CIPS Diploma in Procurement and Supply

L5M1: Managing Teams and Individuals

Practice Test – Constructed Response Format

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Practise Test L5M1: Managing Teams and Individuals

Constructed Response (CR) exam questions

Across all of CIPS advanced diploma level qualifications there are several different
types of CR question format. The following guide will help CIPS students to
understand how to approach CR essay style questions which you will be asked in
the Level 4, 5 and 6 exams.

You will be required to:

A Demonstrate your knowledge and understanding about the subject area.

And
B Show that you can adhere to instructions when answering questions.

You will find that some questions will use a scenario or data sources to introduce you
to a situation, or give you context, this should be used when answering the question.
Always remember to demonstrate what you know throughout your answers. The
person marking your exam does not know you, so you need to show your knowledge
in a similar way to approaching a job interview - you have to help them to recognise
that you know your material, and if you don’t the examiner will not make any
allowance for what you missed out. A CR exam allows you to show your extensive
knowledge.

For more information on how to prepare for CIPS CR exam, please refer to CIPS
guide at
https://www.cips.org/Documents/Qualifications%202019%20onwards/Exam%20guid
ance/L4_5_6_CR_Exam_Guide_final.pdf
(Source: www.cips.org)

In a CR exam you are required to ‘construct’ a response to the questions presented

to you. You must also note the command words (Assess, Explain, Discuss,
Describe etc) in the question and answer accordingly.

L5M1: Module Aim (Source CIPS Syllabus – L5M1)

Management is the administration of an organisation, whether it be a business, a

not-for- profit organisation, or government body. Management includes the activities
of setting the strategy of an organisation and coordinating the efforts of its
employees or volunteers to accomplish its objectives through the application of
available resources, such as financial, natural, technological, and human resources.

In keeping with other organisational functions, those who manage procurement and
supply activity must possess expertise in developing and fulfilling organisational and
functional objectives. It is therefore, essential that learners gain a wider appreciation
of theories and techniques that relate to managing teams and individuals involved
with the procurement and supply function

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The practice test is based upon the learning outcomes of the syllabus. Students are
expected to read the CIPS study guide and follow all instructions provided by CIPS.
The sole intention of the practice test is to help the students revise the subject
and prepare them to take the exam.

Please attempt to answer the questions without referring to your study guide or the
feedback given at the back of the practice test. The feedback/comments given at the
back of this is for reference only and does not reflect the view of CIPS
assessors/examiners. Students should use their knowledge and refer to the reading
material in the learning outcome of the CIPS Study Guide.

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 Scenario Questions

1. CASE STUDY – THERMA SYSTEMS LIMITED

Therma Systems Limited (TSL) is a leading manufacturer and distributor of

heating and hot water systems and services. TSL operates in 20 countries
worldwide employing over 5,000 people. Its core product lines are the
manufacturing of both wall hung and floor standing condensing and conventional
boilers. More recently, the company has developed new product lines in solar
heating and heat pumps. In terms of its manufacturing facilities, the company
operates plants in Germany, Italy, Spain and the UK. Over the last few years,
TSL has been developing its sales in Eastern Europe, Turkey, Russia, and
China.

The company has recently acquired a boiler manufacturer based in Eastern

Europe, Mydlana Instruments, to assist its growth in this region. Whilst Mydlana
has achieved a high market share in its own market,
its manufacturing facilities are in need of modernisation. As part of the
acquisition, a group of senior engineers from TSL based in the UK had spent time
analysing the facilities and working practices of Mydlana’s operations. The
engineers found that whilst Mydlana’s advantage was that its labour costs were
low, working practices were very bureaucratic with a strict hierarchy of levels of
management, supervisors and staff. In addition, the engineers found that
individual manufacturing operations were very labour intensive with, in many
cases, three times as many people carrying out tasks compared to more modern
facilities at TSL’s other plants. They also found that industrial relations were
problematical throughout Mydlana, and disputes between departments were
frequent.

Marcin Petrova is the head of procurement at Mydlana with ten staff in the
department. Marcin reports to the head of European procurement at TSL,
Charles Schulz. On a recent visit to the Mydlana’s procurement department,
Charles found that the procurement team were largely demotivated and
suspicious of the consequences of the acquisition. Two members of staff were on
long term sick leave, and staff absenteeism and turnover were increasing. The
decision has been made to retain the procurement department at Mydlana, as it
is felt that the team’s knowledge of locally sourced components and local
contractors that service the manufacturing facilities, need to be retained. In time,
as Mydlana’s product range adopts standardised designs and product ranges,
more use can be made of global contracts for the supply of components and
services. In the short term, Charles feels that it is necessary to improve the skills
and motivation of the personnel working in procurement.

Charles found that there was a great deal of conflict and rivalry between
procurement members of staff and with procurement’s internal customers. He
was surprised at the degree of anger often shown by members of staff towards

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 each other and had thought that they would have behaved better when he had
visited their facilities. There was a distinct lack of teamwork and Charles knew
that the members of his central procurement team would find co-operation with
their counterparts at Mydlana difficult.

Charles was also surprised to find that the members of the Mydlana team were
poorly trained and the members of staff lacked job descriptions for their roles. He
found a great deal of duplication of effort in their work.

Question

1. Evaluate the main influences shaping organisational behaviour at Mydlana

(25 Marks) Learning Outcome (LO) 1.4
2. Discuss the approaches that Charles could take to the training and
development of the procurement staff at Mydlana in order to improve
performance (25 Marks). LO 4.4

CASE STUDY – XSYSTEMS

XSystems is a large technology company which has experienced rapid growth since
it was formed 35 years ago. The new chief procurement officer (CPO) is Eli Khan,
who has been in the position for one year. Under Khan, the procurement department
has established a culture that could be characterised as extremely competitive.

Employees jokingly call it the ‘we’d better get going’ culture. When new procurement
initiatives are introduced successfully within the organisation, the buyers responsible
are not allowed to celebrate. Instead, they undertake a post-mortem of what could
have been done better. Khan often sends out emails to procurement staff in the
evenings and weekends about the challenges ahead. These are popularly referred to
as ‘call-to-action’ memos. Khan justifies his approach by stating: “I manage smart
people that are high-calibre, and I challenge them to think. I pay them well and in
return ask them to be committed and to work very hard.”

