L5M1 Managing Teams and Individuals Questions and Answers

Intrinsic motivation comes from within the individual and relates to personal satisfaction, growth, and achievement, rather than external rewards such as pay. TheJob Characteristics Model (Hackman and Oldham)identifies several features of a role that can make it intrinsically motivating.

The first isSkill Variety. A role that allows employees to use a range of skills and abilities prevents boredom and makes the job more stimulating. For example, a procurement professional who undertakes supplier negotiations, contract management, and market analysis will find their role more engaging than one limited to routine administration.

The second isTask Identity. This means being able to complete a whole piece of work from start to finish. Employees are more motivated when they can see a clear outcome. In procurement, this could be managing a sourcing project end-to-end, from supplier selection through to contract award.

Thirdly,Task Significanceadds motivation by making employees aware of the impact of their work on others. If individuals see that their role contributes to organisational goals or wider society, they gain intrinsic satisfaction. For example, a buyer working on sustainable sourcing projects may feel motivated by contributing to environmental and ethical improvements.

The fourth isAutonomy. When employees have control over how they perform their work, they feel trusted and empowered. In procurement, this could mean giving staff flexibility in how they manage supplier relationships or structure negotiations, rather than micro-managing every step.

Finally,Feedbackis a key factor. Employees are motivated when they receive clear information on their performance, either from managers, colleagues, or the work itself. For example, a procurement professional who gets recognition for achieving cost savings or reducing supplier risks will feel intrinsically rewarded.

In summary, roles that offerskill variety, task identity, task significance, autonomy, and feedbackare more likely to be intrinsically motivating. For managers, designing jobs with these characteristics is essential for creating engaged and high-performing teams, particularly in procurement where complex, meaningful, and responsible work opportunities can drive motivation.

Definition of Emotional Intelligence (5 points):

Emotional Intelligence (EI), popularised by Daniel Goleman, is the ability to recognise, understand, and manage one’s own emotions as well as the emotions of others. It involves self-awareness, self-regulation, motivation, empathy, and social skills. A high EQ enables individuals to manage stress, build strong relationships, and influence others effectively.

Benefits of High EQ in Procurement (20 points):

Improved Negotiation Skills:Procurement professionals with high EQ can read emotions, adapt communication styles, and manage conflict effectively during supplier negotiations. This leads to stronger outcomes and sustainable supplier relationships.

Stronger Stakeholder Management:EQ helps buyers understand the needs and concerns of internal stakeholders (finance, operations, CSR). This fosters trust, persuasion, and collaboration in category strategies.

Conflict Resolution:In diverse teams or complex supply chains, conflict is common. High EQ managers can defuse tensions, listen actively, and find win-win solutions, maintaining team cohesion and supplier cooperation.

Resilience Under Pressure:Procurement often deals with supply crises, deadlines, or cost pressures. High EQ professionals manage stress, stay calm, and make rational decisions under pressure, maintaining credibility.

Team Leadership and Motivation:Managers with high EQ can inspire, coach, and support individuals, recognising different personalities and motivations. This improves morale, retention, and performance in procurement teams.

Ethical and Responsible Behaviour:High EQ includes empathy and awareness of wider impacts. Procurement leaders with EQ are more likely to consider ethical sourcing, sustainability, and supplier welfare, aligning decisions with organisational values.

Change Management:Procurement functions often undergo transformation (e.g., digital tools, supplier consolidation). Leaders with high EQ can communicate sensitively, understand employee concerns, and build buy-in for change.

Conclusion:

Emotional intelligence is the ability to manage emotions and relationships effectively. In procurement, high EQ strengthens negotiations, builds trust with stakeholders, resolves conflicts, motivates teams, and supports ethical and sustainable practices. It is therefore a critical capability for procurement leaders aiming to achieve both operational excellence and strategic value.

A culture of lifelong learning means that employees see continuous development as a normal part of their work, rather than a one-off event. For a procurement manager, embedding this culture requires leadership, systems, and consistent encouragement.

The first step is tolead by example. If the procurement manager demonstrates commitment to professional learning (e.g., pursuing CIPS qualifications or attending industry events), team members are more likely to follow. Role-modelling is a powerful way of embedding culture.

Secondly, the manager can createstructured training and development programmes. This could include formal training courses on negotiation, category management, or e-procurement systems, combined with informal methods like mentoring and peer learning. Having clear learning pathways ensures staff know how to develop their careers.

Thirdly, the manager should encourageknowledge sharingwithin the team. This may involve “lunch and learn” sessions, after-action reviews of sourcing projects, or creating knowledge repositories where lessons learned are stored for future use. Sharing experiences embeds learning into daily work.

Fourthly,embedding learning into performance managementis key. Training and development goals should be included in staff appraisals. For example, procurement assistants could be required to complete CPD (Continuing Professional Development) hours each year as part of their objectives.

Fifthly, the manager shouldencourage external engagement. Attending conferences, webinars, or supplier innovation workshops exposes staff to new ideas and best practices. In procurement, this is vital for staying ahead of supply chain trends such as sustainability or digitalisation.

Sixthly, the manager shouldrecognise and reward learning efforts. When staff complete training, gain qualifications, or demonstrate new skills, this should be acknowledged publicly. Recognition motivates others to commit to learning.

Finally, the manager should ensure thatresources and time are allocatedfor development. Lifelong learning will not happen if staff are overloaded with daily tasks. By scheduling training days or setting aside budgets, the manager signals that learning is valued.

Conclusion:

A procurement manager can embed lifelong learning by role-modelling development, providing structured training, encouraging knowledge sharing, linking learning to performance reviews, and recognising achievements. By creating this culture, the department becomes more skilled, innovative, and motivated, which ultimately delivers greater value to the organisation.

