Exam L6M1 Topic & Valid L6M1 Practice Materials

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CIPS L6M1 Exam Syllabus Topics:

Topic	Details
Topic 1	Understand and apply methods to overcome leadership challenges: This section focuses on Conflict Resolution Specialists and contrasts the sources of power and how they can be used to overcome common challenges faced by procurement and supply chain leaders. It includes perspectives on individual power and organizational power.
Topic 2	Understand and apply ethical practices and standards: This section measures the skills of Regulatory Compliance Managers and assesses regulations that impact the ethical employment of people.
Topic 3	Compare leadership techniques: This section measures the skills of Stakeholder Engagement Managers and evaluates how to create a communication plan to influence personnel in the supply chain. It covers stakeholder analysis, how to obtain buy-in to supply chain strategies, and the use of the Internet for publishing information. A key skill measured is obtaining stakeholder buy-in effectively.
Topic 4	Evaluate influencing styles for effective supply chain leadership: This section targets HR Managers and compares leadership techniques that can be used to influence personnel involved in a supply chain. It includes assessing the readiness of followers, leaders' attitudes to people, management by objectives, and emotional intelligence. A critical skill assessed is assessing the readiness of HR for a particular task.
Topic 5	Understand and apply leadership skills and behaviors: This section measures the skills of Procurement Managers and focuses on critically evaluating the differences between leadership and management. It covers defining leadership roles, the importance of leadership, situational leadership, and transformational leadership. A key skill measured is differentiating leadership and management approaches effectively.

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CIPS Strategic Ethical Leadership Sample Questions (Q42-Q47):

NEW QUESTION # 42
SIMULATION
What is meant by the 'Contingency Model' of Organisation? What factors should be considered?

Answer:

NEW QUESTION # 43
SIMULATION
Mark is the Head of IT at Squirrel Incorporated and has been asked to join a cross-functional team including staff from the procurement and finance departments. The team is tasked with looking into the procurement of a new IT system. Explain some of the different roles that Mark could play in this newly formed team and discuss how Mark can influence the outcome of decisions made. (25 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Mark's Role and Influence in a Cross-Functional Procurement Team
As Head of IT at Squirrel Incorporated, Mark has been asked to join a cross-functional team to evaluate and procure a new IT system. This team includes representatives from procurement and finance, meaning each member will have a distinct perspective. Given Mark's technical expertise, he can play multiple roles in the decision-making process. This essay explores key roles Mark could play and how he can influence the outcome of decisions.
Roles Mark Could Play in the Team
1. Technical Expert
Since the procurement involves an IT system, Mark's primary role is to provide technical expertise on system requirements, compatibility, and security.
Responsibilities:
Define the technical specifications for the new system.
Ensure the system is compatible with existing infrastructure.
Evaluate vendors' technical capabilities and cybersecurity compliance.
Influence on Outcome:
✔ Ensures only technically viable solutions are considered.
✔ Prevents the company from investing in obsolete or incompatible technology.
2. Liaison Between IT and Other Departments
Since procurement and finance teams may not have deep technical knowledge, Mark can act as a translator, ensuring IT needs are understood and integrated into procurement decisions.
Responsibilities:
Explain technical jargon in business-friendly terms.
Align IT system selection with business objectives.
Address concerns from finance (budget) and procurement (supplier contracts).
Influence on Outcome:
✔ Ensures the new system meets business and IT needs.
✔ Helps non-technical team members make informed decisions.
3. Risk Assessor
IT systems carry risks related to cybersecurity, compliance, and implementation challenges. Mark can lead in risk assessment and mitigation.
Responsibilities:
Identify potential security vulnerabilities.
Ensure compliance with data protection laws (e.g., GDPR, CCPA).
Evaluate risks related to system downtime and integration failures.
Influence on Outcome:
✔ Reduces the risk of costly data breaches or compliance violations.
✔ Helps select vendors with strong security measures.
4. Change Management Facilitator
Implementing a new IT system requires user training and adaptation. Mark can anticipate resistance to change and help ensure smooth adoption.
Responsibilities:
Assess potential user resistance and develop a training plan.
Work with HR and department heads to facilitate smooth transition.
Provide input on user experience (UX) and ease of use.
Influence on Outcome:
✔ Increases the likelihood of successful system adoption.
✔ Reduces productivity losses due to poor training or resistance.
5. Budget and Cost Advisor
Although finance oversees budget approvals, Mark can help justify IT-related expenses and ensure the team gets the best value for the investment.
Responsibilities:
Identify hidden costs (e.g., licensing fees, maintenance, upgrades).
Compare on-premise vs. cloud-based solutions for cost-effectiveness.
Negotiate with vendors for best pricing and support packages.
Influence on Outcome:
✔ Ensures long-term cost savings by choosing a scalable, efficient system.
✔ Prevents overspending on unnecessary features.
How Mark Can Influence Decision-Making
Mark's technical knowledge, risk assessment skills, and financial awareness give him significant influence over the team's decisions. Here's how he can maximize his impact:
Providing Data-Driven Insights
Use comparative analysis to show which IT system performs best.
Present case studies or industry benchmarks to support recommendations.
Building Consensus Among Team Members
Address concerns of procurement (vendor selection) and finance (cost control).
Act as a neutral party balancing IT needs with business constraints.
Advocating for Long-Term Strategy Over Short-Term Cost Savings
Highlight scalability and future-proofing rather than just upfront costs.
Explain the total cost of ownership (TCO), including maintenance and upgrades.
Engaging with Vendors and Negotiating Best Terms
Participate in vendor meetings to ensure IT concerns are properly addressed.
Suggest contractual terms that provide flexibility and service guarantees.
Conclusion
Mark's role in this cross-functional team is critical to ensuring a successful IT system procurement. By acting as a technical expert, liaison, risk assessor, change manager, and budget advisor, he can ensure that business needs, security, and cost-effectiveness are balanced. His ability to communicate effectively, present data-driven insights, and align stakeholders will significantly influence the final decision. Through strategic engagement, Mark can help the team select the best IT system that supports Squirrel Incorporated's long-term success.

