CPSM Exam 1 Part C7

Q: What is immediate responsibility

A: The subordinate's responsibility for completing assigned tasks

Q: What is ultimate responsibility

A: The manager's responsibility for ensuring delegated work is completed according to organizational standards

Q: Can ultimate responsibility be delegated

A: No

Managers retain ultimate responsibility even after delegating authority

Q: What is the parity of authority and responsibility

A: Employees should receive authority equal to the responsibility assigned to them

Q: Why is a clear chain of command important

A: It reduces confusion and improves communication both inside and outside the organization

Q: What is unity of command

A: Each employee reports to only one supervisor

Q: Why is unity of command beneficial

A: It creates clear reporting relationships and improves communication

Q: What is a flat organization

A: An organization where one supervisor manages many employees due to fewer management layers

Q: What is span of influence

A: The extent to which a person influences others outside their direct span of control

Q: Why is supply management considered a boundary-spanning function

A: It interacts with many internal departments as well as external suppliers and stakeholders

Q: How can supply management increase its span of influence

A: By achieving visible results, communicating successes, and using matrix or dual-reporting structures

Q: What is information dissemination

A: Sharing management information such as policies, procedures, objectives, results, and ideas throughout the organization

Q: What communication tools support information dissemination

A:
Email
E-newsletters
Websites
Intranets
Social media
Blogs
Text messaging
Mobile communication devices

Q: What are Henri Fayol's five management functions

Q: What is scientific management

A: A management theory emphasizing specialization to improve worker productivity

Q: What is the Hawthorne Effect

A: Employees work harder when they believe management is concerned about their welfare and pays attention to them

Q: Who developed the Hawthorne Effect

A: Elton Mayo

Q: What is the focus of human relations theory

A: Improving employee morale and productivity by meeting workers' social needs

Q: What is contingency theory

A: There is no single best management approach; managers should choose techniques that fit the specific situation

Q: What are the three contingency theory statements

A:
Complex technology requires highly skilled workers

Skilled workers expect greater decision-making authority

Managers should shift from command-and-control to coaching leadership

Q: According to contingency theory, is there one best way to motivate employees

A: No

Motivation depends on the individual and the situation

Q: What is expectancy theory

A: Employees are motivated when they believe effort leads to performance, and performance leads to desirable rewards

Q: According to expectancy theory, what relationship must managers clearly communicate

A: Effort → Performance → Reward (Outcome)

Q: What is workplace diversity

A: Differences among individuals in areas such as race, gender, age, culture, beliefs, abilities, and experiences

Q: Why is diversity important in supply management

A: It improves inclusion, strengthens supplier diversity, and leverages different perspectives to benefit the organization

Q: What should organizations consider when evaluating suppliers regarding diversity

A: Whether suppliers support workforce diversity and maintain minority-, women-, and veteran-owned business programs

Q: What does the CPSD certification focus on

A: Supplier diversity initiatives

Q: Why are reward and recognition programs important

A: They improve employee satisfaction, commitment, motivation, and reinforce desired behaviors

Q: Besides monetary rewards, how can employees be recognized

A:
Saying thank you
Giving praise
Providing opportunities
Showing respect
Q: What benefits do recognition programs provide

Q: What is a potential risk of poorly designed incentive programs

A: They can encourage counterproductive behavior

Q: Why are groups important in the workplace

A: They provide cooperation, shared expertise, and additional ideas for solving problems and completing tasks

Q: What is the main advantage of group decision-making

A: Group members contribute diverse knowledge, skills, and expertise, leading to better decisions

Q: What is one disadvantage of group decision-making

A: It is time-consuming

Q: What is a formal work group

A: A manager-directed group such as a department, team, committee, or task force

Q: Give examples of formal work groups

A:
Departments
Functional teams
Task forces
Committees
Project teams

Q: What is an informal work group

A: A naturally formed group based on common interests, friendships, or shared goals

