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Question 11
SIMULATION
Pat is the newly appointed CPO (Chief Procurement Officer) of Circle Ltd, a fictional manufacturing company. He is in charge of a team of 12 procurement assistants. He is looking to introduce a new E-Procurement system and is unsure what leadership style would be most appropriate to use: assertive, consulting, collaborating or inspiring. Discuss how Pat could use each of these influencing styles with his team, evaluating their effectiveness for this situation.
Pat is the newly appointed CPO (Chief Procurement Officer) of Circle Ltd, a fictional manufacturing company. He is in charge of a team of 12 procurement assistants. He is looking to introduce a new E-Procurement system and is unsure what leadership style would be most appropriate to use: assertive, consulting, collaborating or inspiring. Discuss how Pat could use each of these influencing styles with his team, evaluating their effectiveness for this situation.
Correct Answer:
See the Answer is the explanation
Explanation:
Strategic Ethical Leadership in E-Procurement Implementation: Evaluating Influencing Styles In modern procurement management, leadership style significantly impacts the success of strategic initiatives such as the introduction of an E-Procurement system. Pat, as the newly appointed Chief Procurement Officer (CPO) of Circle Ltd, must carefully select an influencing style to ensure smooth adoption of the system by his 12 procurement assistants. Different influencing styles-assertive, consulting, collaborating, and inspiring-offer distinct advantages and challenges in this scenario. This essay discusses how each of these leadership styles can be applied in Pat's situation and evaluates their effectiveness.
1. Assertive Leadership Style
Assertive leadership involves directing employees with confidence and clarity, ensuring compliance through authority. If Pat adopts an assertive approach, he would:
Clearly communicate the decision to implement the E-Procurement system.
Set firm expectations for team members regarding system adoption.
Enforce a strict timeline for training and compliance.
Effectiveness in This Situation
Advantages: Provides clarity, speeds up decision-making, and ensures quick implementation.
Challenges: Could lead to resistance from employees who feel excluded from the decision-making process.
Best Used When: There is an urgent deadline or when employees lack knowledge of alternatives.
Given that procurement assistants may have concerns or fears about technological change, a purely assertive approach may create resistance rather than engagement.
2. Consulting Leadership Style
A consulting leadership style involves seeking input from team members before making a final decision. If Pat takes a consultative approach, he would:
Engage procurement assistants in discussions on how the new system will impact their work.
Conduct surveys or meetings to gather feedback.
Allow employees to voice concerns and propose suggestions.
Effectiveness in This Situation
Advantages: Encourages buy-in from employees, reduces resistance, and improves decision-making.
Challenges: Can be time-consuming if employees have diverging opinions or lack expertise in E-Procurement.
Best Used When: Employees have valuable experience or insights, and the leader seeks team engagement.
Since the system is new to the organization, consultation can help address fears and improve morale, but it should be structured efficiently to avoid unnecessary delays.
3. Collaborating Leadership Style
A collaborative leadership style fosters teamwork and shared decision-making, ensuring that all stakeholders work together toward a common goal. If Pat adopts a collaborative approach, he would:
Form a cross-functional project team to oversee the E-Procurement implementation.
Encourage knowledge sharing and problem-solving among team members.
Ensure that procurement assistants have a role in decision-making, such as selecting the software features they find most useful.
Effectiveness in This Situation
Advantages: Enhances teamwork, improves acceptance of change, and utilizes the collective expertise of the team.
Challenges: Can lead to slow decision-making and conflicts if there are disagreements on implementation details.
Best Used When: The project requires innovation and teamwork, and when employees have technical expertise or experience with procurement systems.
Since successful adoption of an E-Procurement system depends on user engagement, collaboration would be highly effective, but it needs structured guidance from leadership.
4. Inspiring Leadership Style
An inspiring leadership style focuses on motivating employees by sharing a vision and fostering enthusiasm. If Pat uses an inspirational approach, he would:
Explain the strategic benefits of E-Procurement for Circle Ltd, such as cost savings, efficiency, and competitive advantage.
Use storytelling and case studies to illustrate successful transformations in similar companies.
Recognize and reward employees who embrace the new system.
Effectiveness in This Situation
Advantages: Boosts morale and motivation, increases commitment, and reduces change resistance.
Challenges: Employees may still need practical guidance and structured training alongside motivation.
Best Used When: Change is significant and requires a mindset shift, especially in environments where innovation is encouraged.
