L5M1 Managing Teams and Individuals Question and Answers

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

Curiosity (8–9 marks):

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

Creative Thinking (8–9 marks):

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

Reflective Analysis (8–9 marks):

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

Conclusion:

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

One widely used model for classifying stakeholders isMendelow’s Power-Interest Matrix. This model categorises stakeholders based on their level of power (ability to influence decisions) and their level of interest (degree of concern in the issue). It helps managers decide how to engage with different stakeholders effectively.

High Power / High Interest – Key Players:These stakeholders must be closely managed and fully engaged. For example, the Finance Director or Hospital CEO when approving a high-value purchase. Procurement should provide detailed briefings, involve them in decision-making, and ensure their concerns are addressed.

High Power / Low Interest – Keep Satisfied:These stakeholders can influence outcomes but may not have strong interest in day-to-day procurement. For instance, regulatory bodies or legal advisors. Procurement should provide concise updates and ensure compliance to avoid dissatisfaction.

Low Power / High Interest – Keep Informed:These stakeholders care about the outcome but have limited influence. For example, end-users of medical equipment or nurses in a hospital setting. Procurement should communicate progress, seek feedback, and maintain transparency.

Low Power / Low Interest – Minimal Effort:These stakeholders require only basic information. For example, general staff not directly impacted by a procurement decision. Simple updates or summaries are enough to keep them engaged.

When communicating about ahigh-value purchase, the Procurement Function should tailor its communication strategy according to this classification. Key players (high power, high interest) must be involved early with full transparency, including risk assessments and supplier evaluations. Stakeholders with high interest but low power should be consulted to build trust and buy-in, while those with high power but low interest should receive enough information to stay satisfied. Procurement should also ensure consistent, professional communication that reflects the importance of the purchase and builds confidence in the process.

Conclusion:

Mendelow’s Power-Interest Matrix provides a structured way to classify stakeholders. By adapting communication to each category – managing key players, keeping others satisfied or informed – the Procurement Function ensures effective stakeholder engagement, minimises resistance, and gains approval for high-value purchases.

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

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

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

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

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

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

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

Part A – Three Ways a Procurement Professional Could Be Biased (15 marks):

Personal Relationships / Conflicts of Interest:A buyer may favour a supplier due to friendship, family connection, or long-standing personal ties. For example, awarding a contract to a supplier owned by a relative, even if another supplier offers better value. This undermines fairness and can damage organisational reputation.

Preference for Incumbent Suppliers (Status Quo Bias):Professionals may repeatedly select the same suppliers simply because they are familiar, ignoring new entrants who could provide better innovation, cost savings, or sustainability. This limits competition and supplier diversity.

Cultural or Geographical Bias:A procurement professional may favour local suppliers over international ones, or show unconscious bias against suppliers from certain regions. While local sourcing can have benefits, excluding other suppliers without objective evaluation reduces fairness and potentially increases costs.

(Other possible biases include brand preference, ignoring SMEs, or favouring suppliers who provide personal benefits – but only three are required for full marks.)

Part B – Benefits of Remaining Unbiased (10 marks):

Remaining unbiased means making supplier decisions based on objective, transparent, and fair criteria such as cost, quality, delivery performance, risk, and sustainability. The benefits include:

Fairness and Transparency:All suppliers have equal opportunity, protecting the organisation’s integrity and compliance with regulations.

Best Value for Money:Objective evaluation ensures the chosen supplier offers the best mix of cost, quality, and service.

Encouraging Innovation:By considering a wider pool of suppliers, procurement can benefit from new ideas and technologies.

Ethical Compliance:Avoids corruption, fraud, or bribery, maintaining alignment with the CIPS Code of Conduct.

Reputation and Trust:Stakeholders and the market see the organisation as professional and ethical, which strengthens long-term supplier relationships.

Conclusion:

Procurement professionals may show bias through personal relationships, favouring incumbents, or cultural preferences. Remaining unbiased ensures decisions are fair, transparent, and ethical, leading to better value, innovation, and stronger supplier trust. This supports both organisational objectives and the professional standards of procurement.