NEW QUESTION # 44
SIMULATION
Discuss the 5 approaches to management of the Blake Mouton Managerial Grid. How can this be applied to the role of a procurement manager? (25 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Introduction
Management effectiveness is critical for organizational success, particularly in functions like procurement, where balancing cost efficiency, supplier relationships, and operational effectiveness is key. The Blake Mouton Managerial Grid provides a framework for evaluating leadership styles based on a manager's concern for people (team members, stakeholders, suppliers) versus concern for production (task completion, efficiency, and profitability).
This essay will discuss the five approaches to management outlined in the Blake Mouton Managerial Grid and explore how procurement managers can apply them to enhance procurement performance.
Understanding the Blake Mouton Managerial Grid
The Blake Mouton Managerial Grid (1964) classifies management styles based on two axes:
Concern for People - The degree to which a leader considers employee motivation, satisfaction, and well-being.
Concern for Production (or Task) - The extent to which a leader focuses on achieving organizational goals, efficiency, and productivity.
This results in five distinct leadership styles, each with its strengths and weaknesses.
The Five Approaches to Management in the Blake Mouton Grid

1. Impoverished Management (Low Concern for People, Low Concern for Production) Description:
Leaders with an impoverished management style exert minimal effort to manage people or production.
They often avoid decision-making, fail to motivate employees, and show little interest in organizational goals.
This approach leads to low productivity, disengaged employees, and poor procurement outcomes.
Impact on Procurement Management:
❌ Weak supplier management - Poor relationships with suppliers may lead to delivery delays and contract failures.
❌ No cost control - Procurement teams may fail to negotiate favorable pricing due to lack of leadership.
❌ Lack of strategic alignment - Procurement fails to support organizational goals, resulting in inefficiencies.
Example:
A procurement manager who ignores supplier performance reviews, does not enforce contract terms, and fails to manage procurement risks would be practicing an impoverished management style.
2. Task Management (High Concern for Production, Low Concern for People) Description:
Task-oriented managers focus solely on efficiency, cost-cutting, and productivity, while neglecting employee well-being and engagement.
This style is highly authoritative and focuses on strict rules, efficiency, and results-driven processes.
Impact on Procurement Management:
✅ Strict cost control - The procurement team will focus on cutting costs and maximizing efficiency.
✅ Strong compliance enforcement - Ensures strict adherence to procurement policies and regulations.
❌ Supplier dissatisfaction - Overly aggressive cost-cutting and negotiation tactics may harm supplier relationships.
❌ Low employee morale - Procurement assistants may feel undervalued, leading to high staff turnover.
Example:
A procurement manager who focuses only on cost reduction and efficiency, without considering supplier relationships or team well-being, would fit this style.
3. Country Club Management (High Concern for People, Low Concern for Production) Description:
A country club manager prioritizes employee satisfaction and relationships but neglects productivity and performance.
This results in a friendly, low-pressure environment, but with low accountability and inefficiency.
Impact on Procurement Management:
✅ Strong supplier and stakeholder relationships - Procurement teams collaborate well with suppliers but may overpay due to a lack of tough negotiations.
✅ High team morale - Employees feel valued and motivated.
