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 -- what is change management?

P1 -- planned

P2 -- incremental

P3 -- revolutionary

Conclusion -- planned is best

Example Essay

Change management is a set of processes and strategies aimed at helping an organization smoothly transition from its current state to a desired future state. Mohammed, the CEO of ABC Ltd, aims to transition his consultancy organization from traditional paper-based record-keeping to electronic systems. To navigate this change effectively, Mohammed can consider various change management approaches, each with their own advantages and disadvantages:

Planned Change: Planned change is a methodical and structured approach to implementing change. It involves careful planning, preparation, and a well-defined roadmap for transitioning from the old paper-based system to the new electronic one. It typically minimizes disruption and resistance by providing employees with a clear understanding of the process. Mohammed could use a Ghantt chart and other tools so that everyone knows what is happening when: for example he could introduce the electronic systems department by department, for example having the HR department use it first, then after a month roll it out to other departments.

Advantages: Planned change offers predictability and allows for detailed planning and risk management. It also offers the lowest disruption; it gives employees an option to adapt gradually, reducing disruptions to daily operations and since the change is well-communicated and organized, it can effectively address employee resistance.

Disadvantages: Slower Implementation: It may take time to implement planned changes fully, potentially delaying the realization of benefits.

Incremental Change: Incremental change involves making small, manageable changes over time. This approach prioritizes gradual progress and can be less disruptive, as employees adapt step by step. For ABC Ltd this may be that each employee gets access to the system to do some aspects of their job first, then after a while they gain access to another part of the system and so fourth, until all actions are completed electronically rather than on paper.

Advantages: As this change method involves several steps, it reduces potential resistance to the change. It also provides Mohammed with a lower risk: Smaller changes are easier to monitor and adjust, lowering the risk of implementation issues. If the electronic system has a bug, this can be fixed quickly before doing away with the old paper system.

Disadvantages: The main disadvantage to this approach is similar to that of the planned approach- there is a prolonged transition: implementing changes incrementally may extend the transition period, delaying the full benefits.

Revolutionary Change: Revolutionary change entails a swift and complete shift from the old system to the new one. It aims for rapid transformation but can be highly disruptive and stressful for employees. This means Mohammed would introduce the system without warning, overnight.

Advantages: Revolutionary change can lead to quick results and immediate benefits. It is possible that employees may be more committed to using the new system due to the sense of urgency associated with this approach. They don't get a choice or time to moan about the change- they have to simply get on and use the new system.

Disadvantages: High Disruption: The speed of change may lead to stress, resistance, and potential issues. It also comes with a higher risk of Failure: inadequate planning and adjustment time can increase the risk of implementation failure. If the new system has bugs, but Mohammed has done away with the old paper-based system, this may result in staff not being able to do any work.

Conclusion:

In the context of ABC Ltd's transition to electronic record-keeping, aplanned change approachappears to be the most suitable. This approach offers a methodical, structured, and predictable transition process. It allows Mohammed to carefully plan and manage risks while minimizing disruptions to daily operations. Additionally, it is well-equipped to address any resistance that may arise during the change process. Considering these advantages, a planned change approach aligns well with the organization's need for a smooth and effective transition to electronic systems while ensuring the best chance for success.

Tutor Notes

- This question asks you to pick one of the options, so don't sit on the fence here. Of those listed, planned or incremental would probably be the obvious choice, as revolutionary change is really risky for this scenario. Revolutionary change is associated more with responding to emergencies or creative tasks, rather than introducing a new IT system. Introducing an IT system really should be done slowly, as it allows time to sort any issues and get people on board and trained using it.

- A question on different types of change could also ask about emergent change- so make sure you're familiar with this as well.

Introduction

Leadership is a critical factor in shaping employee performance, motivation, and overall organizational success. In procurement, managers must adopt a leadership style that aligns with their team's capabilities, business objectives, and operational challenges. Two widely recognized leadership styles are Transformational Leadership and Transactional Leadership, each with distinct characteristics and effects on team performance.

This essay will discuss both leadership styles, outlining their advantages and disadvantages. It will then evaluate which approach is best suited for Mo, a procurement manager facing skill and confidence issues among his team members.

