Practice Free L5M1 Managing Teams and Individuals Exam Questions Answers With 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.

When entering negotiations with a new supplier, a procurement professional must use a variety of interpersonal and cognitive skills to achieve the best outcome. Three important qualities arecuriosity, creative thinking, and reflective analysis.

Curiosity (8–9 marks):

Curiosity means asking questions, exploring options, and seeking to understand the supplier’s position. In a negotiation, curiosity allows the buyer to uncover the supplier’s motivations, constraints, and priorities. For example, asking why a supplier has higher costs may reveal underlying logistics challenges, which could be solved collaboratively. Curiosity builds rapport, demonstrates interest, and helps procurement move beyond price to explore value-added benefits such as quality improvements or sustainability initiatives.

Creative Thinking (8–9 marks):

Creative thinking is about generating new solutions and finding alternatives to traditional approaches. In negotiation, this may involve looking for win-win outcomes rather than focusing only on cost. For example, instead of demanding lower prices, procurement could propose longer contracts, volume commitments, or joint innovation projects that benefit both parties. Creative thinking expands the scope of negotiation and helps develop more sustainable supplier relationships.

Reflective Analysis (8–9 marks):

Reflective analysis involves reviewing past experiences and learning from them to improve decision-making. Before negotiating, procurement professionals can reflect on what has worked or failed in previous negotiations. During the negotiation, reflective analysis helps assess whether strategies are effective and adapt accordingly. After the negotiation, reflection allows continuous improvement in approach. For example, a buyer may reflect on why a past supplier negotiation failed due to being too aggressive, and adjust by using more collaborative tactics with the new supplier.

Conclusion:

Curiosity helps procurement gather insights, creative thinking enables innovative solutions, and reflective analysis ensures continuous improvement. Together, these skills allow procurement professionals to build trust, secure better value, and establish strong long-term relationships with new suppliers.

Part A – Scope of Procurement and Supply Chain (10 points):

The scope of procurement and supply chain at Buttons Ltd will cover all activities involved in sourcing, purchasing, and managing the flow of materials needed for clothing production.

This includessourcing raw materialssuch as fabrics, zips, and buttons from reliable suppliers, ensuring cost efficiency and quality. It also coverssupplier selection and management, including contract negotiation and supplier relationship management. The function will ensure compliance with ethical and sustainable sourcing standards, which are increasingly important in the fashion industry.

The supply chain scope also involveslogistics and inventory management, ensuring that materials are delivered on time to support production schedules and that stock levels are optimised to avoid delays or overstocking. Additionally, procurement must managerisk and continuity of supply, identifying alternative sources in case of disruptions. Finally, procurement contributes to strategic decisions by aligning sourcing activities with company objectives such as cost reduction, sustainability, and innovation.

Part B – Knowledge, Behaviours and Skills Required (15 points):

Knowledge:

Understanding of sourcing and supply chain processes (tenders, contracts, logistics).

Knowledge of ethical and sustainable procurement, ensuring materials are responsibly sourced.

Awareness of fashion industry requirements such as lead times, quality standards, and supplier markets.

Behaviours:

Professional integrity and ethics, ensuring fair treatment of suppliers and compliance with standards.

Collaboration and teamwork, working across departments (design, finance, production).

Adaptability and resilience, since the clothing industry faces rapid changes in demand and supply risks.

Skills:

Negotiation skillsto secure best value while maintaining supplier relationships.

Analytical skillsto assess supplier performance, costs, and risks.

Communication skillsto liaise with suppliers and internal stakeholders effectively.

Problem-solving skillsto manage supply chain disruptions and ensure continuity.

For example, a procurement professional at Buttons Ltd might need to negotiate fabric supply contracts while ensuring the supplier meets sustainability standards and delivers within tight production deadlines.

Conclusion:

The procurement and supply chain function at Buttons Ltd will be responsible for sourcing, supplier management, logistics, and risk management, supporting the company’s growth and competitiveness. To succeed, staff must demonstrate strong knowledge of procurement processes, ethical behaviours, and key skills such as negotiation, analysis, and communication. Together, these ensure the function delivers value and supports the company’s long-term goals.

Group Conformity (10 marks):

Group conformity refers to the tendency of individuals to align their attitudes, beliefs, and behaviours with the norms of the group to which they belong. People conform because they want acceptance, fear rejection, or assume the group’s judgement is correct. Conformity ensures cohesion and cooperation but may limit creativity. For example, in procurement, a junior buyer may adopt the team’s approach to negotiations, even if they personally believe another method could achieve better results.

Groupthink and its Effects (15 marks):

‘Groupthink’, a term developed by Irving Janis, occurs when the desire for consensus overrides realistic appraisal of alternatives. Members suppress doubts, ignore risks, and fail to voice disagreements to maintain harmony. This can seriously affect group behaviour in several ways:

Illusion of invulnerability– Groups may become overconfident and underestimate risks. For example, a procurement team might agree to single-source a supplier without considering supply chain risks.