When major change is introduced, employees often experience strong emotions. TheChange Curve, based on Elisabeth Kübler-Ross’s grief model, describes the stages staff may go through when faced with organisational change.

The first stage isShock/Denial. The procurement assistants may initially resist the idea of e-procurement, insisting that the paper-based system “has always worked.” Sayed should communicate openly about why the change is needed and provide clear facts about its benefits.

The second stage isAnger/Resistance. Staff may feel threatened, fearing loss of control or concern that they will not have the skills to manage digital systems. They may complain or openly resist. At this point, Sayed should listen empathetically, address concerns, and provide reassurance that training and support will be available.

The third stage isExploration/Acceptance. Gradually, staff begin to see potential benefits, such as less paperwork and faster processes. Curiosity grows, and employees start experimenting with the new system. Here, Sayed should encourage participation, offer pilot training, and allow staff to test the system in a safe environment.

The fourth stage isCommitment/Integration. Once staff feel competent and confident, they fully adopt the change. At this stage, Sayed should reinforce the success, recognise achievements, and celebrate improvements, such as reduced errors or faster ordering.

How Sayed Should Act:

Communicate clearly– explain why digitalisation is important (efficiency, accuracy, competitiveness).

Provide training and support– ensure assistants feel capable of using the new e-procurement tools.

Involve the team– allow staff to give feedback on system design or pilot trials to increase buy-in.

Be empathetic and patient– acknowledge fears and provide reassurance during resistance.

Reinforce success– highlight early wins and show how the change benefits both the team and the organisation.

Conclusion:

The team is likely to experience stages of shock, anger, exploration, and eventual commitment as they move through the change curve. Sayed must act as a supportive leader by communicating openly, offering training, involving staff, and recognising progress. This approach will help the team transition smoothly to e-procurement and ensure the change is successful.

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.

Stakeholders can exert influence over procurement decisions in different ways. French and Raven identifiedfive types of powerthat stakeholders may hold. Each has different implications for how procurement interacts with them.

1. Legitimate Power:

This comes from a stakeholder’s formal position or authority. For example, a Finance Director may require procurement to comply with budgetary controls. Procurement must respect legitimate authority but can also influence decisions by providing evidence and business cases.

2. Reward Power:

This is based on the ability to provide benefits or incentives. For example, senior management may reward the procurement team with recognition or bonuses for achieving savings. Procurement can use this positively by demonstrating performance and aligning with organisational goals.

3. Coercive Power:

This is the power to punish or impose sanctions. For instance, a project manager may pressure procurement to prioritise their project by threatening escalation if deadlines are missed. Procurement must manage this carefully, balancing demands with fairness and compliance.

4. Expert Power:

This arises from specialist knowledge or skills. For example, a procurement professional with strong knowledge of supplier markets holds expert power, which can influence strategic decisions. Conversely, technical departments may hold expert power in specifying product requirements, requiring procurement to collaborate closely.

5. Referent Power:

This is based on personal relationships, respect, or charisma. For example, a well-liked senior stakeholder may influence procurement decisions even without formal authority. Procurement must manage these situations by maintaining objectivity while leveraging strong relationships to gain support.

Comparison of Interaction with Procurement:

Legitimate poweroften requires compliance, while procurement may respond with process adherence and evidence-based justification.

Reward powercreates motivation for procurement, but risks short-term focus if overused.

Coercive powercan create conflict and stress; procurement must use negotiation and diplomacy to manage.

Expert powercan be collaborative, as procurement and stakeholders share knowledge to improve outcomes.

Referent powerrelies on trust and relationships, which procurement can use to build coalitions and support for initiatives.

Conclusion:

The five types of power – legitimate, reward, coercive, expert, and referent – shape how stakeholders interact with procurement. Understanding these power bases enables procurement professionals to adapt their approach, whether through compliance, persuasion, collaboration, or relationship-building. This ensures stakeholder management supports both procurement objectives and organisational goals.

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,personalityplays 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 valuesshape 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 motivationaffect 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 skillsdefine 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– 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– 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– 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.

Part A – Sources of Conflict (15 points):

Conflict is natural in groups and arises when individuals or teams have incompatible goals, interests, or behaviours. Three common sources are:

Task-based conflict– This occurs when members disagree about the content of the work, objectives, or methods. For example, in a procurement team, conflict may arise over whether to prioritise cost savings or sustainability in supplier selection.

Relationship conflict– This stems from personality clashes, communication breakdowns, or differences in working styles. For instance, an extroverted negotiator may clash with an introverted analyst who prefers data-driven approaches.

Resource conflict– Groups often compete for limited resources such as time, budget, or staff. In procurement, this could occur if multiple project teams require the same supplier’s resources or internal budgets.

Part B – Outcomes of Conflict (10 points):

Positive outcomes:

Can lead to creativity and innovation as different perspectives are debated.

Encourages problem-solving and improvement of processes.

Strengthens understanding when conflicts are resolved constructively.

Negative outcomes:

May reduce morale and trust if personal attacks or unresolved tension occur.

Can delay projects, damage productivity, and harm relationships with stakeholders or suppliers.

Creates stress and alienation, leading to higher turnover if prolonged.

In procurement, positive conflict may lead to innovative supplier solutions, while negative conflict may damage supplier negotiations or internal collaboration.

Conclusion:

The three main sources of conflict are task, relationship, and resource issues. Conflict is not always harmful – it can drive improvement and creativity if managed well, but if left unresolved, it can damage morale, performance, and stakeholder relationships. Managers must therefore encourage constructive conflict while minimising destructive forms.