CIPS L5M1 Practice Test Questions Answers

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

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

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

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

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

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

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

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

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

Intrinsic motivation comes from within the individual and relates to personal satisfaction, growth, and achievement, rather than external rewards such as pay. TheJob Characteristics Model (Hackman and Oldham)identifies several features of a role that can make it intrinsically motivating.

The first isSkill 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 isTask 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 Significanceadds 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 isAutonomy. 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,Feedbackis 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 offerskill variety, task identity, task significance, autonomy, and feedbackare 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.

Part A – Sources of Conflict (15 points):

Conflict is natural in groups and arises when individuals or teams have incompatible goals, interests, or behaviours. Three common sources are:

Task-based conflict– This occurs when members disagree about the content of the work, objectives, or methods. For example, in a procurement team, conflict may arise over whether to prioritise cost savings or sustainability in supplier selection.

Relationship conflict– This stems from personality clashes, communication breakdowns, or differences in working styles. For instance, an extroverted negotiator may clash with an introverted analyst who prefers data-driven approaches.

Resource conflict– Groups often compete for limited resources such as time, budget, or staff. In procurement, this could occur if multiple project teams require the same supplier’s resources or internal budgets.

Part B – Outcomes of Conflict (10 points):

Positive outcomes:

Can lead to creativity and innovation as different perspectives are debated.

Encourages problem-solving and improvement of processes.

Strengthens understanding when conflicts are resolved constructively.

Negative outcomes:

May reduce morale and trust if personal attacks or unresolved tension occur.

Can delay projects, damage productivity, and harm relationships with stakeholders or suppliers.

Creates stress and alienation, leading to higher turnover if prolonged.

In procurement, positive conflict may lead to innovative supplier solutions, while negative conflict may damage supplier negotiations or internal collaboration.

Conclusion:

The three main sources of conflict are task, relationship, and resource issues. Conflict is not always harmful – it can drive improvement and creativity if managed well, but if left unresolved, it can damage morale, performance, and stakeholder relationships. Managers must therefore encourage constructive conflict while minimising destructive forms.

When entering negotiations with a new supplier, a procurement professional must use a variety of interpersonal and cognitive skills to achieve the best outcome. Three important qualities arecuriosity, creative thinking, and reflective analysis.

Curiosity (8–9 marks):

Curiosity means asking questions, exploring options, and seeking to understand the supplier’s position. In a negotiation, curiosity allows the buyer to uncover the supplier’s motivations, constraints, and priorities. For example, asking why a supplier has higher costs may reveal underlying logistics challenges, which could be solved collaboratively. Curiosity builds rapport, demonstrates interest, and helps procurement move beyond price to explore value-added benefits such as quality improvements or sustainability initiatives.

Creative Thinking (8–9 marks):

Creative thinking is about generating new solutions and finding alternatives to traditional approaches. In negotiation, this may involve looking for win-win outcomes rather than focusing only on cost. For example, instead of demanding lower prices, procurement could propose longer contracts, volume commitments, or joint innovation projects that benefit both parties. Creative thinking expands the scope of negotiation and helps develop more sustainable supplier relationships.

Reflective Analysis (8–9 marks):

Reflective analysis involves reviewing past experiences and learning from them to improve decision-making. Before negotiating, procurement professionals can reflect on what has worked or failed in previous negotiations. During the negotiation, reflective analysis helps assess whether strategies are effective and adapt accordingly. After the negotiation, reflection allows continuous improvement in approach. For example, a buyer may reflect on why a past supplier negotiation failed due to being too aggressive, and adjust by using more collaborative tactics with the new supplier.

Conclusion:

Curiosity helps procurement gather insights, creative thinking enables innovative solutions, and reflective analysis ensures continuous improvement. Together, these skills allow procurement professionals to build trust, secure better value, and establish strong long-term relationships with new suppliers.

When preparing a business case for additional resource, Zarah should follow a structured process to ensure that the proposal is clear, evidence-based, and aligned with the hospital’s strategic objectives.

The first step is toidentify the need. Zarah must gather evidence to show that the current department is understaffed and unable to manage the workload effectively. This may include statistics on increased purchase orders, supplier contracts, delays, or risks caused by the lack of staff.

Secondly, she shoulddefine the objectives of the business case. In this case, the objective is to secure funding and approval for an additional Procurement Assistant to ensure efficiency, compliance, and risk management in hospital procurement.

Thirdly, Zarah mustanalyse options. The business case should not only present recruitment as the only choice but also consider alternatives such as outsourcing, redistributing workload, or temporary staff. Each option should be reviewed in terms of cost, feasibility, and benefits.

Fourthly, she shouldpresent the costs and benefits. The costs will include salary, training, and any associated overheads. The benefits may include faster order processing, reduced errors, improved supplier management, compliance with healthcare regulations, and freeing up senior staff for strategic tasks. Non-financial benefits, such as improved staff morale and better patient outcomes through timely supply of materials, should also be highlighted.

The fifth step is toassess risks. For example, not hiring an additional assistant may risk delays in ordering medical supplies, poor compliance with procurement standards, and reputational damage to the hospital. Conversely, recruiting without sufficient workload planning could lead to under-utilisation of resources.

Sixthly, Zarah shouldrecommend the preferred option. Based on evidence, she would recommend hiring one additional Procurement Assistant as the best way to meet the workload demands while delivering value.

Finally, she shouldprepare the formal document and presentationfor hospital executives or the finance committee. The business case should be structured with an introduction, background, options, costs/benefits, risks, and recommendations.

Conclusion:

To create a strong business case, Zarah must identify the need, set clear objectives, analyse options, present costs and benefits, assess risks, and make a clear recommendation. A well-prepared business case will increase the likelihood of approval and ensure the procurement team has the resources needed to deliver efficient, compliant, and high-quality outcomes for the hospital.