Which ONE of the following is an example of an intervening factor that can encourage group effectiveness?

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1 General Comments The overall performance in this diet was poorer than that of recent diets. Many candidates were inadequately prepared and so gave themselves little chance of reaching the required standard. There were general weaknesses both in terms of theoretical knowledge and in its application. Particularly noticeable was the large number of candidates who scored poorly in Section A. All the topics are covered in the CIMA Study System but the very low marks of some candidates suggest they are hoping to get by on general knowledge rather than by systematic study. Questions that were inadequately answered in this section included questions.5,.6 and.9. The other main weaknesses had to do with the way in which candidates tackled the scenario questions. Too many candidates simply repeated the scenarios as the basis for their answer without drawing on any knowledge of the subject to tackle the question. This was particularly the case for questions 2, 5(a) and 6. In contrast with the overall poor standard, there were a number of candidates who performed extremely well with marks in excess of 80%. These candidates deserve to be congratulated and their achievement demonstrates what can be done with thorough preparation and good examination technique. SECTION A 20 MARKS ANSWER ALL NINE SUB-QUESTIONS Question. Which ONE of the following is an example of an intervening factor that can encourage group effectiveness? A B C D Productivity of the group Motivation of the group Satisfaction of the group Task of the group The answer is B Question.2 An organisation that seeks to maintain or increase share of an existing market with an existing product is following which ONE of the following strategies? A B C D Market development Diversification Market penetration Product development The answer is C The Chartered Institute of Management Accountants Page

2 Question.3 The difference between the latest event time and the earliest event time in a project network analysis is referred to as: A B C D Critical activity Float Milestone Critical path The answer is B Question.4 Which ONE of the nine Project Management Body of Knowledge areas involves project plan development, project plan execution and change control? A B C D Scope management Quality management Integration management Time management The answer is C Question.5 Identify the analytical framework that is used in the process of strategic management to summarise the key issues arising from an assessment of the internal and external environments of an organisation. Answer: SWOT Question.6 Describe briefly what is meant by the contingency approach to effective leadership. Answer: Effective leaders have the ability to adapt their style according to the situation they face. (Alternatively, could state effective leadership is dependent upon a range of factors including the qualities of the leaders, the characteristics of followers, nature of the task, urgency of the situation.) Question.7 Kerzner describes a five level model of continuous organisational improvement in the methodology of project management. The final level is continuous improvement. Identify any TWO of the other levels. The Chartered Institute of Management Accountants Page 2

3 Answer: Any two from: Common knowledge Common processes Singular methodology Benchmarking Question.8 Identify THREE types of cost that need to be considered when undertaking the financial feasibility of a project. (3 marks) Answer: Any three from: Capital costs Revenue costs Finance costs Opportunity costs Question.9 Explain briefly the concept of clan/cultural control. (3 marks) Answer Share cultural values and traditions Share the same assumptions Few formal controls (Could also include: strong sense of personal identification with organisational goals; employees are committed to the organisation; give a sense of common purpose) Overall, candidates did less well on this question than in previous diets. Common errors Very few candidates were able to answer question.7, Kerzner s model of continuous organisational improvement. A significant number were unable to describe contingency theory (question.6) and very few gave a good answer to question.9 explaining the concept of clan/cultural control. There was a mixed performance on question.8; some candidates scored a maximum of 3 marks but others gave incorrect answers, for example listing different types of feasibility study rather than types of cost. The Chartered Institute of Management Accountants Page 3