For many years, the procurement department had one of the lowest staff turnover
rates in the company. However, over the last year, since Eli Khan has been
appointed a large number of procurement staff have resigned. Most of the
employees that have resigned have worked for the company for between five and
ten years and have played an important role during its growth phase. As the
company grows in size and power, it has become more bureaucratic and has lost
some the elements of the work culture that had so endeared it to employees when it
was growing. XSystems no longer has the flexibility of a start-up company and it has
become very difficult to push decisions through the system.

There are five layers of management in the procurement department, which hinders
quick decision-making. Staff are asked to justify everything they do. No-one is
spared from criticism, and people are severely reprimanded when they fall short of

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Khan’s standards. Khan holds regular meetings with all procurement staff to check
their progress. So dreaded are these meetings that employees are known to have
mock sessions with their colleagues in order to prepare themselves for the actual
event. One senior category manager, who recently left XSystems after seven years,
quoted “a lack of the human element” in his exit interview.

Khan is also experiencing difficulty in recruiting people. A number of graduates are

choosing smaller companies with smaller reward packages, mainly because of the
exciting challenges that they offer. One typical candidate got job offers from
XSystems and Dynamic Software Inc. (a maker of e-commerce programs) after he
graduated from a top-class university. In spite of efforts by Khan, he chose Dynamic,
because XSystems could not match Dynamic’s fun-loving culture. In order to fill the
skills gap in procurement, Khan has employed many agency staff and these
temporary workers now constitute one-third of the total workforce of the department.

XSystems human resource department has become concerned with the situation in
procurement and has just published a critical report. Within the findings, the report
highlights the lack of team cohesion in the procurement department and poor
engagement with stakeholders.

Question

1. Develop a recruitment and selection plan to enable XSystems to attract the

best staff (LO 4.1)
2. Recommend actions to reduce the potential causes of conflict and improve
team cohesion within the procurement department at XSystems. (LO 3.4)

CASE STUDY – MARIA’S PROCUREMENT TEAM

Maria is the newly appointed procurement manager for Alarmset, a company that
develops, manufactures and installs alarm systems.

Maria’s time as procurement manager started badly. She experienced conflict with
her team and the performance of the department suffered. However, Maria worked
hard to resolve these issues and motivate her team. Working relationships eventually
improved. The team demonstrated their revived commitment by creating new ideas
in both process improvement and product development. Maria recognised the
importance of maintaining a cohesive team and so took the opportunity of trying to
involve all team members in decision-making. She also set up a weekly group lunch
that provided an opportunity for all team members to meet informally, to talk about
issues of concern and to get to know each other better. The lunchtime sessions also
provide Maria with the opportunity to update the team members on key
developments in the organisation, as well as new policies and strategies, and
relationships with key stakeholders. Every few months, Maria organises an ‘away-
day’ for the group where the team spend two days ‘updating’. Each team member
prepares an update on a relevant procurement topic and presents it to the group.

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This is an off-site meeting in a good hotel with plenty of time scheduled for
discussion and social interaction.

After some months, Maria notices that one of her team, Faizel, starts coming into
work late. The quality of his work has also deteriorated and he appears to be
communicating less with other team members. The other team members are
unaware of any issues that Faizel might have, so Maria decides to talk with him
directly. Faizel admits that he has lost interest in his work. He has a good education
and wants a role where he is able to use and develop his financial skills. However,
because of his lack of experience, he is currently working as an assistant to Fran,
one of the senior buyers. Faizel also believes that Fran does not delegate enough
responsibility to him. Maria promises to look into the matter.

Alarmset has recently announced plans to expand into the growing market for
assistive technology to help elderly and disabled people live independently. New
procurement staff may be required, but Maria also wants to take the opportunity of
enhancing the skills within her current team. Maria has set up an appointment with
the human resources manager to discuss an appropriate course of action. One of
the engineers who works on product support has expressed an interest in moving
into the procurement function. Maria needs time to consider this as she is aware of
the importance of selecting team members with complementary personalities. When
interviewing people, she intends to assess whether they are task- oriented, self-
oriented or interaction-oriented.

Questions

1. Explain the human relations approach to management using examples from

the case study to support your answer. (25 marks)
2. Discuss how effective team and group working might improve performance
within the procurement function at Alarmset. (25 marks)

CASE STUDY – PROCUREMENT MANAGEMENT AT WHEELS

Wheels is a company which offers car rental services. Mike Stephens is the newly
appointed procurement manager. This is Mike’s first job as a manager and he is
keen to put into practice some of the theories that he learned when achieving his
Diploma in Management.

On Mike’s first day in charge of procurement, he decides to meet three of the

longest-serving buyers to gain their views and opinions. The first buyer seems very
unhappy, complaining about a lack of structure to the department, no guidance on
how to undertake tasks, poor communication from the previous manager, and a lack
of training opportunities. The second buyer is very enthusiastic and says that she
thrives on being given autonomy and hopes that Mike will not be telling her what to
do. This buyer also informs Mike that she is currently studying for her procurement
qualification in the evenings at the local college, something which she arranged
herself. The third buyer does not say much, but frequently looks at his watch and
asks how long the meeting will take as he has important personal matters to attend

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to. Mike does not feel that he has gained much insight into the team as the views
and attitudes expressed by the buyers vary so much.

In Mike’s previous organisation, his manager introduced a system called ‘The Vote’
which had the aim of supporting and encouraging exceptional performance. It
worked on the basis of team members assessing their own and each other’s
performance. Under this system, all procurement staff ranked everyone in the
department, including themselves, and provided a constructive explanation for the
rankings given. The results were then fed back to each team member anonymously.
The names of the best performer and the most improved performer were
communicated to all members of the team. Mike is keen to implement such a system
within the procurement department at Wheels.

The company recently relocated to a different region. This resulted in a number of

staff deciding not to relocate, including the previous procurement manager.
Therefore Mike will need to recruit new members of staff, both junior and senior,
across a number of different roles. He decides to arrange a meeting with the human
resources manager to begin this process. At his selection interview, Mike was
informed that one of his responsibilities would be to devise a training plan for the
procurement function, as training is an area which the company wishes to improve.
Mike will also discuss this with the human resources manager.

