L6M1 CIPS Strategic Ethical Leadership Free Practice Exam Questions (2025 Updated)

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

Divide into two separate answers

1) Internal changes; personnel, systems, structure. External changes; STEEPLED and Porter – legislation, economy, technology, competitors.

2) Intro: what is a forcefield analysis? Explain how to do one. Then How can it help? Define objectives, impact on communication strategy

Example Essay

Change is a constant in the business world, and organizations must adapt to various internal and external forces to remain competitive and relevant. Understanding the sources of change is crucial for managing transformations effectively. In this essay, we will explore the distinction between internal and external sources of change and discuss how they impact personnel, processes, and company structure.

Sources of Internal Change within a Business:

People Changes: Changes in personnel, such as hiring, firing, promotions, and retirements, can have a profound impact on an organization. New hires may require training and onboarding, potentially affecting productivity during the transition. Terminations or layoffs may lead to temporary disruptions and workload adjustments for remaining employees. Moreover personnel changes can influence the organization's culture. New employees may bring different values and perspectives, while the loss of experienced employees can result in a shift in the workplace culture. Promotions and changes in leadership positions can influence decision-making, team dynamics, and the overall direction of the organization.

Systems Changes: Implementing or modifying systems, including software, technology, or operational procedures, can significantly affect how an organization operates. Well-planned systems changes can lead to increased operational efficiency, reduced errors, and improved decision-making, but employees may need time to adapt to new systems, potentially causing a temporary decrease in productivity. Moreover, systems changes can impact data storage, retrieval, and analysis, influencing how information is utilized within the organization.

Company Structure Changes: Altering the organization's structure, including hierarchies, departments, or reporting lines, can reshape how work is organized and executed. Employees who experience shifts in job roles, responsibilities, or reporting relationships, can affect job satisfaction and performance. It may also require adjustments in communication processes, potentially impacting the flow of information within the organization. A well-designed company structure can enhance efficiency and adaptability, while a poorly structured one may lead to inefficiencies and bureaucracy.

Sources of External Change Impacting a Business:

Legislation Changes: Changes in laws and regulations can have immediate and long-term consequences for businesses. Adapting to new regulations may require financial investments in compliance measures, training, or legal counsel. Businesses may need to modify processes and practices to ensure adherence to updated legal requirements. Companies that can proactively adapt to legislative changes may gain a competitive advantage by being compliant and avoiding penalties. An example of this is the upcoming changes to Public Sector Procurement Regulations which will take place in 2024, following the UK’s departure from the EU.

Economic Changes: Economic shifts, such as recessions, inflation, or economic growth, can affect an organization's financial health and market position. Economic downturns can lead to decreased consumer spending and reduced revenue, requiring cost-cutting measures like layoffs or budget reductions. Conversely economic growth can present new market opportunities, prompting expansion, product diversification, or investment in research and development. Economic fluctuations can also disrupt supply chains, affecting inventory management, pricing, and delivery times.

Technological Changes: Rapid advancements in technology can drive changes in how businesses operate and compete. Embracing technological advancements can enhance operational efficiency, reduce costs, and improve customer experiences. Employees may require training to adapt to new technologies, and organizations may need to invest in digital infrastructure. Technology-driven innovations can disrupt traditional industries and create new competitive threats or opportunities. For example the music industry has seen huge changes in the past 10 years due to the increasingpopularity of streaming platforms such as Apple Music and Spotify.

Competitor Actions: Actions taken by competitors, such as new product launches, marketing campaigns, or market entries, can influence an organization's market share and strategy. This may require adjustments in pricing, product offerings, or marketing strategies. An organisation should look at Porter’s 5 Forces and STEEPLE analysis to fully understand potential external sources of change.

In the dynamic business environment, both internal and external sources of change play significant roles in shaping organizations. Recognizing these sources of change and effectively managing them are essential for organizations to succeed.

Forcefield Analysis

Lewin's Force Field Analysis is a valuable tool that can help a leader plan for change by providing a structured framework for understanding the forces at play in an organization when considering a change initiative. Developed by psychologist Kurt Lewin in 1951, this model helps leaders assess the driving forces that promote change and the restraining forces that resist it.

Identifying Driving and Restraining Forces:

Driving Forces: These are factors that push for change and support the desired change initiative. Identifying these forces helps leaders understand what is propelling the organization toward change. Examples of driving forces include market opportunities, customer demands, and performance improvement goals.

Restraining Forces: These are factors that oppose or hinder change. Recognizing these forces is crucial as they represent obstacles that need to be addressed or overcome. Restraining forces can include employee resistance, existing processes, or budget constraints.

Assessing the Balance:

After identifying driving and restraining forces, leaders can assess the balance between them. This analysis provides a clear picture of the overall readiness for change within the organization. If driving forces outweigh restraining forces, it suggests a favourable environment for change, while an imbalance in the other direction may require more effort to gain buy-in and overcome resistance.

Prioritizing Action Steps:

Once the forces are identified and their balance is assessed, leaders can prioritize action steps accordingly. For driving forces, leaders can focus on leveraging them further and ensuring that they continue to support the change. For restraining forces, strategies can be developed to mitigate or overcome them. This may involve addressing concerns, providing training, or reallocating resources.

How this can help a leader plan for change:

Force Field Analysis provides a foundation for developing a comprehensive change management plan. Leaders can use the insights gained to structure the plan, including defining specific objectives, timelines, and key performance indicators (KPIs) to measure progress.

Understanding the forces at play allows leaders to tailor their communication and engagement strategies. They can target communication efforts toward addressing the concerns and motivations of employees, stakeholders, and other relevant parties. By addressing restraining forces through effective communication, leaders can build support for the change.

The analysis doesn't end with the initiation of change; it continues throughout the change process. Leaders can continuously monitor the balance of forces and adjust their strategies as needed. If new restraining forces emerge or driving forces weaken, the change plan can be adapted accordingly to maintain momentum.

