Developing People in Procurement and Supply Chain - Example

Developing people in procurement and supply chain Name: Tutor: Course: Date: Executive summary The aim of this report is to understand stakeholder needs and working effectively with them is critical to the success of the procurement team. To maintain and develop effective on-going relationships quality standards in procurement and supply should be applied to support relationships. Across global supply chains, there is need for open communication, mutual respect, mindfulness and trust. On the other hand, approaches to effective work groups and teams include self-awareness, ability to listen to different opinions of colleagues and hinge on common ground and shared values then gain commitment. Teams should be strengthened by everyone who knows their team, tackling problems quickly with good feedback and paying attention. Leadership should guide stakeholders and suppliers through organizational employees who are motivated and inspired by removing resource, bureaucratic and political barriers. On the other hand, attention should go into satisfying their basic, unfulfilled needs. Based on Situational Leadership Model varying levels of management and leadership are necessary. This is because there is no leadership approach that is ‘one size fits all’. Situational leaders can delegate, support, coach and direct their subordinates in their supply chain. Leaders can increase employee commitment by training and profit‐sharing, participation, listening to their ideas and communication. Table of contents Developing people in procurement and supply chain 1 Name: 1 Tutor: 1 Course: 1 Date: 1 Executive summary 2 1.0 Positive working relationships between suppliers and stakeholders 5 Figure 1: Ladder of citizen participation 5 Figure 2: Cycle of stakeholder relevance 6 2.0 Create approaches to develop work groups or teams 8 Figure 3: Steps in team-building process 8 3.0 Demonstrate leadership qualities to guide stakeholders and suppliers 10 Figure 4: John Adair’s action-centered leadership model 11 Figure 5: Situational leadership model 11 References 13 List of figures Developing people in procurement and supply chain 1 Name: 1 Tutor: 1 Course: 1 Date: 1 Executive summary 2 1.0 Positive working relationships between suppliers and stakeholders 5 Figure 1: Ladder of citizen participation 5 Figure 2: Cycle of stakeholder relevance 6 2.0 Create approaches to develop work groups or teams 8 Figure 3: Steps in team-building process 8 3.0 Demonstrate leadership qualities to guide stakeholders and suppliers 10 Figure 4: John Adair’s action-centered leadership model 11 Figure 5: Situational leadership model 11 References 13 1.0 Positive working relationships between suppliers and stakeholders The global economy today is highly competitive and turbulent to the extent that it requires collaborative stakeholder relationships. These stakeholders include the community, customers, suppliers, owners and employees. In this regard, organizational managers have an obligation of administering contracts based on safeguards and other methods of conflict resolution while investing in asset specific transactions (Donaldson & Preston, 2005). In a networked and knowledge-based economy, putting people ahead of profits is a ticket to corporate sustainability and profitability. While stakeholder relationships are sources of competitive advantage, strong relationships allow firms to adjust to changing customer requirements, reduce costs, increase flexibility and stimulate innovation (Rawlins, 2006). Based on Arnstein’s ladder of participation, Friedman and Miles (2006) developed a model to identify the style of managing stakeholders. This model identifies the style of stakeholder management as shown in figure 1 below. (Source: Arnstein, 1969) Figure 1: Ladder of citizen participation From the figure above, the lower levels or ‘no power’ include informing, therapy and manipulation, and are organizational situations where stakeholders are informed of decisions already made (Arnstein, 1969). The middle levels or ‘degree of tokenism’ include negotiation, consultation and placation where stakeholders are not assured that their concerns will impact on the end result. However, they have the opportunity to air their concerns before the decisions are made. The highest levels or ‘degrees of citizen power’ include stakeholder control, delegated power, partnership and involvement collaboration (Donaldson & Preston, 2005). This level is characterized by responsive or active attempts to empower stakeholders through corporate decision-making (Brink & Berndt, 2008). Nonetheless, stakeholder groups at different times are treated at different levels because of uniqueness in stakeholder characteristics, differences in the stage and focus of the program, organization’s life cycle stages and stakeholder strategies as shown in the figure 2 below. (Source: Rawlins, 2006) Figure 2: Cycle of stakeholder relevance Building positive working relationships between suppliers and stakeholders require open communication, mutual respect, mindfulness and trust (Evans, 2010). To start with, open communication is central to good team dynamics, especially when everyone is communicating clearly. Common forms of group communication include shared documents, face-to-face meetings, emails and telephone (Trent, 2007). For example, during meetings, groups can develop and agree on the specification for the procurement of works, services or goods. They can also assess procurement risks in detail and help to mitigate risks as they disseminate the specifications