Once the new members of staff have been recruited, Mike needs to think about team
development. He knows that it will take time for the new team to settle down and is
determined to make allowances for this. He also knows that having the right mix of
people within the team is very important, and he needs to keep this in mind during
the recruitment process. Finally, he seems to remember from his management
studies that there are certain factors that are generally recognised as being helpful
for effective team performance. He decides to consult his course notes at the
weekend to review those factors.

Questions

1. Discuss the ‘systems’ approach and the ‘contingency’ approach to

organisational behaviour using the information in the case study to support
your answer. (25 marks) LO 1.2
2. Explain the main elements that Mike should include when developing a
comprehensive training plan for the new procurement team at Wheels. (25
marks) LO 4.4

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CASE STUDY – CRAFT PRECISION ENGINEERING

Jenny Briggs had recently joined Craft Precision Engineering (CPE) as the quality
manager and has been tasked with introducing accredited Quality Systems. The
company is a third-generation family firm with a proud heritage in precision
engineering. Pictures of the founder hang on the wall with the firm’s motto ‘built to
the highest standards’ written underneath. Jenny thought that capturing the quality
working practices would be easy but is finding the culture of the organisation
resistant to change, and staff are reluctant to review how they operate. Jenny has
spoken to one of the directors about her observations and the director suggested it
would take time for Jenny to fully understand the culture of the company, which had
developed over decades.

Jenny decided to focus firstly on the Quality Systems within the procurement
function. She was surprised that so little was written down by the team. The team
members had all been working there for over ten years with the exception of Sion
Atkins, who had joined recently. Sion was learning the job by working with each of
the other team members for two weeks on rotation. The team thought this would
introduce Sion to the full range of procurement activities. Jenny spoke to Sion’s
manager, Jasmine Clarke, about providing some written guidance for new recruits.
However, Jasmine thought that carrying out tasks under supervision would be the
best way to learn.

Jenny talked to each of the procurement team members in turn. It appeared that they
each had a group of suppliers with whom they had worked for a long time. The
procurement specifications were not recorded but the suppliers knew what was
expected, since a common understanding had developed over time.
The procurement team, despite the apparent lack of systems or documentation,
appear to be effective. Stock-outs are extremely rare even though little stock is held.
Purchasing costs for materials have been steady over the last five years despite
rising material prices and a challenging external environment. The team is multi-
skilled and are able to cover each other’s roles when required. The manager
appears to operate more as one of the team rather than directing operations. Each
team member takes a lead on aspects of the operations and has a specific technical
expertise.

Jenny met the HR manager over lunch and told him about her observations since
joining CPE. The HR manager had also recently joined the organisation and had
noted similar points to Jenny concerning the people and the organisation. Both of
them believed that the company was inward looking and reluctant to adopt new
ideas in a changing business environment. The HR manager had been asked to put
a comprehensive training programme in place for all levels of the organisation. With
a workforce of 150, and a lack of previous personnel records, this would be a
substantial task. The HR manager’s first job would be to draw up a training and
development policy for approval by senior management, before setting the training
plan in place.

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The HR manager was also concerned about the lack of recruitment and selection
planning. He felt that recruitment practices were outdated and ineffective, with a lack
of structure and information.

Jenny and the HR manager decide to work together in the ‘modernisation’ of the
organisation, as they recognised that they could help each other.

Question 1: Explain the concept of knowledge management within organisations. (15

marks)
Question 2: Assess the approach to knowledge management within the procurement
function at Craft Precision Engineering. (10 marks)

CASE STUDY – PROCUREMENT MANAGEMENT AT CI

Saeed Khan is the CPO (Chief Purchasing Officer) of Carriage Interiors (CI), a large
company that manufactures interiors for rail carriages, including ceilings, luggage
racks, seats and drivers’ cabins.

With a turnover of $235m, the company has 1,500 staff across a number of key
locations who are involved in manufacturing, procurement, sales, and managerial
and support services. Saeed is in charge of a procurement function consisting of five
senior qualified procurement professionals. He has spent the last two years
developing this group of individuals into an effective team.

Recently CI acquired Frasers, a small company in another country, in order to

develop the business in that region. Although it is much smaller than CI, Frasers
provides similar products and services to a number of train carriage manufacturers.
Saeed has been tasked with investigating the capability of the procurement function
in Frasers. The first thing that he discovers is that there is no dedicated procurement
manager, but only two members of staff responsible for purchasing activity who
report to the operations manager instead. This is rather surprising, since the cost of
parts to fulfil Frasers’ order book is at least 50% of annual turnover.

Kate Thomson, a purchasing assistant, is the newest member of Frasers’

procurement team, having joined the company just over 12 months ago straight from
school. Kate is enthusiastic and hard working, but has been given little support in her
role, as the operations manager is always too busy. Kate tends to get involved with
general administrative duties only. She would like to take on extra responsibilities
and to get more involved in ordering parts, meeting suppliers and improving
practices in the department, but she lacks the confidence and knowledge to do so.
Alonso Mateo, a buyer, is 21 years of age and joined Frasers just over two years
ago, after a short period at an accountancy firm, which he did not enjoy. Alonso
inherited the supplier list, account files, and the contracts that were already in place
at the time of his appointment. He is reliable and thorough in his day-to-day dealings
with suppliers, but lacks the necessary purchasing knowledge and negotiation skills
to deal with new suppliers and contract renewals.

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Both Kate and Alonso would like to enhance their procurement skills, but there is no
training budget available. Procurement does not have high status in Frasers and the
operations manager is not supportive of a professional approach to procurement.
Kate and Alonso are becoming increasingly frustrated and de-motivated.
Interestingly, Saeed discovers that one of the members of Frasers’ customer service
team, Crystal Stevens, who works part-time due to family commitments, is an
experienced and qualified procurement professional. However, she is not interested
in joining the procurement team because the work is not challenging, there are
limited prospects, a lack of flexible working, and she does not like the operations
manager.

Saeed feels that there is a need to recruit a procurement manager for Frasers. There
is also a need for training and development, and something should be done about
motivation. Furthermore, Saeed knows that it will be a difficult task integrating
Frasers’ procurement team with his own at CI head office. He is keen to use his
knowledge of management and organisational behaviour to help to resolve these
issues.

Question1: Discuss how the following might be used in the development of

procurement staff at Frasers: performance appraisals and personal development
plans (25 Marks).

