Pass the CIPS Level 6 Professional Diploma in Procurement and Supply L6M1 Questions and answers with ExamsMirror

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 it?

Paragraph 1 – standing

Paragraph 2- integrity

Paragraph 3 – promote

Paragraph 4 – proficiency

paragraph 5 – regulations

Conclusion – it’s super important

Example Essay

The CIPS (Chartered Institute of Procurement & Supply) Code of Conduct serves as a guiding framework for procurement and supply chain professionals to maintain ethical standards and professional integrity in their work. This essay will explore how procurement professionals can apply various aspects of the CIPS Code of Conduct to ensure ethical business practices. It will address each of the five core principles outlined in the Code of Conduct: Standing, Integrity, Promotion, Proficiency, and Regulations, providing relevant examples for each.

Standing:

One of the key principles of the CIPS Code of Conduct is to enhance and protect the standing of the profession. Procurement professionals can apply this by avoiding conduct that would bring the profession or CIPS into disrepute. For example, if a procurement manager discovers evidence of bid rigging among potential suppliers, adhering to this principle would involve promptly reporting the suspicious activity to their organization's compliance department. By doing so, they not only uphold professional standards, but also safeguard the organization's reputation.

Integrity:

Maintaining personal and professional integrity is fundamental to ethical business practices. The Code of Conduct emphasizes that procurement professionals should never engage in conduct, either professional or personal, that would bring the profession or CIPS into disrepute. For instance, if a supply chain manager is offered an extravagant gift by a vendor during negotiations, they should decline the gift and report the offer to their supervisor or compliance department. This action upholds personal and professional integrity, ensuring impartiality in supplier selection.

Promotion:

Procurement professionals can actively promote ethical practices within their organizations and supply chains, aligning with the Code of Conduct. For example, they can advocate for sustainable and ethical sourcing practices. If a procurement manager selects suppliers who adhere to fair labour standards and environmentally responsible practices, they set an example that encourages others to prioritize ethical practices. By actively promoting these principles, they contribute to a culture of integrity and social responsibility.

Proficiency:

Enhancing and protecting the standing of the profession also involves a commitment to proficiency. Procurement professionals can apply this principle by continually developing and maintaining their professional skills and competencies. For instance, attending training programs and industry conferences regularly can help them stay updated on the latest ethical standards and best practices. Pursuing certifications related to ethical sourcing, such as sustainable supply chain management credentials, further demonstrates their commitment to proficiency.

Regulations:

The CIPS Code of Conduct underscores the importance of compliance with relevant laws and regulations in procurement and supply chain management. Procurement professionals should ensure that all sourcing activities align with legal requirements. For example, they can conduct due diligence to confirm that suppliers adhere to anti-corruption laws, trade restrictions, and environmental regulations. This not only minimizes legal and ethical risks but also ensures ethical conduct within the supply chain.

Conclusion:

In conclusion, procurement professionals play a crucial role in maintaining ethical business practices by applying the principles outlined in the CIPS Code of Conduct. By adhering to these principles related to Standing, Integrity, Promotion, Proficiency, and Regulations, they contribute to the ethical and responsible functioning of their organizations and the broader supply chain industry. Upholding ethical standards not only safeguards professional integrity but also fosters trust and transparency in procurement and supply chain management.

Tutor Notes

- The CIPS code of conduct has come up as a 25 point question in Level 4 and Level 5 exams, so there is no reason to believe it couldn’t come up at Level 6. Nothing has changed in terms of content, but at this Level be prepared to give more examples of it being applied in practice.

- Another way this could be asked is in relation to a case study. E.g. Mark is a procurement professional and X and Y are going on at his organisation. Using the CIPS Code of Conduct, what should he do about X and Y?

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 – conflict is part of human nature

P1 – prevention, example, advantages, disadvantages

P2 – conflict management, example, advantages, disadvantages

P3 – conflict resolution, example, advantages, disadvantages

Conclusion – which one depends on people involved, nature of conflict and severity.

Example Essay

Conflict is a natural part of human interaction and can occur in various contexts, including personal relationships, workplaces, and communities. To address conflicts in the workplace effectively, organizations often employ three primary strategies: prevention, conflict management, and conflict resolution. Each strategy has its advantages and disadvantages, and their appropriateness depends on the specific situation and the parties involved.

Conflict Prevention: Conflict prevention involves proactively identifying potential sources of conflict and taking measures to prevent them from escalating into disputes. For example an organization implements clear communication channels and policies to address employee grievances promptly, reducing the likelihood of conflicts stemming from miscommunication. Another example may be a line manager and new employee discussing their expectations and boundaries early in their relationship to avoid misunderstandings that could lead to conflicts later.

