Question
CIPS Leadership & Management in Procurement and Supply
You have been asked to prepare a business report, evaluating the approaches to leadership and management
within your organisation.
As part of your report, you must evaluate each of the following, in relation to your organisation:
• The impact of leadership and management on organisational behaviour
• The likely impact of leadership approaches on job satisfaction
• Sources of power within the organisation and how these are used
• The importance of equality and diversity policies within the organisation
Your report must include recommendations for improvement.
Solution
Executive Summary
In this module of leadership and management in procurement and supply, a business report has been developed which evaluate the approaches to leadership and management within Eco2Solar organisation. This entail an evaluation of the impact of leadership and management on organisational behaviour, impact of leadership approaches on job satisfaction and the sources of power within the organisation and their use. This report has also evaluated on the importance of equality and diversity policies within Eco2Solar organisation. By using PESTLE external analysis tool, this research has identified leadership and management as being two different concepts despite often used interchangeably. Also, they have been identified to have a significant implication on the organisation behaviours. The leadership styles impact directly the organisational behaviours. Also, leadership and job satisfaction have been evidenced as directly correlated. By use of available peer reviewed works and CIPS Notes, leadership approaches have been noted to impact on an organisation employees wellbeing. This is with a people-cantered leadership being evidenced as the most appropriate as opposed to task-centered for organisation success in highly competitive business environment. Further, by use of Mendelow Matrix, stakeholders analysis has been conducted which has evidenced the scope in which power is distributed and exerted for the success of the organisation. This is with Eco2Solar organisation equality and diversity policy being identified and the potential benefits incurred. Finally, due to the identified gaps and suggestions of improvement, a set of recommendations have been generated which include;
- initiating coaching and mentoring sessions to enable followers to appreciate their leaders roles
- Integrate transformational with situational leadership which Eco2Solar
- Invest on an appropriate communication plan for influencing their different stakeholders.
- Establishing a system to ensure they harness efficiency in their resolution with minimal hindrances
- Diversify their eProcurement system to net suppliers who meets the other departments in the organisation diversity requirement.
- Merging departments to enhance efficiency and eliminate wastages associated with their current leaders and managers roles duplication
1.1 Organisation Background and Procurement and Supply Management (PS&M) 4
1.2 Selected Category of Spend in Eco2Solar Organisation. 5
2.0 Impact of Leadership and Management on Organisational Behaviour 6
2.1 Leadership and/or Management in Eco2Solar 6
3.1 Concept of Job Satisfaction. 10
3.2 Leadership approaches impact on Job Satisfaction. 10
4.0 Sources of Power within the organisation. 15
4.2 Sources of Individual Power 17
6.0 Conclusion and Recommendations. 20
Figure 1:Leadership and Management in procurement benefits. 5
Figure 2:Eco2Solar organisation Procurement and Supply Leadership and Management 6
Figure 4:Model of diagnosis of organisation behaviour impacts. 9
Figure 5: Nadler-Tushman Congruence Model 10
Figure 6:Factors influencing Eco2Solar Employees satisfaction. 11
Figure 7:Leaders Role on Employees Wellbeing. 13
Figure 8:Eco2Solar Organisation Leadership Grid. 14
Figure 9:Eco2Solar Stakeholders Categories. 16
Figure 10:Mendelow Matrix Stakeholders Analysis. 17
Figure 11:Sources of Individual and Organisation Power 18
Figure 12:Power/Dependency Matrix. 19
Figure 13:Eco2Solar Organisation contents of the Equality and diversity policy. 20
1.0 Introduction
In modern business environment, organisations fail to appropriately spend their million of dollars budgeted for procurement and supply owing to lack of appropriate leadership and management. This is supported by CIPS (2021) which note that a successful adoption of procurement approaches after the foundational spend analysis, it is dependent on an entity support structure, systems, processes, policies set and performance measures which link the organisation behaviours. The importance of this is identified by Asante and Boakye (2019) as the leadership and management as supporting influence of entire aspects of procurement and supply which range from new systems development, green procurement, and improvement of transparent practices. As a result, inexistence of leadership and management supply lead failure of multiple procurement and supply strategies as the top managements and leadership fails in harnessing the sustainable relationships and promoting a high-level interaction in negotiation as a best practice. This importance of leadership and management was also affirmed by Delloitte (2022) which had focused on 481 top-performing global CPOs from 38 countries with the organisations representing an integrated annual turnover of upwards of $5 trillion. The findings in the report on the importance of leadership and management are as illustrated in figure 1 which evidenced value creation at 50%, digital transformation (45%), leverage on competitive advantage (30%) and maximising productivity as the importance of integrating leadership and management approaches.
