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CIPS Strategic Ethical Leadership Sample Questions (Q13-Q18):

NEW QUESTION # 13
SIMULATION
Discuss two different types of power that could be used within the Procurement department of an organisation. Explain how procurement can use power responsibly to help the organization achieve its strategic objectives. (25 points).

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Introduction - definition of power and Max Weber
P1 - charismatic power
P2 - rational/ legal
P3 - using power responsibly: training others, accountability/ setting procedures, ethical sourcing Conclusion - procurement has a lot of power in an organisation. The key to using power is 'balance' and using it responsibly Example Essay Power, in the context of organizations, refers to the ability of individuals or departments to influence decisions, actions, and outcomes. Max Weber, a German Sociologist, identified three types of power: charismatic, traditional, and rational/legal. In this essay, we will focus on two types of power relevant to the Procurement department - charismatic power and rational/legal power. Additionally, we will explore how Procurement can responsibly use these powers to help the organization achieve its strategic objectives.
Charismatic power refers to a type of influence or authority that is based on the personal qualities, charisma, and appeal of an individual leader. This form of power arises from the compelling and magnetic personality of a leader, which inspires and motivates followers to willingly and enthusiastically support their vision and goals. One well-known example of a charismatic leader is Steve Jobs, the co-founder of Apple. Charismatic leaders have the ability to inspire and motivate their followers to achieve goals that might seem challenging or even impossible. They often articulate a compelling vision for the future and communicate it in a way that resonates with others. Moreover, they exude confidence and enthusiasm, which can be contagious. Their passion and belief in their vision can energize and mobilize their followers. For this reason, this type of power is often linked with Transformational Leadership styles.
Rational/legal power is derived from established policies, procedures, and regulations that govern business processes. It relies on adherence to legal and ethical standards, ensuring fairness, transparency, and accountability. Rational/legal power is typically exercised in an impersonal and formal manner. Rather than being contingent on the personal qualities of an individual as with charismatic power, rational/ legal power is derived from a person's position within a formal organizational hierarchy. Weber associated rational/legal power with bureaucratic structures, where authority is distributed hierarchically, and individuals hold positions based on their qualifications, expertise, and adherence to established rules. For example, in the Procurement department of an organisation, the Head of Procurement would hold Rational/ Legal power through their ability to sign-off on the activities of others. This form of power emphasizes predictability and consistency in decision-making. Weber points out the downside to this type of power: that leaders with this type of power can be inflexible and rigid.
In an organisation, the Procurement department would use a mixture of charismatic and rational/ legal power in order to help the organisation achieve their strategic objectives. Some ways this could materialise include:
Training: Procurement can use a mixture of charismatic and rational power responsibly by providing training to other departments on aspects of procurement, especially compliance with legislation (which is critical in the public sector) and achieving value for money. This ensures that the organization's practices align with legal requirements and maximize cost-efficiency. Delivering training requires rational power (the training leader needs to know what they're talking about and have experience in this), but also charismatic power in order to engage learners. By training other departments, this will help the organisation achieve its strategic objectives.
Accountability and Reporting: Procurement can responsibly exercise rational/legal power by establishing clear accountability and reporting mechanisms. This includes ensuring that procurement decisions are documented, transparent, and in compliance with relevant laws and regulations. An example of this is creating Standard Operating Procedures, or ensuring Junior members of the team get approval from a Line Manager to conduct certain activities. This helps the organisation achieve strategic goals by eliminating (or significantly reducing) its exposure to risk.
Ethical Sourcing: Procurement can use power to address critical issues such as human trafficking within the supply chain. By setting and enforcing ethical sourcing standards, they contribute to responsible procurement practices. Procurement can use charismatic power to convince senior leadership and supply partners of the importance of ethical sourcing, and legitimate power to ensure that all stakeholders are complying with CSR policies. This could involve the use of gain-share mechanisms in contracts with supply partners.
In conclusion, Procurement departments wield considerable power within organizations, and the key to using this power is balance and responsibility. Charismatic and rational/legal powers can be harnessed to drive and achieve strategic objectives by ensuring ethical, compliant, and efficient procurement practices. By training, identifying vulnerabilities, and promoting responsible sourcing, Procurement contributes to the organization's overall success.
Tutor Notes
- You could bring in many different theories when describing two types of power. I've chosen two by Max Weber (he talks about 3 - charismatic, traditional and rational/ legal). But you could have used some from French and Raven (expert, legitimate, coercive, reward, referent) or Yukl (2010) - connection power and negative power. There are others too, these are just the main ones explored in the study guide
- A similar question was asked in March 22 but power is a big topic so may come up again, either with or without a case study. Another way they could use this topic is discussing ways of using the different power types to overcome issues.
- Weber's Types of Power - p. 171. How procurement can use power responsibly - p.177