In summary, Lewin's Force Field Analysis provides leaders with a structured approach to understanding the dynamics of change within an organization. By identifying driving and restraining forces, leaders can better plan, execute, and manage change initiatives, ultimately increasing the likelihood of successful implementation and achieving desired outcomes.

Tutor Notes

- I have split my answers here and clearly signposted this to the examiner. A top tip is to consider the examiner’s first look at your essay. By doing this, they can clearly see within the first 10 seconds that I’ve understood the question and I’ve answered all parts. It’s a way to set yourself up for success. So, use all the headings and spacings you can. I don’t think you can use bold in the exam, but you could use capital letters instead.

- A way to improve on the above would be to give more examples. For the Forcefield analysis you could talk about a potential change at company X being the introduction of a new product line, and say what the forces for and against would be. This would really hammer-home to the examiner you know your stuff.

- Sources of change – p. 224 (note the study guide says internal sources are people, structure and processes, I used the word system in my essay above rather than processes but it’s the same thing). External sources of change are anything from STEEPLED and Porter. Remember the question is only worth 10 points, so 3 or 4 internal and 3 or 4 internal is more than enough. Don’t do a full STEEPLED. You don’t have time.

- Forcefield analysis is p. 232

Management by Objectives (MBO) and Measuring Leadership Effectiveness

Part 1: How a Leader Can Use Management by Objectives (MBO) (10 Points)

Definition of Management by Objectives (MBO)

Management by Objectives (MBO)is a leadership approach whereleaders and employees set specific, measurable goalsthat align with the organization's strategic objectives. Developed byPeter Drucker, MBO emphasizes cleargoal setting, performance tracking, and employee involvement.

How a Leader Can Use MBO Effectively

Setting Clear Objectives

Leaders work with employees to establishSMART goals (Specific, Measurable, Achievable, Relevant, Time-bound).

Example: A procurement leader may set an objective toreduce supplier costs by 10% within six months.

Aligning Individual and Organizational Goals

Ensures employees understandhow their goals contributeto the company’s success.

Example: ACPO (Chief Procurement Officer)aligns procurement cost-saving goals with thefinance department's budget objectives.

Regular Performance Monitoring

Leaders conductperiodic reviewsto track progress and provide feedback.

Example: Monthlyprogress check-insensure employees stay on track toward procurement efficiency goals.

Providing Support and Resources

Leadersremove obstaclesand providetraining or toolsto help employees achieve their objectives.

Example: Implementingnew procurement softwareto improve efficiency.

Performance Evaluation and Rewards

Employees areevaluated based on objective achievements, and success isrewarded(e.g., bonuses, promotions).

Example: Procurement staff meeting targets could receiveperformance-based incentives.

Evaluation of MBO’s Effectiveness

✔Pros:Improvesgoal clarity, accountability, and motivation.✘Cons:Can be rigid if objectives aretoo fixed, ignoring external changes.

Part 2: Three Ways to Measure Leadership Effectiveness (15 Points)

A leader's effectiveness is crucial forteam performance, motivation, and achieving strategic objectives. Below arethree key waysto measure leadership effectiveness.

1. Employee Engagement and Satisfaction

Definition:The level of motivation, commitment, and job satisfaction employees have under a leader.

How to Measure:

Conductemployee engagement surveys(e.g., usingLikert scale questions).

Measureretention rates—low turnover indicates effective leadership.

Trackemployee feedbackin performance reviews.

Why It’s Important:✔A highly engaged workforce ismore productive and innovative.✔Employees who trust leadershipstay longer and contribute more.

2. Achievement of Organizational and Team Goals

Definition:The ability of a leader to drive the team toward achieving company objectives.

How to Measure:

Compareactual vs. target performance metrics(e.g., cost savings in procurement).

Analyzekey performance indicators (KPIs)like project completion rates.

Trackefficiency improvementsin processes under the leader’s direction.

Why It’s Important:✔Demonstrates how well a leader canset, communicate, and execute strategic goals.✔Ensures leadership is focused ontangible results, not just employee relationships.

3. Adaptability and Problem-Solving Ability

Definition:A leader’s ability tonavigate challenges, handle change, and innovateunder pressure.

How to Measure:

Assesshow a leader handles crises or disruptions(e.g., supply chain breakdowns).

Reviewdecision-making effectivenessduring uncertain situations.

Gather360-degree feedbackfrom peers, subordinates, and senior leaders.

Why It’s Important:✔Business environments change—leaders mustadapt quicklyto remain effective.✔Ensures that leadership isproactive rather than reactivein problem-solving.

Conclusion

A leader can useManagement by Objectives (MBO)to drive performance throughgoal-setting, alignment, monitoring, and evaluation. Leadership effectiveness can be measured throughemployee engagement, goal achievement, and adaptability, ensuring that leadersnot only set objectives but also inspire teams, navigate challenges, and deliver measurable success.

(A) Five Qualities of an Effective Leader (10 Points)

Effective leadership is crucial for the success of any organization, particularly in strategic procurement and supply chain management. Below arefive key qualitiesthat define an effective leader:

Vision and Strategic Thinking(2 Points)

A successful leader has aclear visionfor the future and can developstrategic plansto achieve organizational goals.

In procurement, this meansaligning supply chain strategieswith overall business objectives, such as cost reduction, sustainability, and supplier relationship management.

Integrity and Ethical Leadership(2 Points)

Ethical leaders act withhonesty, transparency, and fairness, setting high ethical standards for their teams.

In procurement, integrity ensuresfair supplier selection,compliance with procurement laws, andavoiding corruption or conflicts of interest.

Decision-Making and Problem-Solving Skills(2 Points)

Leaders must analyze complex situations, consider different perspectives, andmake informed decisions.

