Doug is a Manager at ABC Ltd. The company is struggling financially and needs to make several changes to its operating procedures to maintain its position in the marketplace. The changes involve letting 10% of staff go and moving 70% of staff to remote online working instead of being office-based. The staff at ABC have, in general, not taken well to the changes, and motivation has decreased. In order to push through with the changes, Doug has stated that staff who volunteer to work online will receive an additional day of annual leave, and if staff refuse to move to the online system, this will have repercussions on their ability to be promoted within the company. Because of this, all remaining staff have now embraced the changes.
Which two types of influence were used in managing this change process?
The additional day of annual leave offered to employees who volunteer for online work is a form of reward, while the consequence of not being promoted for those who refuse to move online is an example of coercion. Coercion uses threats or negative consequences to drive compliance, while rewards offer incentives to encourage participation. This aligns with influencing strategies in change management. (Reference: p.203 of the study guide).
Joanne is preparing a contract for the construction of a large shopping center.
The project includes 52 retail units, several restaurants, and a parking facility.
Joanne's company has contracted Construct Ltd under a Turnkey project.
She is using a Gantt chart as a schedule in the contract.
Q: What type of payment mechanism is being used in this contract?
Answer Options:
The correct answer is Activity Schedule (p.60). A Gantt chart is a time-based project planning tool, typically used in Activity Schedule contracts, where payments are tied to the completion of specific tasks. Other payment methods, such as Fixed Lump Sum and Bill of Quantity, do not rely on this approach. [P.60]
Cyril Engineering entered into a contract with Dojo Ltd for electrical engineering services to a power station.
The contract was successful for two years, but Cyril Engineering failed to fulfill obligations recently.
Q: What is this situation known as?
Answer Options:
Failure to meet contractual obligations is classified as Default (p.123).
Consequential Loss (A) refers to indirect financial loss due to contract failure.
Damages (B) are legal remedies for breaches.
Direct Loss (D) relates to immediate financial impact, but default is the correct term for a failure to meet obligations. [P.123]
Glitter Kitten Ltd CEO applies the Payback Analysis for expansion.
Investment: 50m
Annual returns: 10m
Q: What is the payback period?
Answer Options:
Payback period formula:
Investment (50m) Annual inflow (10m) = 5 years. [P.1.4]
What is the primary disadvantage of the Payback Analysis method?
Answer Options:
The Payback Method ignores the time value of money (TVM) (p.1.4).
Option A is incorrect---Payback is simple.
Option B is incorrect---it accounts for investment amounts.
Option D is incorrect---Payback can compare options, but lacks long-term financial accuracy. [P.1.4]
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