4 SECTION B 30 MARKS ANSWER ALL THREE QUESTIONS Question 2 With reference to M Call Centre, distinguish between the scientific management approach currently being used and the human relations approach being proposed by the management consultant. (Total for Question Two = 0 marks) The question examines candidates ability to distinguish between different approaches to management: the scientific approach and the human relations approach. Answers should start by explaining the key features of the scientific approach to management and then go on to explain how the human relations approach is different. Good answers will make reference to the current situation in M Call Centre to illustrate the points regarding the scientific management approach and potential to have a human relations approach. Key features of scientific management approach for example: (max 5 marks) Work study techniques on what and how work should be done Achieve efficiency in production methods Division of labour* One best way to do job* No discretion to workers* Tight controls* Organisation as a machine* How human relations is different for example: (max 5 marks) Need to understand significance of human factors on work performance Work performance influenced by group effects Mayo s research on understanding of why people behave as they do at work Hawthorne experiments Examples for M Call Centre: better working environment Operative discretions over working practices ( can be awarded for reference to other theorists e.g. McGregor, Hertzberg) * Should provide examples linked to what is happening in M Call Centre Maximum marks awarded 0 Overall, this question was reasonably well answered. Common Errors The main problems were repetition of scenario information without development and lack of underpinning theory needed to distinguish between scientific management and human relations. The Chartered Institute of Management Accountants Page 4

5 Question 3 (a) Describe how the use of progress reports could help P. (6 marks) (b) Identify the corrective action P could take to overcome the project slippage on time and budget. (4 marks) (Total for Question Three = 0 marks) This question requires candidates to demonstrate their understanding of the purpose of project progress reports and the corrective action that could be taken to get a project back on track. For part (a) answers should describe how the use of progress reports could help P. For part (b) answers should develop to provide examples on the corrective action that could be taken. Good answers will make reference to points in the question scenario as illustrations. Part (a) How progress reports can help P: (max 6 marks) Help in project control Highlight discrepancies between progress and project plan Draw attention to project schedule, cost and scope Report on progress towards key milestones Explanation of milestones Any deviations in report advised to project sponsor Provides information on progress towards resolution of problems Examples: schedule activities started and finished Money spent on each activity Aids focus on objectives Part (b) Corrective action that can be taken: (max 4 marks) Add extra resources Reschedule work Reduce expenditure on later activities Change project spec (other actions that could be mentioned to warrant a mark might include re-planning, use of planning tools, introducing incentives, working smarter, motivating team) Maximum marks awarded 0 Overall, part (a) of the question was answered reasonably well but weaker candidates discussed project management tools rather than describing how progress reports could help.. Part (b) of the question produced a mixed performance. Some of the candidates simply described project management planning tools e.g. WBS, Network analysis, rather than identifying the corrective action needed. The Chartered Institute of Management Accountants Page 5

6 Question 4 (a) Describe the role of each of the five basic building blocks which Mintzberg gives as the basis of his organisational structural configurations. (5 marks) (b) Recommend which of Mintzberg s structural configurations would be most appropriate for X Company, giving reasons for your choice. (5 marks) (Total for Question Four = 0 marks) The question is designed to assess candidates understanding of Mintzberg s structural configurations and their ability to recommend a configuration for a particular type of organisation. The first part of the answer will explain the building blocks of Mintzberg s structural configurations. The second part of the answer will recommend which of Mintzberg s structural configurations would be most appropriate for X Company. It should then develop to give reasons for the choice of configuration. Good answers will explain the relationship between the different building blocks configured dependent on organisation type. Part (a) (max 5 marks) Structure exists to co-ordinate activities Role of strategic apex Role of middle line Role of operating core Role of techno structure Role of specialist staff Part (b) (max 5 marks) Simple structure Strategic apex R R make decisions/control Operating core rest of organisation No need for middle line/techno structure/support Diagram explaining structure Maximum marks awarded 0 Some strong answers by many candidates, but still a significant number of incomplete answers. Common Errors The major weakness in part (a) was that some candidates described Mintzberg s different structural configurations rather than the building blocks.. In part (b) some candidates did not recommend a structural configuration as required. The Chartered Institute of Management Accountants Page 6

