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CIPS Strategic Ethical Leadership Sample Questions (Q14-Q19):

NEW QUESTION # 14
SIMULATION
Explain how a procurement professional can 'Manage in 4 Directions' (15 points) How can they use Active Listening to assist with this? (10 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Managing in Four Directions as a Procurement Professional and the Role of Active Listening In procurement, leadership is not limited to managing subordinates; it extends to managing in four directions: managing upward (superiors), managing downward (subordinates), managing laterally (peers), and managing externally (suppliers and stakeholders). Each direction presents unique challenges and requires tailored strategies. Additionally, active listening plays a crucial role in effective management, fostering better communication, trust, and decision-making.
Managing in Four Directions (15 Points)
1. Managing Upward (Superiors)
Procurement professionals must manage relationships with senior executives, such as Chief Procurement Officers (CPOs), Chief Financial Officers (CFOs), and CEOs, who set strategic goals and approve procurement budgets.
Key Strategies:
Aligning procurement goals with company objectives (e.g., cost savings, sustainability).
Providing data-driven insights to justify procurement decisions (e.g., total cost of ownership, supplier risk analysis).
Proactively communicating challenges and offering solutions (e.g., supply chain disruptions).
Example:
A procurement manager presents a business case for supplier diversification to mitigate risks, using data to persuade the CFO.
2. Managing Downward (Subordinates)
Procurement leaders must guide, motivate, and support their teams of buyers, category managers, and procurement assistants.
Key Strategies:
Setting clear objectives and expectations for procurement activities.
Providing mentorship and training on best practices, such as ethical sourcing.
Encouraging a culture of innovation and accountability in supplier negotiations.
Example:
A procurement manager empowers a junior buyer by delegating responsibility for a small contract, guiding them through the process, and offering feedback.
3. Managing Laterally (Peers and Colleagues)
Collaboration with other departments such as finance, operations, legal, and marketing ensures procurement aligns with business needs.
Key Strategies:
Building cross-functional relationships to enhance collaboration.
Working closely with finance teams to ensure cost-effectiveness.
Ensuring legal compliance by working with legal teams on contract terms.
Example:
A procurement professional partners with the R&D department to source sustainable materials for a new product, balancing cost, quality, and ethical sourcing.
4. Managing Externally (Suppliers & Stakeholders)
Suppliers, regulatory bodies, and other external stakeholders require strong relationship management.
Key Strategies:
Negotiating contracts that balance cost efficiency, quality, and supplier sustainability.
Ensuring ethical procurement by evaluating suppliers for compliance with human rights and environmental standards.
Managing supplier relationships through collaboration and risk assessment.
Example:
A procurement professional develops long-term partnerships with ethical suppliers, securing better pricing and reducing supply chain risks.
The Role of Active Listening in Managing in Four Directions (10 Points) Active listening is a critical skill that enhances management effectiveness in all four directions. It involves fully concentrating, understanding, responding, and remembering what others say.
How Active Listening Supports Each Direction:
Managing Upward: Helps procurement professionals understand leadership priorities and present solutions that align with strategic objectives.
Example: Listening to the CFO's concerns about cost overruns and adjusting procurement strategies accordingly.
Managing Downward: Builds trust and engagement with procurement teams by valuing their ideas and addressing concerns.
Example: Actively listening to a procurement assistant's struggles with a new system and providing additional training.
Managing Laterally: Improves collaboration with other departments by understanding their needs and constraints.
Example: Listening to the operations team's challenges with supplier delivery delays and adjusting procurement plans.
Managing Externally: Strengthens supplier relationships by showing respect, understanding concerns, and negotiating effectively.
Example: Listening to a supplier's logistics challenges and working together to find a solution.
Conclusion
Managing in four directions requires a combination of leadership, communication, and strategic thinking. By managing upward, downward, laterally, and externally, procurement professionals align their activities with business goals while fostering collaboration. Active listening enhances these management skills, ensuring clarity, reducing misunderstandings, and building trust across all levels of engagement.

NEW QUESTION # 15
SIMULATION
Discuss two different types of power that could be used within the Procurement department of an organisation. Explain how procurement can use power responsibly to help the organization achieve its strategic objectives. (25 points).

