L5M1 Managing Teams and Individuals Questions 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.

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.

Individuals learn in different ways, and managers must understand these methods to develop their teams effectively.

One method isformal learning, such as classroom courses, e-learning, or qualifications like CIPS. This gives structured knowledge and ensures consistency, but it may lack immediate workplace application.

A second method ison-the-job learning, where skills are developed through daily tasks, job rotation or shadowing. This is practical and tailored to the workplace but may be inconsistent without good supervision.

A third approach isexperiential learning, based on Kolb’s cycle of experience, reflection, conceptualisation and testing. For example, a buyer may learn negotiation skills by practising in a live supplier meeting, reflecting on performance, and then improving.

Another method issocial learning, as described by Bandura. Individuals learn by observing and modelling others’ behaviour. In procurement, junior staff may observe how senior colleagues manage supplier relationships and copy effective practices.

Finally, there isself-directed learning, where individuals take initiative through reading, research or online courses. This builds independence but requires strong personal motivation.

In contrast, formal learning is structured and standardised, while experiential and social learning are more practical and situational. On-the-job learning blends practice with support, whereas self-directed learning provides autonomy but less guidance. Most organisations use a mix of these methods to ensure balanced development.

One important factor that influences learning is an individual’slearning style. According to Honey and Mumford, some people areactivists(learn best by doing), others arereflectors(learn by observing and thinking),theorists(prefer analysing concepts), orpragmatists(want to apply ideas in practice). For example, in procurement training, an activist may benefit from a role-play negotiation, while a theorist may prefer studying sourcing models before application. Managers who recognise learning styles can tailor development activities to individual preferences, making learning more effective.

In conclusion, individuals can learn through formal, on-the-job, experiential, social, or self-directed approaches, each with strengths and weaknesses. Learning effectiveness depends on personal factors such as style, and managers who understand these differences can create development opportunities that are both motivating and productive.

TheTwo-Factor Hygiene Theory, developed byFrederick Herzberg, explains what drives employee satisfaction and dissatisfaction at work. Herzberg argued that there are two categories of factors that affect motivation.

The first category isHygiene Factors. These are extrinsic elements such as pay, working conditions, company policies, job security and supervision. If these are poor or absent, employees become dissatisfied. However, their presence alone does not create motivation – they simply prevent dissatisfaction. For example, in procurement, if buyers do not have fair pay or adequate systems, they will feel frustrated, but improving pay alone will not guarantee enthusiasm or creativity.

The second category isMotivators. These are intrinsic to the job itself, such as achievement, recognition, responsibility, advancement, and personal growth. When present, these factors actively increase motivation and job satisfaction. For instance, giving a procurement professional ownership of a supplier relationship, recognising their success in a negotiation, or offering training opportunities can significantly boost motivation.

The impact of Herzberg’s theory on motivation is significant. Managers cannot rely only on hygiene factors like pay and working conditions to motivate staff. These need to be in place to avoid dissatisfaction, but true motivation comes from providing meaningful work, opportunities for growth, and recognition.

In practice, this means managers should:

Ensure hygiene factors are adequate (fair pay, safe environment, supportive policies).

Focus on motivators such as giving responsibility, offering progression pathways, and recognising achievement.

Design jobs with variety and challenge, rather than only repetitive tasks.

Encourage intrinsic motivation through empowerment and involvement in decision-making.

In procurement and supply, applying Herzberg’s theory could mean ensuring staff have reliable systems and clear processes (hygiene), while also providing opportunities to lead supplier negotiations, recognise cost savings achievements, or involve staff in strategic sourcing projects (motivators).

In conclusion, Herzberg’s Two-Factor Theory shows that avoiding dissatisfaction through hygiene factors is not enough. Managers must also provide motivators to create true engagement and drive performance. For procurement leaders, balancing both sets of factors is essential for building high-performing, motivated teams.

Part A – Scope of Procurement and Supply Chain (10 points):

The scope of procurement and supply chain at Buttons Ltd will cover all activities involved in sourcing, purchasing, and managing the flow of materials needed for clothing production.

This includessourcing raw materialssuch as fabrics, zips, and buttons from reliable suppliers, ensuring cost efficiency and quality. It also coverssupplier selection and management, including contract negotiation and supplier relationship management. The function will ensure compliance with ethical and sustainable sourcing standards, which are increasingly important in the fashion industry.

The supply chain scope also involveslogistics and inventory management, ensuring that materials are delivered on time to support production schedules and that stock levels are optimised to avoid delays or overstocking. Additionally, procurement must managerisk and continuity of supply, identifying alternative sources in case of disruptions. Finally, procurement contributes to strategic decisions by aligning sourcing activities with company objectives such as cost reduction, sustainability, and innovation.

Part B – Knowledge, Behaviours and Skills Required (15 points):

Knowledge:

Understanding of sourcing and supply chain processes (tenders, contracts, logistics).