Advantages:

- Cost-effective: Preventing conflicts is often more cost-effective than dealing with their consequences.

- Preserves relationships: It helps maintain positive relationships by avoiding unnecessary tension and hostility.

- Promotes productivity: In a workplace, conflict prevention can lead to a more harmonious and productive environment. People feel more comfortable and less stressed when they know where they stand.

Disadvantages:

- Not always possible: Some conflicts are inevitable, and prevention may not address deeply rooted issues. It’s also not possible to predict every conflict. Prevention only works if you foresee issues.

- Time-consuming: Implementing preventive measures can require time and effort. Especially if it’s not known whether a conflict will arise or not.

Conflict Management: Conflict management focuses on addressing conflicts as they arise, with the aim of minimizing their negative effects and finding mutually acceptable solutions. People openly discuss the conflict with the aim of reaching a mutual understanding of the disagreement. This approach requires a supportive leader trained in group skills and is usually used to try and prevent, or at least minimise, conflicts as they arise. For example, in a workplace two colleagues disagree about the best way to approach a task – they take the discussion to a meeting room with their supervisor and reach an agreeable outcome by finding common ground such as splitting the task into two parts, and each taking responsibility for their part.

Advantages:

- Addresses issues directly: Conflict management acknowledges the problem and attempts to find solutions.

- Preserves relationships: When managed well, conflicts can strengthen relationships by fostering understanding and compromise.

- Opportunity for growth: It can lead to personal and organizational growth by addressing underlying issues.

Disadvantages:

- Time and energy-consuming: Conflict management can be emotionally draining and time-consuming.

- Risk of escalation: If not handled properly, conflicts can escalate and get worse, causing more harm in the long term.

- No guarantee of resolution: Some conflicts may not have easily achievable solutions.

Conflict Resolution. Conflict resolution is the process of finding a definitive solution to a conflict,often resulting in a formal agreement that satisfies all parties. It is used after conflict has already broken out and sometimes when conflict management has already failed. A 3rd party such as a Liaison Officer mediates a resolution meeting, setting rules and procedures on behaviour conduct. An example of this is a dispute between buyer and supplier over a contract term which is taken to alternative dispute resolution such as arbitration. Another example may be a dispute between two employees which is taken to HR and each employee has a representative/ witness present.

Advantages:

- Permanent solution: Conflict resolution aims to resolve the issue once and for all. Unlike the other two approaches, the decision is final and cannot be undone.

- Legal and formal: It can be legally binding and provide a clear framework for compliance, unlike the other two options.

Disadvantages:

- Time-consuming: Conflict resolution can take a significant amount of time, especially if legal proceedings are involved.

- Costly: It can be expensive, particularly when legal or professional mediation services are required such as contract disputes between buyers and sellers.

- May not satisfy all parties: Some parties may feel they've lost or been unfairly treated, which can lead to lingering resentment.

In practice, the choice of strategy depends on the nature and severity of the conflict, the parties involved, and the desired outcomes. Often, a combination of these strategies may be employed to effectively address conflicts in various situations. Effective conflict management requires adaptability and a careful assessment of the specific circumstances to determine the most appropriate approach.

Tutor Notes

- there are so many parts to this question. I recommend doing a quick plan at the start like I've done. You can then flick back to this once you've finished your essay to check you've included all the points. For example, did you write the disadvantage of conflict management? Did you include an example of conflict resolution? There's so many things you could accidentally miss out here so do double check your work at the end.

- Students often get conflict management and conflict resolution mixed-up. Hopefully the above essay helps clear this up if you weren’t sure before.

- Some quotes on conflict management which you could use in your essay:

"In the middle of every difficulty lies opportunity." — Albert Einstein

"If you want to resolve a conflict, you must be willing to compromise." — John Hume

- Study guide p. 254

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.

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 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.

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 supply chain diversity?

