ISM LEAD Exam Questions

Conflict Resolution: Given the history of friction between the supply managers and their departments, a collaborative approach is necessary to prevent further conflict and ensure effective teamwork.

Joint Decision Making: By creating a list of stakeholders from each location and making the selections together, the supply managers can ensure that the team is balanced and that all perspectives are considered. This collaborative approach fosters a sense of shared ownership and mutual respect.

Stakeholder Involvement: Involving both managers in the selection process ensures that the chosen stakeholders are acceptable to both parties, reducing the likelihood of bias and increasing the commitment of all team members.

Building Trust: Working together to select stakeholders can help build trust and improve the working relationship between the supply managers, setting a positive tone for the project.

Reference: This approach aligns with best practices in team building and conflict resolution as discussed in leadership and management literature, including works like 'The Five Dysfunctions of a Team' by Patrick Lencioni and guidelines from the Project Management Institute (PMI).

Assessment of current performance: The supervisor's feedback has not resulted in improvement in the buyer's writing style.

Performance evaluation criteria: Unprofessional writing is a significant issue, especially if the provided feedback has not led to any changes.

Performance improvement plan: According to performance management principles, an unsatisfactory rating with a performance improvement plan is appropriate when initial corrective actions fail.

Reference: ''Performance Management: Key Strategies and Practical Guidelines'' by Michael Armstrong discusses the necessity of performance improvement plans for consistent performance issues.

Policy Violation: The employee violated the company's strict gift policy by accepting an $80 ticket, which exceeds the $25 limit.

Appropriate Response: Conducting face-to-face training addresses the issue by educating the employee on the company's policies and the importance of adhering to them.

Corrective Action: This approach allows for a constructive discussion, ensuring the employee understands the policy and the reasons behind it, which can prevent future violations.

Proportional Response: While dismissal or other punitive measures may seem excessive for a first-time or minor infraction, training provides a balanced approach to correction and improvement.

Reference: Human resource management best practices emphasize the importance of training and education in addressing policy violations, as discussed in resources like 'Human Resource Management' by Gary Dessler and guidelines from the Society for Human Resource Management (SHRM).

Triple Bottom Line (TBL) Concept: TBL is an accounting framework that incorporates three dimensions of performance: social, environmental, and financial. This approach encourages businesses to consider the full impact of their activities on all stakeholders.

Criteria Alignment: The scorecard criteria cover profitability (financial), taxes paid (financial), charitable contributions (social), employee training (social), waste to landfills (environmental), and safety incidents (social/environmental). This holistic approach aligns with TBL.

Sustainability Focus: TBL emphasizes sustainability and responsible business practices, ensuring that the company's activities are beneficial to society and the environment, in addition to being economically viable.

Reference: The TBL framework is widely discussed in sustainability and corporate social responsibility literature, including works by John Elkington, who coined the term, and various business management resources like Harvard Business Review.

Risk Management Strategy: Using an outsourced freight firm's transportation services transfers the risk associated with transportation from the company to the outsourced provider.

Definition of Transference: Risk transference involves shifting the responsibility and consequences of a risk to another party, often through contracts or insurance.

Application: By outsourcing transportation, the company relies on the freight firm to manage and mitigate risks related to delivery, such as delays, damage, or loss of goods.

Benefits: This strategy can reduce the company's direct exposure to transportation risks and leverage the expertise and resources of specialized freight firms.

Reference: Risk management frameworks, such as ISO 31000 and the PMBOK Guide, discuss risk transference as a viable strategy for managing specific types of risks by shifting them to third parties.