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CIMA Exam CIMAPRA19-E03-1 Topic 5 Question 86 Discussion

Actual exam question for CIMA's CIMAPRA19-E03-1 exam
Question #: 86
Topic #: 5
[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

Contribute your Thoughts:

Fabiola
10 days ago
I'm just wondering if the change agent has a flak jacket handy. Ticking off a 'small senior management team' is a bold move, but I admire the chutzpah!
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Merissa
12 days ago
Organizational structure and power structures, no doubt. Although I'm curious to see how the senior managers will react to having their authority challenged. Might be time to update those business cards.
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Samuel
14 days ago
Wow, this is a classic case of a top-heavy, outdated management style. I bet the senior managers are going to put up a fight against these changes. Popcorn, anyone?
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Katy
2 days ago
Senior managers are not going to like giving up their power.
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Eugene
1 months ago
I agree with the change agent's recommendations. The hierarchical structure and centralized decision-making are clearly holding the organization back. Time to flatten that pyramid!
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Shanice
20 days ago
A) Organizational structure
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Fairy
2 months ago
I'm not sure about the routines and rituals being affected. But I can see how the power structures and organizational structure will need to change for the better.
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Jesus
2 months ago
Reducing the management levels and involving staff in decision-making will definitely impact the organizational structure and power structures within LMN. This makes perfect sense to me.
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Rosendo
23 days ago
Involving staff in decision-making will shake up the power structures at LMN.
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Devorah
1 months ago
Reducing management levels will definitely change the organizational structure.
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Argelia
2 months ago
I agree with you, Golda. The change agent's recommendations will definitely shake up how decisions are made at LMN.
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Golda
2 months ago
I think the organizational structure and power structures will be most affected.
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