1. Supplier diversity program and targets

2. Help SMEs build capacity to work with Tom

3. Collaboration and networking

4. Provide financial help

5. Uncomplicate procurement processes to allow SMEs to bid easier

Conclusion – supply chain diversity benefits the industry as a whole

Example Essay

Supply chain diversity refers to the practice of intentionally including a variety of suppliers from different backgrounds, ownership structures, and demographics in a company's supply chain. It is a win-win approach to supply chain management. The primary goal of supply chain diversity is to promote fairness, equality, and inclusivity within the supply chain, while also reaping the benefits of a diverse supplier base. Tom, as a Supply Chain manager, can employ several strategies to encourage supply chain diversity, with a specific focus on inclusivity for SMEs:

Supplier Diversity Programmes and Targets: Implementing a supplier diversity program is a proactive step to encourage SME participation in the supply chain. Tom can establish clear goals and guidelines for procurement such as encouraging bids from diverse suppliers, including SMEs, minority-owned, women-owned, and disabled-owned businesses. These programs can set targets and track progress to ensure inclusivity. One example would be to set a target of X number of suppliers being SMEs.

Capacity Building and Training: Tom can work with SMEs to build their capacity and capabilities to meet the requirements of the automobile manufacturing industry. This could involve providing training, mentorship, and resources to help SMEs meet quality, safety, and compliance standards. By investing in their development, SMEs can become more competitive suppliers.

Supplier Collaboration and Networking: Encouraging collaboration and networking among suppliers can create a supportive ecosystem for SMEs. Tom can organize events, workshops, and forums where SMEs can connect with larger suppliers and industry experts. Building these relationships can lead to partnerships and subcontracting opportunities, enabling SMEs to enter the supply chain.

Supplier Development Funds: Allocating funds specifically for supplier development can be a powerful incentive. Tom can establish a fund to help SMEs invest in equipment, technology, and process improvements necessary to meet the manufacturing industry's demands. These funds can be offered as grants, low-interest loans, or equity investments.

Streamlined Procurement Processes: Simplifying and streamlining the procurement process can make it easier for SMEs to participate in tendering opportunities. Tom can reduce bureaucratic hurdles and provide clear guidelines for SMEs to bid for contracts. In the automotive industry, suppliers are often required to have a certain cash flow and metrics such as gearing ratios. By reducing the financial requirements to bid for a contract, this would allow more SMEs to apply to work with Tom’s company. Moreover digitizing procurement processes can also enhance accessibility and transparency, making it more SME-friendly.

In addition to these strategies, Tom should ensure that diversity and inclusivity considerations are integrated into the organization's overall supply chain strategy and corporate culture. This includes regular monitoring and reporting on diversity metrics, encouraging supplier diversity as a key performance indicator, and promoting awareness and education on diversity and inclusivity among employees and suppliers. By implementing supplier diversity strategies, Tom can foster a more inclusive and diverse supply chain in the UK's automobile manufacturing industry, benefiting not only SMEs but also the industry as a whole through enhanced innovation, competitiveness, and sustainability.

Tutor Notes

- I don’t think the study guide covers  supply chain diversity as well as it could. This question is taken from p. 204. Other options they mention in the book include; changing the organisational culture, getting commitment from senior leaders, integrating diversity into the corporate vision and joint ventures with SMEs.

- However there are a lot of really interesting online resources about supply chain diversity and the benefits. And some really good case stories about it. I’d recommend reading: Increasing SME Participation in Supply Chains — Deecon Consulting and looking at the Federation of Small Businesses FSB｜The Federation of Small Businesses | FSB, The Federation of Small Businesses also this initiative is really innovative: Support your SME supply chain - Heart of the City (theheartofthecity.com)

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 – stress has impacts both for employee and employer

P1 – how stress impacts on employees

P2 – factors that lead to stress – quote HSE

P3 – how an organisation can look after workforce

Conclusion – stress has far reaching consequences

Example Essay

Workplace stress is a prevalent issue that can have profound effects on employees and organizational performance. Stress arises from various sources and can significantly impact an individual's well-being, productivity, and job satisfaction. Recognizing the importance of addressing workplace stress, organizations have adopted strategies to mitigate its adverse effects. This essay explores the impact of workplace stress on employees, the factors contributing to stress, and organizational strategies for stress reduction.

Impact of Workplace Stress on Employees:

Physical Health Effects: Persistent workplace stress can lead to physical health issues such as headaches, digestive problems, and hypertension. In extreme cases, it has been known for stress to cause heart-attacks.

Mental Health Implications: Stress is closely linked to mental health disorders like anxiety and depression. Employees experiencing high levels of stress are at greater risk of developing these conditions, leading to decreased concentration, motivation, and overall job satisfaction.

Decreased Productivity: Stressed employees often find it challenging to focus on tasks, leading to reduced productivity and lower quality work. This can affect project timelines and overall organizational performance.

