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

Introduction -- what is control?

1) Direct control -- issuing orders, direct supervision, can lead to resentment

2) Bureaucracy -- clear definitions, standardisation and processes

3) Influencing -- bring a person's values in line with the values of the organisation

4) Social / Cultural -- encourage people to conform by changing the norms of the organisation

5) KPIs -- individuals are evaluated to set standards

Conclusion -- leader should use a variety of methods

Example Essay

Control in leadership refers to the processes, strategies, and mechanisms that leaders use to regulate, guide, and manage the activities and behaviours of individuals or groups within an organization. Effective control helps leaders ensure that the organization operates efficiently, achieves its goals, and adheres to its values and standards. This essay will discuss a variety of methods that a leader can use to exercise control.

1) Direct Control:

Direct control is a leadership method where leaders issue explicit orders and closely supervise tasks, often making decisions without significant input from others. For example in a manufacturing company, a supervisor instructs workers on the assembly line to follow a specific sequence of tasks and closely monitors their work to ensure compliance. The advantage to this method is that tasks are executed as instructed, resulting in predictable outcomes and that expectations and roles are well-defined, which reduces ambiguity. However this method of control can lead to resentment, decreased motivation, and a lack of autonomy among team members. Team members may be less inclined to propose innovative solutions or take initiative when micromanaged.

2) Bureaucracy:

Bureaucracy is a method of control characterized by clear definitions, standardized processes, and established rules and procedures within an organization. Government agencies often operate within a bureaucratic framework, where specific rules and regulations guide decision-making and operations. The advantage of this form of control is that it ensures decisions and actions align with established rules and procedures. It also promotes equal treatment of individuals within the organization. The disadvantage is that Bureaucratic structures may struggle to adapt to changing circumstances and hinder organizational agility. Moreover, excessive bureaucracy can lead to administrative burdens and create barriers to efficient decision-making.

3) Influencing:

Influencing is a control method focused on aligning an individual's values, beliefs, and behaviours with those of the organization. It encourages voluntary compliance. An example of this is a manager motivating their team to meet sales targets by emphasizing the benefits of achieving those goals for both the company and individual team members. This form of control can be highly effective as it encourages voluntary compliance; team members willingly align their values and behaviours with the organization's goals and it fosters a shared sense of purpose and commitment among employees. However it has many limitations; it is time consuming, requires effort to build trust and rapport, is dependant upon the personality, skill and likeability of the leader and it is not an effective form of control in situations where immediate compliance is crucial.

4) Social/Cultural Control:

Social/cultural control involves shaping an organization's culture and norms to encourage individuals to conform to desired behaviours and values. For example an organization promotes a culture of innovation and creativity, encouraging employees to share ideas and experiment with new approaches. They may do this by allowing staff members designated time to work on creative projects. Another example is cultivating a culture of inclusivity and diversity by celebrating festivals and traditions from other countries. The advantage of this form of control is that it creates lasting commitment to desired behaviours and values; of all the types of control mentioned in this essay, this form of control has the longest lasting effect. However changing an existing culture can be challenging and may face resistance from employees accustomed to the status quo. Shaping culture is a long-term endeavour that requires ongoing effort but a positive culture brings many benefits including enhances employee engagement, motivation, and satisfaction.

5) Key Performance Indicators (KPIs):

KPIs are metrics and performance indicators used to evaluate the performance of individuals, teams, or the organization as a whole. For example an e-commerce company sets KPIs for customer satisfaction, measuring it through surveys and feedback ratings. This form of control provides clear targets, ensuring individuals and teams understand expectations. It also allows for data-driven decision making. Leaders can make informed decisions based on performance data, for example on whether a supplier is performing sufficiently to renew the contract with them. The disadvantage to using KPIs as a form of control is that overemphasizing KPIs may lead to a narrow focus on metrics at the expense of broader organizational goals and values. People may also prioritize meeting KPIs over the quality or integrity of their work.

In conclusion, effective leadership requires a nuanced approach to control. Leaders should recognize that different situations and individuals may require varying degrees and types of control. Relying solely on one method, such as direct control or bureaucracy, can limit the organization's adaptability and hinder employee engagement. Instead, a balanced approach that incorporates influencing, cultural shaping, and the use of KPIs can promote a healthy balance between control and autonomy, leading to a more effective and motivated workforce. Ultimately, leaders should use a combination of these control methods to achieve their organizational goals while maintaining a positive and engaged work environment.

Tutor Notes

- I've purposed made this question very vague, because sometimes CIPS do make vague questions. Things you should think about when approaching this question are: exercise control over what? (processes?) or over who? (staff?) why do you need control? (is something bad happening?). Because it's so open, you will need to bring in your own examples into this type of essay. Everyone's essays will look very different for this question.

- Other forms of control mentioned in the study guide include: Self-control -- no direct intervention; Trust-control -- where trust is high, control reduces (Handy 1993) and Motivation - see the table on p. 189

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.