CASE STUDY – EMF ELECTRONICS

EMF Electronics (EMF) was reviewing a proposal to relocate production operations

from southern Europe to South America. This proposal was sure to meet with some
resistance, but the continuing demand for EMF products in North America was a
significant opportunity for the organisation. Production costs are currently favourable
in South America, whilst the proposed relocation there would still give good market
access to North America. The supply chain director of EMF, Sean Park, considered
that the savings were critical to the company and that distribution could still operate
throughout Europe with a price advantage, even including the additional
transportation costs back to Europe. The project would fundamentally reconfigure
the operations of the supply chain and have significant impact upon many
employees of the organisation.

Sean knew that maintaining the engagement of key stakeholders was crucial for the
relocation project to succeed. Therefore he realised that creating a communication
plan for the implementation of the relocation project would be crucial.
Sean gathered the EMF departmental managers together for a presentation on the
proposal. In building high performing supply chain operations for EMF in the past, he
had been meticulous in planning and co-ordinating process and project management
activities. In this presentation he knew that he needed to inspire and motivate the
departmental management team. He acknowledged that there would be resistance
to such a large-scale change, but felt confident that strong leadership would be able
to overcome this.

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After the presentation, Sean invited questions, and was quickly overwhelmed by the
negativity, the issues raised, the challenges made to his proposal and requests for
further information. He was particularly concerned with a series of issues raised by
the logistics manager, Celia Groves. Celia had worked with the organisation for over
25 years and was very well respected by senior management and fellow employees
alike. The points Celia made systematically challenged the arguments for the project
proposal. She argued that much more could be done to reduce costs at the current
European production location. Sean noticed that others in the room were nodding in
agreement. Sean had planned to use the same presentation later that week to key
suppliers in order to take the project forward. He now considered that a different
approach might be required.

Upon returning to his office Sean reflected upon the presentation to the departmental
managers. He knew that carrying through a large and complex project such as this,
with fundamental change requirements, was going to be very challenging. Although
he still felt convinced that this was the right thing to do, he realised that he would
have to assemble a strong project team to support him. He also recognised that his
approach to managing the change might have to adapt depending upon the stage of
the project and the barriers encountered. He glanced out of the window and saw
Celia and some of the other departmental managers deep in discussion outside.

Their discussions looked serious and Sean was concerned about a negative group
influencing the broader team. Sean decided to call his old mentor for some advice. A
direct line to the Chair of the Board was always an advantage.

Question 1: Examine, using examples, FIVE possible reasons for the resistance to
change illustrated in the case study. (25 marks) LO 5.2

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CASE STUDY – MAX SCIENTIFIC MATERIALS INC. (MAX SCIENTIFIC)

Karen Carnell has recently been appointed as head of procurement for the Italian
division of a major multinational company (Max Scientific). Karen was educated in
Sweden and obtained a masters degree and doctorate in other Western countries.

She is a scientist by profession, but moved into procurement because of her

specialist knowledge of scientific equipment. She has had considerable success in
procurement roles for various companies in the last ten years. She joined Max
Scientific five years ago, and the move to Italy is her second promotion.
Karen has, however, found the attitude to work in the south of Italy significantly
different from that in Sweden. There, she has found significantly different
expectations of both the workforce and the management from her experience
elsewhere.

In Italy, the management of the company has traditionally adopted a top-down and
authoritarian approach, with very limited risk taking. The organisation is still
predominantly staffed by males, especially in management positions, and she has
felt somewhat isolated from her work colleagues.

However, she has been advised that in the last few years some significant changes
have taken place in the organisation’s workforce. The composition of the workforce,
noticeably at lower levels, has become more diverse in terms of gender, race and
religious background.

The management has also introduced more teamworking throughout the business.
This has been in an attempt to improve productivity. At the same time the
organisation has been expanding its operations due to significant growth in the
market for its products. This expansion has also seen a need for some staff to
develop their skills and for new staff with high skills to be recruited.

The result of the expansion in the workforce has been requests for less rigid
traditional working arrangements – for example, flexible or part-time working –
mainly from female staff with childcare responsibilities. Other requests have been
that breaks should be available at times that enable people to pray, and that
dedicated prayer rooms should be made available. Changes to the traditional holiday
calendar have also been requested to accommodate a wide range of religious
holidays.

Karen has found that some of these issues have affected the operation of her
procurement team, and that managing them is quite challenging. She feels that the
attitude to work and the concept of the work-life balance in Italy is quite different to
her previous experiences of working in other countries. She finds that a significant
and increasing number of her working hours are spent resolving staff issues or
concerns, leaving her less time to deal with procurement tasks.

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Despite her impressive educational background, she has received little formal
management training, and is unsure how to tackle some of the management issues
she is currently facing.

Question: Explain the term ‘diversity’ in the context of organisations. (9 marks).

Outline FOUR potential benefits for Max Scientific of having a more diverse
workforce. (16 marks) LO 5.2

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 Essay Questions

1. Explain the stages through which the procurement team members at may
progress in developing into a more effective team. (13 marks) - LO 3.2

2. Discuss the benefits of improved team working for the procurement teams in
an organisation (12 Marks) LO3.3

3. Analyse the key factors that may influence job satisfaction within the
procurement department. (LO2.4)

4. Examine the activities involved, for HR and purchasing, to develop a formal

recruitment and selection plan to meet the future needs of a purchasing
department (25 marks) LO 4.4

5. Explain the different types of behavioural characteristics that might be present

in the individual members of the purchasing team (25 Marks) LO 2.1

6. Describe the main components of a job description and person specification

that might be developed following the identification of skills and knowledge
required in a procurement role (LO 4.3)

7. Suggest and justify FOUR key characteristics of effective work teams that
Mike should consider in order to develop a more effective procurement team
(LO 3.3).

8. Outline the importance of effective human resource management for the

procurement function (10 Marks). LO 4.1

9. Suggest a structured approach to recruitment and selection that a company

might use to meet the future needs of the procurement function (15 Marks).
LO 4.3

10. Examine possible approaches to the motivation of individuals within the

procurement team, making reference to appropriate motivation theories. (25
marks) LO2.3

11. Outline how a diversity champion, might address the main aspects of diversity
in an organisation (10 marks) LO 5.3

12. Explain the benefits of a positive approach to diversity for any organisation
(15 marks) LO 5.3

13. Describe the key features of a ‘scientific management’ approach. (9 marks)

Explain TWO advantages and TWO disadvantages of a ‘scientific
management’ approach for an organisation such as UFL(16 Marks). LO1.3

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14. Explain the categories of culture that may be evident in different countries with
reference to appropriate theory. (25 marks)

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 Feedback on Scenario Questions

Please refer to quoted Learning Outcome (LO) from CIPS Study Guide for detailed answers

Case Study: Thermal Systems:

Q1: Answers to this question should include a definition of what organisational

behaviour is, an examination of the range of factors that impact on organisational
behaviour (e.g. culture, structure, management/leadership, technology, team
dynamics and the external environment) and the influence they have on the way
Mydlana operates.

