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CIPS Strategic Ethical Leadership Sample Questions (Q43-Q48):

NEW QUESTION # 43
SIMULATION
Discuss two different types of power that could be used within the Procurement department of an organisation. Explain how procurement can use power responsibly to help the organization achieve its strategic objectives. (25 points).

Answer:

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

 

NEW QUESTION # 44
SIMULATION
Discuss 5 different sources of power an individual can have in the working environment. Explain who in an organisation may have this type of power and the pros and cons to each (25 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Sources of Power in the Workplace: Types, Organizational Roles, and Their Pros & Cons Power in the workplace influences decision-making, leadership effectiveness, and team dynamics. French and Raven's five sources of power-legitimate, reward, coercive, expert, and referent power-are commonly found in organizational settings. Each type of power has advantages and disadvantages, depending on how it is used. This essay explores these five sources of power, their typical holders within an organization, and their pros and cons.
1. Legitimate Power
Definition:
Legitimate power is derived from a formal position or authority within an organization. It comes from the structure of the company rather than an individual's personal qualities.
Who Holds This Power?
CEOs, Directors, Managers, Supervisors, Team Leaders
Example: A Procurement Director has legitimate power to approve supplier contracts.
Pros:
✔ Provides clear authority and structure in decision-making.
✔ Helps maintain order and accountability in an organization.
✔ Employees respect and follow official leaders.
Cons:
✘ Can lead to resistance if employees feel decisions are made without consultation.
✘ Overuse of authority can create a rigid, bureaucratic environment.
✘ Power is temporary-losing the title means losing authority.
2. Reward Power
Definition:
Reward power is the ability to influence behavior by offering incentives such as bonuses, promotions, pay raises, or recognition.
Who Holds This Power?
HR Managers, CEOs, Procurement Heads, Line Managers
Example: A Procurement Manager offers performance bonuses to encourage supplier cost reductions.
Pros:
✔ Motivates employees to achieve goals.
✔ Encourages high performance and engagement.
✔ Helps reinforce positive behaviors in the workplace.
Cons:
✘ Can create entitlement issues-employees may expect rewards for all tasks.
✘ If rewards are inconsistent, it can lead to demotivation.
✘ Over-reliance on rewards may reduce intrinsic motivation (employees only work for rewards, not passion).
3. Coercive Power
Definition:
Coercive power comes from the ability to punish or enforce negative consequences for poor performance, non-compliance, or misconduct.
Who Holds This Power?
Supervisors, Compliance Officers, HR Managers, Security Heads
Example: A Chief Compliance Officer enforces penalties for unethical procurement practices.
Pros:
✔ Ensures discipline and adherence to company policies.
✔ Helps prevent unethical behavior (e.g., fraud in procurement).
✔ Encourages employees to meet deadlines and expectations.
Cons:
✘ Creates fear and resentment among employees.
✘ Can lead to low morale and high turnover.
✘ Not effective long-term-employees may comply out of fear, not respect.
4. Expert Power
Definition:
Expert power comes from specialized knowledge, skills, or expertise that make an individual valuable in the workplace.
Who Holds This Power?
Subject Matter Experts (SMEs), Senior Engineers, IT Specialists, Procurement Analysts Example: A Procurement Data Analyst has expert power by using big data analytics to improve supply chain efficiency.
Pros:
✔ Encourages trust and credibility among employees.
✔ Expertise is highly valuable-companies rely on knowledgeable individuals.
✔ Individuals with expert power often gain influence without formal authority.
Cons:
✘ Power is limited to specific expertise-not useful outside their domain.
✘ If not shared, expertise can lead to knowledge hoarding (lack of collaboration).
✘ Overconfidence in expertise can make individuals resistant to learning new approaches.
5. Referent Power
Definition:
Referent power is based on charisma, respect, and personal influence rather than authority or knowledge.
Who Holds This Power?
Charismatic Leaders, Mentors, Senior Employees with Strong Relationships Example: A Senior Procurement Executive with strong leadership qualities inspires the team to embrace change.
Pros:
✔ Creates loyalty and trust among employees.
✔ Can be used to influence without authority.
✔ Helps in mentoring and developing future leaders.
Cons:
✘ Can be subjective-depends on personality and relationships.
✘ Overuse can lead to favoritism and bias in decision-making.
✘ Can be ineffective if employees do not personally respect the leader.
Conclusion
In any workplace, different individuals hold different types of power based on their role, expertise, and relationships. While legitimate, reward, coercive, expert, and referent power all contribute to leadership and decision-making, each has its own advantages and drawbacks. Effective leaders and procurement professionals must balance these power sources strategically, ensuring that authority is respected, motivation is sustained, discipline is enforced fairly, expertise is valued, and personal influence is used ethically.