Introduction

Leadership plays a crucial role in shaping the procurement function within an organization, influencing strategic decisions, supplier relationships, and overall operational efficiency. One of the most impactful leadership styles is Visionary Leadership, characterized by the ability to inspire, motivate, and guide an organization toward a long-term strategic vision. In the context of procurement, where efficiency, cost management, ethical sourcing, and supplier collaboration are critical, the suitability of a visionary leader can significantly impact the success of procurement strategies.

This essay assesses the suitability of the Visionary Leadership Style in procurement by exploring its characteristics, advantages, challenges, and its impact on various aspects of procurement functions.

Understanding Visionary Leadership

A visionary leader is someone who has a clear and compelling vision of the future and possesses the ability to motivate teams and stakeholders to work towards achieving that vision. This leadership style is associated with strategic foresight, innovation, adaptability, and strong communication skills. Visionary leaders focus on long-term goals rather than short-term fixes and inspire procurement teams to align their objectives with the broader mission of the organization.

Key Characteristics of Visionary Leadership

Strategic Foresight -- The ability to anticipate future trends, risks, and opportunities in procurement and supply chain management.

Inspirational Communication -- The ability to effectively convey a vision, ensuring team members and stakeholders are aligned with procurement strategies.

Adaptability and Innovation -- Encouraging new technologies, digital procurement solutions, and sustainable sourcing practices.

People-Centric Approach -- Focusing on team empowerment, supplier collaboration, and ethical procurement practices.

Long-Term Focus -- Prioritizing sustainability, strategic supplier partnerships, and risk mitigation over short-term cost-cutting measures.

The Suitability of Visionary Leadership in Procurement

1. Enhancing Strategic Procurement Planning

Procurement is not just about purchasing goods and services; it is a strategic function that directly impacts an organization's cost efficiency, risk management, and competitive advantage. A visionary leader ensures that procurement aligns with the organization's long-term business goals, such as:

Sustainable sourcing to meet corporate social responsibility (CSR) objectives.

Digital transformation in procurement (e.g., AI-driven supplier selection, blockchain for transparency).

Supplier diversification to mitigate geopolitical and supply chain risks.

By setting a clear strategic direction, a visionary leader ensures procurement teams focus on innovation, risk mitigation, and value creation rather than just cost-cutting.

2. Driving Supplier Relationship Management (SRM)

One of the most critical functions of procurement is managing supplier relationships effectively. Visionary leaders recognize that strong long-term partnerships with suppliers are more beneficial than short-term cost reductions. They emphasize:

Collaboration over transactional relationships -- Developing mutually beneficial relationships with key suppliers.

Ethical and sustainable procurement -- Ensuring suppliers adhere to fair labor practices, environmental sustainability, and legal compliance.

Innovation through supplier partnerships -- Encouraging suppliers to introduce new technologies, automation, and process improvements.

A visionary leader in procurement fosters trust and cooperation with suppliers, ensuring that procurement decisions align with both business goals and ethical standards.

3. Encouraging Innovation and Technology Adoption in Procurement

The procurement function is evolving rapidly due to technological advancements. Visionary leaders drive the adoption of:

E-procurement systems to enhance efficiency and transparency.

Data analytics and AI for supplier evaluation and risk management.

Blockchain technology for improving supply chain traceability and contract enforcement.

Sustainability-focused procurement models, such as circular supply chains to reduce waste.

By embracing digital transformation, visionary leaders modernize procurement operations, making them more agile, cost-effective, and resilient.

4. Building an Agile and Motivated Procurement Team

A key responsibility of procurement leaders is to develop talent and foster a high-performance culture. Visionary leaders:

Empower procurement teams by promoting continuous learning and professional development.

Encourage innovation in procurement strategies.

Foster an inclusive and collaborative work culture, which increases motivation and efficiency.

For instance, a visionary procurement leader may encourage procurement professionals to develop negotiation skills, data analysis competencies, and sustainability knowledge, ensuring that the team is well-equipped for future challenges.

5. Managing Risks and Uncertainties in Procurement

Procurement leaders must deal with global supply chain disruptions, price fluctuations, and geopolitical risks. A visionary leader is proactive in identifying and mitigating risks by:

Developing a diversified supplier base to reduce dependency on a single source.

Implementing contingency planning and supply chain resilience strategies.

Using predictive analytics to anticipate market shifts and adjust procurement strategies accordingly.

For example, during the COVID-19 pandemic, visionary procurement leaders ensured supply chain continuity by quickly pivoting to alternative suppliers and leveraging digital procurement solutions.

Challenges of Visionary Leadership in Procurement

Despite its many advantages, visionary leadership also presents challenges in a procurement environment, including:

Slow Decision-Making in Urgent Situations

While visionary leaders focus on the long-term, procurement often requires quick decision-making during supply chain disruptions or urgent purchasing needs.

A balance between strategic foresight and operational efficiency is necessary.

Resistance to Change from Stakeholders

Employees and suppliers may resist new procurement technologies, sustainability policies, or process changes introduced by visionary leaders.

Effective change management and communication strategies are needed to overcome resistance.