Suitable models and theories that were used for this question include STEEPLE,
Fayol and Mintzberg. You could also refer to models by Brech, Drucker and
Hofstede

50% of the marks will be awarded for identifying key influences on organisational
behaviour with some explanation of examples from the case study. The additional
marks were awarded for a full evaluation supported by recognised theory and
applied to the case study.

Examples of good content in answers will include a clear definition or understanding

of the importance of organisational behaviour, consideration of a range of internal
and external influences on Mydlana, good use of appropriate theories and
application to the case study. A good approach to this question involved drawing out
the relevant strands from the case study that influence organisational behaviour
including Charles’ leaderships style, lack of contentment of the team at TSL,
bureaucratic working practices and a ‘strict hierarchy of levels of management’ at
Mydlana.

Examples of poor content in answers will be a lack of depth in responses, the

omission of recognised theories and models and in some cases reference to factors
covered in the following questions such as training. Listing factors at this level is not
deemed sufficient to show a comprehensive understanding of the subject matter.

Q2: Answers to this question should start with a definition of training and
development or alternatively why it is so important. Answers then discuss how to
conduct the process of training and development ideally using a training needs
analysis to start and then delivering in-house training or sourcing suitable external
training and development methods followed by evaluation of their impact. Answers
that were able to identify both internal methods such as job shadowing, ‘sitting with
Nellie’, coaching and mentoring to external methods such as workshops, courses,
conferences, on line development and industry forums were awarded appropriate
marks for detail given.
More than half the marks will be awarded for the identification and discussion of two
or more appropriate staff training and development approaches in the context of the

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case study. Further marks will be made available for additional discussion and
examples that demonstrated a wider understanding of training, development and
appraisal theory and practice.

An example of a good approach to this answer included (step by step) a training

needs analysis (TNA), the implementation and delivery of suitable training and
development methods including the coverage of suitable core content including
internal and external development methods and discussion of the benefits these
initiatives would have for the organisation. Stronger answers also made links with
appraisals, setting SMART objectives and the impact on company performance.

Examples of poorer content included lack of acknowledgement of the training

development process (including training needs analysis), bullet points regarding
training methods and a general lack of depth to the answers.

You should also use Kirkpatrick evaluation model which is ideal for assessing
whether the training and development has made a difference to the organisation.

Case Study: XSystems: (Learning Outcome (LO): 4.1)

Q1: Answers to this question should include coverage of the full range of activities
needed to appoint suitable staff for XSystems. These include gaining authorisation to
recruit, drawing up a job description and person specification, drafting an
advertisement and choosing the best media to show it, shortlisting applicants,
interviewing, appointed the best candidate and notifying all interviewees of the
outcome.

Also stronger answers show an appreciation that like all processes at work
improvements can be made so reviewing the recruitment and selection plan is
important. The more substantial answers also went into detail about best practices in
interview technique and questioning.

Up to 10 marks will awarded for the development of an appropriate recruitment and

selection plan for XSystems. A further 10 marks were available for those answers
that showed a broader or more detailed account in their answers using models and
theories to demonstrate their understanding.

Q2. Answers to this question included the identification of root causes of conflict and
the putting forward of actions/suggestions to improve those problem areas. Answers
were also expected to show an appreciation of resolving conflict informally were
possible to reduce costs and limit the impact on time and resources. Also reference
to appropriate theorists was expected including Dessler, Mullins, Handy, Morton and
Deutsch and studies such as the Hawthorne Experiments.

Up to 15 marks were awarded for the proposed actions to reduce conflict and
improve team cohesion. A further 10 marks were awarded for the appreciation of the
sources of conflict contextualised to the case study.

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Examples of good content included identification of the main causes of conflict
including the inability of staff to celebrate successes, out of hours emailing, CPO
criticism, use of agency staff and an extremely competitive culture and poor
engagement with stakeholders.

Stronger answers were able to build on the above and then put forward ways to
resolve the areas of conflict through better communication, change of culture and
management style, reduction of agency staff, a more open door policy and better
management support.

Examples of poorer content included the limited identification of causes of conflict

and lack of practical and recognised formal and informal methods to resolve conflict
that were put forward.

CASE STUDY – MARIA’S PROCUREMENT TEAM

Question 1: Answers to this question included an explanation of the human relations

approach to management.

That explanation could have referred to it being a people focused approach

developed mainly as a relation to the de-humanising aspects of the classical
approaches to organisational behaviour and management such as scientific
management and bureaucracy.

Theories and concepts that could be used when answering this question included
the work of Elton Mayo, the Hawthorne experiments and relevant aspects of the
work of Maslow, Herzberg and McGregor.

Up to 15 marks were awarded for an explanation of the human resources approach

to management. A further 10 marks were awarded for the use of examples from the
case study as directly requested in the question.

Examples of good content in answers included clear explanations of the human

relations approach that was well informed by reference to a range of relevant theory
and that made clear links between that an the content of the case study. Better
candidates reflected both a good level of understanding and the ability to apply that
understanding to the case study material.

Poorer content tended to either discuss the case study material in very general terms
(often repeating significant amounts of case study material) making little if any
reference to relevant theory and concepts or discuss a limited aspect of theory with
little if any application to Alarmset.

Question 2: A good introduction to this question included a brief insight into groups
and teams. It was expected that candidates may have some difficulty in
distinguishing between the two and it was accepted that candidates may treat groups
and teams as separate concepts or as one and the same.

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Answer should then have discussed relevant aspects of theory applying to groups,
teams and teamwork as applicable to Alarmset such as work groups as a source of
companionship and supply, the need to belong, the sharing of specialisms,
objectives and interests and the access to greater power, experience and expertise,
group values and norms. Answers should also have had a clear focus on how
effective team and group working might improve performance within the Alarmset
procurement function.