 

NEW QUESTION # 45
SIMULATION
Explain what is meant by the 'Informal Organisation'. How can this have a positive or negative impact upon an organisation? (25 points)

Answer:

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

 

NEW QUESTION # 46
SIMULATION
ABC Ltd is a consultancy organisation which employs 30 members of staff, all of whom work from a single office. Traditionally all record keeping has been paper-based. Mohammed, the CEO, has decided to implement electronic systems. Discuss the following methods of change Mohammed could use, explaining advantages and disadvantages of each: planned, incremental and revolutionary. Which style should Mohammed use? (25 points).

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Intro - what is change management?
P1 - planned
P2 - incremental
P3 - revolutionary
Conclusion - planned is best
Example Essay
Change management is a set of processes and strategies aimed at helping an organization smoothly transition from its current state to a desired future state. Mohammed, the CEO of ABC Ltd, aims to transition his consultancy organization from traditional paper-based record-keeping to electronic systems. To navigate this change effectively, Mohammed can consider various change management approaches, each with their own advantages and disadvantages:
Planned Change: Planned change is a methodical and structured approach to implementing change. It involves careful planning, preparation, and a well-defined roadmap for transitioning from the old paper-based system to the new electronic one. It typically minimizes disruption and resistance by providing employees with a clear understanding of the process. Mohammed could use a Ghantt chart and other tools so that everyone knows what is happening when: for example he could introduce the electronic systems department by department, for example having the HR department use it first, then after a month roll it out to other departments.
Advantages: Planned change offers predictability and allows for detailed planning and risk management. It also offers the lowest disruption; it gives employees an option to adapt gradually, reducing disruptions to daily operations and since the change is well-communicated and organized, it can effectively address employee resistance.
Disadvantages: Slower Implementation: It may take time to implement planned changes fully, potentially delaying the realization of benefits.
Incremental Change: Incremental change involves making small, manageable changes over time. This approach prioritizes gradual progress and can be less disruptive, as employees adapt step by step. For ABC Ltd this may be that each employee gets access to the system to do some aspects of their job first, then after a while they gain access to another part of the system and so fourth, until all actions are completed electronically rather than on paper.
Advantages: As this change method involves several steps, it reduces potential resistance to the change. It also provides Mohammed with a lower risk: Smaller changes are easier to monitor and adjust, lowering the risk of implementation issues. If the electronic system has a bug, this can be fixed quickly before doing away with the old paper system.
Disadvantages: The main disadvantage to this approach is similar to that of the planned approach- there is a prolonged transition: implementing changes incrementally may extend the transition period, delaying the full benefits.
Revolutionary Change: Revolutionary change entails a swift and complete shift from the old system to the new one. It aims for rapid transformation but can be highly disruptive and stressful for employees. This means Mohammed would introduce the system without warning, overnight.
Advantages: Revolutionary change can lead to quick results and immediate benefits. It is possible that employees may be more committed to using the new system due to the sense of urgency associated with this approach. They don't get a choice or time to moan about the change- they have to simply get on and use the new system.
Disadvantages: High Disruption: The speed of change may lead to stress, resistance, and potential issues. It also comes with a higher risk of Failure: inadequate planning and adjustment time can increase the risk of implementation failure. If the new system has bugs, but Mohammed has done away with the old paper-based system, this may result in staff not being able to do any work.
Conclusion:
In the context of ABC Ltd's transition to electronic record-keeping, a planned change approach appears to be the most suitable. This approach offers a methodical, structured, and predictable transition process. It allows Mohammed to carefully plan and manage risks while minimizing disruptions to daily operations. Additionally, it is well-equipped to address any resistance that may arise during the change process. Considering these advantages, a planned change approach aligns well with the organization's need for a smooth and effective transition to electronic systems while ensuring the best chance for success.
Tutor Notes
- This question asks you to pick one of the options, so don't sit on the fence here. Of those listed, planned or incremental would probably be the obvious choice, as revolutionary change is really risky for this scenario. Revolutionary change is associated more with responding to emergencies or creative tasks, rather than introducing a new IT system. Introducing an IT system really should be done slowly, as it allows time to sort any issues and get people on board and trained using it.
- A question on different types of change could also ask about emergent change- so make sure you're familiar with this as well.

