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CIPS L5M1 Exam (page: 1)
CIPS Managing Teams and Individuals
Updated on: 19-Feb-2026

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L5M1 PDF 38 Questions

(Explain 5 different metaphors that can be used to describe an organisation)

  1. See the Explanation for Detailed Answer.

Answer(s): A

Explanation:

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 the organisation 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 the organisation 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 the organisation 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 the organisation 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, the organisation as a political system sees 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.



What is a `psychological contract'? (5 points). Discuss the factors that can influence this and how an employer can protect the psychological contract from being broken (15 points)

  1. See the Explanation for Detailed Answer.

Answer(s): A

Explanation:

A psychological contract refers to the unwritten and informal expectations that exist between employer and employee, beyond the formal employment contract. It is built on perceptions of fairness, trust, and mutual obligation. For example, an employee may expect career development, recognition and fair treatment, while the employer expects loyalty, commitment, and discretionary effort. Unlike a legal contract, it is subjective, evolving, and deeply influenced by organisational culture and management behaviour.

Several factors influence the strength of the psychological contract. Leadership style is crucial: a participative, empowering approach helps employees feel valued, while autocratic or inconsistent leadership weakens trust. Organisational culture also plays a role; a supportive, ethical culture creates fairness, whereas a toxic or discriminatory environment erodes confidence. Communication is another factor ­ transparent and honest messages during performance reviews or organisational change maintain alignment of expectations, whereas misinformation or silence damages the relationship. Reward and recognition are key, since inconsistencies in promotion or pay may create perceptions of unfairness. Work­life balance and flexibility also matter, particularly in modern hybrid workplaces. Finally, opportunities for development such as training, mentoring, or exposure to new projects sustain the sense of reciprocal value between employer and employee.

Employers can take several steps to protect the psychological contract from being broken. Firstly, clear communication of job roles, objectives and expectations reduces misunderstandings. Fair and consistent treatment across employees ensures equality and avoids resentment. Involving employees in decision-making through surveys or consultation gives them a voice and strengthens commitment. Employers should also invest in people through coaching, mentoring and career development pathways, demonstrating a long-term interest in their growth. Recognition of achievement, both financial and non-financial, reinforces the sense of value.
When organisational changes occur, managers should follow good change management practice, such as Lewin's three- step model or Kotter's stages, to ensure transparency and inclusion. Finally, ethical and values-driven leadership is vital, as trust is easily broken if managers behave dishonestly or fail to live up to organisational values.

For example, in a procurement setting, if a buyer is promised involvement in international supplier negotiations but never receives the opportunity, the psychological contract is broken, potentially leading to disengagement or resignation. Employers can prevent this by giving realistic job previews, following through on commitments, and offering development opportunities aligned to employees' expectations.

In conclusion, the psychological contract is a powerful but fragile element of the employment relationship. It is influenced by leadership, culture, communication, rewards, and development opportunities. By maintaining fairness, clarity, recognition, and open dialogue, employers can protect and strengthen this contract, leading to higher engagement, motivation and retention of talent.



What is meant by the `systems approach' and `contingency approach' to management? (20 points)

  1. See the Explanation for Detailed Answer.

Answer(s): A

Explanation:

Theories of management provide different ways of understanding how organisations can be led effectively. Two important perspectives are the systems approach and the contingency approach. Both move beyond early "one best way" classical theories and instead highlight the complexity and adaptability required in modern organisations.
The systems approach views the organisation as an integrated whole made up of interdependent subsystems such as HR, finance, operations and procurement. It is based on systems theory, seeing organisations as "open systems" that interact with their external environment. Inputs such as people, information and resources are transformed into outputs such as products, services and stakeholder value. Feedback loops are essential to monitor performance and make adjustments. The key idea is synergy -- the whole is greater than the sum of the parts. For example, in procurement, sourcing decisions influence not only supplier performance but also finance (budgets), operations (continuity), and CSR (sustainability). A systems approach ensures that procurement strategies are aligned to wider organisational goals and continuous improvement. The contingency approach develops this idea further, arguing that there is no universal way to manage. Instead, the best approach depends on situational factors such as environment, size, technology, or workforce capability. It rejects "one-size-fits-all" rules and stresses that management must adapt. For example, in a stable market, a hierarchical structure with formal rules may work well, whereas in volatile markets, flexible and decentralised decision-making is more effective. In procurement, this could mean using strict process controls for routine, low-value items, but adopting agile, collaborative approaches when managing strategic supplier partnerships in uncertain global supply chains.
In comparison, the systems approach gives managers a holistic view of how different parts of the organisation connect and interact with the external environment, while the contingency approach emphasises adaptability and situational leadership. Together, they suggest that effective managers need both a broad systems perspective and the ability to tailor their approach depending on context. In conclusion, the systems approach stresses coordination, integration and feedback across the organisation, while the contingency approach stresses flexibility and the idea that "it depends." Both are highly relevant to procurement and supply leaders who must integrate across functions and adapt strategies to dynamic and uncertain supply environments.



Describe the key principles of the Taylorism school of thought on Management (20 points)

  1. See the Explanation for Detailed Answer.

Answer(s): A

Explanation:

The Taylorism school of thought, also known as Scientific Management, was developed by Frederick Winslow Taylor in 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 the scientific 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 the division 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 for scientific 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 stressed managerial 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 promoted financial 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.