Q: What types of informal work groups commonly exist

A:
Social groups
Special interest groups
Pressure groups
Q: How can informal groups affect an organization

Q: How should managers manage informal work groups

A:
Recognize their existence
Identify informal leaders
Encourage open communication
Involve them in decision-making
Align their goals with organizational objectives

Q: What are effective ways to work with informal groups

Q: What characteristics define a group

A:
Group size
Diversity
Experience
Education
Age
Longevity
Q: Do group characteristics significantly affect productivity

They have little effect on output but can influence communication and coordination

Q: What are the characteristics of an effective group

A:
Focus on the mission
Recognize strengths and weaknesses
Put team goals before personal goals
Solve problems using facts and logic
Show commitment and enthusiasm
Celebrate others' success
Accept praise graciously

Q: What are the advantages of using groups

Q: What are the disadvantages of groups

A:
Limited decision-making authority
Limited awareness of long-term performance
Outside management may influence decisions
Meetings may be dominated by one individual

Q: Why is teamwork important in supply management

Q: What is the key difference between formal and informal work groups

A: Formal groups are created by management to accomplish organizational goals, while informal groups develop naturally based on relationships or shared interests

Q: What is leadership

A: The ability to influence individuals or groups to achieve organizational goals

Q: What are the characteristics of an effective leader

A:
Inspires others with a shared vision
Communicates a clear vision
Encourages risk-taking
Recognizes and rewards employees
Empowers others to become leaders

Q: What are the two major leadership functions

Q: What is group maintenance leadership

A: Leadership focused on helping the group work effectively by resolving conflicts, recognizing contributions, and supporting team members

Q: What are the two major leadership styles

A:
Task-oriented
Employee-oriented
Q: What is a task-oriented leader

Q: What is an employee-oriented leader

A: A leader who motivates, supports, and develops employees rather than closely controlling them

Q: What is the contingency approach to leadership

A: A leadership approach that selects the most effective leadership style based on the specific situation

Q: Who developed the Contingency Theory of Leadership Effectiveness

A: Fred E

Fiedler

Q: What are the three variables in Fiedler's Contingency Theory

A:
Leader-member relations
Task structure
Leader's position power
Q: Which variable is considered the most important in Fiedler's Contingency Theory

Q: Why is task structure important in contingency theory

A: Highly structured tasks make employee expectations clearer

Q: How does position power affect leadership

A: High position power makes leading easier, while low position power makes leadership more difficult

Q: What is the Path-Goal Theory

A: A leadership theory based on expectancy theory that states employees are motivated when they believe good performance will lead to valued rewards

Q: According to the Path-Goal Theory, what influences employee motivation

A: The leader's ability to connect employee performance with meaningful rewards

Q: What is the role of a group leader

A: To set direction, align people and resources, motivate, and inspire the team

Q: Why must group leaders rely on influence instead of authority

A: Because they often have limited formal authority and must persuade others to cooperate

Q: What are the characteristics of an effective group leader

A:
Facilitates analysis and decision-making
Encourages participation
Resolves conflicts
Builds consensus
Works effectively with little or no authority
Adapts to changing situations
Works with the team to establish goals

Q: What is the difference between task-oriented and employee-oriented leadership

Q: What are the three leadership theories most commonly tested

A:
Leadership Styles (Task-oriented vs

Employee-oriented)
Fiedler's Contingency Theory
Path-Goal Theory

Q: What are the three variables in Fiedler's Contingency Theory

(High-yield memorization)
A:
Leader-member relations
Task structure
Position power
Q: What determines a manager's success in motivating employees

Q: What are the three major schools of motivational theory

A:
Content theory
Process theory
Reinforcement theory
Q: What does content theory focus on