7 SECTION C 50 MARKS ANSWER TWO QUESTIONS FROM THIS SECTION Question 5(a) Discuss the different viewpoints of the Chief Executive and the Finance Director on C Company becoming more socially and environmentally responsible. (5marks) This question examines candidates understanding of the concepts of social and environmental responsibility. Their ability to develop convincing discussion both for and against socially and environmentally responsible business decisions in the context of creating sustainable performance and improving shareholder value will be assessed. Answers should first explain the concepts of social and environmental responsibility. Answers should then go on to discuss the arguments from the perspective of the Finance Director who is against the socially and environmentally responsible proposals. The main arguments for socially and environmentally responsible proposals should then be explained from the perspective of the Chief Executive in terms of why they could improve competitive performance and shareholder value. Good answers will provide illustrative examples specific to C s industry. Different views about purpose of company: Chief Executive (CE) recognises interests of different stakeholders Finance Director (FD)maximising wealth FD s arguments - for example: (max 7 marks) Position taken by Milton Friedman maximise wealth of shareholders/owners Legitimate function of business is economic performance Up to legislator to make laws against socially irresponsible acts Role of state to represent public interest Up to consumers to not use socially irresponsible companies FD s concern about potential additional costs Additional costs in becoming energy efficient/recycling/reducing emissions Funds diverted Negative impact on shareholder value Management time diverted Other CE s counter arguments for example: (max 7 marks) If core business conflicts with needs and values of society may not survive Potential to drive down costs by reducing waste and pollution Saving energy and recycling could lower overheads Reputation benefits corporate image Attract customers if demonstrating sustainable business practices Attract ethical funds Charitable donation, good PR Other (for example: morale, retention of staff, legislation, etc.) Maximum marks awarded 5 The Chartered Institute of Management Accountants Page 7

8 Part (a) was not particularly well done. Common Errors A number of candidates placed far too much emphasis on simply repeating material from the scenario without using theory to develop the answer. Question 5(b) Explain the different research methods that could be used to collect information from staff to gain their ideas on the ways in which C Company could become more socially and environmentally responsible. (0 marks) This question assesses candidates awareness of different research methods that can be used to collect information from staff. Answers should explain a range of research methods that could be used to collect information from staff. Good answers will develop in the context of collecting information needed on social end environmental practices. Staff suggestion box (max 3 marks) Needs promoting with incentives Open meeting Interviews with staff (max 3 marks) Face to face or telephone Need to consider time and who conducts interviews Allows collection of in-depth information Focus groups with different groups of employees (max 3 marks) Time intensive Encourages creativity of ideas Survey questionnaire sent to a cross section of staff (max 3 marks) Need to develop appropriate set of questionnaires Could to speed up process Response rate might be low if employees not interested in socially/environmental issues (marks can be awarded for other appropriate research methods up to max of 3 marks) Maximum marks awarded 0 Candidates generally did better in part (b) than in part (a) Common Errors Some answers did not make links back to the nature of information to be collected and simply described different types of research methods The Chartered Institute of Management Accountants Page 8

9 Question 6(a) Distinguish between the views of the Managing Director and the Operations Director on how strategy occurs. (7 marks) The question is designed to examine candidates understanding of the differences between the emergent and rational perspectives on how strategy occurs. Answers should first identify the perspective of the Managing Director s view on how strategy occurs by explaining the key features of the emergent view of strategy development. Answers should then go on to identify the perspective of the Operations Director s view on how strategy occurs, explaining the key features in order to distinguish this view from the MD s perspective. Good answers will provide illustrative examples specific to B Bakery. Max 9 marks for emergent view MD s view that strategy emerges e.g.: Mintzberg s view that few strategies are consciously/deliberately planned Environments not predictable Strategies emerge due to negotiation/compromise Result from ad-hoc choices Develop out of patterns of behaviour Not consciously thought out Shaped/crafted by management Examples from Bakery scenario Other Max 9 marks for planned/rational view Ops Director view planned/rational approach Involves deliberate development of strategy Often linked to annual planning cycle Identification of mission and objectives Strategic analysis of Bakery s current position external Strategic analysis of Bakery s current position internal Generating strategic options for Bakery Evaluation of options Implementation Other 2 Maximum marks awarded 7 Part (a) was weak, scripts commonly repeated information from the scenario. Whilst stronger answers were able to explain the rational approach to strategy, very few gave a substantive discussion of the emergent approach. The Chartered Institute of Management Accountants Page 9