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Introduction - definition of power and Max Weber
P1 - charismatic power
P2 - rational/ legal
P3 - using power responsibly: training others, accountability/ setting procedures, ethical sourcing Conclusion - procurement has a lot of power in an organisation. The key to using power is 'balance' and using it responsibly Example Essay Power, in the context of organizations, refers to the ability of individuals or departments to influence decisions, actions, and outcomes. Max Weber, a German Sociologist, identified three types of power: charismatic, traditional, and rational/legal. In this essay, we will focus on two types of power relevant to the Procurement department - charismatic power and rational/legal power. Additionally, we will explore how Procurement can responsibly use these powers to help the organization achieve its strategic objectives.
Charismatic power refers to a type of influence or authority that is based on the personal qualities, charisma, and appeal of an individual leader. This form of power arises from the compelling and magnetic personality of a leader, which inspires and motivates followers to willingly and enthusiastically support their vision and goals. One well-known example of a charismatic leader is Steve Jobs, the co-founder of Apple. Charismatic leaders have the ability to inspire and motivate their followers to achieve goals that might seem challenging or even impossible. They often articulate a compelling vision for the future and communicate it in a way that resonates with others. Moreover, they exude confidence and enthusiasm, which can be contagious. Their passion and belief in their vision can energize and mobilize their followers. For this reason, this type of power is often linked with Transformational Leadership styles.
Rational/legal power is derived from established policies, procedures, and regulations that govern business processes. It relies on adherence to legal and ethical standards, ensuring fairness, transparency, and accountability. Rational/legal power is typically exercised in an impersonal and formal manner. Rather than being contingent on the personal qualities of an individual as with charismatic power, rational/ legal power is derived from a person's position within a formal organizational hierarchy. Weber associated rational/legal power with bureaucratic structures, where authority is distributed hierarchically, and individuals hold positions based on their qualifications, expertise, and adherence to established rules. For example, in the Procurement department of an organisation, the Head of Procurement would hold Rational/ Legal power through their ability to sign-off on the activities of others. This form of power emphasizes predictability and consistency in decision-making. Weber points out the downside to this type of power: that leaders with this type of power can be inflexible and rigid.
In an organisation, the Procurement department would use a mixture of charismatic and rational/ legal power in order to help the organisation achieve their strategic objectives. Some ways this could materialise include:
Training: Procurement can use a mixture of charismatic and rational power responsibly by providing training to other departments on aspects of procurement, especially compliance with legislation (which is critical in the public sector) and achieving value for money. This ensures that the organization's practices align with legal requirements and maximize cost-efficiency. Delivering training requires rational power (the training leader needs to know what they're talking about and have experience in this), but also charismatic power in order to engage learners. By training other departments, this will help the organisation achieve its strategic objectives.
Accountability and Reporting: Procurement can responsibly exercise rational/legal power by establishing clear accountability and reporting mechanisms. This includes ensuring that procurement decisions are documented, transparent, and in compliance with relevant laws and regulations. An example of this is creating Standard Operating Procedures, or ensuring Junior members of the team get approval from a Line Manager to conduct certain activities. This helps the organisation achieve strategic goals by eliminating (or significantly reducing) its exposure to risk.
Ethical Sourcing: Procurement can use power to address critical issues such as human trafficking within the supply chain. By setting and enforcing ethical sourcing standards, they contribute to responsible procurement practices. Procurement can use charismatic power to convince senior leadership and supply partners of the importance of ethical sourcing, and legitimate power to ensure that all stakeholders are complying with CSR policies. This could involve the use of gain-share mechanisms in contracts with supply partners.
In conclusion, Procurement departments wield considerable power within organizations, and the key to using this power is balance and responsibility. Charismatic and rational/legal powers can be harnessed to drive and achieve strategic objectives by ensuring ethical, compliant, and efficient procurement practices. By training, identifying vulnerabilities, and promoting responsible sourcing, Procurement contributes to the organization's overall success.
Tutor Notes
- You could bring in many different theories when describing two types of power. I've chosen two by Max Weber (he talks about 3 - charismatic, traditional and rational/ legal). But you could have used some from French and Raven (expert, legitimate, coercive, reward, referent) or Yukl (2010) - connection power and negative power. There are others too, these are just the main ones explored in the study guide
- A similar question was asked in March 22 but power is a big topic so may come up again, either with or without a case study. Another way they could use this topic is discussing ways of using the different power types to overcome issues.
- Weber's Types of Power - p. 171. How procurement can use power responsibly - p.177