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

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

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

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

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

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

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

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

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

Conclusion:

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

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

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

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

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

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

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

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

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

When preparing a business case for additional resource, Zarah should follow a structured process to ensure that the proposal is clear, evidence-based, and aligned with the hospital’s strategic objectives.

The first step is toidentify the need. Zarah must gather evidence to show that the current department is understaffed and unable to manage the workload effectively. This may include statistics on increased purchase orders, supplier contracts, delays, or risks caused by the lack of staff.

Secondly, she shoulddefine the objectives of the business case. In this case, the objective is to secure funding and approval for an additional Procurement Assistant to ensure efficiency, compliance, and risk management in hospital procurement.

Thirdly, Zarah mustanalyse options. The business case should not only present recruitment as the only choice but also consider alternatives such as outsourcing, redistributing workload, or temporary staff. Each option should be reviewed in terms of cost, feasibility, and benefits.

Fourthly, she shouldpresent the costs and benefits. The costs will include salary, training, and any associated overheads. The benefits may include faster order processing, reduced errors, improved supplier management, compliance with healthcare regulations, and freeing up senior staff for strategic tasks. Non-financial benefits, such as improved staff morale and better patient outcomes through timely supply of materials, should also be highlighted.

The fifth step is toassess risks. For example, not hiring an additional assistant may risk delays in ordering medical supplies, poor compliance with procurement standards, and reputational damage to the hospital. Conversely, recruiting without sufficient workload planning could lead to under-utilisation of resources.

Sixthly, Zarah shouldrecommend the preferred option. Based on evidence, she would recommend hiring one additional Procurement Assistant as the best way to meet the workload demands while delivering value.

Finally, she shouldprepare the formal document and presentationfor hospital executives or the finance committee. The business case should be structured with an introduction, background, options, costs/benefits, risks, and recommendations.

Conclusion:

To create a strong business case, Zarah must identify the need, set clear objectives, analyse options, present costs and benefits, assess risks, and make a clear recommendation. A well-prepared business case will increase the likelihood of approval and ensure the procurement team has the resources needed to deliver efficient, compliant, and high-quality outcomes for the hospital.

Intrinsic and extrinsic motivation (10 points):

Motivation refers to the internal drive that influences people’s behaviour and performance.

Intrinsic motivationcomes from within the individual and is linked to personal satisfaction, enjoyment, achievement, or a sense of purpose. For example, a procurement professional may feel motivated by solving complex supplier challenges or contributing to sustainability goals.

Extrinsic motivationcomes from external rewards such as pay, bonuses, promotions, or recognition. For instance, a buyer might be motivated by achieving cost savings to receive a financial bonus.

Both types of motivation are important in the workplace. Intrinsic motivation sustains long-term commitment, while extrinsic rewards provide short-term incentives. Effective managers balance both to maximise performance.

One theory of motivation (15 points):

A widely used theory isHerzberg’s Two-Factor Theory. Herzberg identified two sets of factors that influence motivation:

Hygiene factors– these do not motivate if present, but if absent, they cause dissatisfaction. Examples include salary, working conditions, policies, supervision, and job security. For example, if procurement staff lack proper tools or fair pay, they may feel dissatisfied, but simply improving pay will not necessarily make them highly motivated.

Motivators– these are intrinsic to the job and lead to satisfaction and motivation. They include achievement, recognition, responsibility, personal growth, and meaningful work. For instance, giving a buyer responsibility to lead a supplier negotiation or recognising their success increases intrinsic motivation.

Herzberg’s theory highlights that managers cannot rely on pay and policies alone. They must remove dissatisfaction by ensuring fair hygiene factors and then boost engagement by providing motivators. In procurement, this could mean ensuring fair contracts, proper systems, and clear processes (hygiene factors), while also giving staff opportunities for training, career progression, and recognition (motivators).

Conclusion:

Intrinsic motivation is about internal satisfaction, while extrinsic motivation relies on external rewards. Herzberg’s theory shows that managers should address hygiene factors to avoid dissatisfaction but must focus on motivators to truly drive performance. For procurement and supply leaders, combining both ensures staff remain engaged, loyal, and productive.