Knowledge of ethical and sustainable procurement, ensuring materials are responsibly sourced.

Awareness of fashion industry requirements such as lead times, quality standards, and supplier markets.

Behaviours:

Professional integrity and ethics, ensuring fair treatment of suppliers and compliance with standards.

Collaboration and teamwork, working across departments (design, finance, production).

Adaptability and resilience, since the clothing industry faces rapid changes in demand and supply risks.

Skills:

Negotiation skillsto secure best value while maintaining supplier relationships.

Analytical skillsto assess supplier performance, costs, and risks.

Communication skillsto liaise with suppliers and internal stakeholders effectively.

Problem-solving skillsto manage supply chain disruptions and ensure continuity.

For example, a procurement professional at Buttons Ltd might need to negotiate fabric supply contracts while ensuring the supplier meets sustainability standards and delivers within tight production deadlines.

Conclusion:

The procurement and supply chain function at Buttons Ltd will be responsible for sourcing, supplier management, logistics, and risk management, supporting the company’s growth and competitiveness. To succeed, staff must demonstrate strong knowledge of procurement processes, ethical behaviours, and key skills such as negotiation, analysis, and communication. Together, these ensure the function delivers value and supports the company’s long-term goals.

Procurement plays a central role in engaging with different stakeholders. Effective collaboration ensures efficiency, compliance, and value creation. The way procurement collaborates can vary depending on the stakeholder group. Two examples aresuppliersandother departments within the organisation.

Collaboration with Suppliers:

Procurement must develop strong relationships with suppliers to ensure continuity of supply, cost efficiency, and quality. This involves activities such as contract negotiation, performance monitoring, and supplier relationship management (SRM). Collaboration often focuses on building trust, sharing forecasts, and working on joint initiatives like innovation or sustainability. For example, in a manufacturing firm, procurement may collaborate with a fabric supplier to develop new eco-friendly materials. The relationship can be transactional for routine items or strategic for high-value, critical suppliers.

Collaboration with Other Departments:

Internally, procurement must work closely with functions such as Finance, Operations, and Marketing. Collaboration ensures that procurement strategies align with organisational needs. For example, Finance may require procurement to manage budgets and compliance, while Operations depends on procurement for timely materials. Collaboration may involve cross-functional teams, joint decision-making, and regular communication. For instance, procurement and product development may work together to source innovative materials that match design requirements.

Comparison:

Both collaborations require trust, open communication, and alignment of goals.

With suppliers, collaboration often focuses externally on securing value and innovation. With internal departments, it focuses on aligning procurement activity with business objectives.

Supplier collaboration may involve formal tools like contracts, KPIs, and SRM frameworks, whereas internal collaboration relies more on teamwork, communication, and shared processes.

Contrast:

Suppliers are external stakeholders, so procurement must manage risks, legal compliance, and negotiation dynamics. Internal departments are internal stakeholders, requiring influence, persuasion, and partnership.

Supplier collaboration aims at building long-term external relationships; internal collaboration ensures smooth workflows and organisational efficiency.

Conclusion:

Procurement collaborates with both suppliers and internal departments, but the focus differs. Supplier collaboration is about external value creation and innovation, while internal collaboration is about aligning processes and achieving organisational goals. Successful procurement professionals adapt their approach to meet the needs of each group while ensuring overall business success.

TheCIPS Code of Conductsets out the ethical standards expected of procurement professionals. By adhering to this code, buyers are guided to remain impartial, transparent, and fair in all their decisions, ensuring that supplier selection and procurement practices are ethical and free from bias.

Firstly, the code requires professionals to act withintegrity. This means avoiding conflicts of interest, declaring personal relationships with suppliers, and making decisions based on facts and evidence rather than personal preferences. For example, a buyer cannot award a contract to a supplier owned by a friend without declaring the relationship.

Secondly, the code emphasisestransparency and fairness. Procurement professionals must ensure all suppliers are treated equally and given the same information during tendering processes. This prevents favouritism or hidden advantages for certain suppliers.

Thirdly, the code demandsprofessional competence. This includes basing supplier decisions on objective evaluation criteria such as cost, quality, risk, and sustainability, rather than subjective or biased views. By applying standard evaluation models, professionals avoid unconscious bias.

Fourthly, the code promotesaccountability. Procurement professionals are expected to keep proper records of decisions and provide audit trails. This reduces the opportunity for unethical practices such as bribery or corruption and ensures decisions can be justified.

Finally, the code supportssustainability and social responsibility. By considering environmental, ethical, and social factors in procurement, professionals act in the best interests of society and avoid discriminatory or exploitative practices.

Conclusion:

By following the CIPS Code of Conduct, procurement professionals remain unbiased by avoiding conflicts of interest, ensuring fairness, and using objective criteria. They also act ethically by maintaining transparency, accountability, and responsibility to wider society. This builds trust with stakeholders, improves supplier relationships, and protects the reputation of both the individual and their organisation.

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.