Understanding Transformational Leadership

Definition

Transformational leadership is a leadership style that focuses on inspiring, motivating, and developing employees to reach their full potential. Transformational leaders act as mentors and role models, encouraging innovation, professional growth, and long-term performance improvements.

Key Characteristics of Transformational Leadership

Inspiration and Motivation -- The leader encourages employees to perform beyond expectations through a compelling vision.

Individualized Support -- Focuses on mentoring and coaching employees to enhance their skills.

Encourages Innovation -- Employees are empowered to think creatively and solve problems.

Develops Future Leaders -- Focuses on long-term talent development rather than short-term task completion.

High Engagement and Emotional Intelligence -- Builds strong relationships with employees and fosters a positive workplace culture.

Advantages of Transformational Leadership

Encourages professional growth -- Employees develop new skills and gain confidence.

Increases motivation and job satisfaction -- Employees feel valued and supported.

Promotes innovation and continuous improvement -- Encourages employees to think creatively.

Builds long-term organizational success -- Creates future leaders through mentoring and skill development.

Disadvantages of Transformational Leadership

Time-consuming -- Requires significant time and effort for mentoring and development.

Not suitable for urgent performance issues -- If immediate performance improvement is needed, transformational leadership may be too slow.

Employees may resist change -- Some employees may be unwilling to embrace coaching and new expectations.

Understanding Transactional Leadership

Definition

Transactional leadership is a leadership style based on a structured, performance-driven approach. It focuses on clear expectations, rewards for success, and consequences for underperformance. This style is best suited for improving task efficiency, enforcing compliance, and ensuring consistency.

Key Characteristics of Transactional Leadership

Clear Expectations and Rules -- Employees have defined roles and responsibilities.

Performance-Based Rewards and Punishments -- Good performance is rewarded, while poor performance is corrected through disciplinary actions.

Focus on Efficiency and Results -- Emphasizes productivity and operational efficiency over employee growth.

Short-Term Performance Goals -- Ensures immediate improvements in employee performance.

Hierarchy and Structure -- Follows a strict chain of command.

Advantages of Transactional Leadership

Ensures short-term efficiency and compliance -- Clearly defines expectations, which leads to immediate improvements in performance.

Effective for structured tasks -- Employees know exactly what is expected, reducing uncertainty.

Increases accountability -- Employees are held responsible for meeting targets.

Useful for crisis management -- Provides a clear directive in high-pressure situations.

Disadvantages of Transactional Leadership

Limited employee development -- Focuses more on task completion rather than skill enhancement.

Can reduce creativity and innovation -- Employees may feel restricted by rigid expectations.

May reduce motivation -- Over-reliance on rules and punishments can create a negative work environment.

Not ideal for building long-term talent -- Employees may not develop leadership skills or confidence.

Which Leadership Style is Most Suitable for Mo?

Case Study Analysis: Mo's Leadership Challenge

Mo is a procurement manager leading a team of 5 procurement assistants.

The assistants are underperforming due to lack of skills and confidence.

Mo is concerned about their ability to complete procurement tenders accurately.

Evaluating the Best Leadership Approach for Mo

Based on the specific challenges Mo is facing, neither leadership style alone is perfect. Instead, a combined approach is most suitable:

Recommended Approach: A Blend of Transformational and Transactional Leadership

Short-Term Approach: Transactional Leadership for Immediate Performance Improvement

Mo should set clear expectations and enforce accountability to ensure the assistants improve their performance in procurement tenders.

Implement a structured training program with performance benchmarks.

Use performance-based incentives (e.g., bonuses, recognition for accurate work).

Provide constructive feedback on mistakes to encourage learning.

Long-Term Approach: Transformational Leadership for Skill Development and Confidence

Mo should act as a mentor and coach, providing continuous learning opportunities.

Encourage assistants to develop confidence in procurement by assigning them progressively challenging tasks.

Inspire the team by highlighting the importance of procurement excellence in achieving organizational goals.

Implement peer learning and mentorship programs to create a supportive learning environment.

Conclusion

Both Transformational Leadership and Transactional Leadership offer valuable benefits, but in the case of Mo's underperforming team, a blended approach is the most effective strategy.

Transactional Leadership should be used in the short term to improve immediate performance, enforce accountability, and ensure accuracy in procurement tenders.

