L5M1 Managing Teams and Individuals Questions and Answers

One widely used model for classifying stakeholders isMendelow’s Power-Interest Matrix. This model categorises stakeholders based on their level of power (ability to influence decisions) and their level of interest (degree of concern in the issue). It helps managers decide how to engage with different stakeholders effectively.

High Power / High Interest – Key Players:These stakeholders must be closely managed and fully engaged. For example, the Finance Director or Hospital CEO when approving a high-value purchase. Procurement should provide detailed briefings, involve them in decision-making, and ensure their concerns are addressed.

High Power / Low Interest – Keep Satisfied:These stakeholders can influence outcomes but may not have strong interest in day-to-day procurement. For instance, regulatory bodies or legal advisors. Procurement should provide concise updates and ensure compliance to avoid dissatisfaction.

Low Power / High Interest – Keep Informed:These stakeholders care about the outcome but have limited influence. For example, end-users of medical equipment or nurses in a hospital setting. Procurement should communicate progress, seek feedback, and maintain transparency.

Low Power / Low Interest – Minimal Effort:These stakeholders require only basic information. For example, general staff not directly impacted by a procurement decision. Simple updates or summaries are enough to keep them engaged.

When communicating about ahigh-value purchase, the Procurement Function should tailor its communication strategy according to this classification. Key players (high power, high interest) must be involved early with full transparency, including risk assessments and supplier evaluations. Stakeholders with high interest but low power should be consulted to build trust and buy-in, while those with high power but low interest should receive enough information to stay satisfied. Procurement should also ensure consistent, professional communication that reflects the importance of the purchase and builds confidence in the process.

Conclusion:

Mendelow’s Power-Interest Matrix provides a structured way to classify stakeholders. By adapting communication to each category – managing key players, keeping others satisfied or informed – the Procurement Function ensures effective stakeholder engagement, minimises resistance, and gains approval for high-value purchases.

Groups are an essential feature of organisational life. A group can be defined as two or more individuals who interact and work together to achieve a purpose. Groups may be formally created by management or may form informally through social interaction. There are several reasons why groups form in organisations.

The first reason istask and goal achievement. Formal groups are created to achieve organisational objectives that require collaboration. For example, in procurement, a cross-functional sourcing group may be formed to run a tender process involving operations, finance, and procurement staff. Individuals form these groups because working together helps them achieve outcomes that they could not accomplish alone.

The second reason issocial and psychological needs. According to Maslow’s hierarchy of needs, people seek belonging and relationships. Informal groups often form to meet these needs, providing friendship, support, and a sense of identity. In Star Fish Ltd, for instance, employees working remotely may form a social group using Teams or WhatsApp to stay connected and reduce feelings of isolation.

The third reason issafety and security. Groups can give members confidence and protection when facing uncertainty or change. For example, during organisational restructuring, employees may form informal groups to share information and support each other, making them feel less vulnerable. In procurement, staff may collaborate in groups to manage supplier risks or market volatility.

The fourth reason ispower and influence. Groups provide individuals with a stronger collective voice. Trade unions are a formal example, but informal groups can also lobby management or resist unpopular changes. In procurement, buyers might form a group to influence senior managers on issues such as introducing sustainable sourcing practices. By forming groups, individuals can increase their bargaining power and impact decisions.

In conclusion, groups form for task achievement, to satisfy social needs, to provide security, and to increase power and influence. Managers must understand these dynamics because groups can both support organisational objectives and create challenges if informal groups resist change. Effective leaders harness the benefits of group formation while addressing the risks to ensure both cohesion and productivity.

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

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

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

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

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

When major change is introduced, employees often experience strong emotions. TheChange Curve, based on Elisabeth Kübler-Ross’s grief model, describes the stages staff may go through when faced with organisational change.

The first stage isShock/Denial. The procurement assistants may initially resist the idea of e-procurement, insisting that the paper-based system “has always worked.” Sayed should communicate openly about why the change is needed and provide clear facts about its benefits.

