CIPS L6M5 Strategic Programme Leadership Exam Practice Test

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Total 83 questions
Question 1

What is the primary disadvantage of the Payback Analysis method?

Answer Options:



Answer : C

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]


Question 2

Glitter Kitten Ltd CEO applies the Payback Analysis for expansion.

Investment: 50m

Annual returns: 10m

Q: What is the payback period?

Answer Options:



Answer : B

Payback period formula:

Investment (50m) Annual inflow (10m) = 5 years. [P.1.4]


Question 3

Glitter Kitten Ltd is considering two expansion options. The CEO wants a quick analysis and uses the Payback Method.

Q: What financial metric is the leadership team using for expansion?

Answer Options:



Answer : A

Net Present Value (NPV) calculations require a discount rate (p.1.4).

Bank rate (B) relates to loans, not investment decisions.

Interest rate (C) applies to borrowing, not profitability.

Return rate (D) is not the main NPV metric. [P.1.4]


Question 4

Which culture type is task-oriented, structured, and uses logic for decisions?

Answer Options:



Answer : A

A Linear-Active culture (p.176) focuses on logic, organization, and process-based decision-making.

Multi-Active (B) focuses on emotions and relationships.

Reactive (C) adapts to external changes.

Proactive (D) anticipates change, but does not define structure. [P.176]


Question 5

"Persuasion should be a last resort in cultural change." Is this statement true?

Answer Options:



Answer : C

Persuasion is one of the best tools for cultural change (p.204).

Option A is incorrect---persuasion should not involve threats.

**Option B is incorrect---persuasion should be the first approach, not the last.

Option D is incorrect---persuasion is highly effective in large-scale change. [P.204]


Question 6

When should a company use redundancy to implement change?

Answer Options:



Answer : C

Redundancy is a strategic tool for cultural change (p.208).

Options A & B relate to cost-cutting and downsizing, not change.

Option D involves expansion, not workforce reduction. [P.208]


Question 7

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?



Answer : C, D

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).


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Total 83 questions