Transformational Leadership should be introduced gradually to develop skills, boost confidence, and foster long-term career growth among the procurement assistants.

By combining both approaches, Mo can quickly improve his team's performance while ensuring they gain the necessary skills and confidence to succeed in procurement. This balanced leadership approach ensures short-term efficiency and long-term growth, making it the most effective strategy for Mo's situation.

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: what is change?

P1: fear

P2: poor communication and misunderstanding

P3: economic conditions change (e.g. impact on working conditions or pay)

P4: perception (because they believe the change won't be beneficial)

P5: leader can overcome resistance through: providing compelling rationale for the change

P6: leader can overcome resistance through: Employee involvement (participative management style)

P7: leader can overcome resistance through: providing training

P8: leader can overcome resistance through: being honest and using timely communication

Conclusion: change management is complex and requires overcoming many obstacles. Need to plan. Use tools such as Kotter's Change Management Principles, Lewin's Forcefield Analysis and RACI

Example Essay

Change, in the context of organizations, refers to a departure from the existing state or processes toward a new and often better state. Change can encompass various aspects, such as altering processes, introducing new technologies, or modifying company culture. However, individuals within the organization often resist change for a variety of reasons. This essay will explore four common reasons for resistance to change and four effective strategies leaders can employ to overcome this resistance.

Four Reasons for Resistance to Change:

Fear: People tend to resist change when they fear the unknown. Change often brings uncertainty about the future, job security, and one's ability to adapt. An example of this is an older employee resisting a change to using a new e-procurement system, because they are mistrustful of technology.

Poor Communication and Misunderstanding: Inadequate or unclear communication about the change can lead to misunderstandings and misinterpretations. Lack of information can result in resistance due to confusion or distrust. For example an employee may hear of a change accidently in the hallway and pass this on, without knowing the full story, they may make a decision to resist the change.

Economic Conditions Change: If people believe that the change will negatively impact them, for example increasing their workload, stress levels or financial take homes, they may resist change. An example of this is during a company restructure when people believe that merging of job roles will result in them having to do more work.

Perception: Individuals may resist change when they perceive it as unnecessary, or detrimental to their interests. This resistance often stems from a belief that the change won't be beneficial. For example a manager may wish to introduce a new way to categorise inventory, but warehouse staff believe that this change will make counting inventory take longer.

Four Ways a Leader Can Overcome Resistance to Change:

Providing Compelling Rationale for the Change: Leaders can overcome resistance by clearly and convincingly explaining the reasons behind the change. Demonstrating how the change aligns with the organization's goals and how it will benefit employees can help mitigate fear and uncertainty.

Employee Involvement (Participative Management Style): Inviting employees to participate in the change process can reduce resistance. When individuals feel they have a say in the change, they are more likely to embrace it. Leaders can solicit input, involve employees in decision-making, and create a sense of ownership in the change.

Providing Training: Resistance often stems from a lack of knowledge or skills required for the change. Leaders can provide training and resources to equip employees with the necessary tools to adapt successfully. This not only reduces resistance but also enhances employee confidence and competence. This would be particularly helpful for changes involving new systems and ways of working.

Being Honest and Using Timely Communication: Effective communication is critical in overcoming resistance. Leaders should be honest about the reasons for the change, acknowledge potential challenges, and provide regular updates. Timely and transparent communication builds trust and reduces uncertainty.

In conclusion, change management is a complex process that requires leaders to address and overcome various sources of resistance. Understanding the reasons behind resistance is essential for effective change leadership. As Atkinson (2005) notes: resistance to change should not be viewed negatively, it is a positive and healthy response. Employing strategies like providing a compelling rationale, involving employees, offering training, and maintaining open and honest communication can help leaders navigate the complexities of change successfully. Moreover, change management tools such as Kotter's Change Management Principles, Lewin's Forcefield Analysis, and RACI (Responsible, Accountable, Consulted, Informed) matrices can further aid leaders in planning and executing change initiatives efficiently and with the least possible resistance.

Tutor Notes

- With this type of question try to give as many examples as you can.

- Other things you could have mentioned in your essay include:

- Reasons to resist change: out of habit, because other people are resisting it (sheep mentality), loss of freedom, scepticism, impact the change may have on their personal life (e.g. effect on work life balance).

