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ISM Leadership and Transformation in Supply Management Sample Questions (Q128-Q133):

NEW QUESTION # 128
A firm's human resources (HR) department would like to expand a successful training program but does not have funding to do so. The firm's supply manager believes that strategic sourcing of other HR spend categories can reduce costs to provide funding for the training program. Which of the following influencing tactics should the supply manager use FIRST in order to convince HR to employ strategic sourcing?

A. Cooperation
B. Liking
C. Emotion
D. Logic

Answer: D

Explanation:
The supply manager should use logic first to convince HR to employ strategic sourcing. Here's a detailed explanation:
Using Logic:
Data-Driven Argument: Presenting logical, data-supported arguments can effectively demonstrate how strategic sourcing can reduce costs. Logical reasoning appeals to the analytical nature of business decisions.
Cost-Benefit Analysis: Providing a clear cost-benefit analysis showing the potential savings and reallocation of funds to the training program can persuade HR of the practical benefits.
Why Not Other Options?
Liking (A): While building rapport is important, it is less impactful than a logical, data-driven argument in this context.
Cooperation (B): Cooperation is essential but should follow a logical presentation of the benefits.
Emotion (D): Emotional appeals may be less persuasive in a business context focused on financial and operational efficiency.
Reference:
Effective influencing tactics in leadership and management (Cialdini, R.B., Influence: The Psychology of Persuasion, 2006).
Strategic sourcing and its impact on cost management (Monczka, R., Handfield, R., Giunipero, L., Patterson, J., Purchasing and Supply Chain Management, 2015).

NEW QUESTION # 129
XYZ, Inc. is a large manufacturing firm. An internal stakeholder asks XYZ's supply manager to assist with the sourcing of a temporary labor provider for short-term staffing needs. The stakeholder identifies a number of temporary labor agencies that XYZ has worked with in the past. One of these agencies employs the supply manager's spouse as its vice president of marketing. Which of the following is TRUE in this situation?

A. Since the stakeholder identified all of the potential suppliers, the supply manager is under no obligation to report the relationship.
B. The supply manager should inform the department supervisor and the stakeholder of the personal relationship and state in writing that it will have no impact on the procurement.
C. The supply manager should inform the department supervisor and the stakeholder of the personal relationship and request to be removed from the procurement.
D. Since XYZ has worked with all of the agencies in the past, the supply manager is under no obligation to report the relationship.

Answer: C

Explanation:
In situations involving potential conflicts of interest, transparency and avoidance are key principles.
Conflict of Interest: The supply manager's spouse being employed by one of the agencies presents a clear conflict of interest. The supply manager's impartiality could be compromised, or perceived to be compromised, in making sourcing decisions.
Transparency: Informing the department supervisor and the stakeholder about the personal relationship ensures that all parties are aware of the potential conflict. Transparency in this situation helps maintain trust and integrity in the procurement process.
Avoidance: Requesting to be removed from the procurement eliminates any bias or perceived bias from the decision-making process. This step aligns with ethical guidelines and best practices in supply management and corporate governance.
Reference:
Institute for Supply Management. (2012). ISM Principles and Standards of Ethical Supply Management Conduct.
Trevino, L.K., & Nelson, K.A. (2017). Managing Business Ethics: Straight Talk about How to Do It Right. Wiley.

NEW QUESTION # 130
A supply manager issues a purchase order to buy battery packs over the next three years. The battery packs will be used for multiple applications within the company. The first shipment is delivered in accordance with the quality standards and the delivery schedule outlined in the purchase order. Shortly thereafter, the supply manager is informed by an end user that the batteries from a second shipment are missing a component and are of no value. The supply manager immediately notifies the supplier it is in material breach and terminates the purchase order. The supply manager then informs the user departments of this decision.
Which of the following BEST describes what the supply manager did wrong (if anything) in this scenario?

A. The supply manager failed to validate that the batteries were defective.
B. The supply manager failed to research which user departments would be impacted by the decision to terminate the purchase order with the supplier.
C. The supply manager failed to communicate with the user departments to assess the impact of the problem before terminating the purchase order.
D. The supply manager acted properly.

Answer: C

Explanation:
In this scenario, the supply manager's primary mistake was failing to communicate with the user departments to assess the impact of the defective shipment before terminating the purchase order. Leadership and transformation management documents emphasize the importance of stakeholder communication and impact assessment in decision-making processes. The supply manager should have validated the defect and discussed potential solutions with the affected departments to understand the full impact of the issue and to explore possible remediation steps, such as requesting a replacement shipment or working with the supplier to resolve the quality issue. Immediate termination without such consultation could lead to unnecessary disruptions and a lack of alignment with organizational needs. Reference from leadership literature highlight the importance of cross-functional communication and collaborative problem-solving in supply chain management.

NEW QUESTION # 131
Two gourmet food companies merge, and the combined entity attains an increase in its market share. The firm is considering an expansion of its product line, but material costs have risen and stock shortages are creating problems which need to be resolved before any expansion takes place. The firm's supply managers find that no clear definition of responsibilities was outlined during the merger process for several commodity categories. Which of the following did executive management fail to address?

A. Internal customer needs
B. Competitive trends in the marketplace
C. Changes in the scope of the business
D. Supply chain configuration

Answer: D

Explanation:
Understanding the Situation:
Two gourmet food companies have merged, leading to increased market share and the potential for product line expansion.
Challenges: Rising material costs, stock shortages, and unclear responsibilities for commodity categories.
Key Considerations in a Merger:
Competitive Trends: Monitoring the market to understand competitive positioning.
Scope of Business: Changes due to the merger, including product lines and market coverage.
Internal Customer Needs: Ensuring that internal stakeholders are satisfied with the new operations.
Supply Chain Configuration: Defining roles, responsibilities, and processes within the supply chain to ensure efficient operations.
What Was Missed:
Executive management failed to address Supply Chain Configuration: Properly defining responsibilities, roles, and processes within the new combined supply chain structure.
Conclusion: Addressing supply chain configuration is crucial for resolving material costs and stock shortage issues, ensuring a smooth integration and efficient operation post-merger.
Reference:
"Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl Articles on post-merger integration from Harvard Business Review and McKinsey & Company

NEW QUESTION # 132
An employee with a disability has been having erratic, unexplained absences from work. The department supervisor counsels the employee, explaining that the absences are affecting productivity and performance. The employee responds by claiming protection under the U.S. Americans with Disabilities Act (ADA). Which of the following is TRUE with regard to this situation?

A. The employee's absences are protected by the ADA, but only if they are directly related to the disability.
B. S. Equal Employment Opportunity Commission (EEOC) guidelines on the ADA
C. The employee's absences are protected by the ADA, though work performance is not.
D. The employee's absences and work performance are protected by the ADA.
E. Neither the employee's absences nor work performance is protected by the ADA.

Answer: A

Explanation:
"The Americans with Disabilities Act: A Guide for Employers" by the U.S. Department of Labor Explanation:
Understanding ADA Protections: The ADA provides protections to employees with disabilities, ensuring they are not discriminated against due to their condition.
Evaluating Absences and Performance:
The ADA protects employees from discrimination due to disabilities but requires that reasonable accommodations be made.
Absences Due to Disability: Protected under the ADA if directly related to the disability and if the employee has provided sufficient medical documentation.
Work Performance: Not protected if the employee fails to meet the job requirements even with reasonable accommodation.
Conclusion: The employee's absences are protected if they are directly related to the disability, and the employer must consider reasonable accommodations. However, overall work performance must still meet the job requirements.

NEW QUESTION # 133
......

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