L5M1 Managing Teams and Individuals Questions and Answers

An effective working group is one that is able to achieve its objectives while maintaining good relationships among its members. Groups that function well display certain characteristics that ensure high performance and motivation. Five key characteristics are discussed below.

The first characteristic isclear objectives and purpose. An effective group understands what it is working towards and has shared goals. For example, in procurement, a category management group with a clear objective to deliver savings and sustainability improvements will be more focused and aligned.

The second characteristic isgood communication. Open, honest, and regular communication allows group members to share ideas, raise concerns, and coordinate their activities. In procurement, effective communication between buyers, finance, and operations ensures that sourcing projects meet business needs.

The third isdefined roles and responsibilities. Members of an effective group know what is expected of them and how their work contributes to the group’s success. This reduces conflict and duplication of effort. For example, one procurement professional may lead supplier negotiations while another manages contract compliance.

Fourthly,trust and mutual respectare essential. Members of effective groups value each other’s contributions and support one another. This creates psychological safety, meaning individuals are more willing to share ideas and take risks. In procurement, this could involve trusting colleagues to manage parts of a tender process without interference.

Finally, an effective group demonstratesstrong leadership and motivation. A good leader sets direction, supports members, and creates a balance between task and people needs. Leadership also ensures the group stays motivated, particularly during challenges.

Part A – Employee Development (5–8 marks):

Employee development refers to the ongoing process of improving staff knowledge, skills, and behaviours to enhance their performance and career progression. It includes both formal methods such as training courses, mentoring, and professional qualifications, and informal methods such as on-the-job learning, self-directed study, and peer collaboration. For ABC Ltd, employee development could mean providing software engineers with technical training, leadership coaching, or professional certifications to improve capability and engagement.

Part B – Positive Impacts of Lifelong Learning (15–18 marks):

Improved performance and productivity:Continuous learning ensures employees remain skilled in the latest technologies, enabling ABC Ltd to deliver innovative software solutions and maintain competitiveness.

Employee motivation and morale:When staff see the company investing in their development, they feel valued, which increases engagement and reduces alienation.

Retention and loyalty:Lifelong learning encourages employees to stay with the organisation as they see opportunities for growth, reducing turnover costs.

Adaptability and resilience:In fast-moving sectors such as software, continuous learning helps staff adapt to new tools, coding languages, and market changes, ensuring the business remains agile.

Innovation and creativity:Learning stimulates new ideas and problem-solving approaches, leading to more effective solutions in product development and project delivery.

Career progression and leadership pipeline:Lifelong learning develops not only technical skills but also soft skills such as communication, negotiation, and leadership, building the next generation of managers.

Conclusion:

Employee development is about building skills, knowledge, and behaviours to improve individual and organisational performance. Lifelong learning delivers multiple benefits, including productivity, innovation, motivation, and retention. For ABC Ltd, investing in continuous development will strengthen competitiveness, employee satisfaction, and long-term organisational success.

Formal vs Informal Groups (10–12 marks):

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

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

Factors Influencing Group Formation (12–15 marks):

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

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

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

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

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

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

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

Conclusion:

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

Organisational culture refers to the shared values, beliefs, norms and behaviours that shape “the way things are done” in a workplace. One of the most widely used models isCharles Handy’s four types of organisational culture, which describe different ways in which organisations can operate.

The first is thePower Culture. In this type, authority is concentrated at the centre, usually with a strong leader or small group of individuals. Decisions are made quickly, and personal influence is key. This culture can be dynamic and decisive but may create dependency on the leader and limit employee autonomy. In procurement, a power culture might mean senior management unilaterally deciding supplier strategies without consulting the wider team.

The second is theRole Culture. Here, the organisation is highly structured with clear roles, rules, and procedures. Power comes from position rather than personality. Stability and order are prioritised, making it efficient in predictable environments. However, it can be rigid and resistant to change. In procurement, this culture might be seen in public sector bodies where strict compliance, policies, and audit controls dominate purchasing activities.

The third is theTask Culture. This type is project-oriented, with teams formed to solve problems or deliver objectives. Power is based on expertise, and collaboration is valued. It is flexible, innovative, and well-suited to dynamic environments, but can cause conflict if resources are limited. In procurement, task culture is often evident in cross-functional category teams formed to deliver strategic sourcing projects.

The fourth is thePerson Culture. Here, the focus is on individuals rather than the organisation. Employees see themselves as more important than the structure, and autonomy is prioritised. This is rare in large organisations but can be found in professional partnerships such as law or consultancy firms. In procurement, a person culture may appear where highly specialised experts operate independently, sometimes resisting organisational control.

In conclusion, Handy’s four types of culture — power, role, task, and person — each offer strengths and weaknesses. Effective managers must understand the prevailing culture in their organisation and adapt their leadership approach. In procurement and supply, recognising cultural influences is vital to building cohesive teams, aligning strategies, and driving ethical and sustainable practices.

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.

When entering negotiations with a new supplier, a procurement professional must use a variety of interpersonal and cognitive skills to achieve the best outcome. Three important qualities arecuriosity, creative thinking, and reflective analysis.