Up to 13 marks were available for an understanding of the importance of effective

work groups and teams within the procurement function. The remaining 12 marks
were available for application to the case study.

Better answers clearly identified and discussed a range of ways in which effective
team and group working might improve performance within the procurement function
making reference to the work of a range of appropriate theorists. That discussion
may have also made reference to formal and informal groups, some of the potential
drawbacks to working in groups or teams.

Examples of poor content included general discussions of Belbin’s team roles or

Tuckman’s stages of group development with little if any application to the case
study. Poorer content also tended to discuss aspects of motivation with little regard
to either the question or the case study.

CASE STUDY – PROCUREMENT MANAGEMENT AT WHEELS

Question 1: Answers to this question should include definitions of organisational

behaviour, systems approach and contingency approach. Theories and concepts
that could be used for this question include Mullin’s five basic sub-systems for
analysing work, organisation and activities, the Longwall Coal Mining Study (Trist et
al), Lawrence and Lorsch (management influence in stable and dynamic
environments) and Joan Woodward’s research into the impact of technology on
organisational structure and management. Burns and Stalker also may be referred
to.

Up to ten marks each will be awarded for discussion of the systems and contingency
approaches. Up to five marks were awarded for relating the answer to the case
scenario, including the limited use of examples.

Examples of good content in answers included an appreciation of the differences

between systems and contingency approaches. Stronger answers will cite the main
components of a systems approach being structure, policy and protocol, human and
technical way of operating business with the emphasis on directive leadership and a
bureaucratic approach. You should also appreciate that a contingency approach is a
more modern way of managing a business offering flexibility and a tailored approach
depending on the situation to hand.

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Question 2: Answers to this question should include a definition of what a
comprehensive training plan is. You should structure this question in terms of
identifying training needs, checking on available resources, proposing a range of in
house (internal) and off site (external) training to meet those needs and reviewing
candidate performance and progress.
More than half the marks will be awarded for the explanation of the elements of a
logically structured training plan. Up to seven marks were awarded for the linkage of
the training plan to the procurement team at Wheels.

Examples of good content included contextualisation of the answer to the case study
and incorporated the needs of the individual team members. The Kirkpatrick model
also proved useful in reviewing the staff development initiatives proposed from a
number of perspectives.

Stronger answers showed consideration to the full range of factors involved in

constructing a comprehensive training plan including training needs analysis,
timeframes, cost implications, authorisation, staffing, training methods, venue,
learning outcomes, results and review and feedback.

CASE STUDY – CRAFT PRECISION ENGINEERING

Question 1: A good introduction to this question will include a brief definition of

knowledge management as this was the core theme of the question. In answering
this part of the question suitable theorists work to draw on include Mullins, John P
Wilson and Nonaka-Takeuchi (knowledge conversion model).

Up to five marks will be awarded for an explanation or demonstration of the concept

of knowledge management. A further ten marks were awarded for the identification
and explanation of knowledge management approaches and processes within
organisations.

Examples of strong content will be the mentioning of factors such as collation,

storage, sharing, protection and use of information. Better answers went a step
further and mentioned that the best use of knowledge management gave a company
a competitive advantage.

Question 2: Again theories such as the Nonaka-Takeuchi conversion model could be

used to answer this question. Up to four marks were awarded for the identification of
knowledge management issues at CPE and a further six marks could be awarded for
the wider assessment of knowledge management issues and approaches in the
context of the case study, using relevant models and theories. Examples of good
content will include good contextualisation to the case study referring to relevant
factors such as a lack of formalisation and documentation, job shadowing and
specifications not written down.

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CASE STUDY – PROCUREMENT MANAGEMENT AT CI

A good introduction to this question included why these key documents are key to
enabling the development of procurement staff at Frasers. Content are expected to
include the importance of regular reviews, the setting of SMART objectives,
alignment with functional and organisational plans and good two way interaction
between appraiser and appraisee. Up to 6 marks will be awarded for an explanation
of each approach. A further 6/7 marks each for links to the staff issues at Frasers.
Examples of good content included considering these two key documents as part of
the important process of managing the development and performance of staff at
Frasers.

Stronger answers will be able to link both documents in the question explaining that
performance appraisals (affectionately known as personal development reviews in
many organisations) are an opportunity for the line manager to agree work
activities/actions with a team member and then (with the aid of the personal
development plan) identify any skills or competencies required to fulfil the objectives
that the team member would need support with. Hence the personal development
plan then is agreed between both parties and sets out objectives whereby the team
member can gain the required skills to do an effective job and meet performance
targets set.

CASE STUDY – EMF ELECTRONICS

There are a wide range of generic reasons that candidates may identify as reasons
for resistance to change. They may use tools such as the Lewin force field analysis
to categorise these restraining/resisting forces. The resistance may be categorised
as by Mullins into:

Individual resistance
• Selective perception – seeing only the problems and difficulties without the
advantages of Sean’s new approach
• Habit providing ease and comfort – Sean may have ‘rattled some cages’ by
suggesting changes
• Inconvenience/loss of control – the managers and their departments may lose
some influence
• Economic implications/change of role or payscale – some managers may be
made redundant and some suppliers may be dropped
• Nostalgia – we’ve always done it this way – Sean may be facing a culture
which is long established
• Fear of the unknown and uncertainty – departmental managers may be
unwilling to consider risk

Organisational resistance
• Culture and norms – the organisation may be very traditional and unwilling to
change
• Desire to maintain stability – the departmental managers might prefer the
status quo

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 • Resource requirements – additional resources and the re-distribution of
resources may limit other managers access to them
• Past and existing contracts and agreements – Sean may not have yet
investigated the existing contracts that EMF has in place. There may be exit
implications
• Threat of power of interest groups – existing suppliers may resist Sean’s
changes
• Blame culture – ‘it’ll never work, we tried it before and it failed’. These types of
attitude would provide a barrier to Sean’s changes.

An alternative approach to categorising sources of resistance and change was

proposed by Kotter and Schlesinger:
• Parochial self-interest (vested interest in maintaining the status quo)
• Misunderstanding and lack of trust of the reason for change and its likely
consequences
• Contradictory assessment of the situation (different people having different
perceptions of the change)
• Low tolerance of change (individuals feeling insecure in the face of
uncertainty)

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CASE STUDY – MAX SCIENTIFIC MATERIALS INC. (MAX SCIENTIFIC)

Part a: Good content in answers involved a good grasp of the breadth of coverage of
aspects covered by diversity including primary and secondary categories such as
age, gender, religion, race, sexual orientation, education, social economic standing,
marital status and level of income etc.