The second stage isAnger/Resistance. Staff may feel threatened, fearing loss of control or concern that they will not have the skills to manage digital systems. They may complain or openly resist. At this point, Sayed should listen empathetically, address concerns, and provide reassurance that training and support will be available.

The third stage isExploration/Acceptance. Gradually, staff begin to see potential benefits, such as less paperwork and faster processes. Curiosity grows, and employees start experimenting with the new system. Here, Sayed should encourage participation, offer pilot training, and allow staff to test the system in a safe environment.

The fourth stage isCommitment/Integration. Once staff feel competent and confident, they fully adopt the change. At this stage, Sayed should reinforce the success, recognise achievements, and celebrate improvements, such as reduced errors or faster ordering.

How Sayed Should Act:

Communicate clearly– explain why digitalisation is important (efficiency, accuracy, competitiveness).

Provide training and support– ensure assistants feel capable of using the new e-procurement tools.

Involve the team– allow staff to give feedback on system design or pilot trials to increase buy-in.

Be empathetic and patient– acknowledge fears and provide reassurance during resistance.

Reinforce success– highlight early wins and show how the change benefits both the team and the organisation.

Conclusion:

The team is likely to experience stages of shock, anger, exploration, and eventual commitment as they move through the change curve. Sayed must act as a supportive leader by communicating openly, offering training, involving staff, and recognising progress. This approach will help the team transition smoothly to e-procurement and ensure the change is successful.

TheCIPS Code of Conductsets out the ethical standards expected of procurement professionals. By adhering to this code, buyers are guided to remain impartial, transparent, and fair in all their decisions, ensuring that supplier selection and procurement practices are ethical and free from bias.

Firstly, the code requires professionals to act withintegrity. This means avoiding conflicts of interest, declaring personal relationships with suppliers, and making decisions based on facts and evidence rather than personal preferences. For example, a buyer cannot award a contract to a supplier owned by a friend without declaring the relationship.

Secondly, the code emphasisestransparency and fairness. Procurement professionals must ensure all suppliers are treated equally and given the same information during tendering processes. This prevents favouritism or hidden advantages for certain suppliers.

Thirdly, the code demandsprofessional competence. This includes basing supplier decisions on objective evaluation criteria such as cost, quality, risk, and sustainability, rather than subjective or biased views. By applying standard evaluation models, professionals avoid unconscious bias.

Fourthly, the code promotesaccountability. Procurement professionals are expected to keep proper records of decisions and provide audit trails. This reduces the opportunity for unethical practices such as bribery or corruption and ensures decisions can be justified.

Finally, the code supportssustainability and social responsibility. By considering environmental, ethical, and social factors in procurement, professionals act in the best interests of society and avoid discriminatory or exploitative practices.

Conclusion:

By following the CIPS Code of Conduct, procurement professionals remain unbiased by avoiding conflicts of interest, ensuring fairness, and using objective criteria. They also act ethically by maintaining transparency, accountability, and responsibility to wider society. This builds trust with stakeholders, improves supplier relationships, and protects the reputation of both the individual and their organisation.

Formal vs Informal Groups (10–12 marks):

Formal groups are those deliberately created by management to achieve organisational objectives. They have defined structures, roles, and reporting lines. In Star Fish Ltd, examples include theProcurement Team, responsible for sourcing suppliers and managing contracts. This group has clear goals, formal leadership, and measurable outputs.

By contrast, informal groups arise naturally among employees based on social interactions, common interests, or personal relationships. They are not officially sanctioned but strongly influence behaviour. At Star Fish Ltd, an example could be afitness clubof employees who exercise together during breaks or aWhatsApp groupamong remote workers who support each other socially. These groups provide belonging and morale but may also resist management decisions if excluded.

Factors Influencing Group Formation (12–15 marks):

Common goals and tasks– People working on shared objectives, such as the Product Development Team working on new gym equipment, naturally form groups.

Geography and work arrangements– Staff working remotely may form virtual support groups, while office-based staff bond more through daily interactions.