 

NEW QUESTION # 47
SIMULATION
Discuss the role that independent organisations in the third sector can play with regards to ethical business practices. Your answer may make reference to one or more of the following: United Nations, Tradecraft UK, Walk Free Foundation, IMF, ILO. (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 - what is the 3rd sector?
P1 - role of advocate - promoting ethical business practices
P2 - role of watchdog
P3 - role of researcher - example of UNICEF and Cocoa
P4 - role of influencing global policies e.g. ILO Decent Work Agenda
P5 - Decent Work Agenda - explanation
Conclusion - work of third sector is critical to support advances in ethical business practices Example Essay Independent organizations in the third sector, also known as non-governmental organizations (NGOs) and civil society groups, play a crucial role in promoting ethical business practices on a global scale. This essay explores the multifaceted role of independent organizations in advancing ethical business practices and will focus on the work of the United Nations and the International Labour Organization (ILO).
Independent organizations in the third sector serve as advocates for ethical business practices. They raise awareness about ethical issues, such as fair labour practices, environmental sustainability, and responsible supply chain management. By conducting research, publishing reports, and engaging in public discourse, these organizations bring attention to areas where ethical improvements are needed.
Moreover, independent organizations often act as watchdogs, monitoring the actions of businesses and governments to ensure adherence to ethical standards. They use tools like corporate social responsibility (CSR) evaluations and human rights impact assessments to hold organizations accountable for their practices. For instance, NGOs may investigate and expose cases of labour exploitation or environmental violations in global supply chains.
For example, the International Labour Organization (ILO), a specialized agency of the United Nations, initiated efforts to combat child labour and forced labour in the cocoa industry. Children, often working in hazardous conditions, were involved in harvesting cocoa beans, which raised serious ethical and human rights concerns . The ILO along with UNICEF (United Nations Children's Fund) conducted studies, surveys, and assessments to gather data on child labour and forced labour. This resulted in the creation of the Harkin-Engel Protocol. Under the protocol, the chocolate and cocoa industry committed to taking specific actions to eliminate the worst forms of child labour and forced labour from cocoa production, encouraging businesses to adopt responsible sourcing practices, implement traceability measures, and invest in community development programs. While challenges persist, ILO/ UNICEF's efforts have contributed to significant improvements in labour conditions and a greater emphasis on ethical practices in the cocoa supply chain.
Furthermore, the United Nations, particularly the Economic and Social Council (ECOSOC), provides a platform for independent organizations to engage with governments and international institutions on ethical business practices. ECOSOC consults with NGOs, enabling them to contribute to discussions on sustainable development goals, human rights, and economic policies. This engagement ensures that ethical considerations are integrated into global policymaking.
Another example of how third sector organisations contribute to ethical business practices is the International Labour Organization (ILO) conventions, such as the 2018 Decent Work Agend a. This framework encompasses four main pillars
1) Employment: creating jobs and expanding opportunities for all. The goal is to promote full and productive employment, ensure equal pay for equal work, and reduce informal employment. It also emphasizes the importance of addressing unemployment, underemployment, and vulnerable employment, particularly in developing countries.
2) Social Protection: it highlights the need for comprehensive social protection systems. This includes access to essential health services, maternity protection, unemployment benefits, disability benefits, and pensions. Social protection helps individuals and families cope with various economic and social risks.
