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The practice questions for L5M1 exam was last updated on 2025-10-13 .

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Question#1

Kevin is the Head of Procurement at a manufacturing company and oversees the work of a team of 32 procurement professionals. The different people within his team have a varying level of knowledge and skills and they all work on different projects, some of which are more important than others. Based on Kevin’s concern for the team member’s performance and his concern for the task they are completing, describe FIVE leadership styles Kevin could employ. Your answer may make reference to Blake and Mouton’s Leadership Grid (25 points).

A. Blake and Mouton’s Leadership Grid highlights five leadership styles based on two dimensions:
concern for people and concern 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 C 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.

Question#2

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)

A. Formal vs Informal Groups (10C12 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 (12C15 marks):
Common goals and tasks C People working on shared objectives, such as the Product Development Team working on new gym equipment, naturally form groups.
Geography and work arrangements C Staff working remotely may form virtual support groups, while office-based staff bond more through daily interactions.
Shared interests and values C Employees passionate about fitness or sustainability may form informal networks within the company.
Friendship and social needs C Based on Maslow’s hierarchy, people seek belonging. Friendships often develop into informal groups.
Leadership and influence C Charismatic or respected individuals may attract followers, leading to informal group formation around their personality.
Organisational culture C A collaborative culture encourages group formation for teamwork, while a competitive culture may create cliques or rival groups.
Technology and communication platforms C 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.

Question#3

Discuss 4 factors that make up the individual and 3 different ways a manager can lead a team (20 points)

A. Understanding individuals is crucial for effective leadership. People bring unique qualities to the workplace, which influence how they behave, perform, and interact. Four important factors that make up the individual are as follows.
Firstly, personality plays a major role. Traits such as extroversion, conscientiousness, or openness (from models like the Big Five) influence how individuals communicate, make decisions, and fit into teams. For example, an extrovert may thrive in negotiation roles, while an introvert may excel in analytical procurement tasks.
Secondly, attitudes and values shape how individuals respond to work situations. Values around ethics, sustainability, or fairness can influence motivation and alignment with organisational culture. In procurement, a professional with strong ethical values may be more resistant to corruption risks. Thirdly, perception and motivation affect behaviour. Individuals interpret situations differently, and motivation theories such as Maslow, Herzberg or McGregor’s Theory X/Y show how personal drivers impact performance. Some may be motivated by pay, others by recognition or career development. Finally, abilities and skills define what individuals can contribute. These include technical competencies, problem-solving skills, and interpersonal abilities. A skilled negotiator, for example, adds significant value to a procurement team.
Managers must also choose effective ways to lead teams. Three common approaches are: Autocratic leadership C where the manager makes decisions without consulting the team. This can be effective in crises or routine, highly regulated tasks (e.g., compliance procurement), but risks low morale if overused.
Democratic or participative leadership C where managers involve team members in decision-making. This improves engagement, creativity, and buy-in.
For example, involving procurement staff in category strategy development can generate stronger results.
Laissez-faire leadership C where the manager provides minimal direction, allowing the team high autonomy. This works well when teams are highly skilled and self-motivated, but may cause confusion if individuals lack experience.
In conclusion, individuals are shaped by their personality, values, perceptions/motivations, and skills, all of which affect their workplace performance. Managers can choose between autocratic, democratic, or laissez-faire leadership depending on the situation. Successful leaders adapt their style to the individuals and teams they manage, ensuring both high performance and motivation.

Question#4

Describe four types of culture that can exist within an organisation (20 points)

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.

Question#5

What is meant by ‘alienation’ at work? (5 points). Describe 5 factors which can cause this (20 points).

A. Definition (5 points):
Alienation at work refers to a state where employees feel disconnected, powerless, or estranged from their job, their colleagues, or the organisation. The concept, linked to Karl Marx’s theory, highlights situations where workers feel that they have little control, little purpose, and no personal fulfilment in their role. Alienation often leads to low motivation, disengagement, and reduced productivity.
Five Factors that Cause Alienation (20 points):
Repetitive and monotonous work C Jobs that involve the same routine tasks every day can make employees feel like “cogs in a machine.” For example, a procurement clerk only processing invoices with no involvement in decision-making may quickly feel alienated.
Lack of autonomy C When employees have no control over how they do their work, they feel powerless. In procurement, if buyers must follow rigid procedures without input into strategy, they may feel disengaged.
Poor leadership and communication C Alienation grows when managers fail to involve employees, communicate decisions, or provide feedback. Staff may feel undervalued and excluded from organisational goals.
Weak connection to organisational purpose C If employees cannot see how their work contributes to wider goals or society, they may feel their role lacks meaning. For instance, working in a cost-cutting environment without recognition of social value or sustainability can reduce motivation.
Lack of recognition or development opportunities C When employees feel their contributions are ignored, or they see no path for growth, they disengage. In procurement, failing to recognise successful negotiations or not offering training can create a sense of alienation.
Conclusion:
Alienation occurs when employees feel disconnected from their work, leading to low morale and performance. It can be caused by repetitive tasks, lack of autonomy, poor leadership, absence of purpose, and lack of recognition. For managers, reducing alienation means creating meaningful work, involving employees in decisions, and supporting development, which leads to higher engagement and productivity in procurement and supply functions.

Exam Code: L5M1Q & A: 38 Q&AsUpdated:  2025-10-13

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