NEW QUESTION # 14
SIMULATION
Discuss transformational and transactional approaches to leadership. Which is the most appropriate approach in the following case study:
Mo is a procurement manager at a large manufacturing organisation. He oversees a team of 5 procurement assistants. The assistants are currently not working to a high level; they lack skills and confidence in completing tenders and Mo is concerned about their abilities to conduct accurate work. (25 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Introduction
Leadership is a critical factor in shaping employee performance, motivation, and overall organizational success. In procurement, managers must adopt a leadership style that aligns with their team's capabilities, business objectives, and operational challenges. Two widely recognized leadership styles are Transformational Leadership and Transactional Leadership, each with distinct characteristics and effects on team performance.
This essay will discuss both leadership styles, outlining their advantages and disadvantages. It will then evaluate which approach is best suited for Mo, a procurement manager facing skill and confidence issues among his team members.
Understanding Transformational Leadership
Definition
Transformational leadership is a leadership style that focuses on inspiring, motivating, and developing employees to reach their full potential. Transformational leaders act as mentors and role models, encouraging innovation, professional growth, and long-term performance improvements.
Key Characteristics of Transformational Leadership
Inspiration and Motivation - The leader encourages employees to perform beyond expectations through a compelling vision.
Individualized Support - Focuses on mentoring and coaching employees to enhance their skills.
Encourages Innovation - Employees are empowered to think creatively and solve problems.
Develops Future Leaders - Focuses on long-term talent development rather than short-term task completion.
High Engagement and Emotional Intelligence - Builds strong relationships with employees and fosters a positive workplace culture.
Advantages of Transformational Leadership
✅ Encourages professional growth - Employees develop new skills and gain confidence.
✅ Increases motivation and job satisfaction - Employees feel valued and supported.
✅ Promotes innovation and continuous improvement - Encourages employees to think creatively.
✅ Builds long-term organizational success - Creates future leaders through mentoring and skill development.
Disadvantages of Transformational Leadership
❌ Time-consuming - Requires significant time and effort for mentoring and development.
❌ Not suitable for urgent performance issues - If immediate performance improvement is needed, transformational leadership may be too slow.
❌ Employees may resist change - Some employees may be unwilling to embrace coaching and new expectations.
Understanding Transactional Leadership
Definition
Transactional leadership is a leadership style based on a structured, performance-driven approach. It focuses on clear expectations, rewards for success, and consequences for underperformance. This style is best suited for improving task efficiency, enforcing compliance, and ensuring consistency.
Key Characteristics of Transactional Leadership
Clear Expectations and Rules - Employees have defined roles and responsibilities.
Performance-Based Rewards and Punishments - Good performance is rewarded, while poor performance is corrected through disciplinary actions.
Focus on Efficiency and Results - Emphasizes productivity and operational efficiency over employee growth.
Short-Term Performance Goals - Ensures immediate improvements in employee performance.
Hierarchy and Structure - Follows a strict chain of command.
Advantages of Transactional Leadership
✅ Ensures short-term efficiency and compliance - Clearly defines expectations, which leads to immediate improvements in performance.
✅ Effective for structured tasks - Employees know exactly what is expected, reducing uncertainty.
✅ Increases accountability - Employees are held responsible for meeting targets.
✅ Useful for crisis management - Provides a clear directive in high-pressure situations.
Disadvantages of Transactional Leadership
❌ Limited employee development - Focuses more on task completion rather than skill enhancement.
❌ Can reduce creativity and innovation - Employees may feel restricted by rigid expectations.
❌ May reduce motivation - Over-reliance on rules and punishments can create a negative work environment.
❌ Not ideal for building long-term talent - Employees may not develop leadership skills or confidence.
Which Leadership Style is Most Suitable for Mo?
Case Study Analysis: Mo's Leadership Challenge
Mo is a procurement manager leading a team of 5 procurement assistants.
The assistants are underperforming due to lack of skills and confidence.
Mo is concerned about their ability to complete procurement tenders accurately.
Evaluating the Best Leadership Approach for Mo

