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[General] Latest L5M1 Study Notes - Reliable L5M1 Exam Test

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【General】 Latest L5M1 Study Notes - Reliable L5M1 Exam Test

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CIPS Managing Teams and Individuals Sample Questions (Q15-Q20):NEW QUESTION # 15
Caleb is the newly appointed CEO of Star Fish Limited, a company that manufactures and installs gym equipment. The company employs 100 people and has dedicated teams for Finance, Product Development and Procurement. Some staff work from the office and some staff work remotely from home. Contrast and provide an example of a formal and informal group that may form at this organisation. What factors should Caleb be aware of that can contribute to group formations? (25 points)
Answer:
Explanation:
See the Explanation for Detailed Answer
Explanation:
Formal vs Informal Groups (10-12 marks):
Formal groups are those deliberately created by management to achieve organisational objectives. They have defined structures, roles, and reporting lines. In Star Fish Ltd, examples include the Procurement Team, responsible for sourcing suppliers and managing contracts. This group has clear goals, formal leadership, and measurable outputs.
By contrast, informal groups arise naturally among employees based on social interactions, common interests, or personal relationships. They are not officially sanctioned but strongly influence behaviour. At Star Fish Ltd, an example could be a fitness club of employees who exercise together during breaks or a WhatsApp group among remote workers who support each other socially. These groups provide belonging and morale but may also resist management decisions if excluded.
Factors Influencing Group Formation (12-15 marks):
Common goals and tasks - People working on shared objectives, such as the Product Development Team working on new gym equipment, naturally form groups.
Geography and work arrangements - Staff working remotely may form virtual support groups, while office-based staff bond more through daily interactions.
Shared interests and values - Employees passionate about fitness or sustainability may form informal networks within the company.
Friendship and social needs - Based on Maslow's hierarchy, people seek belonging. Friendships often develop into informal groups.
Leadership and influence - Charismatic or respected individuals may attract followers, leading to informal group formation around their personality.
Organisational culture - A collaborative culture encourages group formation for teamwork, while a competitive culture may create cliques or rival groups.
Technology and communication platforms - With remote work, online groups (Teams, Slack, WhatsApp) facilitate informal interaction and knowledge sharing.
Conclusion:
At Star Fish Ltd, formal groups like the Procurement Department are designed to deliver organisational objectives, while informal groups such as fitness clubs or virtual chat groups form naturally. Caleb must recognise that both types of groups are powerful. Formal groups deliver results, but informal groups influence morale, motivation, and resistance to change. By understanding the factors driving group formation, Caleb can harness both to build cohesion, encourage collaboration, and support the organisation's success.

NEW QUESTION # 16
Describe THREE ways in which a procurement professional could be biased when selecting suppliers to work with (15 points). What are the benefits of remaining unbiased when selecting suppliers? (10 points).
Answer:
Explanation:
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Explanation:
Part A - Three Ways a Procurement Professional Could Be Biased (15 marks):
Personal Relationships / Conflicts of Interest:
A buyer may favour a supplier due to friendship, family connection, or long-standing personal ties. For example, awarding a contract to a supplier owned by a relative, even if another supplier offers better value. This undermines fairness and can damage organisational reputation.
Preference for Incumbent Suppliers (Status Quo Bias):
Professionals may repeatedly select the same suppliers simply because they are familiar, ignoring new entrants who could provide better innovation, cost savings, or sustainability. This limits competition and supplier diversity.
Cultural or Geographical Bias:
A procurement professional may favour local suppliers over international ones, or show unconscious bias against suppliers from certain regions. While local sourcing can have benefits, excluding other suppliers without objective evaluation reduces fairness and potentially increases costs.
(Other possible biases include brand preference, ignoring SMEs, or favouring suppliers who provide personal benefits - but only three are required for full marks.) Part B - Benefits of Remaining Unbiased (10 marks):
Remaining unbiased means making supplier decisions based on objective, transparent, and fair criteria such as cost, quality, delivery performance, risk, and sustainability. The benefits include:
Fairness and Transparency: All suppliers have equal opportunity, protecting the organisation's integrity and compliance with regulations.
Best Value for Money: Objective evaluation ensures the chosen supplier offers the best mix of cost, quality, and service.
Encouraging Innovation: By considering a wider pool of suppliers, procurement can benefit from new ideas and technologies.
Ethical Compliance: Avoids corruption, fraud, or bribery, maintaining alignment with the CIPS Code of Conduct.
Reputation and Trust: Stakeholders and the market see the organisation as professional and ethical, which strengthens long-term supplier relationships.
Conclusion:
Procurement professionals may show bias through personal relationships, favouring incumbents, or cultural preferences. Remaining unbiased ensures decisions are fair, transparent, and ethical, leading to better value, innovation, and stronger supplier trust. This supports both organisational objectives and the professional standards of procurement.