❌ Lack of cost efficiency - Over-prioritizing relationships may result in weak cost controls.
❌ Ineffective risk management - Procurement managers may fail to enforce strict supplier performance criteria.
Example:
A procurement manager who develops strong relationships with suppliers but fails to hold them accountable for poor performance is practicing country club management.
4. Middle-of-the-Road Management (Moderate Concern for People, Moderate Concern for Production) Description:
Balances both people and task concerns, but does not excel in either.
Ensures some level of efficiency and employee satisfaction, but lacks a strong strategic direction.
Impact on Procurement Management:
✅ Balanced supplier relationships - Ensures cost efficiency while maintaining supplier goodwill.
✅ Moderate employee engagement - The team feels reasonably motivated, but lacks innovation and strong leadership.
❌ Missed cost-saving opportunities - Procurement might fail to maximize value due to a lack of strategic focus.
❌ Lack of strong risk mitigation - The procurement manager may not aggressively manage risks, leading to supply chain disruptions.
Example:
A procurement manager who performs adequately but does not drive significant improvements or cost savings fits this style.
5. Team Management (High Concern for People, High Concern for Production) Description:
The most effective leadership style, where the manager prioritizes both team well-being and achieving high performance.
Encourages collaboration, innovation, and accountability.
Focuses on both supplier relationships and cost efficiency.
Impact on Procurement Management:
✅ Optimized supplier performance - Ensures strong contract management, strategic sourcing, and supplier collaboration.
✅ High employee morale and performance - Employees are engaged, trained, and motivated to drive procurement success.
✅ Balanced cost and quality approach - Focuses on achieving cost efficiency while maintaining quality standards.
✅ Encourages innovation in procurement - Uses data analytics, AI, and technology to improve procurement processes.
Example:
A procurement manager who mentors their team, fosters supplier partnerships, and ensures cost savings while maintaining ethical procurement practices follows a team management approach.
Application of the Blake Mouton Grid to Procurement Management
The Blake Mouton Grid helps procurement managers identify their leadership style and improve team performance and supplier management. Here's how:
Developing High-Performance Procurement Teams - Procurement managers should strive for a team management approach, ensuring both efficiency and employee engagement.
Enhancing Supplier Relationship Management - A balanced approach ensures fair negotiations, long-term partnerships, and cost efficiency.
Strategic Cost Management - Managers should avoid being overly task-focused (cost-cutting) or too lenient on supplier pricing.
Improving Risk Management - Ensuring strong governance and compliance while maintaining good supplier relationships.
Continuous Improvement - Encouraging innovation, sustainability, and procurement technology adoption.
Conclusion
The Blake Mouton Managerial Grid provides valuable insights into leadership effectiveness in procurement management. Among the five approaches:
Team Management is the most effective style for procurement managers, balancing supplier relationships, cost efficiency, and employee engagement.
Task Management may be useful in cost-control situations, but must be balanced with ethical supplier management.
Country Club, Middle-of-the-Road, and Impoverished Management styles are less effective, as they fail to balance procurement efficiency and supplier relationships.
By adopting a "Team Management" approach, procurement managers can drive strategic value, optimize supplier performance, and enhance procurement team capabilities, ultimately contributing to long-term business success