Suppression of dissent– Members may withhold concerns to avoid conflict. This stifles creativity and prevents better solutions from being considered.

Pressure for uniformity– Individuals may feel obliged to agree even when they disagree. A buyer may stay silent when senior managers push for a supplier contract, even if they know the supplier has performance issues.

Biased decision-making– Groups may ignore warning signs or alternative perspectives, leading to flawed decisions. In procurement, this could mean overlooking ethical issues in a supplier relationship to maintain harmony with stakeholders.

Reduced accountability– Responsibility is shared across the group, so individuals may feel less accountable for poor decisions.

Groupthink can therefore lead to poor decision-making, increased risk, and lost opportunities. It is particularly dangerous in high-stakes environments like procurement, where mistakes in supplier selection or contract negotiation can damage cost, quality, and reputation.

Conclusion:

Group conformity means individuals adapt to group norms to gain acceptance, while groupthink is a negative consequence where consensus is prioritised over critical evaluation. For managers, recognising the risk of groupthink is vital. By encouraging open discussion, appointing a “devil’s advocate,” and welcoming diverse views, leaders can ensure group decisions are both inclusive and effective.

Blake and Mouton’sLeadership Gridhighlights five leadership styles based on two dimensions:concern for peopleandconcern for task. Kevin can use different styles depending on the skills of his team and the importance of each project.

Impoverished Management (Low task/Low people)This style shows little concern for people or performance. Kevin would provide minimal guidance or support, essentially leaving the team to their own devices. While not usually effective, it may be applied temporarily where staff are highly capable and self-motivated, or in less critical projects where close oversight is not needed.

Country Club Management (High people/Low task)Here, Kevin shows strong concern for people but little focus on results. He prioritises team harmony, morale, and relationships. This could be used with a new or inexperienced team to build confidence and trust, but it risks low performance if project deadlines or targets are missed.

Task Management (High task/Low people)This style focuses heavily on performance, structure, and efficiency, with little attention to employee needs. Kevin might use this in high-pressure procurement projects, such as negotiating urgent supply contracts, where results are critical. However, overuse can demotivate staff and create high turnover.

Middle-of-the-Road Management (Medium task/Medium people)This is a balanced approach where Kevin gives some attention to both people and results but does not excel in either. It produces average performance and morale. Kevin might use this style for steady projects with moderate importance, though it risks mediocrity if not adapted when situations demand more.

Team Management (High task/High people)This is considered the most effective style, where Kevin drives high performance while also motivating and supporting his team. He involves employees in decision-making, sets challenging goals, and encourages collaboration. For example, in strategic procurement projects, Kevin could adopt this style to achieve strong results while also developing his team’s skills.

By switching between these styles, Kevin can match leadership behaviours to the skills of his team and the importance of the task. For example, urgent, high-value contracts may need task management, while long-term development projects may benefit from team management.

Conclusion:

Blake and Mouton’s grid provides five leadership styles – impoverished, country club, task-focused, middle-of-the-road, and team management. Each has strengths and weaknesses, and Kevin’s role as Head of Procurement is to adapt his approach depending on the project demands and the skills of his team members. By applying situational leadership, he can ensure both high performance and team engagement.

Part A – Employee Development (5–8 marks):

Employee development refers to the ongoing process of improving staff knowledge, skills, and behaviours to enhance their performance and career progression. It includes both formal methods such as training courses, mentoring, and professional qualifications, and informal methods such as on-the-job learning, self-directed study, and peer collaboration. For ABC Ltd, employee development could mean providing software engineers with technical training, leadership coaching, or professional certifications to improve capability and engagement.

Part B – Positive Impacts of Lifelong Learning (15–18 marks):

Improved performance and productivity:Continuous learning ensures employees remain skilled in the latest technologies, enabling ABC Ltd to deliver innovative software solutions and maintain competitiveness.

Employee motivation and morale:When staff see the company investing in their development, they feel valued, which increases engagement and reduces alienation.

Retention and loyalty:Lifelong learning encourages employees to stay with the organisation as they see opportunities for growth, reducing turnover costs.

Adaptability and resilience:In fast-moving sectors such as software, continuous learning helps staff adapt to new tools, coding languages, and market changes, ensuring the business remains agile.

Innovation and creativity:Learning stimulates new ideas and problem-solving approaches, leading to more effective solutions in product development and project delivery.

Career progression and leadership pipeline:Lifelong learning develops not only technical skills but also soft skills such as communication, negotiation, and leadership, building the next generation of managers.

Conclusion:

Employee development is about building skills, knowledge, and behaviours to improve individual and organisational performance. Lifelong learning delivers multiple benefits, including productivity, innovation, motivation, and retention. For ABC Ltd, investing in continuous development will strengthen competitiveness, employee satisfaction, and long-term organisational success.