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Free CIPS Strategic Programme Leadership L6M5 Exam Questions

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Question 1

Dave, Head of HR, is introducing the "Person-Organization Fit" model.

Q: What will this help achieve?

Answer Options:

Correct Answer: B. More successful recruitment
Explanation:

The Person-Organization Fit model helps in hiring employees whose values align with the organization (p.194).

Option A relates to performance management, not hiring.

Option C addresses diversity policies, not cultural fit.

Option D focuses on supplier relations, not internal recruitment. [P.194]


Question 2

Which of the following processes for managing change is the most passive?

Correct Answer: D. education
Explanation:

Education is considered passive as it involves simply providing information rather than enforcing change.


Question 3

The Royal Institute of Chartered Surveyors and the Royal Institute of British Architects are two founding members of which organisation that creates contracts for the construction industry?

Correct Answer: B. Joint Contracts Tribunal
Explanation:

The Joint Contracts Tribunal (JCT) is the organisation with these founding members.


Question 4

Skipped

Which of the following statements is true of a business that operates in a 'low-context culture' country?

Correct Answer: C. Communication is direct and meetings are therefore shorter
Explanation:

Communication is direct and meetings are therefore shorter. This is from p. 182:

'In low-context cultures, communication is much more direct and explicit, which can result in shorter meetings and a reliance on rules to govern procedures.' CIPS gives the UK and USA as examples of a low-context culture.

Domain: 3.2


Question 5

Scenario (same as Question 16):

What type of power does the CFO have at Fin Inc?

Correct Answer: C. personal power
Explanation:

The CFO is well-liked and uses personal influence (charisma) rather than authority based solely on position.


Question 6

Which of the following statements about investment appraisal techniques are true? (Select all that apply.)

Answer Options:

Correct Answer: B. Return on Capital Employed (ROCE) is expressed as a percentage of the value of assets used to generate profit; C. Payback analysis ignores cash flow after the business recovers its costs; D. Internal Rate of Return (IRR) can be used with Net Present Value (NPV)
Explanation:

Option B is correct -- ROCE is expressed as a percentage (p.87).

Option C is correct -- Payback Analysis only considers the break-even point (p.83).

Option D is correct -- IRR and NPV are often used together (p.82).

Option A is incorrect -- Profit maximization is not the primary focus of non-discounted cash flow methods. [P.82-87]


Question 7

Jennifer is drafting a contract with a "termination for convenience" clause.

Q: What obligations should be included in this clause? (Select all that apply.)

Correct Answer: A. The return of any advance payments; B. The destruction of confidential information; C. The smooth transition of services to a new supplier
Explanation:

A termination for convenience clause outlines the responsibilities when a contract is ended early by mutual agreement (p.135).

Returning advance payments ensures fairness.

Destroying confidential data prevents misuse.

Smooth service transition minimizes disruptions.

A review meeting is not mandatory, so it is incorrect. [P.135]


Question 8

Fred is comparing two possible projects that will last for different durations.

His company can only select one project due to financial constraints.

He needs a method to compare the financial benefits of both projects.

Q: Is a payback analysis a useful tool for Fred to use?

Answer Options:

Correct Answer: A. Yes -- this will account for the difference in duration of the two projects
Explanation:

A Payback Analysis (p.72) calculates how long it takes for a project to recover its initial investment. It accounts for project duration but does not provide a rate of return (Option C). Discount factors (Option D) are used in Net Present Value (NPV) analysis, not Payback Analysis. [P.72]


Question 9

A person who disrupts progress and hinders culture change holds which type of power?

Answer Options:

Correct Answer: D. Negative
Explanation:

Negative Power (p.199) refers to individuals obstructing progress in an organization.

Dismissive (A) means ignoring opinions.

Contrary (B) and Pessimistic (C) do not refer to organizational influence. [P.199]


Question 10

Scenario:

Fin Inc is a consultancy organisation in the private sector, founded 10 years ago by CEO Geoff Davies, who runs a tight ship. Many employees are scared of Geoff, and there are rumours that he fires people for refusing overtime. Fin Inc is working with a new client on a shopping centre project led by the well-liked CFO. The client wants a flexible, collaborative contract with transparent cost-sharing.

What type of organisational structure does Fin Inc have?

Correct Answer: A. power
Explanation:

The structure is centred around the CEO's authoritative style, which is indicative of a power-based structure.