NEW QUESTION # 45
SIMULATION
Assess the suitability of the Visionary leadership style in relation to the procurement function of an organisation (25 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Introduction
Leadership plays a crucial role in shaping the procurement function within an organization, influencing strategic decisions, supplier relationships, and overall operational efficiency. One of the most impactful leadership styles is Visionary Leadership, characterized by the ability to inspire, motivate, and guide an organization toward a long-term strategic vision. In the context of procurement, where efficiency, cost management, ethical sourcing, and supplier collaboration are critical, the suitability of a visionary leader can significantly impact the success of procurement strategies.
This essay assesses the suitability of the Visionary Leadership Style in procurement by exploring its characteristics, advantages, challenges, and its impact on various aspects of procurement functions.
Understanding Visionary Leadership
A visionary leader is someone who has a clear and compelling vision of the future and possesses the ability to motivate teams and stakeholders to work towards achieving that vision. This leadership style is associated with strategic foresight, innovation, adaptability, and strong communication skills. Visionary leaders focus on long-term goals rather than short-term fixes and inspire procurement teams to align their objectives with the broader mission of the organization.
Key Characteristics of Visionary Leadership
Strategic Foresight - The ability to anticipate future trends, risks, and opportunities in procurement and supply chain management.
Inspirational Communication - The ability to effectively convey a vision, ensuring team members and stakeholders are aligned with procurement strategies.
Adaptability and Innovation - Encouraging new technologies, digital procurement solutions, and sustainable sourcing practices.
People-Centric Approach - Focusing on team empowerment, supplier collaboration, and ethical procurement practices.
Long-Term Focus - Prioritizing sustainability, strategic supplier partnerships, and risk mitigation over short-term cost-cutting measures.
The Suitability of Visionary Leadership in Procurement
1. Enhancing Strategic Procurement Planning
Procurement is not just about purchasing goods and services; it is a strategic function that directly impacts an organization's cost efficiency, risk management, and competitive advantage. A visionary leader ensures that procurement aligns with the organization's long-term business goals, such as:
Sustainable sourcing to meet corporate social responsibility (CSR) objectives.
Digital transformation in procurement (e.g., AI-driven supplier selection, blockchain for transparency).
Supplier diversification to mitigate geopolitical and supply chain risks.
By setting a clear strategic direction, a visionary leader ensures procurement teams focus on innovation, risk mitigation, and value creation rather than just cost-cutting.
2. Driving Supplier Relationship Management (SRM)
One of the most critical functions of procurement is managing supplier relationships effectively. Visionary leaders recognize that strong long-term partnerships with suppliers are more beneficial than short-term cost reductions. They emphasize:
Collaboration over transactional relationships - Developing mutually beneficial relationships with key suppliers.
Ethical and sustainable procurement - Ensuring suppliers adhere to fair labor practices, environmental sustainability, and legal compliance.
Innovation through supplier partnerships - Encouraging suppliers to introduce new technologies, automation, and process improvements.
A visionary leader in procurement fosters trust and cooperation with suppliers, ensuring that procurement decisions align with both business goals and ethical standards.
3. Encouraging Innovation and Technology Adoption in Procurement
The procurement function is evolving rapidly due to technological advancements. Visionary leaders drive the adoption of:
E-procurement systems to enhance efficiency and transparency.
Data analytics and AI for supplier evaluation and risk management.
Blockchain technology for improving supply chain traceability and contract enforcement.