Since the introduction of E-Procurement is a transformative change, an inspiring leadership approach would be effective in motivating employees, but it should be paired with practical implementation strategies.
Conclusion: Choosing the Best Approach
Pat must consider both the technical challenges of E-Procurement implementation and the human factors involved in change management. A blended approach combining multiple leadership styles would be the most effective strategy:
Start with an inspiring approach to generate enthusiasm and ensure employees understand the long-term benefits of E-Procurement.
Use consultation and collaboration to gather feedback and ensure employees feel involved in the change process.
Apply an assertive approach strategically, ensuring that deadlines and key expectations are met.
By combining these leadership styles, Pat can successfully implement the E-Procurement system while ensuring his team is engaged, motivated, and aligned with the company's strategic goals.
Explanation:
Strategic Ethical Leadership in E-Procurement Implementation: Evaluating Influencing Styles In modern procurement management, leadership style significantly impacts the success of strategic initiatives such as the introduction of an E-Procurement system. Pat, as the newly appointed Chief Procurement Officer (CPO) of Circle Ltd, must carefully select an influencing style to ensure smooth adoption of the system by his 12 procurement assistants. Different influencing styles-assertive, consulting, collaborating, and inspiring-offer distinct advantages and challenges in this scenario. This essay discusses how each of these leadership styles can be applied in Pat's situation and evaluates their effectiveness.
1. Assertive Leadership Style
Assertive leadership involves directing employees with confidence and clarity, ensuring compliance through authority. If Pat adopts an assertive approach, he would:
Clearly communicate the decision to implement the E-Procurement system.
Set firm expectations for team members regarding system adoption.
Enforce a strict timeline for training and compliance.
Effectiveness in This Situation
Advantages: Provides clarity, speeds up decision-making, and ensures quick implementation.
Challenges: Could lead to resistance from employees who feel excluded from the decision-making process.
Best Used When: There is an urgent deadline or when employees lack knowledge of alternatives.
Given that procurement assistants may have concerns or fears about technological change, a purely assertive approach may create resistance rather than engagement.
2. Consulting Leadership Style
A consulting leadership style involves seeking input from team members before making a final decision. If Pat takes a consultative approach, he would:
Engage procurement assistants in discussions on how the new system will impact their work.
Conduct surveys or meetings to gather feedback.
Allow employees to voice concerns and propose suggestions.
Effectiveness in This Situation
Advantages: Encourages buy-in from employees, reduces resistance, and improves decision-making.
Challenges: Can be time-consuming if employees have diverging opinions or lack expertise in E-Procurement.
Best Used When: Employees have valuable experience or insights, and the leader seeks team engagement.
Since the system is new to the organization, consultation can help address fears and improve morale, but it should be structured efficiently to avoid unnecessary delays.
3. Collaborating Leadership Style
A collaborative leadership style fosters teamwork and shared decision-making, ensuring that all stakeholders work together toward a common goal. If Pat adopts a collaborative approach, he would:
Form a cross-functional project team to oversee the E-Procurement implementation.
Encourage knowledge sharing and problem-solving among team members.
Ensure that procurement assistants have a role in decision-making, such as selecting the software features they find most useful.
Effectiveness in This Situation
Advantages: Enhances teamwork, improves acceptance of change, and utilizes the collective expertise of the team.
Challenges: Can lead to slow decision-making and conflicts if there are disagreements on implementation details.
Best Used When: The project requires innovation and teamwork, and when employees have technical expertise or experience with procurement systems.
Since successful adoption of an E-Procurement system depends on user engagement, collaboration would be highly effective, but it needs structured guidance from leadership.
4. Inspiring Leadership Style
An inspiring leadership style focuses on motivating employees by sharing a vision and fostering enthusiasm. If Pat uses an inspirational approach, he would:
Explain the strategic benefits of E-Procurement for Circle Ltd, such as cost savings, efficiency, and competitive advantage.
Use storytelling and case studies to illustrate successful transformations in similar companies.
Recognize and reward employees who embrace the new system.
Effectiveness in This Situation
Advantages: Boosts morale and motivation, increases commitment, and reduces change resistance.
Challenges: Employees may still need practical guidance and structured training alongside motivation.
Best Used When: Change is significant and requires a mindset shift, especially in environments where innovation is encouraged.
Since the introduction of E-Procurement is a transformative change, an inspiring leadership approach would be effective in motivating employees, but it should be paired with practical implementation strategies.