Explain what a `bureaucratic' management style is (10 points).
What are the advantages and disadvantages of this? (10 points)

  1. See the Explanation for Detailed Answer.

Answer(s): A

Explanation:

A bureaucratic management style is based on the theories of Max Weber, who described bureaucracy as a structured, rule-based and hierarchical way of organising work. In this style, managers rely heavily on formal rules, policies and procedures to direct employee behaviour. Decision-making authority follows a clear chain of command, and employees are expected to follow established processes without deviation. Job roles are highly specialised and responsibilities are clearly defined. The emphasis is on order, consistency and compliance rather than flexibility or creativity.
This approach is often seen in government departments, regulatory bodies, or large organisations where compliance, accountability and control are critical. For example, in procurement and supply, bureaucratic management may be applied in highly regulated environments such as public sector purchasing, where adherence to policies, legal frameworks and audit requirements is essential.
Advantages of the bureaucratic style include:
Clarity and consistency: clear rules and procedures mean employees know exactly what is expected of them.
Fairness and equality: decisions are made based on rules, not personal favouritism, reducing bias. Accountability and control: strong documentation and audit trails improve transparency. Efficiency in routine tasks: structured processes can streamline repetitive, transactional work (e.g., purchase-to-pay).
Disadvantages include:
Inflexibility: rigid rules make it difficult to adapt to change or unique situations. Low motivation: workers may feel disempowered or demoralised by lack of autonomy. Slow decision-making: multiple levels of approval can create delays. Stifled innovation: focus on compliance discourages creativity and proactive problem-solving. In conclusion, the bureaucratic management style is effective where consistency, compliance and control are needed, such as in regulated procurement activities. However, it can be limiting in dynamic environments where flexibility, innovation and speed of decision-making are essential. Successful managers may therefore adopt bureaucratic methods for governance but balance them with more adaptive styles for strategic and innovative work.



What is the `human relations' approach to management? (20 points)

  1. See the Explanation for Detailed Answer.

Answer(s): A

Explanation:

The human relations approach to management developed in the 1930s and 1940s as a reaction against earlier mechanistic approaches such as Taylorism and bureaucracy. It emphasises that employees are not just motivated by money and rules, but also by social needs, relationships, and recognition. The approach highlights the importance of communication, teamwork, leadership style, and employee well-being in achieving organisational success. The foundation of this school came from the Hawthorne Studies (Elton Mayo), which showed that productivity improved not just because of physical conditions, but because workers felt valued and observed. This demonstrated the importance of social factors such as morale, group belonging, and management attention.
Key principles of the human relations approach include:
Focus on people rather than just processes ­ recognising employees as individuals with social and emotional needs.
Motivation through recognition and belonging ­ linking to theories such as Maslow's hierarchy of needs and Herzberg's motivators.
Leadership style matters ­ supportive, participative leadership fosters engagement, unlike autocratic control.
Team dynamics are critical ­ informal groups, communication patterns, and cooperation influence productivity.
Job satisfaction drives performance ­ happy, respected employees are more productive and loyal. Advantages of the human relations approach include higher employee engagement, improved morale, stronger teamwork, and reduced turnover. It recognises employees as assets rather than costs.
Disadvantages include the risk of overemphasising relationships at the expense of efficiency or results, and the possibility of managers manipulating employees through "false concern." It can also be less effective in highly standardised, rule-bound environments where compliance is critical. In procurement, the human relations approach may be applied by creating strong team cohesion, involving staff in decision-making, recognising contributions, and offering development opportunities. For example, involving buyers in supplier strategy discussions and giving recognition for successful negotiations can boost morale and performance. In conclusion, the human relations approach recognises that people are motivated by social and psychological needs, not just financial incentives. It highlights the importance of communication, leadership, and teamwork in driving performance.
While it should be balanced with attention to efficiency, it remains highly relevant for modern managers in creating motivated and productive teams.



Discuss 4 factors that make up the individual and 3 different ways a manager can lead a team (20 points)

  1. See the Explanation for Detailed Answer.

Answer(s): A

Explanation:

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, personality plays 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 values shape 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 motivation affect 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 skills define 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.



Describe four types of culture that can exist within an organisation (20 points)

  1. See the Explanation for Detailed Answer.

Answer(s): A

Explanation:

Organisational culture refers to the shared values, beliefs, norms and behaviours that shape "the way things are done" in a workplace. One of the most widely used models is Charles Handy's four types of organisational culture, which describe different ways in which organisations can operate. The first is the Power Culture. In this type, authority is concentrated at the centre, usually with a strong leader or small group of individuals. Decisions are made quickly, and personal influence is key. This culture can be dynamic and decisive but may create dependency on the leader and limit employee autonomy. In procurement, a power culture might mean senior management unilaterally deciding supplier strategies without consulting the wider team. The second is the Role Culture. Here, the organisation is highly structured with clear roles, rules, and procedures. Power comes from position rather than personality. Stability and order are prioritised, making it efficient in predictable environments. However, it can be rigid and resistant to change. In procurement, this culture might be seen in public sector bodies where strict compliance, policies, and audit controls dominate purchasing activities.
The third is the Task Culture. This type is project-oriented, with teams formed to solve problems or deliver objectives. Power is based on expertise, and collaboration is valued. It is flexible, innovative, and well-suited to dynamic environments, but can cause conflict if resources are limited. In procurement, task culture is often evident in cross-functional category teams formed to deliver strategic sourcing projects.
The fourth is the Person Culture. Here, the focus is on individuals rather than the organisation.

Employees see themselves as more important than the structure, and autonomy is prioritised. This is rare in large organisations but can be found in professional partnerships such as law or consultancy firms. In procurement, a person culture may appear where highly specialised experts operate independently, sometimes resisting organisational control. In conclusion, Handy's four types of culture -- power, role, task, and person -- each offer strengths and weaknesses. Effective managers must understand the prevailing culture in their organisation and adapt their leadership approach. In procurement and supply, recognising cultural influences is vital to building cohesive teams, aligning strategies, and driving ethical and sustainable practices.



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