NEW QUESTION # 16
SIMULATION
What is situational leadership? (5 points) Discuss and evaluate how this approach may be used in supply chain management (20 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Introduction
Leadership effectiveness depends on how well a leader adapts to changing situations, team capabilities, and organizational needs. Situational Leadership, developed by Paul Hersey and Ken Blanchard, is a flexible leadership model that suggests no single leadership style is best in all situations. Instead, leaders must adapt their approach based on the maturity, competence, and motivation of their team members.
In the context of supply chain management, where conditions are constantly evolving due to market dynamics, supplier relationships, technological changes, and risk factors, situational leadership is a highly relevant approach.
1. What is Situational Leadership? (5 Points)
Definition
Situational Leadership is a contingency-based leadership model that suggests leaders should adjust their leadership style based on the specific situation and the readiness level of their team members.
Key Concept: Leadership Styles Based on Team Readiness
The Situational Leadership Model identifies four leadership styles, which are determined by a combination of directive (task-oriented) and supportive (relationship-oriented) behaviors:

Why Situational Leadership is Important?
Encourages flexibility in leadership.
Helps develop employees' skills and confidence.
Ensures effective leadership in changing environments like supply chain management.
2. How Situational Leadership Applies to Supply Chain Management (20 Points) Supply Chain Management Overview Supply chain management (SCM) involves planning, procurement, logistics, inventory management, risk assessment, and supplier relationships. Given the fast-changing nature of supply chains, managers must adapt their leadership style based on team capabilities, supplier maturity, and operational challenges.
Situational Leadership Applied to Supply Chain Functions
1. Telling (S1) - Directive Leadership for New or Inexperienced Teams
Application in Supply Chain:
Best for new supply chain employees who need strict guidance on procurement, contract management, and compliance.
Works well in structured environments, such as warehouse management and logistics operations, where standard operating procedures (SOPs) must be followed.
Example:
A newly hired procurement officer struggling with contract negotiation may need step-by-step instructions from a senior manager to ensure compliance with procurement regulations.
2. Selling (S2) - Coaching Approach for Semi-Skilled Supply Chain Teams Application in Supply Chain:
Used when employees have some knowledge but need motivation and guidance.
Effective in supplier relationship management, where procurement staff need training on negotiation techniques and ethical sourcing.
Helps employees understand the bigger picture and improve decision-making skills.
Example:
A procurement team transitioning to a digital procurement system may need training, encouragement, and strategic direction to adopt new technologies.
3. Participating (S3) - Collaboration in Strategic Supply Chain Decisions Application in Supply Chain:
Works best for experienced supply chain professionals who need empowerment and involvement in decision-making.
Encourages team input on strategic decisions, such as risk management, cost optimization, and sustainability initiatives.
Best for cross-functional collaboration, where procurement, logistics, and finance teams work together.
Example:
A supply chain manager engaging with senior procurement professionals to co-develop a supplier diversification strategy to reduce dependency on a single supplier.
4. Delegating (S4) - Empowering High-Performing Supply Chain Teams
Application in Supply Chain:
Best for highly experienced and autonomous supply chain professionals who require minimal supervision.
Used in global supply chain operations, where regional managers handle logistics, procurement, and supplier engagement independently.
Encourages innovation, allowing supply chain teams to optimize processes using AI, automation, and data analytics.
Example:
A senior procurement manager overseeing global supplier contracts operates with full autonomy and implements a digital supplier performance dashboard without needing daily oversight.
3. Advantages and Challenges of Situational Leadership in SCM

Conclusion
Situational leadership is a highly effective approach for supply chain management, where dynamic conditions require flexible leadership styles. By adjusting leadership approaches based on team competency, motivation, and operational needs, supply chain leaders can optimize procurement, logistics, and supplier relationship management.
The most effective supply chain leaders use all four styles, applying:
Telling (S1) for new procurement staff,
Selling (S2) for skill-building in supplier management,
Participating (S3) for strategic decision-making, and
Delegating (S4) for experienced global supply chain teams.
By mastering situational leadership, procurement and supply chain managers can increase efficiency, reduce risks, and improve supplier partnerships, ultimately enhancing organizational success.

NEW QUESTION # 17
SIMULATION
What is meant by the 'Contingency Model' of Organisation? What factors should be considered?

