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New Latest L6M1 Exam Book Free PDF | Reliable Reliable L6M1 Guide Files: Strategic Ethical Leadership

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CIPS Strategic Ethical Leadership Sample Questions (Q30-Q35):

NEW QUESTION # 30
SIMULATION
Explain and evaluate how a Leader can use Management by Objectives (10 points). Discuss THREE ways to measure the effectiveness of leadership (15 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Management by Objectives (MBO) and Measuring Leadership Effectiveness
Part 1: How a Leader Can Use Management by Objectives (MBO) (10 Points) Definition of Management by Objectives (MBO) Management by Objectives (MBO) is a leadership approach where leaders and employees set specific, measurable goals that align with the organization's strategic objectives. Developed by Peter Drucker, MBO emphasizes clear goal setting, performance tracking, and employee involvement.
How a Leader Can Use MBO Effectively
Setting Clear Objectives
Leaders work with employees to establish SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound).
Example: A procurement leader may set an objective to reduce supplier costs by 10% within six months.
Aligning Individual and Organizational Goals
Ensures employees understand how their goals contribute to the company's success.
Example: A CPO (Chief Procurement Officer) aligns procurement cost-saving goals with the finance department's budget objectives.
Regular Performance Monitoring
Leaders conduct periodic reviews to track progress and provide feedback.
Example: Monthly progress check-ins ensure employees stay on track toward procurement efficiency goals.
Providing Support and Resources
Leaders remove obstacles and provide training or tools to help employees achieve their objectives.
Example: Implementing new procurement software to improve efficiency.
Performance Evaluation and Rewards
Employees are evaluated based on objective achievements, and success is rewarded (e.g., bonuses, promotions).
Example: Procurement staff meeting targets could receive performance-based incentives.
Evaluation of MBO's Effectiveness
✔ Pros: Improves goal clarity, accountability, and motivation.
✘ Cons: Can be rigid if objectives are too fixed, ignoring external changes.
Part 2: Three Ways to Measure Leadership Effectiveness (15 Points)
A leader's effectiveness is crucial for team performance, motivation, and achieving strategic objectives. Below are three key ways to measure leadership effectiveness.
1. Employee Engagement and Satisfaction
Definition: The level of motivation, commitment, and job satisfaction employees have under a leader.
How to Measure:
Conduct employee engagement surveys (e.g., using Likert scale questions).
Measure retention rates-low turnover indicates effective leadership.
Track employee feedback in performance reviews.
Why It's Important:
✔ A highly engaged workforce is more productive and innovative.
✔ Employees who trust leadership stay longer and contribute more.
2. Achievement of Organizational and Team Goals
Definition: The ability of a leader to drive the team toward achieving company objectives.
How to Measure:
Compare actual vs. target performance metrics (e.g., cost savings in procurement).
Analyze key performance indicators (KPIs) like project completion rates.
Track efficiency improvements in processes under the leader's direction.
Why It's Important:
✔ Demonstrates how well a leader can set, communicate, and execute strategic goals.
✔ Ensures leadership is focused on tangible results, not just employee relationships.
3. Adaptability and Problem-Solving Ability
Definition: A leader's ability to navigate challenges, handle change, and innovate under pressure.
How to Measure:
Assess how a leader handles crises or disruptions (e.g., supply chain breakdowns).
Review decision-making effectiveness during uncertain situations.
Gather 360-degree feedback from peers, subordinates, and senior leaders.
Why It's Important:
✔ Business environments change-leaders must adapt quickly to remain effective.
✔ Ensures that leadership is proactive rather than reactive in problem-solving.
Conclusion
A leader can use Management by Objectives (MBO) to drive performance through goal-setting, alignment, monitoring, and evaluation. Leadership effectiveness can be measured through employee engagement, goal achievement, and adaptability, ensuring that leaders not only set objectives but also inspire teams, navigate challenges, and deliver measurable success.

NEW QUESTION # 31
SIMULATION
Discuss supplier due diligence in relation to the case study below. How and why should it be implemented? (25 points) Delicious Ltd is a cake manufacturing organisation with complex supply chains. They are based in the UK and source raw ingredients such as sugar and flour internationally. They use over 20 different suppliers, many of whom are in the commodities industry and some from low-cost countries.

