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CIPS Managing Teams and Individuals Sample Questions (Q31-Q36):
NEW QUESTION # 31
Compare and contrast how procurement would collaborate with any TWO of the following stakeholders: suppliers, customers, other departments within the organisation, local community. (25 points).
Answer:
Explanation:
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Explanation:
Procurement plays a central role in engaging with different stakeholders. Effective collaboration ensures efficiency, compliance, and value creation. The way procurement collaborates can vary depending on the stakeholder group. Two examples are suppliers and other departments within the organisation.
Collaboration with Suppliers:
Procurement must develop strong relationships with suppliers to ensure continuity of supply, cost efficiency, and quality. This involves activities such as contract negotiation, performance monitoring, and supplier relationship management (SRM). Collaboration often focuses on building trust, sharing forecasts, and working on joint initiatives like innovation or sustainability. For example, in a manufacturing firm, procurement may collaborate with a fabric supplier to develop new eco-friendly materials. The relationship can be transactional for routine items or strategic for high-value, critical suppliers.
Collaboration with Other Departments:
Internally, procurement must work closely with functions such as Finance, Operations, and Marketing. Collaboration ensures that procurement strategies align with organisational needs. For example, Finance may require procurement to manage budgets and compliance, while Operations depends on procurement for timely materials. Collaboration may involve cross-functional teams, joint decision-making, and regular communication. For instance, procurement and product development may work together to source innovative materials that match design requirements.
Comparison:
Both collaborations require trust, open communication, and alignment of goals.
With suppliers, collaboration often focuses externally on securing value and innovation. With internal departments, it focuses on aligning procurement activity with business objectives.
Supplier collaboration may involve formal tools like contracts, KPIs, and SRM frameworks, whereas internal collaboration relies more on teamwork, communication, and shared processes.
Contrast:
Suppliers are external stakeholders, so procurement must manage risks, legal compliance, and negotiation dynamics. Internal departments are internal stakeholders, requiring influence, persuasion, and partnership.
Supplier collaboration aims at building long-term external relationships; internal collaboration ensures smooth workflows and organisational efficiency.
Conclusion:
Procurement collaborates with both suppliers and internal departments, but the focus differs. Supplier collaboration is about external value creation and innovation, while internal collaboration is about aligning processes and achieving organisational goals. Successful procurement professionals adapt their approach to meet the needs of each group while ensuring overall business success.
NEW QUESTION # 32
What is meant by group conformity? In what ways can 'Groupthink' affect the behaviour of a group? (25 points)
Answer:
Explanation:
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Explanation:
Group Conformity (10 marks):
Group conformity refers to the tendency of individuals to align their attitudes, beliefs, and behaviours with the norms of the group to which they belong. People conform because they want acceptance, fear rejection, or assume the group's judgement is correct. Conformity ensures cohesion and cooperation but may limit creativity. For example, in procurement, a junior buyer may adopt the team's approach to negotiations, even if they personally believe another method could achieve better results.
Groupthink and its Effects (15 marks):
'Groupthink', a term developed by Irving Janis, occurs when the desire for consensus overrides realistic appraisal of alternatives. Members suppress doubts, ignore risks, and fail to voice disagreements to maintain harmony. This can seriously affect group behaviour in several ways:
Illusion of invulnerability - Groups may become overconfident and underestimate risks. For example, a procurement team might agree to single-source a supplier without considering supply chain risks.
Suppression of dissent - Members may withhold concerns to avoid conflict. This stifles creativity and prevents better solutions from being considered.
Pressure for uniformity - Individuals may feel obliged to agree even when they disagree. A buyer may stay silent when senior managers push for a supplier contract, even if they know the supplier has performance issues.
Biased decision-making - Groups may ignore warning signs or alternative perspectives, leading to flawed decisions. In procurement, this could mean overlooking ethical issues in a supplier relationship to maintain harmony with stakeholders.
Reduced accountability - Responsibility is shared across the group, so individuals may feel less accountable for poor decisions.
Groupthink can therefore lead to poor decision-making, increased risk, and lost opportunities. It is particularly dangerous in high-stakes environments like procurement, where mistakes in supplier selection or contract negotiation can damage cost, quality, and reputation.
Conclusion:
Group conformity means individuals adapt to group norms to gain acceptance, while groupthink is a negative consequence where consensus is prioritised over critical evaluation. For managers, recognising the risk of groupthink is vital. By encouraging open discussion, appointing a "devil's advocate," and welcoming diverse views, leaders can ensure group decisions are both inclusive and effective.
NEW QUESTION # 33
Caleb is the newly appointed CEO of Star Fish Limited, a company that manufactures and installs gym equipment. The company employs 100 people and has dedicated teams for Finance, Product Development and Procurement. Some staff work from the office and some staff work remotely from home. Contrast and provide an example of a formal and informal group that may form at this organisation. What factors should Caleb be aware of that can contribute to group formations? (25 points)
Answer:
Explanation:
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Explanation:
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 the Procurement 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 a fitness club of employees who exercise together during breaks or a WhatsApp group among 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.
NEW QUESTION # 34
Sayed manages a team of 3 procurement assistants within a window fabrication company - Glassy Bits Ltd. The company has been operating for 30 years and the procurement team is still paper-based. The three members of staff have been with the company for at least 10 years and are very comfortable with the way things operate. To procure items such as PVC plastic and glass to make the windows they usually phone suppliers and send paper POs which Sayed approves with a physical signature. Sayed believes efficiencies can be gained from 'going digital' and introducing e-procurement systems. He is worried at how the team may react to such a big change. Discuss the emotional stages that the team may go through when experiencing this change, and how Sayed should act in order to help navigate the team through the change. (25 points).
Answer:
Explanation:
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Explanation:
When major change is introduced, employees often experience strong emotions. The Change Curve, based on Elisabeth Kubler-Ross's grief model, describes the stages staff may go through when faced with organisational change.
The first stage is Shock/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 is Anger/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 is Exploration/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 is Commitment/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.
NEW QUESTION # 35
What is meant by emotional intelligence? (5 points). In what ways is a high emotional intelligence quotient (EQ) beneficial to the procurement department of an organisation? (20 points)
Answer:
Explanation:
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Explanation:
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.
NEW QUESTION # 36
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