Conclusion: Choosing the Best Approach
Pat must consider both the technical challenges of E-Procurement implementation and the human factors involved in change management. A blended approach combining multiple leadership styles would be the most effective strategy:
Start with an inspiring approach to generate enthusiasm and ensure employees understand the long-term benefits of E-Procurement.
Use consultation and collaboration to gather feedback and ensure employees feel involved in the change process.
Apply an assertive approach strategically, ensuring that deadlines and key expectations are met.
By combining these leadership styles, Pat can successfully implement the E-Procurement system while ensuring his team is engaged, motivated, and aligned with the company's strategic goals.
Question 12
SIMULATION
Explain what is meant by the following terms: equality, discrimination and diversity (10 points) Discuss 5 benefits to having diversity in an organisation / supply chain (15 points)
Explain what is meant by the following terms: equality, discrimination and diversity (10 points) Discuss 5 benefits to having diversity in an organisation / supply chain (15 points)
Correct Answer:
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 - managers should be sensitive to these three areas
1) Equality (Equalities Act 2010)
2) Discrimination
3) Diversity
5 benefits:
4) Innovation
5) Avoids groupthink
6) Better market understanding
7) Happier employees
8) Useful in international business
Conclusion - world is interconnected, diversity is a good thing
Example Essay
Managers who are sensitive to the needs and differences of others are effective, successful leaders. For this reason it is important to distinguish between the following terms, which are often confused:
Equality refers to the state of being equal in rights, opportunities, treatment, or status, regardless of factors such as race, gender, age, religion, disability, or other characteristics. It emphasizes fairness, justice, and the absence of discrimination in the treatment of individuals and groups. Equality is shrined into UK law in the Equalities Act 2010 meaning that it is illegal not to treat people the same.
Discrimination is the unjust or prejudicial treatment of individuals or groups based on their differences, either actual or perceived. Discrimination involves actions or practices that disadvantage or harm certain individuals or groups, often leading to unequal treatment and opportunities. For example only hiring white-skinned employees or not letting a woman become a member of a golf club.
Diversity encompasses the range of differences and variations among individuals. Embracing diversity means recognizing, respecting, and valuing differences such as language, background and culture. Diversity goes beyond the visible traits such as race and gender and includes both inherent and acquired attributes such as educational level and political beliefs.
Benefits of Diversity in an Organization/Supply Chain
Enhanced Creativity and Innovation: Diverse teams bring together individuals with varied backgrounds, experiences, and perspectives. This diversity of thought and ideas fosters creativity and innovation as team members approach problems and challenges from different angles. Creative solutions lead to a competitive advantage for an organisation and the ability to adapt to changing market demands.
Improved Decision-Making: Diversity in decision-making helps avoid groupthink, a phenomenon where homogeneous groups tend to conform to a single perspective. Different viewpoints and perspectives lead to more robust discussions and more well-rounded decisions. Organizations thus benefit from a wider range of ideas and strategies to address complex issues.
Broader Market Understanding: Diversity within an organization's workforce reflects the diversity of its customer base and the broader market. Diverse teams are better equipped to understand the needs, preferences, and behaviours of a diverse customer population. This understanding can inform product development, marketing strategies, and customer engagement, leading to increased market share.
Increased Employee Engagement and Satisfaction: An inclusive workplace that values diversity fosters a sense of belonging among employees. Employees are more likely to be engaged and satisfied when they feel their perspectives and contributions are respected and appreciated. Higher job satisfaction can lead to improved retention rates and reduced turnover costs.
Global Competence and Adaptability: In a globalized world, organizations with diverse workforces and supply chains are better equipped to navigate international markets and cultural nuances. Employees from diverse backgrounds bring valuable insights into global business practices, languages, and cultural sensitivities. This global competence enables organizations to expand into new markets and adapt to changing international dynamics.
In summary, diversity in an organization or supply chain brings a multitude of benefits, including enhanced creativity, improved decision-making, better market understanding, increased employee engagement, and global competence. Embracing diversity not only aligns with principles of equality and reduces discrimination, but also contributes to an organization's overall success and sustainability in a diverse and interconnected world.