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Introduction- what is due diligence - assessing and evaluating suppliers.
Section 1 - how to do due diligence: risk assessments, supplier selection, audits, contracts, continuous processes, communication Section 1 - why - quality issues, risk to business continuity, ethical reasons, customer/ stakeholder requirements Conclusion: it's essential for Delicious Ltd (relate back to case study).
Example Essay
Supplier due diligence is a critical process for organizations like Delicious Ltd, which rely on complex international supply chains to source commodity items. Due diligence involves assessing and evaluating the performance, reliability, and ethical practices of suppliers to ensure they meet the company's standards and requirements.
Here's how supplier due diligence can be implemented:
Risk Assessment: Begin by identifying the potential risks within the supply chain. This may include geopolitical risks, natural disasters, economic instability, and even supplier-specific risks like production delays or quality issues. It should also look at ethical considerations such as the use of forced or child labour in the supply chain and the working conditions of those employed by suppliers.
Supplier Selection: Carefully select suppliers based on criteria such as their track record, reputation, financial stability, quality control processes, and ethical practices. Delicious Ltd should consider multiple sources for critical raw materials such as sugar and flour to diversify risk. This means if one supplier goes bust, or is unable to provide the required quantities, Delicious Ltd can source materials elsewhere. The Kraljic Matrix would be a useful tool here.
Audits and Inspections: Delicious Ltd can conduct regular audits and inspections of suppliers' facilities and practices to ensure they meet the company's standards. These audits can include quality checks, ethical compliance checks, and supply chain continuity assessments. They can use an independent 3rd party to do this.
Contractual Agreements: Delicious Ltd should define clear terms and conditions in supplier contracts, specifying quality requirements, delivery schedules, pricing structures, and dispute resolution mechanisms. These contracts should reflect the results of due diligence assessments.
Continuous Monitoring: Establish a system for ongoing monitoring of suppliers' performance. This includes regular communication, feedback mechanisms, and performance reviews to ensure suppliers maintain the desired standards. Delicious Ltd could use the Demming Plan Do Check Act cycle here.
Contingency Planning: Develop contingency plans for potential supply chain disruptions. This could involve identifying alternative suppliers or establishing safety stock levels for critical raw materials. For example, by holding a surplus stock of flour in it's own warehouse, Delicious Ltd mitigates the risk of late deliveries interrupting production.
Transparency and Reporting: Delicious Ltd should be transparent about supplier due diligence efforts with stakeholders, including customers, investors, and regulatory bodies. They should regularly report on compliance with ethical and sustainability standards and can publish findings on their website.
For Delicious Ltd, implementing supplier due diligence is essential for several reasons:
Quality Assurance: Ensuring the quality of raw ingredients is crucial for a cake manufacturing organization like Delicious Ltd. By conducting due diligence, the company can verify that suppliers meet specific quality standards, which is essential for producing consistent and high-quality products. If an ingredient such as flour was contaminated, this may result in Delicious Ltd's customers falling ill. This is a risk that needs to be eliminated.
Supply Chain Reliability: International supply chains can be susceptible to disruptions, such as natural disasters, political instability, or economic fluctuations. Supplier due diligence helps identify potential risks within the supply chain and allows the company to develop contingency plans to minimize disruptions.
Ethical Sourcing: Customers and stakeholders increasingly demand transparency and ethical sourcing practices. Due diligence enables Delicious Ltd to assess whether suppliers adhere to ethical standards, such as fair labour practices and environmental sustainability, which can protect the company's reputation and market position. Delicious Ltd risk losing customers, and thus profit, if they fail to conduct due diligence.
Cost Control: By evaluating suppliers' financial stability and pricing structures, the company can negotiate better deals, optimize costs, and avoid unexpected price hikes or financial risks associated with supplier instability.
In conclusion, implementing supplier due diligence is essential for Delicious Ltd due to its complex international supply chains. It helps ensure quality, reliability, and ethical practices among suppliers, while also mitigating risks associated with the supply chain. By effectively implementing due diligence processes, the company can enhance its reputation, protect against disruptions, and maintain cost control.
Tutor Notes
- Remember that due diligence isn't just about ethics. That's a big part of it (checking supply chains for modern day slavery etc). Due diligence is about getting the 5 Rights of Procurement (remember this from Level 4?), it's about ensuring supply chain security and continuity, and about risk aversion too.
- To improve on the essay above you could talk more in detail about where you can get information on suppliers, such as D&B and Companies House for financial information, customer references and checking registrations such as ISO14001. Some of these are specific to the UK, so Delicious Ltd may need to look at international equivalents. You don't have to know what these are for the exam though so don't worry!
- How deep you conduct supplier due diligence depends on how important the supplier is to you. You could mention this in your conclusion and bring it back to Delicious Ltd - the flour supplier is probably very important, but the supplier of stationary for the workers in the office is probably less so. So Delicious need to do thorough due diligence on the flour supplier and less on the stationary guys. Kraljic is the tool for this.
- Because this is a case study question, you don't have to bring in any real life examples. But if the question was more open e.g. discuss how a procurement manager can do Due Diligence, you could talk about a real life example, so have one in your back pocket for the exam
- For a really high score you could mention this: Home - KnowTheChain