In supply chain management, this involvesrisk assessment,supplier negotiation, andresolving disruptions (e.g., supply shortages, logistics issues, or geopolitical risks).

Communication and Influence(2 Points)

An effective leaderclearly communicatesthe organization's goals and expectations to internal and external stakeholders.

In procurement, this involvesnegotiating contracts, managing supplier relationships, and ensuring cross-functional collaboration within the organization.

Emotional Intelligence and People Management(2 Points)

Emotional intelligence (EQ) includes self-awareness, empathy, motivation, and social skills, which are essential for managing teams.

In procurement, this helps leadersbuild trust,motivate employees, andhandle conflicts with suppliers or internal teamseffectively.

(B) Role of a Leader in Procurement and Supply Chain Functions (15 Points)

Leaders in procurement and supply chain management play acrucial strategic rolein ensuring the efficiency, sustainability, and ethical integrity of the organization's supply chain. Below arefive key rolesa leader plays:

Setting Strategic Direction in Procurement(3 Points)

A leader definesprocurement objectivesin line with corporate strategy, such ascost reduction, supplier diversity, risk management, and sustainability.

Example: AChief Procurement Officer (CPO)may implement a strategy to reduce reliance on a single supplier anddiversify sourcingto minimize risks.

Ensuring Ethical and Sustainable Procurement(3 Points)

Leaders must establish and enforceethical procurement policiesto avoid fraud, bribery, or unethical supplier practices.

Example: Ensuring compliance withCorporate Social Responsibility (CSR) initiatives, such as sourcing from ethical suppliers who followfair labor practices.

Supplier Relationship and Risk Management(3 Points)

A leader is responsible forbuilding strong supplier relationshipsthat foster trust, reliability, and long-term partnerships.

They alsoidentify and mitigate risksin the supply chain, such assupply disruptions, geopolitical risks, and financial instability of suppliers.

Driving Innovation and Continuous Improvement(3 Points)

Leaders encourage teams to adoptinnovative technologiessuch asArtificial Intelligence (AI), blockchain, and data analyticsin procurement.

Example: Implementinge-procurement systemsto enhance efficiency and transparency in supplier transactions.

Developing and Empowering the Procurement Team(3 Points)

A leader must focus ontalent development, upskilling procurement professionals, and fostering aculture of continuous learning.

Example: Providing training oncontract management, negotiation skills, and supplier evaluation techniquesto enhance team capabilities.

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 – what is an ethical culture?

P1 – create values and principles – put into writing

P2 – Lead by example

P3 – Transparency, whistleblowing

P4 – Decision making

P5 – Laws

P6 – having consequences for failing to follow the culture

Conclusion – culture isn’t static, Banana Ltd needs to constantly update and review

Example Essay

An ethical culture in the workplace refers to the prevailing set of values, norms, principles, and practices within an organization that prioritize and promote ethical behaviour and decision-making among employees and stakeholders. It represents the collective commitment of an organization to conduct its business in a manner that is morally responsible, socially acceptable, and legally compliant. An ethical culture sets the tone for how employees interact with each other, make decisions, and engage with customers, suppliers, and the broader community. Banana Ltd can achieve this in the following ways:

Ethical Values and Principles: An ethical culture is built on a foundation of clear and well-defined ethical values and principles. These values guide employees in their actions and decisions, helping them distinguish between right and wrong. Banana Ltd should engrain these values and principles in writing by creating a vision statement and creating a formal CSR policy detailing expected behaviour from all employees and stakeholders.

Leadership and Accountability: Ethical leaders play a crucial role in fostering an ethical culture. They set an example by consistently demonstrating ethical behaviour and holding themselves accountable for their actions. Leaders also ensure that ethical standards are consistently applied throughout the organization. Therefore the leaders of Banana Ltd should lead by example. This may be in gaining MCIPS qualifications and other certifications that prove their loyalty to ethical issues.

Transparency and Open Communication: Ethical cultures encourage open and transparent communication. Employees are encouraged to speak up about ethical concerns or violations without fear of retaliation. Transparent processes and reporting mechanisms promote accountability. Banana Ltd could implement a Whistleblowing policy for example, so that if any employee knows of areas of concern, they can escalate this to management, without fear of repercussions.

Ethical Decision-Making: Ethical decision-making is central to an ethical culture. Employees are encouraged to consider the ethical implications of their choices, even when faced with challenging decisions that may have financial or competitive implications. For example with Banana Ltd, this may be actively severing ties with suppliers who are known to employ child labour in the mining of rare metals.

Compliance with Laws and Regulations: Ethical cultures emphasize strict adherence to laws and regulations. Banana Ltd should ensure that all activities are carried out within the boundaries of legal requirements, and violations are not tolerated. For example they shouldensure that their HR policies are in line with the Equalities Act. As a large organisation they should also publish a statement about removing Modern Slavery from their supply chain, as per the Modern Slavery Act.

Accountability and Consequences: There are clear consequences for unethical behaviour. Banana Ltd should ensure that accountability mechanisms are in place to address ethical violations, and individuals who breach ethical standards may face disciplinary actions. For example if a supply chain manager is caught accepting an ‘acceleration payment’ or ‘ kickback’ they should be fired.

An ethical culture in the workplace is essential not only for maintaining a positive organizational reputation but also for fostering a healthy, inclusive, and socially responsible work environment. It contributes to employee morale, customer trust, and long-term business sustainability. It is important for Banana Ltd to not only implement this culture, but to maintain it and constantly review it. The area of ethics and sustainability is constantly evolving so Banana Ltd should look to reassess its policies and processes regularly, and continue to strive to achieve more.