Examples of content for merit/distinction grade answers:

Better answers explored the full range of categories covered by diversity and linked
them to real examples or back to the case study.

Examples of poorer content/ poorer approaches in answers:

Weaker answers included a lack of depth of detail and a narrow view of what
diversity covers.

Part b: Examples of good content/good approaches in answers: Good content

included the coverage of four benefits including factors such as better performance,
synergy, compliance with legislation, appreciation of customer and stakeholders’
needs, innovation and more effective decision making and problem solving.

Examples of content for merit/distinction grade answers:

Better answers gave in depth detail of the four benefits of staff training and linked
them to the case study and used examples.

Examples of poorer content/ poorer approaches in answers:

Lack of detail were deficiencies in weaker answers. Some answers did not manage
to outline four benefits or gave unsubstantiated responses or benefits that were ill
informed. Some candidates provided a long introduction to this question which is not
required and did not add to the quality of the response.

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 Answers/Feedback to Essay Questions
Please refer to quoted Learning Outcome (LO)
from CIPS Study Guide for detailed answers

1. Explain the stages through which the procurement team members at

may progress in developing into a more effective team. (13 marks) -
LO 3.2

Answers for this part of the question started with a brief definition or an
understanding of the importance of getting team members performing as a
team. Tuckman and Jensen was the obvious model to cite and apply to the
case study although the stages could be discussed without a model (but often
led to less convincing responses). The secret to obtaining a higher grade in
this answer was to blend theory, application and play the role of a manger and
make suggestions as to how to support the team.

Up to 8 marks will be awarded for an appropriate explanation of the stages of

team development with some references to the issues in the case study.
Should answers included the Tuckman and Jensen model this was deemed
good practice but if placed in the wrong order and explained could still be
awarded some marks.

A further 5 marks will be available for the inclusion of more extensive case
study examples and reference to appropriate theories and models.

Good approaches used the Tuckman and Jensen model in the correct order
and suggested ways that a manager could support the team members through
each stage.

Examples of poorer content included lack of depth of knowledge to the subject

matter, a complacency in using models.

2. Discuss the benefits of improved team working for the procurement

teams in an organisation (12 Marks) LO3.3

Answers to this part of the question included the exploration of a number of

benefits of team working which included better performance, innovation and
ideas, camaraderie, synergy, better informed decision making and conflict
resolution.

Up to 12 marks will be awarded for answers with three or four benefits discussed
in detail or more benefits discussed with less detail.

Examples of poorer content in answers will be a lack of structure to the question,

listing of factors rather than developing points.

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 3. Analyse the key factors that may influence job satisfaction within the
procurement department (LO2.4)

Examples of good content included the use of a range of theories from Hackman
and Oldham, Paul Hill (job satisfaction), Ashridge (Leaderships Styles) and
Maslow, McGregor and Herzberg (Motivation). Coverage of relevant topics
included staff turnover, motivation, organisational structure, management style,
individual feedback and remuneration and reward.

Better answers were able to clearly define job satisfaction, identify the problem
areas from within the case study and then with the use of relevant models and
theories put forward actions to eliminate the lack of job satisfaction in the case
study.

Examples of poor content included the coverage of a limited number of topic

areas and in too little detail. Motivational theories could be used as a useful aid to
the question but not as core content. It was not enough in this question to
repeatedly use motivational theories to explain what job satisfaction – the
question required a more considered and informed answer.

4. Examine the activities involved, for HR and purchasing, to develop a

formal recruitment and selection plan to meet the future needs of a
purchasing department (25 marks) LO 4.4

The core content of this question that most candidates were comfortable with
included the end to end process of identifying a vacancy, drawing up a job
description and person specification, advertising the position through suitable
media, shortlisting candidates, interviewing, offering the position and reviewing
the process (for improvement next time).

Up to 16 marks were awarded for proposing a logical recruitment and selection

plan. Examples of good content were a structured approach to the recruitment
and selection process ensuring authorisation was gained, interview preparation
was thorough, appropriate selection methods were used, the process complied
with all relevant legislation and that selection was fair and based on merit.

Stronger answers appreciated also that there may be applicants internally who
may be suitable and that questions had to be agreed by the interview panel in
advance and used with each candidate. Accurate records should be kept and all
candidates should be informed of the outcome.

5. Explain the different types of behavioural characteristics that might be

present in the individual members of the purchasing team (25 Marks)
LO 2.1

A good introduction to this question included a definition of behavioural

characteristics or an overview of how important it is to the team dynamics of an
organisation.

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Answers should then have covered the specific behavioural types by referring to a
range of related models and theories. and a structured approach to this question
were seen far too infrequently.
Up to 12 marks were available for the explanation of behavioural characteristics.

Examples of good content included the use of a range of theories such as

Cattell’s 16 Personality Factors (PF), Erikson’s stages of personality development
and the Myers Briggs Type Indicator (MBTI). Other suitable models that
candidates applied to the case study included Belbin’s team Roles and Tuckman
and Jensen Group Formation model – which were also awarded marks provided
they were contextualised.

Stronger answers used a wide range of models including Goleman’s work on

Emotional Intelligence.

6. Describe the main components of a job description and person

specification that might be developed following the identification of
skills and knowledge required in a procurement role (LO 4.3)

Answers to this part of the question clearly demonstrated a good

understanding of the main components of a job description and a person
specification. Up to six marks were awarded for an understanding of the main
components of a job description and a further six for an understanding of the
main components of a person specification. Better content showed a good
understanding of the content of both documents including for example the use
of frameworks such as Rodger’s seven point plan in relation to a person
specification and the need to update job descriptions as organisations grow
and / or change.

7. Suggest and justify FOUR key characteristics of effective work teams

that Mike should consider in order to develop a more effective
procurement team.

The 25 marks will be split between the four key characteristics of effective work
teams. Up to 2 marks will be awarded for each characteristic identified and the
remaining marks for each justification. Examples of good content included an in
detail discussion of the key characteristics of effective work teams that Mike
should consider in order to develop a more effective procurement team. Also
models such as Woodcock, Mullins and Tuckman and Jensen can be used.
Stronger answers also drew on further models such as Belbin and Morton
Deutsch.