to potential suppliers. This will require that procurement officers and managers should build on honest and open communication. By understanding some difficult stakeholders who are against procurement, Svendsen (2013) observes that it is possible to discover that they may have experienced poor relationships in the past. Create ‘clear the air session’, listen, write down stakeholder comments and promise to correct after lessons learnt. Secondly, there is need for mutual respect for people working in the supply chain by valuing their input and ideas. Working together ensures that solutions developed are based on creativity, wisdom and collective insight (Blackler & Kennedy, 2013). Thirdly, mindfulness is about s means taking responsibility for ones actions and words. By being mindful, care and attention is given to suppliers and other stakeholders with regard to they say and do. Fourthly, every good relationship is founded on trust. Powerful bonds between the team and colleagues are made when people trust each other as well as communicating and working more effectively. Trusting suppliers and other stakeholders with open and honest actions and thoughts saves time and energy (Svendsen, 2013). However, managers in traditional companies spend less financial resources and scarce time to control partner’s behavior. Even attempts to resolve inevitable conflicts and remediate the problem cannot satisfy the contract terms. On the bottom line, organization's leadership must behave in trustworthy fashion, ethically, honestly and fairly to ensure their employees deal similarly with the suppliers. The company should take the time to understand wants and expectations of their suppliers, strive to keep their promises and share information (Younker, 2013). The standards should apply to internal stakeholders and external stakeholders including customers and suppliers. Employment of people within supply chains should also consider elimination of fraud and human rights abuse, corruption and bribery. 2.0 Create approaches to develop work groups or teams Kozlowski and Bell (2003) define team building as the result of various psychological or social processes such as socialization that shapes or moderates other social or behavioral phenomena in terms of performance, dynamics and team structure. Roles and behaviors of a team affect dynamics of other group members or teams as a whole. This calls for team members to work towards a collective decision, trust one another, and hold one another accountable for specific actions. Positive dynamic teams have been found to have nearly twice as creative members as average groups and goes through a cycle as shown in figure 3 below. (Source: Younker, 2013) Figure 3: Steps in team-building process According to idiographic theory, social interaction and behavior among people is a result of self‐understanding (Kozlowski & Bell, 2003). Since social interaction impact behavior of team members, they develop some attitude toward the process. Furthermore, discussion that centers on the behavior of team leader has to be open to constructive criticism (Kozlowski & Bell, 2003). Therefore, an effective and functioning team should have individuals who are sensitive to the impact of their behavior on the others. To develop changed behavior patterns, a team requires more self-awareness. For example, a more participative style may have to be adopted based on the recognition that the team leader is not sharing decision making and leadership with team members. Supplier management and human resource management mechanisms can be used to reinforce desirable changes (Younker, 2013). On the other hand, team members and suppliers can be encouraged to ‘own’ desirable behaviors, beliefs and values. Team members not only differ based on age, race and religious affiliations but also work experience, parental status and behavioral experiences (Peters & Carr, 2013). Therefore, welcoming team diversity and differences in opinions is one way to build good relationships. For example, a manager can listen to different opinions of colleagues, take time to analyze, and factor their insights in decision-making. Teams should draw on people with viewpoints, experiences and diverse skills. The organization should not only reflect on the diversity of external stakeholders but also boost staff performance and morale. This can be done through power and influence to overcome barriers, sharing best practice and inspiring contribution to process improvement (Peters & Carr, 2013). The management should hinge on common ground and shared values then gain commitment by clarifying expectations from shared objectives and goals. There is need to support all member contribution and be sensitive to power imbalances. Team-building exercises bring everyone on board especially new members joining the group. They will learn through phases such as forming, storming, norming, performing and adjourning that a group goes through as they develop (Raelin, 2003). Finally, team's dynamics can be strengthened by everyone knowing their team, tackling problems quickly with good feedback and paying attention. The team can also focus on communication, breaking down barriers and defining roles and responsibilities. 