CIMA Strategic Management (E3) Practice Exam

The main idea here is the distinction between soft and hard approaches to change in Beer and Nohria’s framework. Theory O is the soft, people‑centered route that emphasizes involvement, learning, culture, and empowerment to build organizational capability. It treats change as something that people participate in and develop over time, rather than something imposed from above. This contrasts with Theory E, which is the hard approach focusing on structural changes, systems, and financial value through top‑down tactics. Because Theory O centers on engaging employees in diagnosing problems and designing solutions, the statement is true. The alternatives don’t fit because they would downplay or deny the involvement and developmental nature of Theory O.