NEW QUESTION # 32
SIMULATION
Explain how Modern Slavery is a risk to a supply chain and possible ways a Supply Chain Manager can mitigate this risk (25 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Introduction - 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. Encouraging suppliers 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.

NEW QUESTION # 33
SIMULATION
Explain how stress in the workplace can impact upon employees. What are factors that can lead to stress in the workplace and how can an organisation look after its workforce when it comes to reducing stress? (25 points).

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Intro - 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 a framework 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.

NEW QUESTION # 34
SIMULATION
Explain 5 qualities of an effective leader (10 points) Discuss the role of a leader in relation to the procurement and supply chain function of an organisation (15 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
(A) Five Qualities of an Effective Leader (10 Points)
Effective leadership is crucial for the success of any organization, particularly in strategic procurement and supply chain management. Below are five key qualities that define an effective leader:
Vision and Strategic Thinking (2 Points)
A successful leader has a clear vision for the future and can develop strategic plans to achieve organizational goals.
In procurement, this means aligning supply chain strategies with overall business objectives, such as cost reduction, sustainability, and supplier relationship management.
Integrity and Ethical Leadership (2 Points)
Ethical leaders act with honesty, transparency, and fairness, setting high ethical standards for their teams.
In procurement, integrity ensures fair supplier selection, compliance with procurement laws, and avoiding corruption or conflicts of interest.
Decision-Making and Problem-Solving Skills (2 Points)
Leaders must analyze complex situations, consider different perspectives, and make informed decisions.
In supply chain management, this involves risk assessment, supplier negotiation, and resolving disruptions (e.g., supply shortages, logistics issues, or geopolitical risks).
Communication and Influence (2 Points)
An effective leader clearly communicates the organization's goals and expectations to internal and external stakeholders.
In procurement, this involves negotiating contracts, managing supplier relationships, and ensuring cross-functional collaboration within the organization.
Emotional Intelligence and People Management (2 Points)
Emotional intelligence (EQ) includes self-awareness, empathy, motivation, and social skills, which are essential for managing teams.
In procurement, this helps leaders build trust, motivate employees, and handle conflicts with suppliers or internal teams effectively.
(B) Role of a Leader in Procurement and Supply Chain Functions (15 Points) Leaders in procurement and supply chain management play a crucial strategic role in ensuring the efficiency, sustainability, and ethical integrity of the organization's supply chain. Below are five key roles a leader plays:
Setting Strategic Direction in Procurement (3 Points)
A leader defines procurement objectives in line with corporate strategy, such as cost reduction, supplier diversity, risk management, and sustainability.
Example: A Chief Procurement Officer (CPO) may implement a strategy to reduce reliance on a single supplier and diversify sourcing to minimize risks.
Ensuring Ethical and Sustainable Procurement (3 Points)
Leaders must establish and enforce ethical procurement policies to avoid fraud, bribery, or unethical supplier practices.
Example: Ensuring compliance with Corporate Social Responsibility (CSR) initiatives, such as sourcing from ethical suppliers who follow fair labor practices.
Supplier Relationship and Risk Management (3 Points)
A leader is responsible for building strong supplier relationships that foster trust, reliability, and long-term partnerships.
They also identify and mitigate risks in the supply chain, such as supply disruptions, geopolitical risks, and financial instability of suppliers.
Driving Innovation and Continuous Improvement (3 Points)
Leaders encourage teams to adopt innovative technologies such as Artificial Intelligence (AI), blockchain, and data analytics in procurement.
Example: Implementing e-procurement systems to enhance efficiency and transparency in supplier transactions.
Developing and Empowering the Procurement Team (3 Points)
A leader must focus on talent development, upskilling procurement professionals, and fostering a culture of continuous learning.
Example: Providing training on contract management, negotiation skills, and supplier evaluation techniques to enhance team capabilities.

NEW QUESTION # 35
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