Increased Absenteeism: Stress-related illnesses can lead to increased absenteeism, impacting team dynamics and workload distribution. Absences can also result in increased costs for organizations.

Low Morale and Job Satisfaction: A stressed workforce may experience reduced job satisfaction and morale. This can lead to decreased engagement, a higher turnover rate, and difficulties in attracting and retaining talent.

Factors Contributing to Workplace Stress: The Health and Safety Executive (HSE) Management Standards of 2003 have identified six causes of work-related stress:

Lack of Support: Insufficient support from supervisors or peers can exacerbate stress, as employees may feel isolated and unsupported in challenging situations.

Excessive Workload (Demands): High workloads, unrealistic deadlines, and excessive overtime can overwhelm employees, leading to stress.

Lack of Control: Employees who have limited autonomy or decision-making authority may feel stressed due to a perceived lack of control over their work.

Role Ambiguity: Unclear job roles and responsibilities can create confusion and stress, as employees struggle to meet undefined expectations.

Change and Uncertainty: Frequent organizational changes, such as restructuring or layoffs, can create job insecurity and stress among employees.

Workplace Relationships: Poor relationships with colleagues or supervisors can contribute significantly to workplace stress. For example bullying or harassment in the workplace.

Organizational Strategies for Stress Reduction:

HSE Management Standards: Organizations can adopt the HSE Management Standards as aframework to identify and address stressors. This involves assessing workplace conditions related to the six stress factors and taking action to improve them.

Mental Health Support: Offer employee assistance programs (EAPs), mental health resources, and counselling services to help employees cope with stress and mental health challenges.

Training and Education: Provide training on stress management, resilience, and work-life balance to empower employees with coping strategies.

Workload Management: Ensure workload distribution is reasonable and aligned with employees' capabilities. Encourage breaks and discourage excessive overtime.

Communication: Promote open and transparent communication channels to address concerns, clarify roles, and keep employees informed about organizational changes.

Flexible Working Arrangements: Offer flexible working options, such as remote work or flexible hours, to help employees achieve a better work-life balance.

Leadership Training: Train managers to recognize signs of stress, provide support, and create a supportive and inclusive work environment.

In conclusion, workplace stress has far-reaching consequences on employees and organizational outcomes. A recent study by CIPD has shown that stress is the leading cause of long-term absence from work. Recognizing the sources of stress, organizations can implement strategies, and use the HSE Management Standards, to mitigate its impact. By fostering a supportive and healthy work environment, organizations can reduce stress levels, enhance employee well-being, and improve overall performance.

Tutor Notes

- I really wanted to add studying for CIPS when you have a full-time job is a factor that can lead to stress in the workplace. It’s definitely not a wrong answer, but an examiner may not share my sense of humour haha

- I’ve chosen to write this essay in bullet points to show you how it can be done. This is a useful style if you’re running out of time, and if English isn’t your first language. The important thing with answering CIPS questions is to actually answer the question. You don’t need ‘posh’ language like ‘furthermore’ and ‘moreover’. You can get a good score by writing simply and succinctly.

- HSE Management Standards 2003 identifies six causes of work-related stress that I wrote about above. Here’s a fun mnemonic to help you learn them: - SDCRRC – stress does create really crappy realities

- The study guide doesn’t talk about this, but you could mention Mental Health First Aid Courses, which are growing in popularity, and also the use of confidential counselling.

- Your essay could have mentioned Hatton vs Sutherland (2002). This case is an important precedent – it shows that just because a workplace offers confidential counselling to employees, this does not negate responsibility for employee stress – the company is still liable for causing you stress.

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 – modern slavery is an issue due to complex international supply chains

P1 – risk – subcontracting or outsourcing

P2 – risk – lack of visibility

P3 - risk - other countries not having strong laws against it

P4 – mitigate – supplier due diligence

P5 – mitigate – traceability e.g. blockchain

P6 – mitigate – training

P7 – mitigate – collaboration and reporting

P8 – example – DJ Houghton

Conclusion – modern slavery is risk legally and ethically and also to business reputation

Example Essay

Modern slavery, a grave violation of human rights, poses a significant risk to supply chains across the globe. As organizations increasingly rely on complex and globalized supply networks, the risk of unwittingly engaging with suppliers that exploit forced labour and human trafficking becomes ever more concerning. This essay explores the risks associated with modern slavery in the supply chain and suggests possible mitigation strategies for supply chain managers. To illustrate the real-world implications of these risks, I will reference the legal case of Antuzis & Ors v DJ Houghton Ltd.

