CIPS Managing Teams and Individuals L5M1 Exam Practice Test

Answer : A

Organisational culture refers to the shared values, beliefs, norms and behaviours that shape ''the way things are done'' in a workplace. One of the most widely used models is Charles Handy's four types of organisational culture, which describe different ways in which organisations can operate.

The first is the Power Culture. In this type, authority is concentrated at the centre, usually with a strong leader or small group of individuals. Decisions are made quickly, and personal influence is key. This culture can be dynamic and decisive but may create dependency on the leader and limit employee autonomy. In procurement, a power culture might mean senior management unilaterally deciding supplier strategies without consulting the wider team.

The second is the Role Culture. Here, the organisation is highly structured with clear roles, rules, and procedures. Power comes from position rather than personality. Stability and order are prioritised, making it efficient in predictable environments. However, it can be rigid and resistant to change. In procurement, this culture might be seen in public sector bodies where strict compliance, policies, and audit controls dominate purchasing activities.

The third is the Task Culture. This type is project-oriented, with teams formed to solve problems or deliver objectives. Power is based on expertise, and collaboration is valued. It is flexible, innovative, and well-suited to dynamic environments, but can cause conflict if resources are limited. In procurement, task culture is often evident in cross-functional category teams formed to deliver strategic sourcing projects.

The fourth is the Person Culture. Here, the focus is on individuals rather than the organisation. Employees see themselves as more important than the structure, and autonomy is prioritised. This is rare in large organisations but can be found in professional partnerships such as law or consultancy firms. In procurement, a person culture may appear where highly specialised experts operate independently, sometimes resisting organisational control.

In conclusion, Handy's four types of culture --- power, role, task, and person --- each offer strengths and weaknesses. Effective managers must understand the prevailing culture in their organisation and adapt their leadership approach. In procurement and supply, recognising cultural influences is vital to building cohesive teams, aligning strategies, and driving ethical and sustainable practices.

Answer : A

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.

Answer : A

The lifecycle of a group is often described using Tuckman's Five Stages of Group Development. This model explains how groups evolve over time, moving from initial formation to effective performance. The five stages are as follows:

1. Forming:

At this stage, the group is coming together for the first time. Members are polite, cautious, and uncertain of their roles. There is little conflict, but people look to the leader for guidance. For example, a new procurement project team might be established to source a new supplier. At this point, roles are unclear, and members rely on the manager to set objectives.

2. Storming:

As individuals begin to assert themselves, conflict often emerges. Differences in working styles, personalities, or priorities can lead to tension. In procurement, this might involve disagreements between finance and operations about whether to prioritise cost savings or quality. The leader's role here is to manage conflict and keep the team focused on objectives.

3. Norming:

Once conflicts are resolved, the group begins to establish shared norms, values, and ways of working. Roles and responsibilities become clearer, and collaboration improves. In a procurement context, the team may agree on supplier evaluation criteria and work more cohesively to achieve sourcing outcomes.

4. Performing:

The group is now fully functional and works effectively towards its goals. Members trust each other, communication flows well, and productivity is high. For example, the procurement team may now run tendering processes efficiently, negotiate with suppliers, and deliver strong results with minimal supervision.

5. Adjourning (or Mourning):

When the task is complete, the group disbands. This can cause feelings of loss for members who valued the team, but it also creates an opportunity to reflect on lessons learned. In procurement, this could involve completing a sourcing project, closing supplier contracts, and disbanding the cross-functional team after a lessons-learned review.

Conclusion:

The five stages of group development -- forming, storming, norming, performing, and adjourning -- describe how teams evolve over time. Understanding this lifecycle helps managers support their teams at each stage, managing conflict in storming, reinforcing collaboration in norming, and maximising results during performing. In procurement, applying Tuckman's model ensures that cross-functional teams move quickly from formation to high performance, delivering greater value to the organisation.

Answer : A

The Two-Factor Hygiene Theory, developed by Frederick Herzberg, explains what drives employee satisfaction and dissatisfaction at work. Herzberg argued that there are two categories of factors that affect motivation.

The first category is Hygiene Factors. These are extrinsic elements such as pay, working conditions, company policies, job security and supervision. If these are poor or absent, employees become dissatisfied. However, their presence alone does not create motivation -- they simply prevent dissatisfaction. For example, in procurement, if buyers do not have fair pay or adequate systems, they will feel frustrated, but improving pay alone will not guarantee enthusiasm or creativity.

The second category is Motivators. These are intrinsic to the job itself, such as achievement, recognition, responsibility, advancement, and personal growth. When present, these factors actively increase motivation and job satisfaction. For instance, giving a procurement professional ownership of a supplier relationship, recognising their success in a negotiation, or offering training opportunities can significantly boost motivation.

The impact of Herzberg's theory on motivation is significant. Managers cannot rely only on hygiene factors like pay and working conditions to motivate staff. These need to be in place to avoid dissatisfaction, but true motivation comes from providing meaningful work, opportunities for growth, and recognition.

In practice, this means managers should:

Ensure hygiene factors are adequate (fair pay, safe environment, supportive policies).

Focus on motivators such as giving responsibility, offering progression pathways, and recognising achievement.

Design jobs with variety and challenge, rather than only repetitive tasks.

Encourage intrinsic motivation through empowerment and involvement in decision-making.

In procurement and supply, applying Herzberg's theory could mean ensuring staff have reliable systems and clear processes (hygiene), while also providing opportunities to lead supplier negotiations, recognise cost savings achievements, or involve staff in strategic sourcing projects (motivators).

In conclusion, Herzberg's Two-Factor Theory shows that avoiding dissatisfaction through hygiene factors is not enough. Managers must also provide motivators to create true engagement and drive performance. For procurement leaders, balancing both sets of factors is essential for building high-performing, motivated teams.