Shared interests and values– Employees passionate about fitness or sustainability may form informal networks within the company.

Friendship and social needs– Based on Maslow’s hierarchy, people seek belonging. Friendships often develop into informal groups.

Leadership and influence– Charismatic or respected individuals may attract followers, leading to informal group formation around their personality.

Organisational culture– A collaborative culture encourages group formation for teamwork, while a competitive culture may create cliques or rival groups.

Technology and communication platforms– With remote work, online groups (Teams, Slack, WhatsApp) facilitate informal interaction and knowledge sharing.

Conclusion:

At Star Fish Ltd, formal groups like the Procurement Department are designed to deliver organisational objectives, while informal groups such as fitness clubs or virtual chat groups form naturally. Caleb must recognise that both types of groups are powerful. Formal groups deliver results, but informal groups influence morale, motivation, and resistance to change. By understanding the factors driving group formation, Caleb can harness both to build cohesion, encourage collaboration, and support the organisation’s success.

Definition of Emotional Intelligence (5 points):

Emotional Intelligence (EI), popularised by Daniel Goleman, is the ability to recognise, understand, and manage one’s own emotions as well as the emotions of others. It involves self-awareness, self-regulation, motivation, empathy, and social skills. A high EQ enables individuals to manage stress, build strong relationships, and influence others effectively.

Benefits of High EQ in Procurement (20 points):

Improved Negotiation Skills:Procurement professionals with high EQ can read emotions, adapt communication styles, and manage conflict effectively during supplier negotiations. This leads to stronger outcomes and sustainable supplier relationships.

Stronger Stakeholder Management:EQ helps buyers understand the needs and concerns of internal stakeholders (finance, operations, CSR). This fosters trust, persuasion, and collaboration in category strategies.

Conflict Resolution:In diverse teams or complex supply chains, conflict is common. High EQ managers can defuse tensions, listen actively, and find win-win solutions, maintaining team cohesion and supplier cooperation.

Resilience Under Pressure:Procurement often deals with supply crises, deadlines, or cost pressures. High EQ professionals manage stress, stay calm, and make rational decisions under pressure, maintaining credibility.

Team Leadership and Motivation:Managers with high EQ can inspire, coach, and support individuals, recognising different personalities and motivations. This improves morale, retention, and performance in procurement teams.

Ethical and Responsible Behaviour:High EQ includes empathy and awareness of wider impacts. Procurement leaders with EQ are more likely to consider ethical sourcing, sustainability, and supplier welfare, aligning decisions with organisational values.

Change Management:Procurement functions often undergo transformation (e.g., digital tools, supplier consolidation). Leaders with high EQ can communicate sensitively, understand employee concerns, and build buy-in for change.

Conclusion:

Emotional intelligence is the ability to manage emotions and relationships effectively. In procurement, high EQ strengthens negotiations, builds trust with stakeholders, resolves conflicts, motivates teams, and supports ethical and sustainable practices. It is therefore a critical capability for procurement leaders aiming to achieve both operational excellence and strategic value.

Definition (5 points):

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

Five Factors that Cause Alienation (20 points):

Repetitive and monotonous work– Jobs that involve the same routine tasks every day can make employees feel like “cogs in a machine.” For example, a procurement clerk only processing invoices with no involvement in decision-making may quickly feel alienated.

Lack of autonomy– When employees have no control over how they do their work, they feel powerless. In procurement, if buyers must follow rigid procedures without input into strategy, they may feel disengaged.

Poor leadership and communication– Alienation grows when managers fail to involve employees, communicate decisions, or provide feedback. Staff may feel undervalued and excluded from organisational goals.

Weak connection to organisational purpose– If employees cannot see how their work contributes to wider goals or society, they may feel their role lacks meaning. For instance, working in a cost-cutting environment without recognition of social value or sustainability can reduce motivation.

Lack of recognition or development opportunities– When employees feel their contributions are ignored, or they see no path for growth, they disengage. In procurement, failing to recognise successful negotiations or not offering training can create a sense of alienation.

Conclusion:

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