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Buttons Ltd is a clothing manufacturer. It began as a very small enterprise but over the last 3 years it has grown and has become very successful. The company has decided it needs a dedicated procurement and supply chain function to help source materials for its clothing. Describe the scope of the procurement and supply chain function (10 points) and explain what knowledge, behaviours and skills will be required by those recruited to work in the department (15 points).
Part A -- Scope of Procurement and Supply Chain (10 points):
The scope of procurement and supply chain at Buttons Ltd will cover all activities involved in sourcing, purchasing, and managing the flow of materials needed for clothing production.
This includes sourcing raw materials such as fabrics, zips, and buttons from reliable suppliers, ensuring cost efficiency and quality. It also covers supplier selection and management, including contract negotiation and supplier relationship management. The function will ensure compliance with ethical and sustainable sourcing standards, which are increasingly important in the fashion industry.
The supply chain scope also involves logistics and inventory management, ensuring that materials are delivered on time to support production schedules and that stock levels are optimised to avoid delays or overstocking. Additionally, procurement must manage risk and continuity of supply, identifying alternative sources in case of disruptions. Finally, procurement contributes to strategic decisions by aligning sourcing activities with company objectives such as cost reduction, sustainability, and innovation.
Part B -- Knowledge, Behaviours and Skills Required (15 points):
Knowledge:
Understanding of sourcing and supply chain processes (tenders, contracts, logistics).
Knowledge of ethical and sustainable procurement, ensuring materials are responsibly sourced.
Awareness of fashion industry requirements such as lead times, quality standards, and supplier markets.
Behaviours:
Professional integrity and ethics, ensuring fair treatment of suppliers and compliance with standards.
Collaboration and teamwork, working across departments (design, finance, production).
Adaptability and resilience, since the clothing industry faces rapid changes in demand and supply risks.
Skills:
Negotiation skills to secure best value while maintaining supplier relationships.
Analytical skills to assess supplier performance, costs, and risks.
Communication skills to liaise with suppliers and internal stakeholders effectively.
Problem-solving skills to manage supply chain disruptions and ensure continuity.
For example, a procurement professional at Buttons Ltd might need to negotiate fabric supply contracts while ensuring the supplier meets sustainability standards and delivers within tight production deadlines.
Conclusion:
The procurement and supply chain function at Buttons Ltd will be responsible for sourcing, supplier management, logistics, and risk management, supporting the company's growth and competitiveness. To succeed, staff must demonstrate strong knowledge of procurement processes, ethical behaviours, and key skills such as negotiation, analysis, and communication. Together, these ensure the function delivers value and supports the company's long-term goals.
Describe 4 reasons why groups may form within an organisation. (25 points).
Groups are an essential feature of organisational life. A group can be defined as two or more individuals who interact and work together to achieve a purpose. Groups may be formally created by management or may form informally through social interaction. There are several reasons why groups form in organisations.
The first reason is task and goal achievement. Formal groups are created to achieve organisational objectives that require collaboration. For example, in procurement, a cross-functional sourcing group may be formed to run a tender process involving operations, finance, and procurement staff. Individuals form these groups because working together helps them achieve outcomes that they could not accomplish alone.
The second reason is social and psychological needs. According to Maslow's hierarchy of needs, people seek belonging and relationships. Informal groups often form to meet these needs, providing friendship, support, and a sense of identity. In Star Fish Ltd, for instance, employees working remotely may form a social group using Teams or WhatsApp to stay connected and reduce feelings of isolation.
The third reason is safety and security. Groups can give members confidence and protection when facing uncertainty or change. For example, during organisational restructuring, employees may form informal groups to share information and support each other, making them feel less vulnerable. In procurement, staff may collaborate in groups to manage supplier risks or market volatility.
The fourth reason is power and influence. Groups provide individuals with a stronger collective voice. Trade unions are a formal example, but informal groups can also lobby management or resist unpopular changes. In procurement, buyers might form a group to influence senior managers on issues such as introducing sustainable sourcing practices. By forming groups, individuals can increase their bargaining power and impact decisions.
In conclusion, groups form for task achievement, to satisfy social needs, to provide security, and to increase power and influence. Managers must understand these dynamics because groups can both support organisational objectives and create challenges if informal groups resist change. Effective leaders harness the benefits of group formation while addressing the risks to ensure both cohesion and productivity.