10 Question 6(b) State the arguments that the Operations Director could use to persuade the Managing Director of the benefits of having a formal strategic plan. (8 marks) The question examines candidates ability to argue the benefits of having a formal strategic plan. The answer should set out the benefits that could be used by the Operations Director arguing for having a formal strategic plan. Good answers would frame the benefits introduced in the context of B Bakery s situation. Benefits for having a formal strategic plan e.g. Encourages a longer term view for Bakery Help encourage directors to consider business environment Encourages a more proactive approach Help Bakery in allocation of resources Targets/objectives clear Help strategic control Help in co-ordination of activities Promotes goal congruence Communicated to create employee awareness of direction of Bakery Avoid problems of succession associated with family owned business Other Maximum marks awarded 8 This part of the question was generally better executed than part (a). The Chartered Institute of Management Accountants Page 0

11 Question 7(a) Explain why F, as Project Manager, needs to be aware of the interests of stakeholders. Your answer should make reference to the different stakeholder groups for the IT centralised support service project. (3 marks) This question requires candidates to explain why a project manager needs to be aware of the interests of different stakeholders. The suggested approach would be first to explain the overarching reasons why the project manager should be aware of the needs of stakeholders. The answers should develop to provide examples of specific stakeholder groups and why F needs to understand their specific needs. Stakeholders can affect outcomes of project Stakeholders have different reasons for stake in project Project manager needs to understand power and interest of different groups link to Mendelow Involvement of stakeholders at different stages of the project Max of 3 marks for discussion for different stakeholder groups linked to scenario Members of project team: Interested in making sure project delivers objectives But IT staff have vested interest in their own practices Possibility of horizontal conflict Project sponsor (Head of IT): Provides resources and budget power Interested in knowing about any deviations Stands to lose if project fails Project owner (in this case Head of IT): Interested in end result being achieved Wants delivery of better service Project users: Staff in different departments who will use the new service Want as good an IT support as currently received IT staff high interest They will deliver service Roles likely to change Some staff may no longer have a role (Up to 3 marks can be awarded for other relevant stakeholder groups, for example, department heads) Maximum marks awarded 3 The Chartered Institute of Management Accountants Page

12 Overall, this achieved the best performance in Section C. Common Errors In part (a) weaker answers described Mendelow s matrix but didn t apply this to the scenario to explain why F needs to be aware of the interests of stakeholders. Some candidates simply identified different stakeholders but didn t develop their answers in the context of specific stakeholder interest. Question 7(b) Advise F on the different strategies that can be used to handle conflict between the different stakeholders in the IT centralised support service project. (2 marks) This question requires candidates to advise on the different strategies that can be used to handle conflict related to different project stakeholders. The answer should develop to explain the different strategies that can be used to handle different stakeholder groups. Good answers will provide advice to F on which of the different strategies might be most appropriate in the context of the IT project and which would not be. The Chartered Institute of Management Accountants Page 2

13 Explanation of conflict management framework that F could use e.g.: Thomas s based on degree of assertiveness in pursuit of own objectives Level of cooperation in attempting to satisfy others interests Up to 3 marks for each strategy explained: Avoidance - one or more stakeholders seek to avoid or ignore conflict Not recommended for F since doesn t resolve conflict Problems not resolved could emerge once IT service up and running Accommodation F putting interests of stakeholders first Suppressing his/other stakeholders interests in projects If conflict endemic would not resolve differences For example resolving differences of views between IT staff Compromise each stakeholder would give something up and come to a deal acceptable to all Often viewed as optimum solution F will need good negotiation skills to use compromise Example change in spec by project owner F may compromise if more time/budget provided Competition where different stakeholder groups will not cooperate Different stakeholder groups seek to maximise own interests/goals Can lead to further conflict damaging at least one stakeholder group F advised not to use this strategy since creates winners and losers Collaboration also optimum solution Differences confronted and jointly resolved Win win situations ( can be awarded for other appropriate conflict handling strategies included in answers) Maximum marks awarded 2 Weaker answers referred to stakeholder interests rather than advising on strategies that can be used to handle conflict. Others provided practical advice rather than specific conflict handling strategies. The Chartered Institute of Management Accountants Page 3