NEW QUESTION # 17
Discuss 5 ways in which a Procurement Manager may approach conflict. You may refer to the Thomas Kilmann model in your answer (25 points).
Answer:
Explanation:
See the Explanation for Detailed Answer
Explanation:
Conflict is common in organisations and in procurement, where competing priorities, supplier issues, and internal pressures often clash. The Thomas-Kilmann Conflict Model identifies five different approaches managers may use to handle conflict, depending on the situation and the desired outcome.
The first approach is Competing (high concern for task, low concern for people). Here the manager asserts their own position to achieve quick results, even at the expense of relationships. For example, a procurement manager may insist on enforcing compliance with tendering rules despite stakeholder resistance. This is effective in crises but can harm morale if overused.
The second is Accommodating (low concern for task, high concern for people). In this style, the manager prioritises relationships by giving way to the other party's needs. For instance, a procurement manager might accept a stakeholder's preferred supplier to maintain goodwill, even if it is not the cheapest option. This preserves harmony but risks poor business outcomes if used too often.
The third approach is Avoiding (low concern for both task and people). Here, the manager withdraws from the conflict or postpones action. This may be appropriate when the issue is minor or when emotions are high, giving time for reflection. However, in procurement, avoiding conflict with a poor-performing supplier may worsen problems over time.
The fourth is Collaborating (high concern for both task and people). This involves working with others to find win-win solutions. For example, a procurement manager may work with finance and operations to balance cost, quality, and sustainability objectives in supplier selection. This is often the most effective approach but requires time and trust.
Finally, Compromising (medium concern for task and people) involves each side giving up something to reach a middle ground. For instance, a procurement manager may agree to split supplier contracts between two stakeholders' preferences. This provides quick solutions but may leave all parties partially dissatisfied.
Conclusion:
A procurement manager can approach conflict through competing, accommodating, avoiding, collaborating, or compromising. Each has strengths and weaknesses. The best managers adapt their style depending on the importance of the issue, the urgency of the decision, and the relationships involved. In procurement, collaboration often delivers the most sustainable results, but flexibility across all five approaches is key.