Tania has recently been appointed the new manager of the Procurement Department at a toilet paper manufacturer. She will line manage a team of 8, who all perform different tasks and have a varying level of ability and knowledge. She has noticed that there has been no formal training provided to the team and that some people have been asked to complete tasks they do not feel comfortable with. Overall, performance and morale are both low. Discuss the importance of 1) embedding learning into the culture and 2) role congruence in this scenario (10 points). Describe actions that Tania should take to address the issues (15 points).
Part A -- Embedding Learning into the Culture (5 points):
Embedding learning into the organisational culture means creating an environment where continuous learning and development are valued and encouraged. In Tania's case, this is vital because the team has had no formal training, which contributes to low skills and low morale. A learning culture ensures employees feel supported in developing new abilities, reduces resistance to change, and prepares staff for future challenges. For procurement, this could involve training on negotiation skills, supplier relationship management, or e-procurement tools.
Part B -- Role Congruence (5 points):
Role congruence means ensuring that an individual's skills, experience, and abilities match the tasks they are assigned. At present, some staff are being asked to complete tasks they are not comfortable with, which lowers confidence and morale. Aligning people's roles to their capabilities improves job satisfaction, builds confidence, and enhances performance. For example, a staff member skilled in analysis should be allocated spend analysis tasks, rather than being pushed into high-pressure supplier negotiations without support.
Part C -- Actions Tania Should Take (15 points):
Training and development programmes -- introduce structured training to close knowledge gaps and give staff confidence in their roles.
Role review and alignment -- assess individual skills and reassign tasks to match strengths, ensuring role congruence.
Mentoring and coaching -- pair experienced staff with less experienced members to support learning and build capability.
Encourage continuous learning -- build learning into team culture through workshops, lunch-and-learns, and reflection sessions after projects.
Regular performance reviews -- provide feedback, set development goals, and celebrate progress to improve motivation.
Empowerment and involvement -- involve staff in identifying training needs and improvement ideas to increase ownership.
Recognition and morale building -- acknowledge achievements to rebuild confidence and team spirit.
Conclusion:
Embedding learning into the culture ensures that development is continuous, reducing skills gaps and raising confidence. Role congruence ensures that tasks match people's abilities, improving morale and performance. For Tania, focusing on training, role alignment, coaching, and recognition will rebuild her procurement team into a skilled, motivated, and high-performing unit.
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)
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.
Describe what is meant by a group 'norm', giving examples. (10 points). In what way can group norms affect performance? (15 points).
Definition of Group Norms (10 marks):
A group 'norm' refers to the shared standards of behaviour, values, and expectations that develop within a group. Norms guide how members act and interact, creating predictability and cohesion. They can be formal (set by rules and policies) or informal (emerging naturally over time).
Examples include:
A procurement team having a norm of punctuality for meetings.
A social norm where colleagues share supplier insights openly.
A negative norm, such as tolerating late submission of purchase orders, which may undermine performance.
Norms act as unwritten rules that shape group behaviour and influence the culture of the organisation.
Impact of Group Norms on Performance (15 marks):
Positive norms can enhance performance. For example, a norm of collaboration and knowledge sharing improves innovation and decision-making in procurement projects.
Negative norms can reduce performance. If the team develops a culture of cutting corners in supplier evaluation, this may damage compliance and reputation.
Norms create consistency and cohesion. Members know what is expected of them, reducing conflict and ensuring smoother teamwork.
Peer pressure reinforces norms. High-performing norms, such as meeting deadlines, encourage all members to contribute fully, while low-performing norms, like tolerating absenteeism, can lower standards across the team.
Norms influence motivation and morale. Supportive norms (e.g., recognising achievements) motivate employees, whereas destructive norms (e.g., ignoring contributions) lead to alienation and disengagement.
In procurement specifically, if the norm is strong ethical conduct, the team will collectively avoid corruption risks. If the norm is to focus only on cost savings, the team may neglect sustainability or supplier relationships.
Conclusion:
Group norms are the unwritten rules that shape behaviour within teams. They can have a powerful effect on performance, either enhancing collaboration and accountability or reducing standards and morale. Managers must actively shape positive norms through leadership, communication, and role-modelling to ensure that group behaviour supports organisational goals.
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