3) Social Dialogue: the active participation of workers, employers, and governments in decision-making processes related to labour policies and regulations. Social dialogue is essential for achieving fair and equitable labour practices, including collective bargaining and labour rights.
4) Rights at Work: the right to freedom of association, the right to collective bargaining, the elimination of forced labour and child labour, and the elimination of discrimination in the workplace. Ensuring these rights helps create a fair and just work environment.
The Decent Work Agenda represents a comprehensive and integrated approach to labour and employment issues, aiming to improve the well-being of workers and their families while fostering economic growth and development. It addresses the challenges and opportunities arising from changes in the world of work, such as globalization, technological advancements, and demographic shifts.
In conclusion, independent organizations in the third sector are instrumental in advancing ethical business practices globally. Their roles as advocates, monitors, collaborators, and educators are essential in holding businesses and governments accountable for their actions. Through engagement with institutions like the United Nations and initiatives like the ILO's Decent Work Agenda, these organizations contribute to the promotion of ethical practices in business, fostering a more just and sustainable global economy. Their efforts complement the broader goals of achieving social responsibility, human rights, and environmental sustainability in the business world.
Tutor Notes
- Out of those listed, you could get a lot of content out of the UN and ILO (remember the ILO is part of the UN). These would be my personal choice to pick and learn about because there are lots of examples you could talk about. I chose Cocoa and Child Labour. Other things you could have wrote about include:
- ILO Convention No. 29 (Forced Labour Convention, 1930): This convention requires member states to suppress the use of forced labour in all its forms, including slavery, debt bondage, and forced or compulsory labour.
- ILO Convention No. 105 (Abolition of Forced Labour Convention, 1957): This convention complements Convention No. 29 and aims to abolish forced labour through measures such as effective enforcement of laws and policies.
- Goal 8 of the United Nations Sustainable Development Goals (SDGs) specifically targets decent work and economic growth. Target 8.7 within this goal calls for the "immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour." The UN promotes the SDGs as a framework for addressing forced labour and related issues.
- The UN provides technical assistance to countries, helping them develop and implement legislation and policies to combat forced labour. This assistance includes capacity building, training, and sharing best practices.
- Tradecraft UK, Walk Free and IMF are also mentioned in the study guide. Here's some info you could have included if you wished to talk about them in your essay:
- Tradecraft = IMPORTANT - as of 2023 this organisation is in Administration. The study guide and exam questions were written before this happened, so may refer to it in the present tense. Your response should mention it in the past tense. Tradecraft was a UK-based Fair Trade Organisation that sold products that were traded fairly in the UK. Their mission was to fight poverty through promoting approaches to trade that will help people in developing countries change their lives. It developed programmes working with poor producers in Africa and Asia. E.g. helped small Indian tea producers negotiate higher prices and get representation on the Tea Board of India. Also helped African Framers negotiate for better PPE and provided training to them so they're more confident to negotiate contract terms such as not allowing late changes to quantities. Traidcraft goes into Administration - One World Shop
- Walk Free Foundation = Aim is to eliminate modern slavery- publishes the Global Slavery Index. They engage in research, advocacy, and awareness-raising activities. Walk Free Foundation Official Website

 

NEW QUESTION # 48
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