Tutor Notes

- You may have guessed that this question was loosely based on Apple. Apple is a good example of ethics and supply chain issues and is worth looking into as it’s an excellent example to bring into an essay on the subject. Here are some links:

- Apple’s Supply Chain Is on a Collision Course With Climate Change (bloomberg.com)

- Apple sees bigger supply problems after strong start to year | Reuters

- Will Supply-Chain Issues Kill the Low-Cost Apple Vision Pro? (pcmag.com)

- Other areas you could have mentioned include: cultures are not static; they are constantly evolving and improving. So Banana Ltd needs to regularly assess and refine their ethical practices to stay aligned with changing societal norms and expectations (I.e. what is ethically acceptable one day, may not be the next). You could have also talked about Banana Ltd's responsibility to the environment and local communities (particularly concerning the mining of metals). Mining is a really bad industry for Child Labour.

Introduction

Leadership plays a crucial role in the success of an organization, especially when it is facingfinancial difficulties and stakeholder communication issues. The choice of leadership style significantly impactsemployee morale, decision-making efficiency, and overall businessperformance. Michael, the new CEO of XYZ Ltd., is considering adopting theDemocratic Leadership Approachto address these challenges.

This essay willexamine the advantages and disadvantagesof theDemocratic Leadership Styleand assess whether it is an appropriate leadership approach for Michael given the company's current challenges.

Understanding Democratic Leadership

Democratic leadership, also known asparticipative leadership, is a leadership style in which decision-making isshared between the leader and their team members. It encouragescollaboration, open communication, and employee engagement, ensuring that various perspectives are considered before making strategic decisions.

Key Characteristics of Democratic Leadership

Inclusive Decision-Making– Employees and stakeholders are actively involved in decision-making.

Encourages Open Communication– The leader fosters atransparent and opencommunication culture.

Focus on Teamwork and Collaboration– Employees work together towards shared goals.

Emphasis on Employee Empowerment– Employees feel valued and are encouraged to contribute ideas.

Long-Term Strategic Thinking– Decisions are made collectively, considering long-term benefits.

Advantages of Democratic Leadership (10 Points)

1. Improved Employee Engagement and Morale

Employees feelvalued and respectedbecause they areincluded in decision-making processes.

This leads tohigher motivation, job satisfaction, and productivity.

Example: In procurement, involving team members in supplier selection ensuresbetter buy-in and accountability.

2. Better Decision-Making Through Diverse Perspectives

Employees at different levels of the organization contributeunique insights.

Encouragingopen discussionscan lead tobetter problem-solving and innovation.

Example: Engaging employees in financial turnaround strategies might lead tocost-saving ideasfrom the procurement or finance teams.

3. Strengthens Stakeholder Relationships and Communication

Democratic leadershipimproves communicationwith bothinternal stakeholders (employees, managers) and external stakeholders (investors, suppliers, customers).

Byinvolving stakeholders in discussions, trust and cooperation areenhanced.

Example: Regular stakeholder meetings andopen discussions on financial recovery planscanreduce uncertainty and resistance.

4. Encourages Creativity and Innovation

Employees are given thefreedom to propose new ideas, leading tocontinuous improvement.

Example: In procurement, an inclusive approach might encouragesupply chain digitalizationorsustainable procurement strategies.

5. Builds a Positive Organizational Culture

A democratic leaderpromotes transparency, fairness, and ethical leadership.

This leads to amore positive work environment, reducing employee turnover.

Disadvantages of Democratic Leadership (10 Points)

1. Slow Decision-Making Process

Since multiple people are involved in decision-making, it takeslonger to reach aconsensus.

This can be problematic whenquick decisions are required, especially infinancial crisis situations.

Example: If XYZ Ltd. needs toimmediately cut costs, too much discussion maydelay urgent cost-saving measures.

2. Risk of Conflict and Disagreements

Open discussions may lead toconflicting opinions, making it difficult to find a common ground.

This can createdelays and inefficienciesin procurement and financial strategies.

Example: If procurement and finance teamsdisagree on cost-cutting strategies, decision-making could be stalled.

3. Requires Skilled and Experienced Employees

Democratic leadership works best when employees areexperienced, knowledgeable, and capable of making informed decisions.

If employeeslack expertise, their contributions may lead topoor strategic choices.

Example: A procurement team without risk management experience might suggest supplierswithout considering geopolitical risks.

4. Ineffective in Crisis Situations

In urgent situations whereimmediate action is required, democratic leadershipmay not be effective.

Leaders might need tomake quick, authoritative decisionsto stabilize the business.

Example: If XYZ Ltd. ison the verge of bankruptcy, Michael may need toquickly implement cost-cutting measureswithout waiting for employee consensus.

5. Potential for a Lack of Accountability

When decisions are made collectively, it may beunclear who is responsible for failures.

Employees mayavoid taking responsibility, assuming others will handle problems.

Example: If asupplier selection decision fails, no single person may be held accountable.

Is Democratic Leadership Appropriate for Michael at XYZ Ltd.? (5 Points)

Given the challenges at XYZ Ltd. (financial struggles and stakeholder communication issues), democratic leadershiphas both advantages and risks. Below is an assessment of whether this style is suitable for Michael:

Reasons Why Democratic Leadership is Suitable:

✅Improves stakeholder communication– Since XYZ Ltd. struggles with stakeholder relations, ademocratic approachcan helpbuild trust and collaboration.✅Boosts employee morale– Employees in a struggling company may feeldemotivated. Involving them in decision-makingincreases engagement and motivation.✅Encourages innovative solutions– XYZ Ltd. may needcreative financial recovery strategies, and a democratic approach couldgenerate new cost-saving ideas.

Reasons Why Democratic Leadership May Not Be Ideal:

❌Slow decision-making– XYZ Ltd. needsquick financial recovery decisions, whichdemocratic leadership may delay.❌May cause internal conflicts– Ifstakeholders have conflicting ideas on financial strategies, it may slow down progress.❌Not effective in crisis management– Michael may need tomake tough cost-cutting decisions quickly, whichrequires a more authoritative approach.

