CIMA E2 Managing Performance - CIMAPRA19-E02-1 Exam Questions [2026]

QUESTION NO: 1
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?

A. Following the first written warning letter B. Immediately before demotion, transfer or dismissal C. Between an informal warning and written warning D. At the beginning of the disciplinary process

Correct Answer: C

QUESTION NO: 2
K has recently qualified as a chartered management accountant after seven years in the military serving as a front-line infantry officer. He thrives in difficult situations requiring decisive action, and is accustomed to giving orders to subordinates and having them obeyed immediately.
He is known to give his staff big bonuses and hand out harsh punishments in equal measure. Although not particularly well liked by his team and as yet not very experienced in accountancy, he is regarded as useful by the company directors as someone who will not back away from a difficult task.
Based on the French and Raven model, which are the sources of power that K draws upon in the course of his work.
Select ALL that apply.

A. Expert B. Reward C. Coercive D. Legitimate E. Referent

Correct Answer: B,C,D

QUESTION NO: 3
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 is an activity that satisfies the senior managers' requests. B. It can help the company to market its products. C. It allows the organisation to use the budget that the Marketing Department has been allocated so it doesn't lose it in the future. D. If competitor analysis is not undertaken a new competitor could have entered the market and could reduce the sales of the organisation.

Correct Answer: D

QUESTION NO: 4
Which of the following best describes generic competitors?

A. Competitors which compete with products which, although technically quite different, satisfy the same needs. B. Competitors which have similar size and structure and offer similar products to the same customers. C. Competitors which compete for the same income as the company. D. Competitors which have similar goods but not necessarily the same size or structure organisation.

Correct Answer: C

QUESTION NO: 5
The purpose of PEST analysis is described by which of the following?

A. To assess the threats and opportunities posed by the wider environmental forces. B. To determine the strengths and weaknesses of the organisation. C. To assess the power of the internal stakeholders. D. To examine the competitive forces at work in the industry.

Correct Answer: A

QUESTION NO: 6
According to Kotter's process of change, what is the purpose of building a guiding coalition?

A. To ensure all key stakeholders are brought into the process. B. To cement the change in the culture of the organisation. C. To communicate the long-term vision and strategy. D. To give the change direction and focus. E. To generate short-term wins. F. To enable actions by removing barriers.

Correct Answer: D

QUESTION NO: 7
Which of the models below identifies triggers for change from the macro environment?

A. LoNGPEST B. Michael Porter's Five Forces C. Ansoff's Growth Matrix D. Michael Porter's Diamond

Correct Answer: A

QUESTION NO: 8
In the UK there is a principles based approach to corporate governance. Which THREE of the following statements are part of this approach?

A. The UK code of corporate governance adopts a 'comply or explain' approach. B. Some of the provisions of the UK corporate code may not be followed exactly providing departure can be justified. C. It provides a set of rules which must be followed in all circumstances. D. It consists of principles to be followed unless there is a justifiable reason not to do so. E. It includes legislation involving punishment for non-compliance.

Correct Answer: A,B,D

QUESTION NO: 9
A company has a number of Strategic Business Units (SBUs), one of which operates in a market that is experiencing high growth. The SBU has only been in operation for a short while and therefore its market share relative to its competitors is small.
Which of the following is the most appropriate term for the SBU according to the Boston Consulting Group model?

A. Cash Cow B. Star C. Question Mark D. Dog

Correct Answer: C

QUESTION NO: 10
Japanese team working based on the Japanese production model, and widely copied around the world, possesses which THREE of the following characteristics?

A. Normally temporary and depend on the demands of new projects. B. Established to solve non-conventional problems. C. Composed of multiskiiled workers. D. Supervisors' roles seen as models for workers and act as a buffer between labour and management. E. Assignment of tasks to work units rather than individual workers.

Correct Answer: C,D,E

QUESTION NO: 11
The Project Management Institute's 5 project management process areas identifies that five stages apply in project management. Place the relevant stage against the appropriate description.

Correct Answer:

QUESTION NO: 12
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. Any staff who don't perform as required can be dismissed without risk of legal action. C. Staff have higher morale and are more motivated. D. Company meets its legal requirements.

Correct Answer: A,C,D

QUESTION NO: 13
A company is considering introducing a new product into the market but has been advised to undertake some qualitative research prior to doing this. The marketing manager is uncertain as to what information it will get from this type of research.
Which of the following can be identified by carrying out qualitative research?

A. The sales value of a product for a given period. B. The profitability of a competitor. C. The number of customer complaints received in a given period. D. The reason why a customer might buy a certain brand.

Correct Answer: D

QUESTION NO: 14
A highly complex IT project is being tackled by a self-managing team of three technical specialists who had never met each other before.
At first they argued constantly for nearly two days over the best way to tackle the work and what technical software tools to use. Finally these issues were resolved, the team went out for dinner together and they agreed how best to share the workload between them.
After this point, the productivity improved dramatically and good work progress was made. All was going well until two days later when another IT specialist turned up unexpectedly. This person was far less experienced than the other three.
The new arrival explained that he would be taking over as project manager and immediately started to give explicit orders to the team.
In the context of Tuckman's team development theory, which interpretation fits the facts of the scenario.

A. The team had already formed and were moving into the storming stage when the new arrival turned up and reset development at the forming stage. B. The team had reached the performing stage but the arrival of the new specialist may result in the team reverting to the storming stage. C. The new arrival will mean that the team will move forward from norming through storming into the final performing stage. D. The team had reached the norming stage and instructions from the new arrival will quickly help the team reach the performing stage.

Correct Answer: B