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Intro - what is contingency theory?
Each factor in a paragraph: external environment, technology, size, culture, goals, leader style, the people Conclusion - there is no universally 'right' way to structure an organisation, and it can change over time.
Example Essay
The Contingency Model of organization is a management and organizational theory that suggests there is no one-size-fits-all approach to organizing and managing a company. Instead, it proposes that the most effective organizational structure and management style depend on various external and internal factors, often referred to as contingencies. The core idea behind this model is that the optimal way to organize and manage an organization is contingent upon the unique circumstances or contingencies it faces.
Key factors that should be considered in the Contingency Model of Organization include:
Environmental Factors: The external environment, including factors like the industry in which the organization operates, economic conditions, competition, and legal and regulatory requirements, can greatly influence the organization's structure and strategy. An organisation should consider STEEPLED factors and Porter's 5 Forces when deciding which company structure would be most appropriate.
Technology: The nature of the organization's technology and the rate of technological change can impact its structure and processes. Some organizations may need to be more flexible and adaptive due to rapidly changing technologies, while others may rely on stable and proven technologies. For example, does the organisational structure allow people to work remotely from home?
Organizational Size: The size of the organization can affect its structure and management practices. Smaller organizations might have a more informal structure, while larger ones may require more formal hierarchies. For example a small organisation would not benefit from a bureaucratic structure, but a large organisation may need several levels of management and a degree of bureaucracy.
Organizational Culture: The culture of the organization, including its values, norms, and beliefs, can influence how it is structured and managed. For instance, an innovative and entrepreneurial culture may lead to a flatter, more decentralized structure.
Goals and Strategy: The goals and strategy of the organization play a crucial role in determining its structure and management style. Different strategies, such as cost leadership, differentiation, or innovation, may require different organizational structures and approaches.
Leadership Style: The leadership style of top management can impact the organization's structure and culture. Leaders with a preference for centralization may create a more hierarchical structure, while those who favour decentralization may opt for a flatter structure.
Human Resources: The skills, abilities, and motivation of the workforce can influence how an organization is structured and managed. A highly skilled and motivated workforce may require less supervision and a more decentralized structure.
The important thing to note with the Contingency Theory is that the organization's needs and circumstances can change over time, so what works best today may not be suitable in the future. Organizations must continuously assess and adapt their structures and management practices as contingencies evolve.
In essence, the Contingency Model recognizes that there is no universally optimal way to organize and manage an organization. Instead, managers must carefully assess and consider the various contingencies that affect their organization and make decisions accordingly. This approach promotes flexibility and adaptability in organizational design and management, allowing companies to better respond to changing circumstances and maximize their effectiveness.
Tutor Notes
- Another way this could come up as a question is related to a case study. You may be asked to pick out factors which would effect the way an organisation is structured.
- You could also be asked pros and cons of the contingency theory (pro: very flexible, highly responsive to changes con: people don't know where they stand, harder to find accountability)
- It's covered in detail in the studyguide but it's quite a simple concept - the best structure for an organisation depends on lots of different factors.