Recommended Approach for Michael:

Instead of adopting apurely democratic leadership style, Michael should consider abalanced approach:

Use democratic leadership for long-term strategic planning– Engage employees and stakeholders when designinglong-term recovery strategies.

Adopt an authoritative approach for urgent financial decisions– If immediatecost-cutting or restructuringis needed, Michael shouldmake firm, quick decisions.

Communicate decisions transparently– Even when making executive decisions, Michael shouldkeep employees and stakeholders informedto maintain trust.

Thisblended leadership style (situational leadership)allows Michael tobenefit from democratic leadership’s advantageswhile ensuringquick decision-making when necessary.

Conclusion

Democratic leadership hasseveral advantages, includingimproving communication, employee morale, and stakeholder relationships, all of which are beneficial for XYZ Ltd. However, it alsoslows decision-making and may cause conflicts, which can be problematic given the company’sfinancial struggles.

Michael should adopt asituational leadership approach, combiningdemocratic leadership for long-term strategic planningwithauthoritative leadership for urgent financial decisions. This will ensure that XYZ Ltd.recovers financially while maintaining transparency and employee engagement.

Bybalancing these approaches, Michael canlead XYZ Ltd. out of financial struggles while fostering a positive organizational culture.

Final Answer Structure for Maximum Marks (25 Points)

Introduction (3 Points)– Overview of the problem and introduction to democratic leadership.

Key Characteristics of Democratic Leadership (4 Points)– Explanation of democratic leadership style.

Advantages of Democratic Leadership (10 Points)– Five advantages with explanations and examples.

Disadvantages of Democratic Leadership (10 Points)– Five disadvantages with explanations and examples.

Suitability for Michael (5 Points)– Balanced evaluation of whether this leadership style is appropriate.

Conclusion (3 Points)– Summary and recommendation ofsituational leadership approach.

Overall explanation

Below you will find how you can plan and draft the essay. Remember this is an example of one wayyou 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

Introduction- what is due diligence – assessing and evaluating suppliers.

Section 1 – how to do due diligence: risk assessments, supplier selection, audits, contracts, continuous processes, communication

Section 1 – why – quality issues, risk to business continuity, ethical reasons, customer/ stakeholder requirements

Conclusion: it’s essential for Delicious Ltd (relate back to case study).

Example Essay

Supplier due diligence is a critical process for organizations like Delicious Ltd, which rely on complex international supply chains to source commodity items. Due diligence involves assessing and evaluating the performance, reliability, and ethical practices of suppliers to ensure they meet the company's standards and requirements.

Here's how supplier due diligence can be implemented:

Risk Assessment: Begin by identifying the potential risks within the supply chain. This may include geopolitical risks, natural disasters, economic instability, and even supplier-specific risks like production delays or quality issues. It should also look at ethical considerations such as the use of forced or child labour in the supply chain and the working conditions of those employed by suppliers.

Supplier Selection: Carefully select suppliers based on criteria such as their track record, reputation, financial stability, quality control processes, and ethical practices. Delicious Ltd should consider multiple sources for critical raw materials such as sugar and flour to diversify risk. This means if one supplier goes bust, or is unable to provide the required quantities, Delicious Ltd can source materials elsewhere. The Kraljic Matrix would be a useful tool here.

Audits and Inspections: Delicious Ltd can conduct regular audits and inspections of suppliers' facilities and practices to ensure they meet the company's standards. These audits can include quality checks, ethical compliance checks, and supply chain continuity assessments. They can use an independent 3rd party to do this.

Contractual Agreements: Delicious Ltd should define clear terms and conditions in supplier contracts, specifying quality requirements, delivery schedules, pricing structures, and dispute resolution mechanisms. These contracts should reflect the results of due diligence assessments.

Continuous Monitoring: Establish a system for ongoing monitoring of suppliers' performance. This includes regular communication, feedback mechanisms, and performance reviews to ensure suppliers maintain the desired standards. Delicious Ltd could use the Demming Plan Do Check Act cycle here.

Contingency Planning: Develop contingency plans for potential supply chain disruptions. This could involve identifying alternative suppliers or establishing safety stock levels for critical raw materials. For example, by holding a surplus stock of flour in it’s own warehouse, Delicious Ltd mitigates the risk of late deliveries interrupting production.

Transparency and Reporting: Delicious Ltd should be transparent about supplier due diligence efforts with stakeholders, including customers, investors, and regulatory bodies. They should regularly report on compliance with ethical and sustainability standards and can publish findings on their website.

For Delicious Ltd, implementing supplier due diligence is essential for several reasons:

Quality Assurance: Ensuring the quality of raw ingredients is crucial for a cake manufacturing organization like Delicious Ltd. By conducting due diligence, the company can verify that suppliers meet specific quality standards, which is essential for producingconsistent and high-quality products. If an ingredient such as flour was contaminated, this may result in Delicious Ltd’s customers falling ill. This is a risk that needs to be eliminated.

Supply Chain Reliability: International supply chains can be susceptible to disruptions, such as natural disasters, political instability, or economic fluctuations. Supplier due diligence helps identify potential risks within the supply chain and allows the company to develop contingency plans to minimize disruptions.

Ethical Sourcing: Customers and stakeholders increasingly demand transparency and ethical sourcing practices. Due diligence enables Delicious Ltd to assess whether suppliers adhere to ethical standards, such as fair labour practices and environmental sustainability, which can protect the company's reputation and market position. Delicious Ltd risk losing customers, and thus profit, if they fail to conduct due diligence.

Cost Control: By evaluating suppliers' financial stability and pricing structures, the company can negotiate better deals, optimize costs, and avoid unexpected price hikes or financial risks associated with supplier instability.

In conclusion, implementing supplier due diligence is essential for Delicious Ltd due to its complex international supply chains. It helps ensure quality, reliability, and ethical practices among suppliers, while also mitigating risks associated with the supply chain. By effectively implementing due diligence processes, the company can enhance its reputation, protect against disruptions, and maintain cost control.