Q: What does process theory focus on

A: The variables that influence and motivate behavior

Q: What does reinforcement theory focus on

A: How consequences influence behavior

Q: Who developed Maslow's Hierarchy of Needs

A: Abraham Maslow

Q: What are the five levels of Maslow's Hierarchy of Needs

A:
Physiological
Safety (Security)
Social
Esteem
Growth (Self-actualization)
Q: According to Maslow, what must happen before a higher-level need becomes motivating

Q: Which needs are considered lower-order needs in Maslow's hierarchy

A: Physiological and safety (security) needs

Q: Which needs are considered higher-order needs in Maslow's hierarchy

A: Social, esteem, and growth (self-actualization) needs

Q: According to Maslow, what sequence should managers follow to motivate employees

A: Meet employees' social needs first, then esteem needs, and finally growth needs

Q: Who developed the Motivation-Hygiene (Two-Factor) Theory

A: Frederick Herzberg

Q: What are the two categories in Herzberg's Two-Factor Theory

A:
Motivators (Intrinsic factors)
Hygiene factors (Extrinsic factors)
Q: What are Herzberg's intrinsic motivators

Q: According to Herzberg, what creates true motivation

A: Intrinsic job factors such as achievement, recognition, responsibility, and advancement

Q: Who developed Achievement Motivation Theory

A: David McClelland

Q: What are McClelland's three motivational needs

A:
Need for Achievement
Need for Power
Need for Affiliation
Q: Why is McClelland's theory useful for managers

Q: Who developed Expectancy Theory

A: Victor Vroom, Lyman Porter, and Edward Lawler

Q: According to Expectancy Theory, what two factors determine motivation

A:
The value of the reward
The belief that success can be achieved
Q: According to Expectancy Theory, what motivates employees

Q: What is Equity Theory

A: A motivation theory stating employees compare the fairness of their treatment with that of others

Q: What happens if employees perceive inequity

A: They may increase or decrease their effort, affecting motivation and performance

Q: Did Equity Theory originally focus only on pay

A: Yes, but it has since expanded to include other workplace factors

Q: How can Equity Theory apply to supplier relationships

A: Suppliers who perceive unfair treatment may reduce their performance

Q: Who developed the Reinforcement Theory

A: B

F

Skinner

Q: What is the basic principle of Reinforcement Theory

A: Behavior followed by positive consequences is repeated, while behavior followed by negative consequences is reduced or changed

Q: What is the purpose of incentive programs

A: To encourage desired behaviors by sharing the benefits of cost savings and financial improvements

Q: Who may receive incentives in procurement

A:
Employees
Suppliers
Q: Besides profit, what performance measures may organizations use in reward systems

Q: What are business units commonly rewarded for

A: Delivering projects on time, within budget, and reducing complexity

High-Yield Exam Questions
Q: What are the three schools of motivation theory

A:
Content Theory
Process Theory
Reinforcement Theory
Q: What are Maslow's five levels of needs

Q: What is the basic principle of Reinforcement Theory

A: Positive consequences increase desired behavior; negative consequences decrease undesired behavior

Q: What is change management

A: The planned and systematic process of implementing new methods, systems, or processes within an organization

Q: What is the objective of change management

A: To effectively implement new methods and systems in an ongoing organization

Q: What are the three key questions of change management

A:
How

Q: What are examples of changes affecting supply management professionals

A:
Economic forecasting
Countertrade
Outsourcing
International sourcing
Transportation and logistics
Inventory management
Supplier quality
E-commerce

Q: What are the five steps of the change management process

Q: What sources provide data for identifying change opportunities

A:
Customers
Suppliers
Employees

Q: What should managers evaluate before implementing change

Q: What factors should be considered when evaluating change opportunities

A:
Cash flow
Working practices
Supply and distribution networks
Customer loyalty

Q: What should be included in a change strategy

Q: What should managers do during implementation

A:
Present the plan
Encourage questions and clarification
Monitor progress
Modify the plan as needed

Q: Why is the review stage important

Q: What are common reasons change initiatives fail

A:
Management actions do not match their words