Sustainability-focused procurement models, such as circular supply chains to reduce waste.
By embracing digital transformation, visionary leaders modernize procurement operations, making them more agile, cost-effective, and resilient.
4. Building an Agile and Motivated Procurement Team
A key responsibility of procurement leaders is to develop talent and foster a high-performance culture. Visionary leaders:
Empower procurement teams by promoting continuous learning and professional development.
Encourage innovation in procurement strategies.
Foster an inclusive and collaborative work culture, which increases motivation and efficiency.
For instance, a visionary procurement leader may encourage procurement professionals to develop negotiation skills, data analysis competencies, and sustainability knowledge, ensuring that the team is well-equipped for future challenges.
5. Managing Risks and Uncertainties in Procurement
Procurement leaders must deal with global supply chain disruptions, price fluctuations, and geopolitical risks. A visionary leader is proactive in identifying and mitigating risks by:
Developing a diversified supplier base to reduce dependency on a single source.
Implementing contingency planning and supply chain resilience strategies.
Using predictive analytics to anticipate market shifts and adjust procurement strategies accordingly.
For example, during the COVID-19 pandemic, visionary procurement leaders ensured supply chain continuity by quickly pivoting to alternative suppliers and leveraging digital procurement solutions.
Challenges of Visionary Leadership in Procurement
Despite its many advantages, visionary leadership also presents challenges in a procurement environment, including:
Slow Decision-Making in Urgent Situations
While visionary leaders focus on the long-term, procurement often requires quick decision-making during supply chain disruptions or urgent purchasing needs.
A balance between strategic foresight and operational efficiency is necessary.
Resistance to Change from Stakeholders
Employees and suppliers may resist new procurement technologies, sustainability policies, or process changes introduced by visionary leaders.
Effective change management and communication strategies are needed to overcome resistance.
High Implementation Costs
Digital transformation, supplier development programs, and sustainability initiatives require significant investment.
Organizations must evaluate the cost-benefit balance when adopting long-term procurement strategies.
Alignment with Organizational Priorities
Procurement is often seen as a cost-saving function, whereas visionary leadership focuses on long-term value creation.
Visionary leaders must align their strategies with C-suite expectations to gain executive support.
Conclusion
Visionary leadership is highly suitable for the procurement function of an organization, particularly in driving strategic planning, supplier collaboration, innovation, talent development, and risk management. By fostering a long-term, value-driven approach, visionary leaders transform procurement from a cost-centric function into a strategic asset.
However, visionary leadership must be balanced with operational agility, ensuring that procurement remains responsive to market conditions and business needs. While long-term strategic foresight is essential, procurement teams must also be equipped to handle immediate challenges efficiently.
Ultimately, the most effective procurement leaders integrate visionary thinking with pragmatic decision-making, ensuring that procurement delivers both short-term operational efficiency and long-term strategic value.
Final Answer Structure for Maximum Marks (25 Points)
Introduction (3 Points) - Importance of leadership in procurement, introduction to visionary leadership.
Key Characteristics of Visionary Leadership (4 Points) - Strategic foresight, innovation, adaptability, communication, and long-term focus.
Suitability in Procurement (12 Points) -
Enhancing strategic planning.
Strengthening supplier relationships.
Driving innovation and technology.
Developing a skilled procurement team.
Managing procurement risks.
Challenges of Visionary Leadership (4 Points) - Decision-making speed, stakeholder resistance, cost implications, organizational alignment.
Conclusion (2 Points) - Summary of benefits, need for a balanced approach.