- Dealing with resistance to change; Top management sponsorship and HR involvement, Understanding of human behavour and why people may resist change, Corporate culture supports change, Adjustment to performance mechanisms, KPIs, Efficient organisational structure, Rewards (monetary and otherwise)

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 -- what is contingency theory?

Each factor in a paragraph: external environment, technology, size, culture, goals, leader style, the people

Conclusion -- there is no universally 'right' way to structure an organisation, and it can change over time.

Example Essay

The Contingency Model of organization is a management and organizational theory that suggests there is no one-size-fits-all approach to organizing and managing a company. Instead, it proposes that the most effective organizational structure and management style depend on various external and internal factors, often referred to as contingencies. The core idea behind this model is that the optimal way to organize and manage an organization is contingent upon the unique circumstances or contingencies it faces.

Key factors that should be considered in the Contingency Model of Organization include:

Environmental Factors:The external environment, including factors like the industry in which the organization operates, economic conditions, competition, and legal and regulatory requirements, can greatly influence the organization's structure and strategy. An organisation should consider STEEPLED factors and Porter's 5 Forces when deciding which company structure would be most appropriate.

Technology:The nature of the organization's technology and the rate of technological change can impact its structure and processes. Some organizations may need to be more flexible and adaptive due to rapidly changing technologies, while others may rely on stable and proven technologies. For example, does the organisational structure allow people to work remotely from home?

Organizational Size:The size of the organization can affect its structure and management practices. Smaller organizations might have a more informal structure, while larger ones may require more formal hierarchies. For example a small organisation would not benefit from a bureaucratic structure, but a large organisation may need several levels of management and a degree of bureaucracy.

Organizational Culture:The culture of the organization, including its values, norms, and beliefs, can influence how it is structured and managed. For instance, an innovative and entrepreneurial culture may lead to a flatter, more decentralized structure.

Goals and Strategy:The goals and strategy of the organization play a crucial role in determining its structure and management style. Different strategies, such as cost leadership, differentiation, or innovation, may require different organizational structures and approaches.

Leadership Style:The leadership style of top management can impact the organization's structure and culture. Leaders with a preference for centralization may create a more hierarchical structure, while those who favour decentralization may opt for a flatter structure.

Human Resources:The skills, abilities, and motivation of the workforce can influence how an organization is structured and managed. A highly skilled and motivated workforce may require less supervision and a more decentralized structure.

The important thing to note with the Contingency Theory is thatthe organization's needs and circumstances can change over time, so what works best today may not be suitable in the future. Organizations must continuously assess and adapt their structures and management practices as contingencies evolve.

In essence, the Contingency Model recognizes that there is no universally optimal way to organize and manage an organization. Instead, managers must carefully assess and consider the various contingencies that affect their organization and make decisions accordingly. This approach promotes flexibility and adaptability in organizational design and management, allowing companies to better respond to changing circumstances and maximize their effectiveness.

Tutor Notes

- Another way this could come up as a question is related to a case study. You may be asked to pick out factors which would effect the way an organisation is structured.

- You could also be asked pros and cons of the contingency theory (pro: very flexible, highly responsive to changes con: people don't know where they stand, harder to find accountability)

- It's covered in detail in the studyguide but it's quite a simple concept -- the best structure for an organisation depends on lots of different factors.

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- what is due diligence -- assessing and evaluating suppliers.

Section 1 -- how to do due diligence: risk assessments, supplier selection, audits, contracts, continuous processes, communication

Section 1 -- why -- quality issues, risk to business continuity, ethical reasons, customer/ stakeholder requirements

Conclusion: it's essential for Delicious Ltd (relate back to case study).

Example Essay

Supplier due diligence is a critical process for organizations like Delicious Ltd, which rely on complex international supply chains to source commodity items. Due diligence involves assessing and evaluating the performance, reliability, and ethical practices of suppliers to ensure they meet the company's standards and requirements.

Here's how supplier due diligence can be implemented:

Risk Assessment:Begin by identifying the potential risks within the supply chain. This may include geopolitical risks, natural disasters, economic instability, and even supplier-specific risks like production delays or quality issues. It should also look at ethical considerations such as the use of forced or child labour in the supply chain and the working conditions of those employed by suppliers.

