Describe FIVE types of power that a stakeholder may have and compare how they may interact with the procurement department (25 points).
정답:
See the Explanation for Detailed Answer Explanation: Stakeholders can exert influence over procurement decisions in different ways. French and Raven identified five types of power that stakeholders may hold. Each has different implications for how procurement interacts with them. 1. Legitimate Power: This comes from a stakeholder's formal position or authority. For example, a Finance Director may require procurement to comply with budgetary controls. Procurement must respect legitimate authority but can also influence decisions by providing evidence and business cases. 2. Reward Power: This is based on the ability to provide benefits or incentives. For example, senior management may reward the procurement team with recognition or bonuses for achieving savings. Procurement can use this positively by demonstrating performance and aligning with organisational goals. 3. Coercive Power: This is the power to punish or impose sanctions. For instance, a project manager may pressure procurement to prioritise their project by threatening escalation if deadlines are missed. Procurement must manage this carefully, balancing demands with fairness and compliance. 4. Expert Power: This arises from specialist knowledge or skills. For example, a procurement professional with strong knowledge of supplier markets holds expert power, which can influence strategic decisions. Conversely, technical departments may hold expert power in specifying product requirements, requiring procurement to collaborate closely. 5. Referent Power: This is based on personal relationships, respect, or charism a. For example, a well-liked senior stakeholder may influence procurement decisions even without formal authority. Procurement must manage these situations by maintaining objectivity while leveraging strong relationships to gain support. Comparison of Interaction with Procurement: Legitimate power often requires compliance, while procurement may respond with process adherence and evidence-based justification. Reward power creates motivation for procurement, but risks short-term focus if overused. Coercive power can create conflict and stress; procurement must use negotiation and diplomacy to manage. Expert power can be collaborative, as procurement and stakeholders share knowledge to improve outcomes. Referent power relies on trust and relationships, which procurement can use to build coalitions and support for initiatives. Conclusion: The five types of power - legitimate, reward, coercive, expert, and referent - shape how stakeholders interact with procurement. Understanding these power bases enables procurement professionals to adapt their approach, whether through compliance, persuasion, collaboration, or relationship-building. This ensures stakeholder management supports both procurement objectives and organisational goals.
문제 2
Sayed manages a team of 3 procurement assistants within a window fabrication company - Glassy Bits Ltd. The company has been operating for 30 years and the procurement team is still paper-based. The three members of staff have been with the company for at least 10 years and are very comfortable with the way things operate. To procure items such as PVC plastic and glass to make the windows they usually phone suppliers and send paper POs which Sayed approves with a physical signature. Sayed believes efficiencies can be gained from 'going digital' and introducing e-procurement systems. He is worried at how the team may react to such a big change. Discuss the emotional stages that the team may go through when experiencing this change, and how Sayed should act in order to help navigate the team through the change. (25 points).
정답:
See the Explanation for Detailed Answer Explanation: When major change is introduced, employees often experience strong emotions. The Change Curve, based on Elisabeth Kubler-Ross's grief model, describes the stages staff may go through when faced with organisational change. The first stage is Shock/Denial. The procurement assistants may initially resist the idea of e-procurement, insisting that the paper-based system "has always worked." Sayed should communicate openly about why the change is needed and provide clear facts about its benefits. The second stage is Anger/Resistance. Staff may feel threatened, fearing loss of control or concern that they will not have the skills to manage digital systems. They may complain or openly resist. At this point, Sayed should listen empathetically, address concerns, and provide reassurance that training and support will be available. The third stage is Exploration/Acceptance. Gradually, staff begin to see potential benefits, such as less paperwork and faster processes. Curiosity grows, and employees start experimenting with the new system. Here, Sayed should encourage participation, offer pilot training, and allow staff to test the system in a safe environment. The fourth stage is Commitment/Integration. Once staff feel competent and confident, they fully adopt the change. At this stage, Sayed should reinforce the success, recognise achievements, and celebrate improvements, such as reduced errors or faster ordering. How Sayed Should Act: Communicate clearly - explain why digitalisation is important (efficiency, accuracy, competitiveness). Provide training and support - ensure assistants feel capable of using the new e-procurement tools. Involve the team - allow staff to give feedback on system design or pilot trials to increase buy-in. Be empathetic and patient - acknowledge fears and provide reassurance during resistance. Reinforce success - highlight early wins and show how the change benefits both the team and the organisation. Conclusion: The team is likely to experience stages of shock, anger, exploration, and eventual commitment as they move through the change curve. Sayed must act as a supportive leader by communicating openly, offering training, involving staff, and recognising progress. This approach will help the team transition smoothly to e-procurement and ensure the change is successful.
문제 3
Contrast different ways in which an individual can learn new skills/knowledge (15 points). Describe a factor which may influence how individuals learn a new skill/knowledge (10 points).
