CIMA E2 flashcards

Moore suggested three concentric elements of a business ecosystem. What are these? Core business, extended enterprise

What is the PESTEL framework? A framework for listing macro-environmental influences:

• Political
• Economic
• Social
• Technological
• Environment/ecological
• Legal

What are the elements of the Porter 5 Forces model?

• Competitors/rivals
• Suppliers
• Customers
• Potential entrants
• Substitutes

 

What is a value proposition?

1. Defining value: understand what customers need and want.
2. Create a matching product or service must then be created: the solution to customer requirements.
3. Delivering the goods or services. It is only upon delivery that customers finally enjoy the value created.
4. Capturing value (getting paid).

What is a stakeholder? Any party affected by (or affecting) an organisation.

Stakeholders can be prioritised on the basis of four qualities. What are these?

• Power
• Legitimacy
• Interest
• Urgency

 

There are three main issues to be considered when capturing value. These can be referred to as three models. What are they?

• Cost model
• Revenue model
• Sharing residual value

What is strategic drift? Strategic drift occurs when the strategy of a business is no longer relevant to the external environment it faces.

What does VUCA mean in relation to an environment?

• Volatile
• Uncertain
• Complex
• Ambiguous

What are the five ways in which an organisation can approach self-disruption?

• Build
• Buy
• Partner
• Invest
• Incubate/accelerate

There are five digital operating models. What are these?

• Customer-centric
• Extra-frugal
• Data-powered
• Skynet
• Open and liquid

How can management be defined?

• “Getting things done through other people”
• “A social arrangement with a controlled performance of collective goals”

 

What are Fayol’s five management functions?

• Planning
• Organising
• Commanding
• Coordinating
• Controlling

Who was the first proponent of scientific management?   Frederick Taylor

Who was the first proponent of the human relations school of management?   Elton Mayo

What are Drucker’s five categories of management activity?

• Setting objectives
• Organising the group
• Motivating and communicating
• Measuring performance
• Developing people

What are Mintzberg’s three management roles?

• Interpersonal roles (figurehead, liaison, leader)
• Information processing roles (monitor, disseminator, spokesperson)
• Decisional roles (improver/changer. Disturbance handler, resource allocator, negotiator)

 

What are the two axes on Blake and Mouton’s managerial grid?

• Concern for people
• Concern for the task

What are the two missing descriptors of management style in the diagram below?

What are the three elements of Adair’s action-centred leadership theory?

• Concern for individuals
• Concern for the task
• Concern for the group

What are the four variables of Handy’s best fit theory?

• Leader
• Subordinate
• Task
• Environment

What is meant by the term ‘power’ in management? Power is the ability to influence people or events. It can arise from:

• Rational-legal
• Coercion
• Rewards
• Knowledge
• Charisma

What is meant by ‘authority’ in management?   Authority is the right to exercise power.

What is responsibility?   Responsibility = accountability = ‘the buck stops here’

What is delegation? Delegation is the transfer of authority. It is not the transfer of responsibility.

What are three approaches to training?

• Formal courses
• Coaching
• Mentoring

What is a 3600 appraisal?   An employee is appraised by his/her superior and by colleagues. The employee also appraises the superior.

What are Lockett’s 6 potential barriers to effective performance appraisal?

• Confrontation
• Judgement
• Chat
• Bureaucracy
• Event
• Unfinished business

What are the three types of discrimination?

• For example, a job advert saying ‘Salesman required’ would be direct sex discrimination.
• For example, a job advert saying ‘Sales representative requires: must be over 2m tall and have a large black beard’ would be indirect sex discrimination because the requirements favour male candidates.
• This is where an employee is treated less favourably because he or she took legal action against the employer.

What type of behaviour justifies immediate dismissal?   Gross misconduct

What is a grievance procedure? A means of dispute resolution that can be used by a company to address complaints by employees, suppliers, customers, and/or competitors.

Is the following statement true or false?  Health and safety legislation imposes duties on employers but not employees.   False: employees have responsibilities too.

What are the three methods in which employment can be ended?  

• Retirement
• Resignation
• Dismissal

What are the three remedies for unfair dismissal?

• Reinstatement in the original job
• Re-engagement in a similar job
• Damages

Who devised the Theory X and Theory Y approaches to management?   McGregor

What are the characteristics of Theory X and Theory Y managers? Theory X: strict; does not trust employees; watches employees very carefully. Theory Y: believes employees want to do well and that they are enthusiastic. A much higher level of trust between manager and staff.

What are intrinsic and extrinsic rewards?

• Intrinsic rewards come from within - a feeling of achievement, challenge, personal advancement, self-fulfilment.
• Extrinsic rewards come from outside. Typically, they would be pay, praise and recognition

What is meant by SMART target or objective setting?

• Specific
• Measurable
• Achievable
• Relevant
• Time-limited

What is job enrichment?   Job enrichment is a vertical change. It gives people more responsibility and more challenge in their job.

What is meant by ‘management by objectives’? Employees’ departments’ objectives are agreed and set. Then management takes a relatively hands-off approach thus allowing employees to decide how best to meet the objectives.  

What are the elements of the cultural web?

• Organisational assumptions/paradigm
• Symbols and titles
• Power relations
• Organisational structure
• Control systems
• Rituals and routines
• Myths and stories

How did Handy classify cultures?

• Power
• Role
• Task
• Person

What are Schein’s three levels of culture?

• Artifacts
• Espoused values
• Underlying assumptions

According to Handy, what are the characteristics of a group?

• A sense of purpose; an aim
• An identity
• Group norms
• Communication between members

In Belbin’s classification of team roles, what is the title of a person who is painstaking, conscientious, careful, looks for errors and is keen on completing tasks within the deadline?   A completer/finisher

What are Tuckman’s stages of team development?

• Forming
• Storming
• Norming
• Performing
• Dorming

Which terms are missing from the communication pathway diagram, below?  

 What are six potential barriers to communication?

• Inappropriate language
• Status
• Emotion
• Wrong medium
• Not wanting to transmit/receive
• Information overload

What are the two axes on the Thomas-Kilmann Conflict Mode Instrument?

• Assertiveness
• Co-operation

What are the missing descriptors in the following TKI diagram?

What are the four responses to risk (TARA)?  

• Transfer
• Avoid
• Reduce
• Accept

(or the 4Ts: transfer, terminate, treat, tolerate)

What is meant by the ‘scope’ of a project? This is what the project will do and accomplish. What are its deliverables? Scope should be decided in detail before projects are started.

What is a project work breakdown structure? It breaks down a large project into separate tasks and for each task defines:

• The task name and its description
• The cost budget
• The duration of the task and start/end dates
• The person responsible

A project network diagram shows that there are three ways through a project. Details are: Pathway 1   Duration = 22 weeks Pathway 2   Duration = 25 weeks Pathway 3   Duration = 21 weeks What is the critical path length? 25 weeks. The critical path is the longest way through a pathway.

Project durations are subject to uncertainty. In terms of the optimistic time o, the most likely time m and the pessimistic time p. What is the activity expected time used in the PERT approach?   The expected time is:       (o + 4m + p)/6  

What is PRINCE2?   Projects IN Controlled Environments 2. This is a project management methodology.