Answer : A

The Taylorism school of thought, also known as Scientific Management, was developed by Frederick Winslow Taylor in the early 20th century. It aimed to improve efficiency and productivity by applying systematic, scientific methods to the management of work. Its key principles can be summarised as follows.

The first principle is the scientific study of work. Taylor rejected traditional ''rule of thumb'' methods, instead advocating time-and-motion studies to identify the most efficient way of completing tasks. This broke jobs into smaller, measurable steps.

Secondly, Taylor emphasised the division of labour and specialisation. Workers should focus on narrowly defined tasks, allowing them to become faster and more efficient, similar to parts in a machine.

Thirdly, he argued for scientific selection and training of workers. Instead of leaving workers to train themselves, managers should select the right person for the job and provide formal training in the ''one best way'' to complete tasks.

Fourthly, Taylor stressed managerial control and supervision. He believed management should plan, organise and set methods, while workers should focus on carrying them out. This created a strong separation between planning and execution.

Finally, Taylor promoted financial incentives as motivators. He assumed that workers are primarily motivated by pay, so piece-rate systems and performance-based rewards were used to encourage higher output.

Taylorism brought many benefits, such as increased productivity, efficiency, and predictability in mass production industries. However, it also attracted criticism for treating workers like machines, reducing autonomy, and ignoring social and psychological needs. From a modern procurement perspective, its ideas are still visible in standardised processes such as purchase-to-pay systems, KPIs, and efficiency-driven shared services. However, organisations today often balance these principles with more human-centred approaches to motivation and teamwork.

In conclusion, the key principles of Taylorism were scientific analysis of work, specialisation, scientific selection and training, strict managerial control, and financial incentives. While its focus on efficiency shaped early management thinking, modern leaders must also consider motivation, empowerment, and adaptability to achieve sustainable success.

Answer : A

Organisations can be understood in many different ways through metaphors, which help managers and leaders interpret behaviour, culture and performance. Morgan's metaphors are widely used to explain these perspectives. Five key metaphors are explained below.

The first metaphor is the organisation as a machine. Here the business is seen like a well-oiled mechanism with standardised processes, clear rules, hierarchy and repeatable outputs. This works well for efficiency and control, for example in a procurement shared services function, but can be rigid and demotivating if flexibility and creativity are required.

The second is the organisation as an organism. This views the business as a living system that must adapt to its environment. Structures, processes and leadership styles must ''fit'' the context, whether technological, market-driven or human needs. In procurement, this could be seen when category teams adapt to sudden supply market changes, showing flexibility to survive in a dynamic environment.

The third is the organisation as a brain. This emphasises learning, feedback loops, and knowledge-sharing, where continuous improvement and innovation are central. Leaders encourage collaboration, reflection and data-driven decision-making. For procurement, this might be using spend analytics, lessons learned from supplier negotiations, and knowledge sharing across teams to improve sourcing strategies.

The fourth metaphor is the organisation as a culture. This highlights the shared values, beliefs and rituals that shape ''how things are done.'' Leadership here involves role-modelling behaviours, building ethical cultures, and maintaining consistency between words and actions. In procurement, culture may show through an organisation's commitment to ethical sourcing, sustainability, and supplier diversity.

Finally, the organisation as a political system sees it as an arena of power and influence where decisions are made through negotiation, persuasion and coalition-building. Managers must understand power bases and stakeholder interests. In procurement, for instance, winning senior approval for a sourcing strategy may require influencing finance, operations, and CSR teams with different agendas.

In summary, each metaphor offers insights into how organisations function. The machine focuses on control, the organism on adaptability, the brain on learning, the culture on shared values, and the political system on power and influence. Good leaders in procurement should recognise that all these metaphors may apply in different situations, and use them to manage individuals and teams more effectively.

Answer : A

Part A -- Knowledge Transfer (10 points):

Knowledge transfer refers to the process of sharing skills, experience, insights and information from one person or group to another within an organisation. It ensures that valuable expertise is not lost and that best practice can be replicated. This can happen formally, such as through training, mentoring, or documented procedures, or informally, through conversations, collaboration, and shared experiences. In procurement, knowledge transfer might involve senior buyers passing negotiation tactics to junior colleagues or documenting supplier performance insights in a shared database.

Part B -- Ensuring Strong Knowledge Management (15 points):

Managers play a key role in creating systems and cultures that support knowledge sharing. Some ways include:

Creating knowledge repositories -- using databases, intranets, or category management playbooks where information is stored and accessible to all team members.

Encouraging mentoring and coaching -- pairing experienced staff with new employees helps transfer tacit knowledge that may not be written down.

Promoting collaboration and teamwork -- cross-functional project teams and regular knowledge-sharing meetings spread expertise across functions.

Using technology -- collaboration platforms (e.g., SharePoint, Teams) allow procurement staff to record supplier insights, lessons learned, and contract data in real time.

Rewarding knowledge sharing -- recognising and incentivising individuals who share expertise encourages a culture of openness rather than knowledge hoarding.

Embedding learning in processes -- after-action reviews, lessons-learned sessions after supplier negotiations or tenders ensure experiences are captured systematically.

Leadership behaviours -- managers must role-model transparency and collaboration, showing staff that sharing knowledge is valued.

Conclusion:

Knowledge transfer is about ensuring that critical experience and expertise are shared across the organisation. Managers can ensure strong knowledge management by combining systems, processes, and culture -- from IT tools and databases to mentoring and recognition. In procurement, effective knowledge management helps avoid repeated mistakes, builds stronger supplier relationships, and improves decision-making across the team.