정답:
See the Explanation for Detailed Answer Explanation: Individuals learn in different ways, and managers must understand these methods to develop their teams effectively. One method is formal learning, such as classroom courses, e-learning, or qualifications like CIPS. This gives structured knowledge and ensures consistency, but it may lack immediate workplace application. A second method is on-the-job learning, where skills are developed through daily tasks, job rotation or shadowing. This is practical and tailored to the workplace but may be inconsistent without good supervision. A third approach is experiential learning, based on Kolb's cycle of experience, reflection, conceptualisation and testing. For example, a buyer may learn negotiation skills by practising in a live supplier meeting, reflecting on performance, and then improving. Another method is social learning, as described by Bandur a. Individuals learn by observing and modelling others' behaviour. In procurement, junior staff may observe how senior colleagues manage supplier relationships and copy effective practices. Finally, there is self-directed learning, where individuals take initiative through reading, research or online courses. This builds independence but requires strong personal motivation. In contrast, formal learning is structured and standardised, while experiential and social learning are more practical and situational. On-the-job learning blends practice with support, whereas self-directed learning provides autonomy but less guidance. Most organisations use a mix of these methods to ensure balanced development. One important factor that influences learning is an individual's learning style. According to Honey and Mumford, some people are activists (learn best by doing), others are reflectors (learn by observing and thinking), theorists (prefer analysing concepts), or pragmatists (want to apply ideas in practice). For example, in procurement training, an activist may benefit from a role-play negotiation, while a theorist may prefer studying sourcing models before application. Managers who recognise learning styles can tailor development activities to individual preferences, making learning more effective. In conclusion, individuals can learn through formal, on-the-job, experiential, social, or self-directed approaches, each with strengths and weaknesses. Learning effectiveness depends on personal factors such as style, and managers who understand these differences can create development opportunities that are both motivating and productive.
문제 4
What is a 'psychological contract'? (5 points). Discuss the factors that can influence this and how an employer can protect the psychological contract from being broken (15 points)
정답:
See the Explanation for Detailed Answer Explanation: A psychological contract refers to the unwritten and informal expectations that exist between employer and employee, beyond the formal employment contract. It is built on perceptions of fairness, trust, and mutual obligation. For example, an employee may expect career development, recognition and fair treatment, while the employer expects loyalty, commitment, and discretionary effort. Unlike a legal contract, it is subjective, evolving, and deeply influenced by organisational culture and management behaviour. Several factors influence the strength of the psychological contract. Leadership style is crucial: a participative, empowering approach helps employees feel valued, while autocratic or inconsistent leadership weakens trust. Organisational culture also plays a role; a supportive, ethical culture creates fairness, whereas a toxic or discriminatory environment erodes confidence. Communication is another factor - transparent and honest messages during performance reviews or organisational change maintain alignment of expectations, whereas misinformation or silence damages the relationship. Reward and recognition are key, since inconsistencies in promotion or pay may create perceptions of unfairness. Work-life balance and flexibility also matter, particularly in modern hybrid workplaces. Finally, opportunities for development such as training, mentoring, or exposure to new projects sustain the sense of reciprocal value between employer and employee. Employers can take several steps to protect the psychological contract from being broken. Firstly, clear communication of job roles, objectives and expectations reduces misunderstandings. Fair and consistent treatment across employees ensures equality and avoids resentment. Involving employees in decision-making through surveys or consultation gives them a voice and strengthens commitment. Employers should also invest in people through coaching, mentoring and career development pathways, demonstrating a long-term interest in their growth. Recognition of achievement, both financial and non-financial, reinforces the sense of value. When organisational changes occur, managers should follow good change management practice, such as Lewin's three-step model or Kotter's stages, to ensure transparency and inclusion. Finally, ethical and values-driven leadership is vital, as trust is easily broken if managers behave dishonestly or fail to live up to organisational values. For example, in a procurement setting, if a buyer is promised involvement in international supplier negotiations but never receives the opportunity, the psychological contract is broken, potentially leading to disengagement or resignation. Employers can prevent this by giving realistic job previews, following through on commitments, and offering development opportunities aligned to employees' expectations. In conclusion, the psychological contract is a powerful but fragile element of the employment relationship. It is influenced by leadership, culture, communication, rewards, and development opportunities. By maintaining fairness, clarity, recognition, and open dialogue, employers can protect and strengthen this contract, leading to higher engagement, motivation and retention of talent.
문제 5
Describe what is meant by knowledge transfer (10 points). How can a manager ensure strong knowledge management within the organisation? (15 points).
정답:
See the Explanation for Detailed Answer Explanation: Part A - Knowledge Transfer (10 points): Knowledge transfer refers to the process of sharing skills, experience, insights and information from one person or group to another within an organisation. It ensures that valuable expertise is not lost and that best practice can be replicated. This can happen formally, such as through training, mentoring, or documented procedures, or informally, through conversations, collaboration, and shared experiences. In procurement, knowledge transfer might involve senior buyers passing negotiation tactics to junior colleagues or documenting supplier performance insights in a shared database. Part B - Ensuring Strong Knowledge Management (15 points): Managers play a key role in creating systems and cultures that support knowledge sharing. Some ways include: Creating knowledge repositories - using databases, intranets, or category management playbooks where information is stored and accessible to all team members. Encouraging mentoring and coaching - pairing experienced staff with new employees helps transfer tacit knowledge that may not be written down. Promoting collaboration and teamwork - cross-functional project teams and regular knowledge-sharing meetings spread expertise across functions. Using technology - collaboration platforms (e.g., SharePoint, Teams) allow procurement staff to record supplier insights, lessons learned, and contract data in real time. Rewarding knowledge sharing - recognising and incentivising individuals who share expertise encourages a culture of openness rather than knowledge hoarding. Embedding learning in processes - after-action reviews, lessons-learned sessions after supplier negotiations or tenders ensure experiences are captured systematically. Leadership behaviours - managers must role-model transparency and collaboration, showing staff that sharing knowledge is valued. Conclusion: Knowledge transfer is about ensuring that critical experience and expertise are shared across the organisation. Managers can ensure strong knowledge management by combining systems, processes, and culture - from IT tools and databases to mentoring and recognition. In procurement, effective knowledge management helps avoid repeated mistakes, builds stronger supplier relationships, and improves decision-making across the team.