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CIMAPRA19-E03-1 Exam - Topic 4 Question 126 Discussion

LMN is a medium sized Organization which has faced a number of challenges due to the recent economic recession. In the last 3 years, its profits have fallen each year and it has made 10% of its staff redundant during the same period. LMN has a hierarchical structure with formal lines of communication. All of the key business decisions are made by a small senior management team, as the senior managers believe that they have the most experience to make these decisions.LMN has recently hired an external change agent to review its activities and to make recommendations on what it must do to ensure its survival. Having spent several weeks talking to staff and observing the activities and management processes of LMN, the external change agent has made the following recommendations:1. Reduce the management levels within LMN, as this is limiting its ability to respond effectively to customer demands.2. Allow some of its staff to take part in the decision making process, as much experience and expertise is being overlooked when making key business decisions.WhichTWO ofthe followingelements of the Cultural Web will bemostaffected by the change agent's recommendations?
A) Organizational structure and D) Power structures
B) Symbols
C) Routines and rituals

CIMAPRA19-E03-1 Exam - Topic 4 Question 126 Discussion

Actual exam question for CIMA's CIMAPRA19-E03-1 exam
Question #: 126
Topic #: 4
[All CIMAPRA19-E03-1 Questions]

LMN is a medium sized Organization which has faced a number of challenges due to the recent economic recession. In the last 3 years, its profits have fallen each year and it has made 10% of its staff redundant during the same period. LMN has a hierarchical structure with formal lines of communication. All of the key business decisions are made by a small senior management team, as the senior managers believe that they have the most experience to make these decisions.

LMN has recently hired an external change agent to review its activities and to make recommendations on what it must do to ensure its survival. Having spent several weeks talking to staff and observing the activities and management processes of LMN, the external change agent has made the following recommendations:

1. Reduce the management levels within LMN, as this is limiting its ability to respond effectively to customer demands.

2. Allow some of its staff to take part in the decision making process, as much experience and expertise is being overlooked when making key business decisions.

WhichTWO ofthe followingelements of the Cultural Web will bemostaffected by the change agent's recommendations?

Show Suggested Answer Hide Answer
Suggested Answer: A, D

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Germaine
2 hours ago
I think symbols might not change much, but the organizational structure and power structures seem like the most obvious choices based on the recommendations.
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Veronica
5 days ago
I remember a practice question about decision-making processes. It feels like routines and rituals might change too, but I'm not entirely confident.
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Tony
10 days ago
I'm not so sure about the power structures. I mean, if they let more staff in on decisions, wouldn't that shift who holds the power?
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Zana
16 days ago
I think the organizational structure will definitely be affected since they want to reduce management levels. It seems like a direct change.
upvoted 0 times
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