NEW QUESTION # 18
Explain what is meant by a heterogeneous / diverse workforce and explain one personality model that a manager could use to investigate the personalities within his/her team (25 points)
Answer:
Explanation:
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Explanation:
A heterogeneous or diverse workforce refers to a group of employees with varied characteristics, backgrounds, and perspectives. Diversity can relate to visible differences such as age, gender, ethnicity, or disability, as well as invisible factors like personality, values, experiences, and thinking styles. A diverse workforce is valuable because it brings multiple perspectives, creativity, and innovation, which can improve decision-making and problem-solving. However, it can also create challenges in communication, conflict management, and team cohesion if not managed effectively.
In procurement and supply management, diversity can mean having team members from different professional disciplines, cultural backgrounds, or experience levels. This mix can lead to better supplier negotiations, innovation in category strategies, and greater sensitivity to global ethical standards. For managers, the challenge lies in understanding and leveraging individual differences to build cohesive, high-performing teams.
One useful personality model for understanding team members is the Big Five Personality Traits (OCEAN model). This model is widely accepted in psychology and provides a framework for identifying personality differences across five dimensions:
Openness to Experience - measures creativity, curiosity, and willingness to try new things. In procurement, high openness could support innovation in supplier strategies.
Conscientiousness - relates to organisation, responsibility, and dependability. A conscientious buyer is likely to follow compliance rules and deliver accurate work.
Extraversion - reflects sociability, assertiveness, and energy. Extroverts may excel in supplier negotiations and stakeholder engagement.
Agreeableness - indicates cooperation, empathy, and trust. Highly agreeable individuals may be effective in collaboration but could avoid conflict even when necessary.
Neuroticism (Emotional Stability) - refers to sensitivity to stress and emotional control. Low neuroticism (high stability) is ideal in high-pressure procurement negotiations.
By applying this model, a manager can gain insights into the personalities of their team, allocate roles effectively, and provide tailored support. For example, a procurement leader may assign highly conscientious individuals to compliance-heavy processes, while extroverts may be placed in supplier-facing roles.
The use of the Big Five also helps managers balance team dynamics, identify potential conflict, and design training or coaching interventions. Understanding personality traits supports motivation strategies (e.g., Herzberg, Maslow), builds stronger communication, and enhances trust within diverse teams.
In conclusion, a heterogeneous workforce brings significant benefits but requires skilful management to harness its potential. The Big Five Personality Traits provide a structured and evidence-based tool for understanding individuals, enabling managers to lead diverse teams more effectively and align strengths with organisational goals.

NEW QUESTION # 19
Describe FIVE types of power that a stakeholder may have and compare how they may interact with the procurement department (25 points).
Answer:
Explanation:
See the Explanation for Detailed Answer
Explanation:
Stakeholders can exert influence over procurement decisions in different ways. French and Raven identified five types of power that stakeholders may hold. Each has different implications for how procurement interacts with them.
1. Legitimate Power:
This comes from a stakeholder's formal position or authority. For example, a Finance Director may require procurement to comply with budgetary controls. Procurement must respect legitimate authority but can also influence decisions by providing evidence and business cases.
2. Reward Power:
This is based on the ability to provide benefits or incentives. For example, senior management may reward the procurement team with recognition or bonuses for achieving savings. Procurement can use this positively by demonstrating performance and aligning with organisational goals.
3. Coercive Power:
This is the power to punish or impose sanctions. For instance, a project manager may pressure procurement to prioritise their project by threatening escalation if deadlines are missed. Procurement must manage this carefully, balancing demands with fairness and compliance.
4. Expert Power:
This arises from specialist knowledge or skills. For example, a procurement professional with strong knowledge of supplier markets holds expert power, which can influence strategic decisions. Conversely, technical departments may hold expert power in specifying product requirements, requiring procurement to collaborate closely.
5. Referent Power:
This is based on personal relationships, respect, or charism
a. For example, a well-liked senior stakeholder may influence procurement decisions even without formal authority. Procurement must manage these situations by maintaining objectivity while leveraging strong relationships to gain support.
Comparison of Interaction with Procurement:
Legitimate power often requires compliance, while procurement may respond with process adherence and evidence-based justification.
Reward power creates motivation for procurement, but risks short-term focus if overused.
Coercive power can create conflict and stress; procurement must use negotiation and diplomacy to manage.
Expert power can be collaborative, as procurement and stakeholders share knowledge to improve outcomes.
Referent power relies on trust and relationships, which procurement can use to build coalitions and support for initiatives.
Conclusion:
The five types of power - legitimate, reward, coercive, expert, and referent - shape how stakeholders interact with procurement. Understanding these power bases enables procurement professionals to adapt their approach, whether through compliance, persuasion, collaboration, or relationship-building. This ensures stakeholder management supports both procurement objectives and organisational goals.

NEW QUESTION # 20
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