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QUESTION: 9

Explain what is meant by a heterogeneous / diverse workforce and explain one personality model that a manager could use to investigate the personalities within his/her team (25 points)

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Answer(s): A

Explanation:

A heterogeneous or diverse workforce refers to a group of employees with varied characteristics, backgrounds, and perspectives. Diversity can relate to visible differences such as age, gender, ethnicity, or disability, as well as invisible factors like personality, values, experiences, and thinking styles. A diverse workforce is valuable because it brings multiple perspectives, creativity, and innovation, which can improve decision-making and problem-solving. However, it can also create challenges in communication, conflict management, and team cohesion if not managed effectively. In procurement and supply management, diversity can mean having team members from different professional disciplines, cultural backgrounds, or experience levels. This mix can lead to better supplier negotiations, innovation in category strategies, and greater sensitivity to global ethical standards. For managers, the challenge lies in understanding and leveraging individual differences to build cohesive, high-performing teams.
One useful personality model for understanding team members is the Big Five Personality Traits (OCEAN model). This model is widely accepted in psychology and provides a framework for identifying personality differences across five dimensions:
Openness to Experience measures creativity, curiosity, and willingness to try new things. In procurement, high openness could support innovation in supplier strategies. Conscientiousness relates to organisation, responsibility, and dependability. A conscientious buyer is likely to follow compliance rules and deliver accurate work. Extraversion reflects sociability, assertiveness, and energy. Extroverts may excel in supplier negotiations and stakeholder engagement.
Agreeableness indicates cooperation, empathy, and trust. Highly agreeable individuals may be effective in collaboration but could avoid conflict even when necessary. Neuroticism (Emotional Stability) refers to sensitivity to stress and emotional control. Low neuroticism (high stability) is ideal in high-pressure procurement negotiations. By applying this model, a manager can gain insights into the personalities of their team, allocate roles effectively, and provide tailored support. For example, a procurement leader may assign highly conscientious individuals to compliance-heavy processes, while extroverts may be placed in supplier- facing roles.
The use of the Big Five also helps managers balance team dynamics, identify potential conflict, and design training or coaching interventions. Understanding personality traits supports motivation strategies (e.g., Herzberg, Maslow), builds stronger communication, and enhances trust within diverse teams.
In conclusion, a heterogeneous workforce brings significant benefits but requires skilful management to harness its potential. The Big Five Personality Traits provide a structured and evidence-based tool for understanding individuals, enabling managers to lead diverse teams more effectively and align strengths with organisational goals.

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QUESTION: 10

What is meant by intrinsic and extrinsic motivation? (10 points). Describe one theory of motivation (15 points).

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Answer(s): A

Explanation:

Intrinsic and extrinsic motivation (10 points):
Motivation refers to the internal drive that influences people's behaviour and performance. Intrinsic motivation comes from within the individual and is linked to personal satisfaction, enjoyment, achievement, or a sense of purpose. For example, a procurement professional may feel motivated by solving complex supplier challenges or contributing to sustainability goals. Extrinsic motivation comes from external rewards such as pay, bonuses, promotions, or recognition. For instance, a buyer might be motivated by achieving cost savings to receive a financial bonus. Both types of motivation are important in the workplace. Intrinsic motivation sustains long-term commitment, while extrinsic rewards provide short-term incentives. Effective managers balance both to maximise performance.

One theory of motivation (15 points):
A widely used theory is Herzberg's Two-Factor Theory. Herzberg identified two sets of factors that influence motivation:
Hygiene factors these do not motivate if present, but if absent, they cause dissatisfaction. Examples include salary, working conditions, policies, supervision, and job security. For example, if procurement staff lack proper tools or fair pay, they may feel dissatisfied, but simply improving pay will not necessarily make them highly motivated.

Motivators these are intrinsic to the job and lead to satisfaction and motivation. They include achievement, recognition, responsibility, personal growth, and meaningful work. For instance, giving a buyer responsibility to lead a supplier negotiation or recognising their success increases intrinsic motivation.
Herzberg's theory highlights that managers cannot rely on pay and policies alone. They must remove dissatisfaction by ensuring fair hygiene factors and then boost engagement by providing motivators. In procurement, this could mean ensuring fair contracts, proper systems, and clear processes (hygiene factors), while also giving staff opportunities for training, career progression, and recognition (motivators).

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

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QUESTION: 11

What is meant by emotional intelligence? (5 points). In what ways is a high emotional intelligence quotient (EQ) beneficial to the procurement department of an organisation? (20 points)

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Answer(s): A

Explanation:

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.

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QUESTION: 12

Contrast different ways in which an individual can learn new skills/knowledge (15 points). Describe a factor which may influence how individuals learn a new skill/knowledge (10 points).

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Answer(s): A

Explanation:

Individuals learn in different ways, and managers must understand these methods to develop their teams effectively.
One method is formal 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 is on-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 is experiential 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 is social learning, as described by Bandur a. 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 is self-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's learning style. According to Honey and Mumford, some people are activists (learn best by doing), others are reflectors (learn by observing and thinking), theorists (prefer analysing concepts), or pragmatists (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.