NEW QUESTION # 46
SIMULATION
What is meant by ethical supply chain management? (5 points). Discuss how the following can impact upon a supply chain and ways a supply chain manager can mitigate the risks: corporate governance, bribery and corruption, insider trading and discrimination (20 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Intro - ethical supply chain management = environment, society and wellbeing of stakeholders P1 - corporate governance P2 - bribery and corruption P3 - insider trading P4 - discrimination Conclusion - Upholding these ethical principles not only benefits the organization but also contributes to a more just and responsible global business environment.
Example Essay
Ethical supply chain management involves the integration of ethical principles and practices into every aspect of a supply chain's operations. It focuses on ensuring that the supply chain not only meets its goals of efficiency, cost-effectiveness, and profitability but also operates in a manner that is socially responsible and aligned with moral values. Ethical supply chain management aims to create value while considering the impact on the environment, society, and the well-being of all stakeholders involved, particularly those that have traditionally been exploited or marginalised. Supply chain managers play a pivotal role in establishing and upholding ethical standards within the supply chain.
Corporate Governance:
Corporate governance refers to the framework of rules, practices, and processes by which a company is directed and controlled. It encompasses the relationships among the company's management, its board of directors, shareholders, and other stakeholders. Supply chain managers should ensure that their organization's corporate governance practices are transparent, accountable, and aligned with ethical standards.
For example, the Enron scandal in the early 2000s serves as a stark reminder of the consequences of poor corporate governance. Enron's executives engaged in unethical and fraudulent practices, leading to the company's collapse. This scandal highlighted the importance of transparent corporate governance to prevent such lapses.
Supply chain managers can contribute to ethical corporate governance by establishing mechanisms for transparency, accountability, legal compliance, and ethical oversight within the supply chain.
Bribery and Corruption:
Bribery involves the offering, giving, receiving, or soliciting of something of value with the aim of influencing the actions of an official or other person in a position of authority. Corruption, on the other hand, encompasses a broader range of dishonest or unethical behaviour, including bribery, embezzlement, and abuse of power. Supply chain managers must actively combat bribery and corruption within the supply chain.
One prominent example of bribery and corruption in the supply chain is the case of the Brazilian construction giant Odebrecht. The company was involved in a vast bribery scheme across Latin America, implicating high-ranking politicians and business leaders. This case underscores the far-reaching consequences of unethical practices within the supply chain.
To mitigate the risk of bribery and corruption, supply chain managers should implement anti-bribery policies, conduct due diligence on suppliers, establish reporting mechanisms, and regularly audit and monitor the supply chain for compliance.
Insider Trading:
Insider trading involves trading securities based on non-public, material information. It is a form of market abuse that undermines fairness and transparency in financial markets. Supply chain managers should address insider trading risks within the organization.
A well-known example of insider trading is the case of Martha Stewart, the American businesswoman and television personality. Stewart sold her shares in a pharmaceutical company, ImClone Systems, based on non-public information about the FDA's impending rejection of the company's drug application. She was later convicted of insider trading.
To prevent insider trading, supply chain managers can limit access to sensitive information, educate employees about insider trading laws, establish monitoring and reporting mechanisms, and ensure legal compliance.
Discrimination:
Discrimination involves treating individuals unfairly or unequally based on their characteristics, such as race, gender, age, or disability. Discrimination within the supply chain can have detrimental social and legal consequences.
To combat discrimination, supply chain managers should promote equal opportunity, implement diversity initiatives, conduct training and awareness programs, and enforce non-discrimination policies throughout the supply chain.
In conclusion, ethical supply chain management is integral to an organization's overall sustainability and reputation. Supply chain managers should actively manage ethics in areas such as corporate governance, bribery, corruption, insider trading, and discrimination to ensure that the supply chain operates ethically, complies with legal standards, and aligns with moral values. Upholding these ethical principles not only benefits the organization but also contributes to a more just and responsible global business environment.
Tutor Notes
- For a higher score you should mention some of the legislation surrounding these areas:
- Corporate Governance = Companies Act 2006: This legislation lays out the statutory duties of company directors and officers, addresses corporate governance issues, and provides requirements for financial reporting, disclosure, and shareholder rights.
- Corporate Governance = UK Corporate Governance Code: Although not a law, this code issued by the Financial Reporting Council (FRC) sets out principles of good corporate governance that UK-listed companies are encouraged to follow. It provides guidelines on board composition, transparency, accountability, and more.
- Bribery and Corruption: Bribery Act 2010: This act is the primary legislation governing bribery and corruption in the UK. It introduced strict anti-bribery provisions, including criminal offenses related to bribery, both domestically and internationally.
- Insider Trading: Criminal Justice Act 1993: Part V of this act includes provisions related to insider dealing (insider trading) offenses. It criminalizes the misuse of insider information in relation to securities and other financial instruments.
- Discrimination: Equality Act 2010: This comprehensive legislation addresses discrimination on various grounds, including age, disability, gender, race, religion or belief, sexual orientation, and gender reassignment. It provides protection against discrimination in employment, education, housing, and other areas of public life.

NEW QUESTION # 47
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EXAM L6M1 TOPIC & VALID L6M1 PRACTICE MATERIALS

Exam L6M1 Topic & Valid L6M1 Practice Materials