Supplier Selection:Carefully select suppliers based on criteria such as their track record, reputation, financial stability, quality control processes, and ethical practices. Delicious Ltd should consider multiple sources for critical raw materials such as sugar and flour to diversify risk. This means if one supplier goes bust, or is unable to provide the required quantities, Delicious Ltd can source materials elsewhere. The Kraljic Matrix would be a useful tool here.

Audits and Inspections:Delicious Ltd can conduct regular audits and inspections of suppliers' facilities and practices to ensure they meet the company's standards. These audits can include quality checks, ethical compliance checks, and supply chain continuity assessments. They can use an independent 3rd party to do this.

Contractual Agreements:Delicious Ltd should define clear terms and conditions in supplier contracts, specifying quality requirements, delivery schedules, pricing structures, and dispute resolution mechanisms. These contracts should reflect the results of due diligence assessments.

Continuous Monitoring:Establish a system for ongoing monitoring of suppliers' performance. This includes regular communication, feedback mechanisms, and performance reviews to ensure suppliers maintain the desired standards. Delicious Ltd could use the Demming Plan Do Check Act cycle here.

Contingency Planning:Develop contingency plans for potential supply chain disruptions. This could involve identifying alternative suppliers or establishing safety stock levels for critical raw materials. For example, by holding a surplus stock of flour in it's own warehouse, Delicious Ltd mitigates the risk of late deliveries interrupting production.

Transparency and Reporting:Delicious Ltd should be transparent about supplier due diligence efforts with stakeholders, including customers, investors, and regulatory bodies. They should regularly report on compliance with ethical and sustainability standards and can publish findings on their website.

For Delicious Ltd, implementing supplier due diligence is essential for several reasons:

Quality Assurance:Ensuring the quality of raw ingredients is crucial for a cake manufacturing organization like Delicious Ltd. By conducting due diligence, the company can verify that suppliers meet specific quality standards, which is essential for producing consistent and high-quality products. If an ingredient such as flour was contaminated, this may result in Delicious Ltd's customers falling ill. This is a risk that needs to be eliminated.

Supply Chain Reliability:International supply chains can be susceptible to disruptions, such as natural disasters, political instability, or economic fluctuations. Supplier due diligence helps identify potential risks within the supply chain and allows the company to develop contingency plans to minimize disruptions.

Ethical Sourcing:Customers and stakeholders increasingly demand transparency and ethical sourcing practices. Due diligence enables Delicious Ltd to assess whether suppliers adhere to ethical standards, such as fair labour practices and environmental sustainability, which can protect the company's reputation and market position. Delicious Ltd risk losing customers, and thus profit, if they fail to conduct due diligence.

Cost Control:By evaluating suppliers' financial stability and pricing structures, the company can negotiate better deals, optimize costs, and avoid unexpected price hikes or financial risks associated with supplier instability.

In conclusion, implementing supplier due diligence is essential for Delicious Ltd due to its complex international supply chains. It helps ensure quality, reliability, and ethical practices among suppliers, while also mitigating risks associated with the supply chain. By effectively implementing due diligence processes, the company can enhance its reputation, protect against disruptions, and maintain cost control.

Tutor Notes

- Remember that due diligence isn't just about ethics. That's a big part of it (checking supply chains for modern day slavery etc). Due diligence is about getting the 5 Rights of Procurement (remember this from Level 4?), it's about ensuring supply chain security and continuity, and about risk aversion too.

- To improve on the essay above you could talk more in detail about where you can get information on suppliers, such as D&B and Companies House for financial information, customer references and checking registrations such as ISO14001. Some of these are specific to the UK, so Delicious Ltd may need to look at international equivalents. You don't have to know what these are for the exam though so don't worry!

- How deep you conduct supplier due diligence depends on how important the supplier is to you. You could mention this in your conclusion and bring it back to Delicious Ltd -- the flour supplier is probably very important, but the supplier of stationary for the workers in the office is probably less so. So Delicious need to do thorough due diligence on the flour supplier and less on the stationary guys. Kraljic is the tool for this.

- Because this is a case study question, you don't have to bring in any real life examples. But if the question was more open e.g. discuss how a procurement manager can do Due Diligence, you could talk about a real life example, so have one in your back pocket for the exam

- For a really high score you could mention this:Home - KnowTheChain