Tutor Notes

- Remember that due diligence isn't just about ethics. That's a big part of it (checking supply chains for modern day slavery etc). Due diligence is about getting the 5 Rights of Procurement (remember this from Level 4?), it's about ensuring supply chain security and continuity, and about risk aversion too.

- To improve on the essay above you could talk more in detail about where you can get information on suppliers, such as D&B and Companies House for financial information, customer references and checking registrations such as ISO14001. Some of these are specific to the UK, so Delicious Ltd may need to look at international equivalents. You don’t have to know what these are for the exam though so don’t worry!

- How deep you conduct supplier due diligence depends on how important the supplier is to you. You could mention this in your conclusion and bring it back to Delicious Ltd – the flour supplier is probably very important, but the supplier of stationary for the workers in the office is probably less so. So Delicious need to do thorough due diligence on the flour supplier and less on the stationary guys. Kraljic is the tool for this.

- Because this is a case study question, you don’t have to bring in any real life examples. But if the question was more open e.g. discuss how a procurement manager can do Due Diligence, you could talk about a real life example, so have one in your back pocket for the exam

- For a really high score you could mention this: Home - KnowTheChain

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

Introduction – what is control?

1) Direct control – issuing orders, direct supervision, can lead to resentment

2) Bureaucracy – clear definitions, standardisation and processes

3) Influencing – bring a person’s values in line with the values of the organisation

4) Social / Cultural – encourage people to conform by changing the norms of the organisation

5) KPIs – individuals are evaluated to set standards

Conclusion – leader should use a variety of methods

Example Essay

Control in leadership refers to the processes, strategies, and mechanisms that leaders use to regulate, guide, and manage the activities and behaviours of individuals or groups within an organization. Effective control helps leaders ensure that the organization operates efficiently, achieves its goals, and adheres to its values and standards. This essay will discuss a variety of methods that a leader can use to exercise control.

1) Direct Control:

Direct control is a leadership method where leaders issue explicit orders and closely supervise tasks, often making decisions without significant input from others. For example in a manufacturing company, a supervisor instructs workers on the assembly line to follow a specific sequence of tasks and closely monitors their work to ensure compliance. The advantage to this method is that tasks are executed as instructed, resulting in predictable outcomes and that expectations and roles are well-defined, which reduces ambiguity. However this method of control can lead to resentment, decreased motivation, and a lack of autonomy among team members. Team members may be less inclined to propose innovative solutions or take initiative when micromanaged.

2) Bureaucracy:

Bureaucracy is a method of control characterized by clear definitions, standardized processes, and established rules and procedures within an organization. Government agencies often operate within a bureaucratic framework, where specific rules and regulations guide decision-making and operations. The advantage of this form of control is that it ensures decisions and actions align with established rules and procedures. It also promotes equal treatment of individuals within the organization. The disadvantage is that Bureaucratic structures may struggle to adapt to changing circumstances and hinder organizational agility. Moreover, excessive bureaucracy can lead to administrative burdens and create barriers to efficient decision-making.

3) Influencing:

Influencing is a control method focused on aligning an individual's values, beliefs, and behaviours with those of the organization. It encourages voluntary compliance. An example of this is a manager motivating their team to meet sales targets by emphasizing the benefits of achieving those goals for both the company and individual team members. This form of control can be highly effective as it encourages voluntary compliance; team members willingly align their values and behaviours with the organization's goals and it fosters a shared sense of purpose and commitment among employees. However it has many limitations; it is time consuming, requires effort to build trust and rapport, is dependant upon the personality, skill and likeability of the leader and it is not an effective form of control in situations where immediate compliance is crucial.

4) Social/Cultural Control:

Social/cultural control involves shaping an organization's culture and norms to encourage individuals to conform to desired behaviours and values. For example an organization promotes a culture of innovation and creativity, encouraging employees to share ideas and experiment with new approaches. They may do this by allowing staff members designated time to work on creative projects. Another example is cultivating a culture of inclusivity and diversity by celebrating festivals and traditions from other countries. The advantage of this form of control is that it creates lasting commitment to desired behaviours and values; of all the types of control mentioned in this essay, this form of control has the longest lasting effect. However changing an existing culture can be challenging and may face resistance from employees accustomed to the status quo. Shaping culture is a long-term endeavour that requires ongoing effort but a positive culture brings many benefits including enhances employee engagement, motivation, and satisfaction.

5) Key Performance Indicators (KPIs):

KPIs are metrics and performance indicators used to evaluate the performance of individuals,teams, or the organization as a whole. For example an e-commerce company sets KPIs for customer satisfaction, measuring it through surveys and feedback ratings. This form of control provides clear targets, ensuring individuals and teams understand expectations. It also allows for data-driven decision making. Leaders can make informed decisions based on performance data, for example on whether a supplier is performing sufficiently to renew the contract with them. The disadvantage to using KPIs as a form of control is that overemphasizing KPIs may lead to a narrow focus on metrics at the expense of broader organizational goals and values. People may also prioritize meeting KPIs over the quality or integrity of their work.

In conclusion, effective leadership requires a nuanced approach to control. Leaders should recognize that different situations and individuals may require varying degrees and types of control. Relying solely on one method, such as direct control or bureaucracy, can limit the organization's adaptability and hinder employee engagement. Instead, a balanced approach that incorporates influencing, cultural shaping, and the use of KPIs can promote a healthy balance between control and autonomy, leading to a more effective and motivated workforce. Ultimately, leaders should use a combination of these control methods to achieve their organizational goals while maintaining a positive and engaged work environment.

Tutor Notes

- I’ve purposed made this question very vague, because sometimes CIPS do make vague questions. Things you should think about when approaching this question are: exercise control over what? (processes?) or over who? (staff?) why do you need control? (is something bad happening?). Because it’s so open, you will need to bring in your own examples into this type of essay. Everyone's essays will look very different for this question.