High Implementation Costs

Digital transformation, supplier development programs, and sustainability initiatives require significant investment.

Organizations must evaluate the cost-benefit balance when adopting long-term procurement strategies.

Alignment with Organizational Priorities

Procurement is often seen as a cost-saving function, whereas visionary leadership focuses on long-term value creation.

Visionary leaders must align their strategies with C-suite expectations to gain executive support.

Conclusion

Visionary leadership is highly suitable for the procurement function of an organization, particularly in driving strategic planning, supplier collaboration, innovation, talent development, and risk management. By fostering a long-term, value-driven approach, visionary leaders transform procurement from a cost-centric function into a strategic asset.

However, visionary leadership must be balanced with operational agility, ensuring that procurement remains responsive to market conditions and business needs. While long-term strategic foresight is essential, procurement teams must also be equipped to handle immediate challenges efficiently.

Ultimately, the most effective procurement leaders integrate visionary thinking with pragmatic decision-making, ensuring that procurement delivers both short-term operational efficiency and long-term strategic value.

Final Answer Structure for Maximum Marks (25 Points)

Introduction (3 Points) -- Importance of leadership in procurement, introduction to visionary leadership.

Key Characteristics of Visionary Leadership (4 Points) -- Strategic foresight, innovation, adaptability, communication, and long-term focus.

Suitability in Procurement (12 Points) --

Enhancing strategic planning.

Strengthening supplier relationships.

Driving innovation and technology.

Developing a skilled procurement team.

Managing procurement risks.

Challenges of Visionary Leadership (4 Points) -- Decision-making speed, stakeholder resistance, cost implications, organizational alignment.

Conclusion (2 Points) -- Summary of benefits, need for a balanced approach.

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 -- explain which three; minimum wage, working hours, H&S

P1 -- minimum wage

P2 -- working hours

P3 -- H&S

Conclusion -- law is always evolving

Example Essay

Employment law in the United Kingdom has evolved over the years to safeguard the rights and interests of employees while providing a framework for fair and equitable employment practices. This essay delves into three crucial areas of employment law: minimum wage, working hours, and health and safety.

Minimum Wage.The National Minimum Wage Act 1998 and subsequent amendments established the legal framework for minimum wage rates in the UK. The current legislation sets different minimum wage rates for various age groups. Currently (2023) for those aged 23 and over the minimum wage is 10.42 per hour. This is rising to 11 in 2024. Younger workers will earn less, with those on an apprenticeship, considerably less. Minimum wage legislation has significantly improved the earnings of low-paid workers and reduced income inequality. It ensures that employees receive a fair wage for their labour, promoting economic stability and social well-being.

Interestingly, not all countries have a minimum wage or set it hourly. For example in Spain, minimum wage is set out monthly (around 1000 euros/ month). Sweden doesn't have a minimum wage at all. Sweden relies on collective bargaining agreements negotiated between employers and labour unions to determine wage rates and employment conditions. These agreements are sector-specific and cover a wide range of industries, effectively setting minimum wage standards at the industry level rather than through legislation. This approach allows for flexibility and tailoring of wage rates to different sectors of the economy but also means that minimum wage levels can vary depending on the specific collective agreement in place within a given industry.

Working Hours:The Working Time Regulations 1998 (WTR) and the EU Working Time Directive establish legal limits on working hours, rest breaks, and paid leave for workers in the UK. The WTR also introduced the concept of the 'opt-out,' allowing workers to voluntarily exceed the 48-hour weekly working time limit. Working time regulations promote work-life balance, protect employees from excessive working hours, and enhance health and well-being. The 'opt-out' provision provides flexibility but must be implemented with respect to workers' rights. It is common in the UK for Junior Doctors to opt out to ensure they have enough time to complete their training within a specific timeframe. Some training programs require a certain number of hours or procedures to be completed during a specific period. Another reason for opting out is the opportunity to earn more money, particularly if overtime is paid at a high rate.

Health and Safety:The Health and Safety at Work Act 1974 is the cornerstone of health and safety legislation in the UK. It places duties on employers to ensure the health, safety, and welfare of their employees, as well as others affected by their work activities. Specific regulations, such as the Management of Health and Safety at Work Regulations 1999, provide additional guidance. One of the main areas this legislation covers is the importance of completing risk assessments. The case of R v. Tangerine Confectionery Ltd (2018) emphasized the importance of risk assessments in preventing workplace accidents. The company was fined for failing to adequately assess the risk of an employee's arm getting trapped in a machine, resulting in serious injury. Health and Safety legislation has led to safer workplaces, reduced accident rates, and improved employee well-being. Employers are legally obligated to identify and mitigate workplace risks, ensuring the protection of their workforce.

In conclusion, UK employment law, encompassing minimum wage, working hours, and health and safety, plays a pivotal role in safeguarding employees' rights, promoting fair labour practices, and ensuring safe working environments. As employment dynamics continue to evolve, it is imperative that employment law remains adaptable, responsive, and protective of employees in an ever-changing work landscape.