3.0 Demonstrate leadership qualities to guide stakeholders and suppliers Leadership is defined as an interpersonal process of getting people to do things willingly or getting others to follow (Brink & Berndt, 2008). Leaders exercise this attribute as some source of power and influence in a group or organization. By challenging status quo, leaders who are pragmatic or charismatic create vision and a sense of direction. According to style theory, leadership as a set of behaviors identifies broad leadership styles, determines behavior taxonomy, and evaluates the behavior of 'successful' leaders (Shepherd & Smyth, 2012). In order to influence the creation of coalitions and teams, one has to communicate the direction of deeds and words, align and cooperate with people (Raelin, 2003). People in the supply chain need to be motivated and inspired by removing resource, bureaucratic and political barriers. On the other hand, attention should go into satisfying their basic, unfulfilled needs. To understand needs, Adair’s Action‐ Centered Leadership model is the most appropriate. Shepherd and Smyth (2012) observe that group needs involve discipline, motivation and team spirit while individual needs include personal recognition, counseling and coaching. Similarly, task needs comprise resource allocation, performance targets and planning as shown in figure 4 below. From each of the three elements, a leader has to balance the needs by attending to all three at the same time. The others are unlikely to succeed if any one element is ignored. (Source: Bolden et al., 2003) Figure 4: John Adair’s action-centered leadership model Moreover, ability to provide a work-life balance for its employees is a preserve of an effective leader (Bolden et al., 2003). This balance, observable in personalities of leaders, allows flexibility in contracts where employees can plan work hours with regard to family responsibilities. As observed in the study of human personality, trait theory is the habitual patterns of emotion, thought and behavior (Blackler & Kennedy, 2013). From this perspective, traits differ among individuals and are relatively stable over time. For example, leaders can recognize team members who are outgoing to those who are timid and consequently understand their behavior. A leader who is able to handle relationships in the supply chain should be self-confident, well-mannered and emotional stable, self discipline and enthusiastic (Evans, 2010). (Source: Blanchard & Hersey, 1996) Figure 5: Situational leadership model To demonstrate leadership in the supply chain relationships, a Situational Leadership Model is critical. The model suggests that depending on the situation, varying levels of management and leadership are necessary because there is no leadership approach that is ‘one size fits all’. Situational leaders can delegate, support, coach and direct their subordinates in their supply chain (Blanchard & Hersey, 1996). Stakeholders and suppliers also require tranformative behaviors where leaders are able to trigger team contribution and generate value of organizational purpose (Trent, 2007). Power should be exercised and devolved through delegations of authority. In addition, leaders should be receptive or demonstrate willingness to give other people’s ideas a chance, let others make mistakes and trust subordinates. The need for power under McClelland’s motivation theory shows that people searching for power aspire to control and influence others. These leaders seek affiliation and need for achievement. Supply chain leaders can increase employee commitment by training and profit‐sharing, participation, listening to their ideas and communication (Evans, 2010). Developing leaders in the organization also involves dealing with performance problems, managing performance, and providing feedback and informal reviews. References Arnstein, S. R. (1969). A Ladder of Citizen Participation, JAIP, Vol. 35, No. 4, p. 216- 224. Blackler, F. & Kennedy, A. (2013). The Design of a Development Programme for Experienced Top Managers from the Public Sector. Working Paper, Lancaster University. Blanchard, K. & Hersey, P. (1996). The Situational leadership model. Management of organizational behavior Journal. Vol. 5, no. 3, p.46-60. Bolden, R., Marturano, G.J. & Dennison, P. (2003). A review of leadership theory and competency frameworks. Centre for leadership studies. Exeter University. Brink, A. & Berndt, A. (2008). Relationship Marketing and Customer Relationship Management. Juta and Company Ltd. Donaldson, T. & Preston, L.E. (2005). The stakeholder theory of the corporation: concepts, evidence, and implications. The Academy of Management Review. Vol. 20, no. 1, p.65-91. Evans, J.R. (2010). Quality & Performance Excellence. Cengage Learning. Friedman, A.L. & Miles, S. (2006). Stakeholders: Theory and Practice: Theory and Practice. OUP Oxford Press. Kozlowski, S. W. J. & Bell, B. S. (2003). Work groups and teams in organizations. In W. C. Borman, D. R. Ilgen & R. J. Klimoski (Eds.), Handbook of psychology (Vol. 12): Industrial and Organizational Psychology (333-375). New York: Wiley- Blackwell. Peters, J. & Carr, C. (2013). High Performance Team Coaching. Friesen Press. Raelin, J. (2003). Creating Leaderful Organizations. San Fransisco: Berrett-Koehler Publishers Inc. Rawlins, B. L. (2006). Prioritizing Stakeholders for Public Relations. Institute of Public Relations. Shepherd, N.A. & Smyth, P.J. (2012). Reflective Leaders and High-Performance Organizations: How Effective Leaders Balance Task and Relationship to Build High Performing Organizations. iUniverse. Svendsen, A. (2013). Building collaborative stakeholder relationships. Centre for innovation management: Business and Global Change. Trent, R.J. (2007). Strategic Supply Management: Creating the Next Source of Competitive Advantage. J. Ross Publishing. Younker, J.N. (2013). The team approach to building work group effectiveness. The CEO refresher. Texas:US. Read More