manage projects. Which TWO of the options below could be identified from a CPA diagram?
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A
The activities which need to be completed before the next activity can start.
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B
The resource usage variance for each activity.
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C
The activities which can't overrun without delaying the whole project.
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D
The probable time for each activity.
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DRAG DROP 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: 
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Question 10
Multiple choice
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?
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A
The rational approach takes up significant organisational resources, can be very expensive, time consuming and complicated.
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B
The rational process can end up as a bureaucratic, top-down process focusing on plans, systems and targets, leading to a loss of entrepreneurial spirit.
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C
Given an uncertain business environment, it is impossible for rational strategy makers to make reliable assumptions about the future.
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D
An emergent approach encourages managers to take a longer term view of the development of the business, rather than being short-term and reactive.
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E
From a stakeholder perspective, the emergent approach could be viewed as demonstrating that the organisation has a very clear sense of where it is going.
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Question 11
Single choice
Which of the models below identifies triggers for change from the macro environment?
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A
Michael Porter's Five Forces
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B
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C
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D
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Question 12
Multiple choice
The advantages of embedding the finance function within the business unit include which THREE of the following?
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A
It allows the accountant to provide information specific to a particular business unit with greater efficiency.
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B
It prevents duplication of effort across the organisation.
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C
It enables strong relationships to be developed between the accountant and the rest of the management team within a particular business unit.
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D
It means that the accountant is able to develop best practice that can be of benefit to the whole company.
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E
It allows the accountant to build up detailed local knowledge and understanding of the business unit.
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Question 13
Multiple choice
U is a retail chain of fashion outlets. It has invested in a new logistics system to control the movement of stock between its warehouses and high street retail outlets. The project to develop and install the new system was significantly over budget and very late. Now, only three months after the new system has been installed, it is apparent that the project has not delivered its objectives. Many retail managers are complaining that they are not receiving the correct stock to sell. A meeting between the project team and project sponsor ended with everyone blaming each other. Which of the following statements show how the use of PRINCE2 might have reduced the problems encountered? Select ALL that apply.
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A
A focus on the business case of the project.
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B
An organisation structure setting out clear roles.
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C
An emphasis on quality assurance and testing.
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D
Little need for PRINCE2 training by participants.
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E
An emphasis on finishing as soon as possible.
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Question 14
Multiple choice
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.
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A
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B
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C
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D
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E
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F
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Question 15
Single choice
The difference between the latest event time and the earliest event time in a project network analysis is referred to as:
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A
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D
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Question 16
Single choice
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?
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A
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B
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C
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D
Free-wheeling opportunism
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Question 17
Single choice
During a formal disciplinary process being carried out within a business organisation, at what stage in the process should the employee under investigation receive a formal verbal warning?
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A
Between an informal warning and written warning
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B
Immediately before demotion, transfer or dismissal
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C
Following the first written warning letter
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D
At the beginning of the disciplinary process
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Question 18
Multiple choice
What are the disadvantages of a divisional organisational structure? Select ALL that apply.
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A
Knowledge may not be shored between different divisions
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B
Divisions may end up competing with each other
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C
Potential duplication of activities may occur
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D
There may be a lack of specialisation on a particular product
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E
It con be difficult to undertake expansion in the form of new divisions
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F
It is difficult to develop managers due to a lack of responsibility in their roles
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Question 19
Single choice
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
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B
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C
(i), (ii), (iii) and (iv)
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D
(ii), (iii), (iv) and (v)
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Question 20
Single choice
Which of the following is NOT a benefit of a good audit system?
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A
Provides a form of internal control.
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B
Provides a basis for improving the finance function's presentation of a company's financial records.
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C
Provides a basis for improving the finance function's efficiency and effectiveness in the information it presents to management.
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D
Provides a basis for streamlining the finance function.
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Question 21
Single choice
In preparation for listing on the UK stock market a company has started to set up the various committees needed to comply with the UK Corporate Governance Code. It has identified the need for an Audit Committee and has listed the characteristics below but are not sure if they are all correct. Which of the options below is NOT a characteristic of the Audit Committee?
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A
Sets the external audit fee
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B
Comprises of non-executive directors
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C
Comprises of a majority of non-exective directors
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D
Recommends appointment and removal of external auditors
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Question 22
Single choice
Charles Handy described organisational culture as:
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A
The way we do things around here
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B
Values embedded in an organisation
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C
An invisible bond which ties the people of the organisation together
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D
The way of the employees and their beliefs
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Question 23
Multiple choice
Which of the following statements relating to disciplinary sanctions should not be true? Select ALL that apply.
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A
Disciplinary action follows breaking of clearly laid out known rules
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B
Sanctions stop behaviour quickly
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C
Every disciplinary case is treated differently depending on the situation
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D
The "act" is the focus not the person
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E
Sanctions always begin with a format written warning
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F
The disciplinary process is often endorsed by trade unions
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Question 24
Multiple choice
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?
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A
Produce an agenda at the meeting
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B
Determine the purpose of the meeting
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C
Publish lengthy and detailed minutes
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D
Manage the plan of action
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E
Establish who should attend
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F
Allow attendees to talk through issues with each other independent of the chairperson
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Question 25
Single choice
Mintzberg describes various forms of strategy and labels each form. Which of the following options contains the correct matching of label with description?
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A
Plan = means of identifying place in the environment/market
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B
Perspective = manoeuvre in a competitive business game
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C
Pattern = consistent behaviour over time
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D
Ploy = a path to get from here to there
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Question 26
Single choice
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?
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A
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B
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C
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D
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Question 27
Single choice
A small project has been planned based on the following set of activities: Apply critical path analysis and identify the correct statement: The critical path runs through A,B,D,E and C has 2 days of float (free slack)
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A
The critical path runs through A,B,D,E and C has 6 days of float (free slack)
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B
The critical path runs through A,C,E and B has 5 days of float (free slack)
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C
The critical path runs through A,C,E and D has 4 days of float (free slack)
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Question 28
Single choice
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?
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A
John should dismiss the older staff and send the younger staff on training and take on an autocratic style of management.
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B
John should create time for one to ones with his staff and take on a participative style of management. Improving communication with regular briefings.
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C
John should not do anything as he will see things settle down over time and take on a more laissez-faire style of management.
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D
John should hire some external business consultants to overhaul the working practices and find solutions to get the department back on track.
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Question 29
Multiple choice
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?
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A
There can be no 'one best way' or simple recipe for change management.
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B
This approach to change is over complex, overwhelmingly confusing and thus unmanageable.
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C
The model does not capture the complex, untidy and iterative nature of the change process.
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D
The approach does not lend itself readily to the identification of practical recommendations for the effective management of change.
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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.
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Question 30
Multiple choice
Which of the following statements relate to the 'hard Ss' in Mckinsy's model? Select ALL that apply.
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A
The long-term direction of an organisation
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B
The everyday procedures that an organisation has in place to govern its activity.
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C
The operating approach of an organisation's management.
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D
An organisation's employees and how they are developed, trained and motivated.
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E
An organisation's particular capabilities and competencies.
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F
The values and beliefs of an organisation, including those expressed in the mission statement.
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Question 31
Single choice
An auto company A, has formed a joint venture with another auto company B to incorporate engines produced by company B into its own automobiles. Which of Ansoff's strategic directions would best describe this strategic move?
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A
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B
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C
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D
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Question 32
Single choice
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?
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A
The most optimistic time to complete an activity.
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B
The most realistic / probable time to complete an activity.
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C
The expected time to complete an activity.
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D
The most pessimistic time to complete an activity.
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