NEW QUESTION # 18
SIMULATION
Discuss transformational and transactional approaches to leadership. Which is the most appropriate approach in the following case study:
Mo is a procurement manager at a large manufacturing organisation. He oversees a team of 5 procurement assistants. The assistants are currently not working to a high level; they lack skills and confidence in completing tenders and Mo is concerned about their abilities to conduct accurate work. (25 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Introduction
Leadership is a critical factor in shaping employee performance, motivation, and overall organizational success. In procurement, managers must adopt a leadership style that aligns with their team's capabilities, business objectives, and operational challenges. Two widely recognized leadership styles are Transformational Leadership and Transactional Leadership, each with distinct characteristics and effects on team performance.
This essay will discuss both leadership styles, outlining their advantages and disadvantages. It will then evaluate which approach is best suited for Mo, a procurement manager facing skill and confidence issues among his team members.
Understanding Transformational Leadership
Definition
Transformational leadership is a leadership style that focuses on inspiring, motivating, and developing employees to reach their full potential. Transformational leaders act as mentors and role models, encouraging innovation, professional growth, and long-term performance improvements.
Key Characteristics of Transformational Leadership
Inspiration and Motivation - The leader encourages employees to perform beyond expectations through a compelling vision.
Individualized Support - Focuses on mentoring and coaching employees to enhance their skills.
Encourages Innovation - Employees are empowered to think creatively and solve problems.
Develops Future Leaders - Focuses on long-term talent development rather than short-term task completion.
High Engagement and Emotional Intelligence - Builds strong relationships with employees and fosters a positive workplace culture.
Advantages of Transformational Leadership
✅ Encourages professional growth - Employees develop new skills and gain confidence.
✅ Increases motivation and job satisfaction - Employees feel valued and supported.
✅ Promotes innovation and continuous improvement - Encourages employees to think creatively.
✅ Builds long-term organizational success - Creates future leaders through mentoring and skill development.
Disadvantages of Transformational Leadership
❌ Time-consuming - Requires significant time and effort for mentoring and development.
❌ Not suitable for urgent performance issues - If immediate performance improvement is needed, transformational leadership may be too slow.
❌ Employees may resist change - Some employees may be unwilling to embrace coaching and new expectations.
Understanding Transactional Leadership
Definition
Transactional leadership is a leadership style based on a structured, performance-driven approach. It focuses on clear expectations, rewards for success, and consequences for underperformance. This style is best suited for improving task efficiency, enforcing compliance, and ensuring consistency.
Key Characteristics of Transactional Leadership
Clear Expectations and Rules - Employees have defined roles and responsibilities.
Performance-Based Rewards and Punishments - Good performance is rewarded, while poor performance is corrected through disciplinary actions.
Focus on Efficiency and Results - Emphasizes productivity and operational efficiency over employee growth.
Short-Term Performance Goals - Ensures immediate improvements in employee performance.
Hierarchy and Structure - Follows a strict chain of command.
Advantages of Transactional Leadership
✅ Ensures short-term efficiency and compliance - Clearly defines expectations, which leads to immediate improvements in performance.
✅ Effective for structured tasks - Employees know exactly what is expected, reducing uncertainty.
✅ Increases accountability - Employees are held responsible for meeting targets.
✅ Useful for crisis management - Provides a clear directive in high-pressure situations.
Disadvantages of Transactional Leadership
❌ Limited employee development - Focuses more on task completion rather than skill enhancement.
❌ Can reduce creativity and innovation - Employees may feel restricted by rigid expectations.
❌ May reduce motivation - Over-reliance on rules and punishments can create a negative work environment.
❌ Not ideal for building long-term talent - Employees may not develop leadership skills or confidence.
Which Leadership Style is Most Suitable for Mo?
Case Study Analysis: Mo's Leadership Challenge
Mo is a procurement manager leading a team of 5 procurement assistants.
The assistants are underperforming due to lack of skills and confidence.
Mo is concerned about their ability to complete procurement tenders accurately.
Evaluating the Best Leadership Approach for Mo

Based on the specific challenges Mo is facing, neither leadership style alone is perfect. Instead, a combined approach is most suitable:
Recommended Approach: A Blend of Transformational and Transactional Leadership Short-Term Approach: Transactional Leadership for Immediate Performance Improvement Mo should set clear expectations and enforce accountability to ensure the assistants improve their performance in procurement tenders.
Implement a structured training program with performance benchmarks.
Use performance-based incentives (e.g., bonuses, recognition for accurate work).
Provide constructive feedback on mistakes to encourage learning.
Long-Term Approach: Transformational Leadership for Skill Development and Confidence Mo should act as a mentor and coach, providing continuous learning opportunities.
Encourage assistants to develop confidence in procurement by assigning them progressively challenging tasks.
Inspire the team by highlighting the importance of procurement excellence in achieving organizational goals.
Implement peer learning and mentorship programs to create a supportive learning environment.
Conclusion
Both Transformational Leadership and Transactional Leadership offer valuable benefits, but in the case of Mo's underperforming team, a blended approach is the most effective strategy.
Transactional Leadership should be used in the short term to improve immediate performance, enforce accountability, and ensure accuracy in procurement tenders.
Transformational Leadership should be introduced gradually to develop skills, boost confidence, and foster long-term career growth among the procurement assistants.
By combining both approaches, Mo can quickly improve his team's performance while ensuring they gain the necessary skills and confidence to succeed in procurement. This balanced leadership approach ensures short-term efficiency and long-term growth, making it the most effective strategy for Mo's situation.

NEW QUESTION # 19
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CIPS Strategic Ethical Leadership Sample Questions (Q14-Q19):

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