Modern slavery, which includes practices like forced labour and human trafficking, can infiltrate supply chains in various ways. One significant entry point is through subcontracting and outsourcing. As supply chains become increasingly complex, organizations often rely on subcontractors and suppliers further down the chain. Unfortunately, these lower-tier suppliers may engage in exploitative labour practices to cut costs, which can go unnoticed by the primary organization.

Moreover, the lack of transparency within supply chains poses a considerable risk. Limited visibility into sub-tier suppliers and subcontractors makes it challenging to assess their labour practices. This lack of transparency creates opportunities for modern slavery to thrive undetected, posing a significant risk to organizations and their stakeholders.

Additionally, globalization plays a role in the risk equation. Sourcing materials and products internationally increases the risk of encountering suppliers operating in regions with weaker labour protections and lax enforcement of anti-slavery laws. This is particularly true in countries with less stringent child working laws such as in South East Asia.

Supply chain managers play a crucial role in identifying and mitigating the risk of modern slavery in the supply chain. Several strategies can be employed to address this risk effectively:

Firstly, comprehensive supplier due diligence is paramount. This involves conducting thorough assessments of suppliers, including lower-tier suppliers, to evaluate their labour practices, compliance with anti-slavery laws, and adherence to ethical standards. It also entails implementing regular audits and inspections of suppliers to ensure compliance with labour laws and ethical standards. An organisation can employ a third party to conduct these audits, to ensure that the results are authentic.

Secondly, establishing transparency and traceability within the supply chain is essential. This can be achieved by meticulously mapping the supply chain, identifying potential risks, and ensuring visibility into lower-tier suppliers. Modern technology, such as blockchain and supply chain management software, can be instrumental in tracking and tracing the origins of products and materials.

Thirdly, organizations should develop and communicate a robust supplier code of conduct that explicitly prohibits modern slavery and outlines the consequences for non-compliance. Encouragingsuppliers to adopt similar codes of conduct within their own operations can help create a network of ethical supply chain partners.

Moreover, regular risk assessments and impact analyses are critical. These assessments should consider geographical, industry-specific, and supplier-specific factors and help organizations understand the potential consequences of modern slavery-related risks on their reputation and bottom line.

Training and education are also essential components of mitigation strategies. Employees and suppliers should be educated on identifying and reporting instances of modern slavery, and awareness should be raised about the legal and ethical obligations surrounding this issue.

Lastly, collaboration and reporting are crucial. Organizations should collaborate with industry associations, NGOs, and government bodies to share best practices and improve industry-wide efforts against modern slavery. Transparent reporting on efforts to mitigate modern slavery risks demonstrates a commitment to addressing the issue and fosters trust with stakeholders.

The case of Antuzis & Ors v DJ Houghton Ltd serves as a stark reminder of the potential legal consequences of failing to address modern slavery in the supply chain. In this case, the court found that the company, DJ Houghton Ltd, had subjected workers to deplorable working conditions, effectively amounting to modern slavery. What sets this case apart is that the court held the directors personally liable for breaches of their duty of care to the workers. This case underscores the legal liabilities and reputational damage that organizations and their leadership can face if they neglect their responsibilities in the supply chain.

In Conclusion, modern slavery poses a significant risk to supply chains, jeopardizing ethical values, legal compliance, and corporate reputations. Supply chain managers have a crucial role in identifying and mitigating this risk by implementing due diligence, transparency measures, and ethical standards. By taking proactive steps to combat modern slavery, supply chain managers can protect their organizations and uphold their moral and legal obligations in an increasingly interconnected global economy. The case of Antuzis & Ors v DJ Houghton Ltd serves as a compelling reminder of the real-world consequences of failing to address this critical issue

Tutor Notes

- The case study mentioned above is an excellent one to use in an essay about Modern Slavery. DJ Houghton Ltd was charged £1m in 2016 for trafficking migrant workers from Lithuania to various egg farms in the UK. They were subjected to inhumane conditions, income below minimum wage, they failed to provide adequate facilities to eat, wash and rest, and threatened workers with fighting dogs. The company’s Gangmaster Licence was also revoked. Antuzis & Ors v DJ Houghton Ltd | Addleshaw Goddard LLP

- Your answer may also make reference to ethical standards and accreditations such as Fair Trade, using the CIPS Code of Conduct, Modern Slavery Act, having a strong CSR policy, appointing an ethical Ombudsman, ILO Conventions and the 2018 Decent Work Agenda, SA8000. Mentioning these extra bits would likely get you a distinction.

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.

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