Based on the specific challenges Mo is facing, neither leadership style alone is perfect. Instead, a combined approach is most suitable:
Recommended Approach: A Blend of Transformational and Transactional Leadership Short-Term Approach: Transactional Leadership for Immediate Performance Improvement Mo should set clear expectations and enforce accountability to ensure the assistants improve their performance in procurement tenders.
Implement a structured training program with performance benchmarks.
Use performance-based incentives (e.g., bonuses, recognition for accurate work).
Provide constructive feedback on mistakes to encourage learning.
Long-Term Approach: Transformational Leadership for Skill Development and Confidence Mo should act as a mentor and coach, providing continuous learning opportunities.
Encourage assistants to develop confidence in procurement by assigning them progressively challenging tasks.
Inspire the team by highlighting the importance of procurement excellence in achieving organizational goals.
Implement peer learning and mentorship programs to create a supportive learning environment.
Conclusion
Both Transformational Leadership and Transactional Leadership offer valuable benefits, but in the case of Mo's underperforming team, a blended approach is the most effective strategy.
Transactional Leadership should be used in the short term to improve immediate performance, enforce accountability, and ensure accuracy in procurement tenders.
Transformational Leadership should be introduced gradually to develop skills, boost confidence, and foster long-term career growth among the procurement assistants.
By combining both approaches, Mo can quickly improve his team's performance while ensuring they gain the necessary skills and confidence to succeed in procurement. This balanced leadership approach ensures short-term efficiency and long-term growth, making it the most effective strategy for Mo's situation.

NEW QUESTION # 15
SIMULATION
Describe four reasons a person may resist change and four ways a leader can overcome resistance to change (25 points).

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Intro: what is change?
P1: fear
P2: poor communication and misunderstanding
P3: economic conditions change (e.g. impact on working conditions or pay) P4: perception (because they believe the change won't be beneficial) P5: leader can overcome resistance through: providing compelling rationale for the change P6: leader can overcome resistance through: Employee involvement (participative management style) P7: leader can overcome resistance through: providing training P8: leader can overcome resistance through: being honest and using timely communication Conclusion: change management is complex and requires overcoming many obstacles. Need to plan. Use tools such as Kotter's Change Management Principles, Lewin's Forcefield Analysis and RACI Example Essay Change, in the context of organizations, refers to a departure from the existing state or processes toward a new and often better state. Change can encompass various aspects, such as altering processes, introducing new technologies, or modifying company culture. However, individuals within the organization often resist change for a variety of reasons. This essay will explore four common reasons for resistance to change and four effective strategies leaders can employ to overcome this resistance.
Four Reasons for Resistance to Change:
Fear: People tend to resist change when they fear the unknown. Change often brings uncertainty about the future, job security, and one's ability to adapt. An example of this is an older employee resisting a change to using a new e-procurement system, because they are mistrustful of technology.
Poor Communication and Misunderstanding: Inadequate or unclear communication about the change can lead to misunderstandings and misinterpretations. Lack of information can result in resistance due to confusion or distrust. For example an employee may hear of a change accidently in the hallway and pass this on, without knowing the full story, they may make a decision to resist the change.
Economic Conditions Change: If people believe that the change will negatively impact them, for example increasing their workload, stress levels or financial take homes, they may resist change. An example of this is during a company restructure when people believe that merging of job roles will result in them having to do more work.
Perception: Individuals may resist change when they perceive it as unnecessary, or detrimental to their interests. This resistance often stems from a belief that the change won't be beneficial. For example a manager may wish to introduce a new way to categorise inventory, but warehouse staff believe that this change will make counting inventory take longer.
Four Ways a Leader Can Overcome Resistance to Change:
Providing Compelling Rationale for the Change: Leaders can overcome resistance by clearly and convincingly explaining the reasons behind the change. Demonstrating how the change aligns with the organization's goals and how it will benefit employees can help mitigate fear and uncertainty.
Employee Involvement (Participative Management Style): Inviting employees to participate in the change process can reduce resistance. When individuals feel they have a say in the change, they are more likely to embrace it. Leaders can solicit input, involve employees in decision-making, and create a sense of ownership in the change.
Providing Training: Resistance often stems from a lack of knowledge or skills required for the change. Leaders can provide training and resources to equip employees with the necessary tools to adapt successfully. This not only reduces resistance but also enhances employee confidence and competence. This would be particularly helpful for changes involving new systems and ways of working.
Being Honest and Using Timely Communication: Effective communication is critical in overcoming resistance. Leaders should be honest about the reasons for the change, acknowledge potential challenges, and provide regular updates. Timely and transparent communication builds trust and reduces uncertainty.
In conclusion, change management is a complex process that requires leaders to address and overcome various sources of resistance. Understanding the reasons behind resistance is essential for effective change leadership. As Atkinson (2005) notes: resistance to change should not be viewed negatively, it is a positive and healthy response. Employing strategies like providing a compelling rationale, involving employees, offering training, and maintaining open and honest communication can help leaders navigate the complexities of change successfully. Moreover, change management tools such as Kotter's Change Management Principles, Lewin's Forcefield Analysis, and RACI (Responsible, Accountable, Consulted, Informed) matrices can further aid leaders in planning and executing change initiatives efficiently and with the least possible resistance.
Tutor Notes
- With this type of question try to give as many examples as you can.
- Other things you could have mentioned in your essay include:
- Reasons to resist change: out of habit, because other people are resisting it (sheep mentality), loss of freedom, scepticism, impact the change may have on their personal life (e.g. effect on work life balance).
- Dealing with resistance to change; Top management sponsorship and HR involvement, Understanding of human behavour and why people may resist change, Corporate culture supports change, Adjustment to performance mechanisms, KPIs, Efficient organisational structure, Rewards (monetary and otherwise)