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QUESTION: 13

Describe what is meant by knowledge transfer (10 points). How can a manager ensure strong knowledge management within the organisation? (15 points).

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Answer(s): A

Explanation:

Part A Knowledge Transfer (10 points):
Knowledge transfer refers to the process of sharing skills, experience, insights and information from one person or group to another within an organisation. It ensures that valuable expertise is not lost and that best practice can be replicated. This can happen formally, such as through training, mentoring, or documented procedures, or informally, through conversations, collaboration, and shared experiences. In procurement, knowledge transfer might involve senior buyers passing negotiation tactics to junior colleagues or documenting supplier performance insights in a shared database.

Part B Ensuring Strong Knowledge Management (15 points):
Managers play a key role in creating systems and cultures that support knowledge sharing. Some ways include:
Creating knowledge repositories using databases, intranets, or category management playbooks where information is stored and accessible to all team members. Encouraging mentoring and coaching pairing experienced staff with new employees helps transfer tacit knowledge that may not be written down.
Promoting collaboration and teamwork cross-functional project teams and regular knowledge- sharing meetings spread expertise across functions.
Using technology collaboration platforms (e.g., SharePoint, Teams) allow procurement staff to record supplier insights, lessons learned, and contract data in real time. Rewarding knowledge sharing recognising and incentivising individuals who share expertise encourages a culture of openness rather than knowledge hoarding. Embedding learning in processes after-action reviews, lessons-learned sessions after supplier negotiations or tenders ensure experiences are captured systematically. Leadership behaviours managers must role-model transparency and collaboration, showing staff that sharing knowledge is valued.

Conclusion:
Knowledge transfer is about ensuring that critical experience and expertise are shared across the organisation. Managers can ensure strong knowledge management by combining systems,

processes, and culture from IT tools and databases to mentoring and recognition. In procurement, effective knowledge management helps avoid repeated mistakes, builds stronger supplier relationships, and improves decision-making across the team.

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QUESTION: 14

Explain the `2 factor hygiene theory' of motivation and how this can affect the motivation of employees within an organisation (25 points).

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Answer(s): A

Explanation:

The Two-Factor Hygiene Theory, developed by Frederick 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 is Hygiene 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 is Motivators. 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.

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QUESTION: 15

Describe 5 characteristics of a role that would make it intrinsically motivating to a potential employee. (25 points).

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Answer(s): A

Explanation:

Intrinsic motivation comes from within the individual and relates to personal satisfaction, growth, and achievement, rather than external rewards such as pay. The Job Characteristics Model (Hackman and Oldham) identifies several features of a role that can make it intrinsically motivating. The first is Skill 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 is Task 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 Significance adds 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 is Autonomy.
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, Feedback is 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 offer skill variety, task identity, task significance, autonomy, and feedback are 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.

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QUESTION: 16

What is meant by `alienation' at work? (5 points). Describe 5 factors which can cause this (20 points).

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Answer(s): A

Explanation:

Definition (5 points):
Alienation at work refers to a state where employees feel disconnected, powerless, or estranged from their job, their colleagues, or the organisation. The concept, linked to Karl Marx's theory, highlights situations where workers feel that they have little control, little purpose, and no personal fulfilment in their role. Alienation often leads to low motivation, disengagement, and reduced productivity.

Five Factors that Cause Alienation (20 points):

Repetitive and monotonous work Jobs that involve the same routine tasks every day can make employees feel like "cogs in a machine." For example, a procurement clerk only processing invoices with no involvement in decision-making may quickly feel alienated. Lack of autonomy When employees have no control over how they do their work, they feel powerless. In procurement, if buyers must follow rigid procedures without input into strategy, they may feel disengaged.
Poor leadership and communication Alienation grows when managers fail to involve employees, communicate decisions, or provide feedback. Staff may feel undervalued and excluded from organisational goals.
Weak connection to organisational purpose If employees cannot see how their work contributes to wider goals or society, they may feel their role lacks meaning. For instance, working in a cost-cutting environment without recognition of social value or sustainability can reduce motivation. Lack of recognition or development opportunities When employees feel their contributions are ignored, or they see no path for growth, they disengage. In procurement, failing to recognise successful negotiations or not offering training can create a sense of alienation.

Conclusion:
Alienation occurs when employees feel disconnected from their work, leading to low morale and performance. It can be caused by repetitive tasks, lack of autonomy, poor leadership, absence of purpose, and lack of recognition. For managers, reducing alienation means creating meaningful work, involving employees in decisions, and supporting development, which leads to higher engagement and productivity in procurement and supply functions.

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CIPS L5M1 Exam (page: 2) CIPS Managing Teams and Individuals Updated on: 19-Feb-2026

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QUESTION: 16

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CIPS L5M1 Exam (page: 2)
CIPS Managing Teams and Individuals
Updated on: 19-Feb-2026