Curiosity (8–9 marks):

Curiosity means asking questions, exploring options, and seeking to understand the supplier’s position. In a negotiation, curiosity allows the buyer to uncover the supplier’s motivations, constraints, and priorities. For example, asking why a supplier has higher costs may reveal underlying logistics challenges, which could be solved collaboratively. Curiosity builds rapport, demonstrates interest, and helps procurement move beyond price to explore value-added benefits such as quality improvements or sustainability initiatives.

Creative Thinking (8–9 marks):

Creative thinking is about generating new solutions and finding alternatives to traditional approaches. In negotiation, this may involve looking for win-win outcomes rather than focusing only on cost. For example, instead of demanding lower prices, procurement could propose longer contracts, volume commitments, or joint innovation projects that benefit both parties. Creative thinking expands the scope of negotiation and helps develop more sustainable supplier relationships.

Reflective Analysis (8–9 marks):

Reflective analysis involves reviewing past experiences and learning from them to improve decision-making. Before negotiating, procurement professionals can reflect on what has worked or failed in previous negotiations. During the negotiation, reflective analysis helps assess whether strategies are effective and adapt accordingly. After the negotiation, reflection allows continuous improvement in approach. For example, a buyer may reflect on why a past supplier negotiation failed due to being too aggressive, and adjust by using more collaborative tactics with the new supplier.

Conclusion:

Curiosity helps procurement gather insights, creative thinking enables innovative solutions, and reflective analysis ensures continuous improvement. Together, these skills allow procurement professionals to build trust, secure better value, and establish strong long-term relationships with new suppliers.

Organisations can be understood in many different ways through metaphors, which help managers and leaders interpret behaviour, culture and performance. Morgan’s metaphors are widely used to explain these perspectives. Five key metaphors are explained below.

The first metaphor is theorganisation as a machine. Here the business is seen like a well-oiled mechanism with standardised processes, clear rules, hierarchy and repeatable outputs. This works well for efficiency and control, for example in a procurement shared services function, but can be rigid and demotivating if flexibility and creativity are required.

The second is theorganisation as an organism. This views the business as a living system that must adapt to its environment. Structures, processes and leadership styles must “fit” the context, whether technological, market-driven or human needs. In procurement, this could be seen when category teams adapt to sudden supply market changes, showing flexibility to survive in a dynamic environment.

The third is theorganisation as a brain. This emphasises learning, feedback loops, and knowledge-sharing, where continuous improvement and innovation are central. Leaders encourage collaboration, reflection and data-driven decision-making. For procurement, this might be using spend analytics, lessons learned from supplier negotiations, and knowledge sharing across teams to improve sourcing strategies.

The fourth metaphor is theorganisation as a culture. This highlights the shared values, beliefs and rituals that shape “how things are done.” Leadership here involves role-modelling behaviours, building ethical cultures, and maintaining consistency between words and actions. In procurement, culture may show through an organisation’s commitment to ethical sourcing, sustainability, and supplier diversity.

Finally, theorganisation as a political systemsees it as an arena of power and influence where decisions are made through negotiation, persuasion and coalition-building. Managers must understand power bases and stakeholder interests. In procurement, for instance, winning senior approval for a sourcing strategy may require influencing finance, operations, and CSR teams with different agendas.

In summary, each metaphor offers insights into how organisations function. The machine focuses on control, the organism on adaptability, the brain on learning, the culture on shared values, and the political system on power and influence. Good leaders in procurement should recognise that all these metaphors may apply in different situations, and use them to manage individuals and teams more effectively.

Part A – Sources of Conflict (15 points):

Conflict is natural in groups and arises when individuals or teams have incompatible goals, interests, or behaviours. Three common sources are:

Task-based conflict– This occurs when members disagree about the content of the work, objectives, or methods. For example, in a procurement team, conflict may arise over whether to prioritise cost savings or sustainability in supplier selection.

Relationship conflict– This stems from personality clashes, communication breakdowns, or differences in working styles. For instance, an extroverted negotiator may clash with an introverted analyst who prefers data-driven approaches.

Resource conflict– Groups often compete for limited resources such as time, budget, or staff. In procurement, this could occur if multiple project teams require the same supplier’s resources or internal budgets.

Part B – Outcomes of Conflict (10 points):

Positive outcomes:

Can lead to creativity and innovation as different perspectives are debated.

Encourages problem-solving and improvement of processes.

Strengthens understanding when conflicts are resolved constructively.

Negative outcomes:

May reduce morale and trust if personal attacks or unresolved tension occur.

Can delay projects, damage productivity, and harm relationships with stakeholders or suppliers.

Creates stress and alienation, leading to higher turnover if prolonged.

In procurement, positive conflict may lead to innovative supplier solutions, while negative conflict may damage supplier negotiations or internal collaboration.

Conclusion:

The three main sources of conflict are task, relationship, and resource issues. Conflict is not always harmful – it can drive improvement and creativity if managed well, but if left unresolved, it can damage morale, performance, and stakeholder relationships. Managers must therefore encourage constructive conflict while minimising destructive forms.