NEW QUESTION # 16
SIMULATION
Explain what is meant by the 'Informal Organisation'. How can this have a positive or negative impact upon an organisation? (25 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Intro - what is it
P1 - what makes up the informal organisation. Example
P2 - positive
P3 - negative
Conclusion - organisations need to appreciate its existence, harness the positive (communication and helping each other) but mitigate the bad (cliques and rumours).
Example Essay
The "Informal Organization" refers to the unofficial, and often spontaneous network of relationships, interactions, and communication that develop among employees within an organization. It exists alongside the formal structure and hierarchy of the organization, which is usually defined by the organizational chart, job roles, and official reporting relationships. The informal organization, on the other hand, is not documented or officially sanctioned but plays a significant role in shaping the work environment and influencing how work gets done.
The informal organisation is composed of : social networking (informal groups of friends), the Grapevine (informal messages, rumours) and collective values (groups making assumptions - familiarity breeds contempt). An example of this may be employees from different departments who routinely have lunch together and 'gossip' about the company. The Informal Organization exists in all types of organisation, regardless of the formal structure and it can have both positive and negative impacts on an organization:
Positive Impact:
Enhanced Communication: Informal networks often facilitate communication and information flow that might be limited within the formal structure. Employees can share ideas, solutions, and concerns more freely, leading to increased innovation and problem-solving.
Rapid Response to Change: Informal groups can adapt quickly to changes in the work environment, helping employees cope with uncertainty and transitions. They can be valuable during times of crisis or when the organization needs to pivot.
Social Support: Informal relationships can provide emotional support and a sense of belonging, reducing workplace stress and improving employee morale and job satisfaction. This can lead to higher retention rates and productivity. This is particularly true when activities or hobbies are included, for example a group of colleagues who create a football league and play after work.
Knowledge Transfer: Informal networks often facilitate the transfer of tacit knowledge (knowledge that is not easily documented) among employees, helping with onboarding, skill development, and organizational learning. For example, a more senior employee telling a new starter that Client A is a hothead so to make sure you answer his emails first.
Problem Resolution: Employees within informal networks may assist each other in resolving work-related issues, leading to quicker problem resolution and improved overall efficiency.
Negative Impact:
Cliques and Exclusivity: Informal groups can sometimes lead to cliques or exclusionary behaviour, which may create a sense of favouritism or inequality. This can negatively impact morale and teamwork. For example if the manager plays in the football league mentioned above he may consciously or unconsciously pick someone else who plays football for a promotion.
Resistance to Change: In some cases, informal groups may resist organizational changes that threaten their established norms or power dynamics, hindering the implementation of necessary reforms.
Gossip and Rumours: Informal communication can lead to the spreading of rumours, misinformation, or negative perceptions, which can harm employee morale and create a culture of distrust.
Conflict and Discord: Informal networks can sometimes breed conflicts and rivalries, which may spill over into the formal organization and disrupt teamwork and productivity. This may be those who play football vs those who don't.
Lack of Accountability: In the absence of clear reporting structures, the informal organization can undermine accountability, as individuals may not be held responsible for their actions or decisions.
In summary, the informal organization can have a significant impact on an organization, both positive and negative. Understanding and managing these informal dynamics is essential for creating a productive and harmonious work environment. The organisation should foster a culture of inclusivity and diversity to reduce the formation of cliques and utilise informal networks for knowledge sharing and employee engagement initiatives.
Tutor Notes
- The football example is from my own personal experience. Another example is a split between people who go for a drink after work and those who don't.
- Informal organisations is on p. 250 of the study guide. It came up as a topic in May 22 but that was about how it can impact change, specifically. So you could get a question like the above on pros and cons. Or a question with a case study.
- I love this quote: "Gossip is just the news wearing a tutu." - Barbara Kingsolver. I think it perfectly sums up the informal organisation. It's communication channels and relationships, just in a tutu.

NEW QUESTION # 17
SIMULATION
Mark is the Head of IT at Squirrel Incorporated and has been asked to join a cross-functional team including staff from the procurement and finance departments. The team is tasked with looking into the procurement of a new IT system. Explain some of the different roles that Mark could play in this newly formed team and discuss how Mark can influence the outcome of decisions made. (25 points)

Answer:

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

NEW QUESTION # 18
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