CIMA E3 Strategic Management E3 Question # 49 Topic 4 Discussion

CIMA E3 Strategic Management E3 Question # 49 Topic 4 Discussion

E3 Exam Topic 4 Question 49 Discussion:
Question #: 49
Topic #: 4

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.

 

Which TWO of the following elements of the Cultural Web will be most affected by the change agent's recommendations?


A.

Organizational structure


B.

Symbols


C.

Routines and rituals


D.

Power structures


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