- Other forms of control mentioned in the study guide include: Self-control – no direct intervention; Trust-control – where trust is high, control reduces (Handy 1993) and Motivation - see the table on p. 189

Strategic Ethical Leadership in E-Procurement Implementation: Evaluating InfluencingStyles

In modern procurement management, leadership style significantly impacts the success of strategic initiatives such as the introduction of anE-Procurement system. Pat, as the newly appointedChief Procurement Officer (CPO)of Circle Ltd, must carefully select aninfluencing styleto ensure smooth adoption of the system by his12 procurement assistants. Different influencing styles—assertive, consulting, collaborating, and inspiring—offer distinct advantages and challenges in this scenario. This essay discusses how each of these leadership styles can be applied in Pat’s situation and evaluates their effectiveness.

1. Assertive Leadership Style

Assertive leadership involvesdirectingemployees with confidence and clarity, ensuring compliance through authority. If Pat adopts anassertive approach, he would:

Clearlycommunicatethe decision to implement the E-Procurement system.

Setfirm expectationsfor team members regarding system adoption.

Enforce astrict timelinefor training and compliance.

Effectiveness in This Situation

Advantages:Provides clarity, speeds up decision-making, and ensures quick implementation.

Challenges:Could lead toresistancefrom employees who feel excluded from the decision-making process.

Best Used When:There is anurgent deadlineor when employeeslack knowledgeof alternatives.

Given that procurement assistants may have concerns or fears abouttechnological change, a purelyassertive approach may create resistancerather than engagement.

2. Consulting Leadership Style

A consulting leadership style involvesseeking inputfrom team members before making a final decision. If Pat takes aconsultative approach, he would:

Engageprocurement assistants in discussions on how the new system will impact their work.

Conductsurveys or meetingsto gather feedback.

Allow employees tovoice concernsand propose suggestions.

Effectiveness in This Situation

Advantages:Encouragesbuy-infrom employees, reduces resistance, and improves decision-making.

Challenges:Can betime-consumingif employees havediverging opinionsorlack expertisein E-Procurement.

Best Used When:Employees have valuableexperience or insights, and the leader seeksteam engagement.

Since the system is new to the organization,consultation can help address fears and improve morale, but it should bestructured efficientlyto avoid unnecessary delays.

3. Collaborating Leadership Style

A collaborative leadership style fostersteamworkand shared decision-making, ensuring that all stakeholders work together toward a common goal. If Pat adopts acollaborative approach, he would:

Form across-functional project teamto oversee the E-Procurement implementation.

Encourageknowledge sharingandproblem-solvingamong team members.

Ensure that procurement assistants havea role in decision-making, such as selecting the software features they find most useful.

Effectiveness in This Situation

Advantages:Enhancesteamwork, improvesacceptance of change, and utilizes thecollective expertiseof the team.

Challenges:Can lead toslow decision-makingandconflictsif there are disagreements on implementation details.

Best Used When:The project requiresinnovationand teamwork, and when employees havetechnical expertiseorexperiencewith procurement systems.

Sincesuccessful adoptionof an E-Procurement system depends on user engagement,collaboration would be highly effective, but it needsstructured guidancefrom leadership.

4. Inspiring Leadership Style

An inspiring leadership style focuses onmotivating employeesby sharing a vision and fostering enthusiasm. If Pat uses aninspirational approach, he would:

Explain the strategic benefitsof E-Procurement for Circle Ltd, such as cost savings, efficiency, and competitive advantage.

Usestorytelling and case studiesto illustrate successful transformations in similar companies.

Recognize andreward employeeswho embrace the new system.

Effectiveness in This Situation

Advantages:Boostsmorale and motivation, increasescommitment, and reduceschange resistance.

Challenges:Employees may stillneed practical guidanceandstructured trainingalongside motivation.

Best Used When:Change issignificantand requires amindset shift, especially in environments whereinnovation is encouraged.

Since the introduction of E-Procurement isa transformative change, aninspiring leadership approachwould be effective inmotivatingemployees, but it should be paired withpractical implementation strategies.

Conclusion: Choosing the Best Approach

Pat must consider boththe technical challengesof E-Procurement implementation and thehuman factorsinvolved in change management.A blended approachcombining multiple leadership styles would be the most effective strategy:

Start with an inspiring approachtogenerate enthusiasmand ensure employees understand the long-term benefits of E-Procurement.

Use consultation and collaborationto gather feedback and ensure employees feelinvolvedin the change process.

Apply an assertive approach strategically, ensuring that deadlines and key expectations are met.

By combining these leadership styles, Pat cansuccessfully implementthe E-Procurement system while ensuring his team is engaged, motivated, and aligned with the company’s strategic goals.

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 – explain which three; minimum wage, working hours, H&S

P1 – minimum wage

P2 – working hours

P3 – H&S

Conclusion – law is always evolving

Example Essay

Employment law in the United Kingdom has evolved over the years to safeguard the rights and interests of employees while providing a framework for fair and equitable employment practices. This essay delves into three crucial areas of employment law: minimum wage, working hours, and health and safety.

Minimum Wage. The National Minimum Wage Act 1998 and subsequent amendments established the legal framework for minimum wage rates in the UK. The current legislation sets different minimum wage rates for various age groups. Currently (2023) for those aged 23 and over the minimum wage is £10.42 per hour. This is rising to £11 in 2024. Younger workers will earn less, with those on an apprenticeship, considerably less. Minimum wage legislation has significantly improved the earnings of low-paid workers and reduced income inequality. It ensures that employees receive a fair wage for their labour, promoting economic stability and social well-being.