Tutor Notes
- To gain extra points in an essay like this, you could bring in some real life examples of discrimination and diversity. The best one I can think of at the moment is Birmingham City Council which is currently in the news for pay discrimination https://www.bbc.com/news/uk-england-birmingham-66730165
- You could also use some quotes on the topic as part of the introduction or conclusion:
- "Diversity is not about how we differ. Diversity is about embracing one another's uniqueness." - Ola Joseph
- "We all should know that diversity makes for a rich tapestry, and we must understand that all the threads of the tapestry are equal in value no matter their colour." - Maya Angelou
- "Diversity is not a compliance issue. Diversity is a growth strategy." - Tiffany Jana
- Study guide p. 198
- Additional reading: The Business Case For Diversity is Now Overwhelming. Here's Why | World Economic Forum (weforum.org)
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 - managers should be sensitive to these three areas
1) Equality (Equalities Act 2010)
2) Discrimination
3) Diversity
5 benefits:
4) Innovation
5) Avoids groupthink
6) Better market understanding
7) Happier employees
8) Useful in international business
Conclusion - world is interconnected, diversity is a good thing
Example Essay
Managers who are sensitive to the needs and differences of others are effective, successful leaders. For this reason it is important to distinguish between the following terms, which are often confused:
Equality refers to the state of being equal in rights, opportunities, treatment, or status, regardless of factors such as race, gender, age, religion, disability, or other characteristics. It emphasizes fairness, justice, and the absence of discrimination in the treatment of individuals and groups. Equality is shrined into UK law in the Equalities Act 2010 meaning that it is illegal not to treat people the same.
Discrimination is the unjust or prejudicial treatment of individuals or groups based on their differences, either actual or perceived. Discrimination involves actions or practices that disadvantage or harm certain individuals or groups, often leading to unequal treatment and opportunities. For example only hiring white-skinned employees or not letting a woman become a member of a golf club.
Diversity encompasses the range of differences and variations among individuals. Embracing diversity means recognizing, respecting, and valuing differences such as language, background and culture. Diversity goes beyond the visible traits such as race and gender and includes both inherent and acquired attributes such as educational level and political beliefs.
Benefits of Diversity in an Organization/Supply Chain
Enhanced Creativity and Innovation: Diverse teams bring together individuals with varied backgrounds, experiences, and perspectives. This diversity of thought and ideas fosters creativity and innovation as team members approach problems and challenges from different angles. Creative solutions lead to a competitive advantage for an organisation and the ability to adapt to changing market demands.
Improved Decision-Making: Diversity in decision-making helps avoid groupthink, a phenomenon where homogeneous groups tend to conform to a single perspective. Different viewpoints and perspectives lead to more robust discussions and more well-rounded decisions. Organizations thus benefit from a wider range of ideas and strategies to address complex issues.
Broader Market Understanding: Diversity within an organization's workforce reflects the diversity of its customer base and the broader market. Diverse teams are better equipped to understand the needs, preferences, and behaviours of a diverse customer population. This understanding can inform product development, marketing strategies, and customer engagement, leading to increased market share.
Increased Employee Engagement and Satisfaction: An inclusive workplace that values diversity fosters a sense of belonging among employees. Employees are more likely to be engaged and satisfied when they feel their perspectives and contributions are respected and appreciated. Higher job satisfaction can lead to improved retention rates and reduced turnover costs.
Global Competence and Adaptability: In a globalized world, organizations with diverse workforces and supply chains are better equipped to navigate international markets and cultural nuances. Employees from diverse backgrounds bring valuable insights into global business practices, languages, and cultural sensitivities. This global competence enables organizations to expand into new markets and adapt to changing international dynamics.
In summary, diversity in an organization or supply chain brings a multitude of benefits, including enhanced creativity, improved decision-making, better market understanding, increased employee engagement, and global competence. Embracing diversity not only aligns with principles of equality and reduces discrimination, but also contributes to an organization's overall success and sustainability in a diverse and interconnected world.
Tutor Notes
- To gain extra points in an essay like this, you could bring in some real life examples of discrimination and diversity. The best one I can think of at the moment is Birmingham City Council which is currently in the news for pay discrimination https://www.bbc.com/news/uk-england-birmingham-66730165
- You could also use some quotes on the topic as part of the introduction or conclusion:
- "Diversity is not about how we differ. Diversity is about embracing one another's uniqueness." - Ola Joseph
- "We all should know that diversity makes for a rich tapestry, and we must understand that all the threads of the tapestry are equal in value no matter their colour." - Maya Angelou
- "Diversity is not a compliance issue. Diversity is a growth strategy." - Tiffany Jana
- Study guide p. 198
- Additional reading: The Business Case For Diversity is Now Overwhelming. Here's Why | World Economic Forum (weforum.org)
Question 13
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).
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).
Correct Answer:
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
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
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