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 8. Outline the importance of effective human resource management for
the procurement function (10 Marks). LO 4.1

Answers to this question will include a brief definition of what effective human
resource management (HRM) is or why it is vital to an organisation’s success.
Content that was included in the main body of the answer were the reasons why
effective HRM is important such as people are a key resource, enables the
achievement of organisational and functional objectives, provides the necessary
development and support, leads to diversity and new ideas/approaches and
succession planning. Up to three marks were awarded for the demonstration of
an understanding of the importance of effective HRM and the remaining 7 marks
for the outline of how and why HRM is important. Examples of good content
included citing the importance of managing the company’s most important asset
– its people! Better answers went further and used the Harvard model to explain
the hard and soft aspects of HRM. They also appreciated that effective HRM is
concerned with acquiring and keeping the best people – by establishing good
policies, creating a good working environment and enabling staff to develop in
their roles.

9. Suggest a structured approach to recruitment and selection that a

company might use to meet the future needs of the procurement
function (15 Marks). LO 4.3

A good introduction to this part of the question included a definition of recruitment

and selection or why it is so important to an organisation. Relevant content for this
question included a thorough step-by-step approach to recruitment and selection that
considered all aspects from identified need to review of the process.

Up to ten marks will be awarded for answers which suggested approaches covering
the main elements of a recruitment and selection plan and the remaining five marks
for depth of detail and for suggestions made and contextualised to the case study.

Examples of strong content included a step by step approach to recruitment and

selection including policy development, identifying recruitment needs, updating job
descriptions and person specifications, surveying the labour market, advertising
posts, shortlisting and interviewing (including assessment), providing feedback for
successful and unsuccessful candidates and reviewing the overall process.

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 10. Examine possible approaches to the motivation of individuals within the
procurement team, making reference to appropriate motivation
theories. (25 marks) LO2.3

A good introduction to this question would be a definition of motivation.

Content should include good use of a range of motivational theories linked to
the case study. Marks will be awarded for an examination of possible
approaches to motivating individuals, based on the use of relevant
motivational models and for relating suggested approaches back to some
examples Good content included how a manager can motivate the team by a
range of methods including meetings, job rotation, job enlargement and job
enrichment and professional development (to name but a few). Better
answers were able to not only apply relevant approaches but also cite a range
of models and theories including Maslow’s Hierarchy of Needs, Herzberg Two
Factor Theory, Vroom’s Expectancy Theory, Locke’s Path Goal Theory or
McGregor’s X and Y Theory.

11. Outline how a diversity champion, might address the main aspects of
diversity in an organisation (10 marks) LO 5.3

Candidates could begin by demonstrating a broad understanding of the term

‘diversity’. A typical definition and explanation may include the following
‘visible and non-visible differences (between people) which include sex, age,
background, race, disability, personality and work style’.
The main areas that diversity champions, would need to be aware of include
the items detailed above which will be addressed by an appreciation of
individual differences, taking diversity into account when designing reward
systems, adjusting work arrangements and environments to accommodate
diverse family responsibilities. These aspects should be formalised into
appropriate policies. Managers might address Hellriegal et al’s points on the
characteristics of diversity by:
• Fostering an environment of inclusion of people who have different
characteristics.
• Learning from individuals, teams or organisations with different characteristics
and perspectives, to stimulate creativity and innovation.
• Developing awareness, attitudes and behaviours that support diversity in the
workplace.
• Demonstrating commitment to work with team members and value their
contributions, regardless of personal attributes or differences.

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 12. Explain the benefits of a positive approach to diversity for any
organisation (15 marks) LO 5.3

The question required the candidates to focus on benefits only and does
not ask for disadvantages. There is a wide range of benefits that
candidates may identify from the application of diversity Candidates are
typically expected to include a minimum of five benefits but a range of
depth and breadth is acceptable. Answers may include but not limited to
the following:

The benefits of diversity include:

o Widening the recruitment pool – this gives access to wider skills
base.
o Enhanced performance – due to the selection of people on merit
and using the best in class performance standards.
o Reflecting diversity to external stakeholders e.g. an ethnically
balanced workforce in relation to its local environment.
o Cultural sensitivity in terms of products produced, manufacturing
techniques, etc.
o Improved staff morale – under-represented groups will feel valued
and supported.
o Enhanced employer brand – an employer of choice for all groups.
o Compliance with legislation – avoiding penalties and also negative
publicity.
o Enhanced flexibility and learning – difference and diversity may
provide a stimulation to inspirational leadership.

The benefits can be summarised as legal, moral and social, business benefits
and employee benefits

13. Describe the key features of a ‘scientific management’ approach. (9

marks) Explain TWO advantages and TWO disadvantages of a
‘scientific management’ approach for an organisation(16 Marks). LO1.3

A brief introduction may include an overview of what scientific management is.

Content should include features such as a process driven approach
(mechanistic), task focused, specialisation of roles and responsibilities,
management led approach, lack of professional development and links to key
theorists such as ‘Taylorism’ and Fayol principles of management.

Better answers described many of the features of scientific management and also
linked the response to relevant theory. Poor answers showed little appreciation of
the key aspects of scientific management and showed that candidates had not
revised this part of the syllabus very well.

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A brief introduction may show a wider appreciation that scientific management is
one of a number of schools of management used in business.

Content should include advantages such as standardisation, higher levels of

production, clear roles and responsibilities, good guidelines and protocol and
incentivised work for staff and management.

Disadvantages include lack of concern for human elements, rigid practices, lack
of innovation and a demoralised workforce over time.

14. Explain the categories of culture that may be evident in different

countries with reference to appropriate theory. (25 marks)

Examples of good content/good approaches in answers:

Good answers included an appreciation of the range of factors that impact on
international cultures including leadership, language/communication, motivation
of staff, use of power, organisational structure, rituals, beliefs and values..
Examples of content for merit/distinction grade answers: Other models were also
explained such as the cultural web, Trompenaars model or Hall’s High/Low
context model.

Better answers used Hofstede’s Five Dimensions of Culture including ‘Power

Distance’, ‘Uncertainty Avoidance’, ‘Individualism’, ‘Masculinity’ and ‘Long Term
Orientation’ and contextualised them to the case study.

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