Interestingly, not all countries have a minimum wage or set it hourly. For example in Spain, minimum wage is set out monthly (around 1000 euros/ month). Sweden doesn’t have a minimum wage at all. Sweden relies on collective bargaining agreements negotiated between employers and labour unions to determine wage rates and employment conditions. These agreements are sector-specific and cover a wide range of industries, effectively setting minimum wage standards at the industry level rather than through legislation. This approach allows for flexibility and tailoring of wage rates to different sectors of the economy but also means that minimum wage levels can vary depending on the specific collective agreement in place within a given industry.

Working Hours: The Working Time Regulations 1998 (WTR) and the EU Working Time Directive establish legal limits on working hours, rest breaks, and paid leave for workers in the UK. The WTR also introduced the concept of the "opt-out," allowing workers to voluntarily exceed the 48-hour weekly working time limit. Working time regulations promote work-life balance, protect employees from excessive working hours, and enhance health and well-being. The "opt-out" provision provides flexibility but must be implemented with respect to workers' rights. It is common in the UK for Junior Doctors to opt out to ensure they have enough time to complete their training within a specific timeframe. Some training programs require a certain number of hours or procedures to be completed during a specific period. Another reason for opting out is the opportunity to earn more money, particularly if overtime is paid at a high rate.

Health and Safety: The Health and Safety at Work Act 1974 is the cornerstone of health and safety legislation in the UK. It places duties on employers to ensure the health, safety, and welfare of their employees, as well as others affected by their work activities. Specific regulations, such as the Management of Health and Safety at Work Regulations 1999, provide additional guidance. One of the main areas this legislation covers is the importance of completing risk assessments. The case of R v. Tangerine Confectionery Ltd (2018) emphasized the importance of risk assessments in preventing workplace accidents. The company was fined for failing to adequately assess the risk of an employee's arm getting trapped in a machine, resulting in serious injury. Health and Safety legislation has led to safer workplaces, reduced accident rates, and improved employee well-being. Employers are legally obligated to identify and mitigate workplace risks, ensuring the protection oftheir workforce.

In conclusion, UK employment law, encompassing minimum wage, working hours, and health and safety, plays a pivotal role in safeguarding employees' rights, promoting fair labour practices, and ensuring safe working environments. As employment dynamics continue to evolve, it is imperative that employment law remains adaptable, responsive, and protective of employees in an ever-changing work landscape.

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 – what is change management?

P1 – planned

P2 – incremental

P3 – revolutionary

Conclusion – planned is best

Example Essay

Change management is a set of processes and strategies aimed at helping an organization smoothly transition from its current state to a desired future state. Mohammed, the CEO of ABC Ltd, aims to transition his consultancy organization from traditional paper-based record-keeping to electronic systems. To navigate this change effectively, Mohammed can consider various change management approaches, each with their own advantages and disadvantages:

Planned Change: Planned change is a methodical and structured approach to implementing change. It involves careful planning, preparation, and a well-defined roadmap for transitioning from the old paper-based system to the new electronic one. It typically minimizes disruption and resistance by providing employees with a clear understanding of the process. Mohammed could use a Ghantt chart and other tools so that everyone knows what is happening when: for example he could introduce the electronic systems department by department, for example having the HR department use it first, then after a month roll it out to other departments.

Advantages: Planned change offers predictability and allows for detailed planning and risk management. It also offers the lowest disruption; it gives employees an option to adapt gradually, reducing disruptions to daily operations and since the change is well-communicated and organized, it can effectively address employee resistance.

Disadvantages: Slower Implementation: It may take time to implement planned changes fully, potentially delaying the realization of benefits.

Incremental Change: Incremental change involves making small, manageable changes over time. This approach prioritizes gradual progress and can be less disruptive, as employees adapt step by step.  For ABC Ltd this may be that each employee gets access to the system to do some aspects of their job first, then after a while they gain access to another part of the system and so fourth, until all actions are completed electronically rather than on paper.

Advantages: As this change method involves several steps, it reduces potential resistance to the change. It also provides Mohammed with a lower risk: Smaller changes are easier to monitor and adjust, lowering the risk of implementation issues. If the electronic system has a bug, this can be fixed quickly before doing away with the old paper system.

Disadvantages: The main disadvantage to this approach is similar to that of the planned approach- there is a prolonged transition: implementing changes incrementally may extend the transition period, delaying the full benefits.

Revolutionary Change: Revolutionary change entails a swift and complete shift from the old system to the new one. It aims for rapid transformation but can be highly disruptive and stressful for employees. This means Mohammed would introduce the system without warning, overnight.

Advantages: Revolutionary change can lead to quick results and immediate benefits. It is possible that employees may be more committed to using the new system due to the sense of urgency associated with this approach. They don’t get a choice or time to moan about the change- they have to simply get on and use the new system.

Disadvantages: High Disruption: The speed of change may lead to stress, resistance, and potential issues. It also comes with a higher risk of Failure: inadequate planning and adjustment time can increase the risk of implementation failure. If the new system has bugs, but Mohammed has done away with the old paper-based system, this may result in staff not being able to do any work.

Conclusion:

In the context of ABC Ltd's transition to electronic record-keeping, a planned change approach appears to be the most suitable. This approach offers a methodical, structured, and predictable transition process. It allows Mohammed to carefully plan and manage risks while minimizing disruptions to daily operations. Additionally, it is well-equipped to address any resistance that may arise during the change process. Considering these advantages, a planned change approach aligns well with the organization's need for a smooth and effective transition to electronic systems while ensuring the best chance for success.

Tutor Notes

- This question asks you to pick one of the options, so don’t sit on the fence here. Of those listed, planned or incremental would probably be the obvious choice, as revolutionary change is really risky for this scenario. Revolutionary change is associated more with responding to emergencies or creative tasks, rather than introducing a new IT system. Introducing an IT system really should be done slowly, as it allows time to sort any issues and get people on board and trained using it.

- A question on different types of change could also ask about emergent change- so make sure you’re familiar with this as well.