Figure 1:Leadership and Management in procurement benefits
Source: Summarised from Delloitte (2022)
Based on this background information, this business report focuses on evaluating the approaches to leadership and management within Eco2Solar organisation. In this report, the impact of leadership and management on organisational behaviour, impact of leadership approaches on job satisfaction and sources of power within the organisation and how these are used being evaluated. Finally, the importance of equality and diversity policies within the organisation has also been generated.
1.1 Organisation Background and Procurement and Supply Management (PS&M)
Eco2Solar organisation has been in active operations in UK Energy sector since 2007 with a focus of addressing current climatic change threats (Eco2Solar, 202). The focus of the organisation in UK is to reduce the overall CO2 emissions and fuel shortages/costs increase by offering an alternative solar energy. Over these years, Eco2Solar has been offering solar energy solutions to newly constructed residential homes and different commercial installations. The target market of the organisation include and not, limited to the multinationals including Barratts, Taylor Wimpy, Linden Homes, David Wilson and Lovells. For success of the organisation in their business area, being the most appropriate strategy, their business scope has included health centers (40%), learning institutions (50%), care homes (30%) and individuals apartments installations (20%). Today, the organisation has an average of profitability of approximately £10 million which is gained from their past involvement in different projects.
The success of the organisation in its procurement and supply department is because of successfully investing in good leadership and management. As shown in figure 2, through an embrace of hierarchical structure, there is a clear hierarchy of leadership in the organisation. Particularly, in the current COVID-19 pandemic, the organisation has been able to manoeuvre through immense challenges owing to their successful leadership and management system.
Figure 2:Eco2Solar organisation Procurement and Supply Leadership and Management
1.2 Selected Category of Spend in Eco2Solar Organisation
Since early 2021, Eco2Solar organisation had been involved in the implementation of 2000 solar powered projects in UK Estates (Eco2Solar, 2022a). This was an opportunity that the management and leadership of the organisation identified as being essential for Eco2Solar owing to the increased demand for energy in UK after the prevalence of COVID-19 pandemic. As evidenced in Solar Power Portal (2022), it note that 15% of buyers of new build properties had noted solar panels as the most critical installation and feature they prioritise on their operations and influence their decisions of purchasing. Hence, by focusing on the identified project, it would be essential for evaluating the scope in which leadership and management are engaged in the project. This will mirror the overall organisation operations and importance of leadership and management in the organisation.
2.0 Impact of Leadership and Management on Organisational Behaviour
The leadership and management concepts are noted in some research works as being used interchangeably. Core to most of the interpretations, CIPD (2021) identify the leadership as noted as including a process of development of an initial vision and inspiring others on the process of achieving a vision. This is with management including translation of vision into reality through a guidance of actions and behaviours of a group of people every day. In CIPS CIPS (2021) define leadership as being linked with a process followed to influence, encourage ad motivate others. This is with management being linked with control, telling, and implementing tactical actions. Further, while leadership embraces other people, two-way communication, feedback and empowerment, management represent dictation, controlling, authority and the process followed. Hence, in line with the provided definitions, it is evident that both have an appropriate position in an organisation. Often, the managers operate over leaders.
2.1 Leadership and/or Management in Eco2Solar
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