Intrinsic and extrinsic motivation (10 points):

Motivation refers to the internal drive that influences people’s behaviour and performance.

Intrinsic motivationcomes from within the individual and is linked to personal satisfaction, enjoyment, achievement, or a sense of purpose. For example, a procurement professional may feel motivated by solving complex supplier challenges or contributing to sustainability goals.

Extrinsic motivationcomes from external rewards such as pay, bonuses, promotions, or recognition. For instance, a buyer might be motivated by achieving cost savings to receive a financial bonus.

Both types of motivation are important in the workplace. Intrinsic motivation sustains long-term commitment, while extrinsic rewards provide short-term incentives. Effective managers balance both to maximise performance.

One theory of motivation (15 points):

A widely used theory isHerzberg’s Two-Factor Theory. Herzberg identified two sets of factors that influence motivation:

Hygiene factors– these do not motivate if present, but if absent, they cause dissatisfaction. Examples include salary, working conditions, policies, supervision, and job security. For example, if procurement staff lack proper tools or fair pay, they may feel dissatisfied, but simply improving pay will not necessarily make them highly motivated.

Motivators– these are intrinsic to the job and lead to satisfaction and motivation. They include achievement, recognition, responsibility, personal growth, and meaningful work. For instance, giving a buyer responsibility to lead a supplier negotiation or recognising their success increases intrinsic motivation.

Herzberg’s theory highlights that managers cannot rely on pay and policies alone. They must remove dissatisfaction by ensuring fair hygiene factors and then boost engagement by providing motivators. In procurement, this could mean ensuring fair contracts, proper systems, and clear processes (hygiene factors), while also giving staff opportunities for training, career progression, and recognition (motivators).

Conclusion:

Intrinsic motivation is about internal satisfaction, while extrinsic motivation relies on external rewards. Herzberg’s theory shows that managers should address hygiene factors to avoid dissatisfaction but must focus on motivators to truly drive performance. For procurement and supply leaders, combining both ensures staff remain engaged, loyal, and productive.

Part A – Knowledge Transfer (10 points):

Knowledge transfer refers to the process of sharing skills, experience, insights and information from one person or group to another within an organisation. It ensures that valuable expertise is not lost and that best practice can be replicated. This can happen formally, such as through training, mentoring, or documented procedures, or informally, through conversations, collaboration, and shared experiences. In procurement, knowledge transfer might involve senior buyers passing negotiation tactics to junior colleagues or documenting supplier performance insights in a shared database.

Part B – Ensuring Strong Knowledge Management (15 points):

Managers play a key role in creating systems and cultures that support knowledge sharing. Some ways include:

Creating knowledge repositories– using databases, intranets, or category management playbooks where information is stored and accessible to all team members.

Encouraging mentoring and coaching– pairing experienced staff with new employees helps transfer tacit knowledge that may not be written down.

Promoting collaboration and teamwork– cross-functional project teams and regular knowledge-sharing meetings spread expertise across functions.

Using technology– collaboration platforms (e.g., SharePoint, Teams) allow procurement staff to record supplier insights, lessons learned, and contract data in real time.

Rewarding knowledge sharing– recognising and incentivising individuals who share expertise encourages a culture of openness rather than knowledge hoarding.

Embedding learning in processes– after-action reviews, lessons-learned sessions after supplier negotiations or tenders ensure experiences are captured systematically.

Leadership behaviours– managers must role-model transparency and collaboration, showing staff that sharing knowledge is valued.

Conclusion:

Knowledge transfer is about ensuring that critical experience and expertise are shared across the organisation. Managers can ensure strong knowledge management by combining systems, processes, and culture – from IT tools and databases to mentoring and recognition. In procurement, effective knowledge management helps avoid repeated mistakes, builds stronger supplier relationships, and improves decision-making across the team.

Understanding individuals is crucial for effective leadership. People bring unique qualities to the workplace, which influence how they behave, perform, and interact. Four important factors that make up the individual are as follows.

Firstly,personalityplays a major role. Traits such as extroversion, conscientiousness, or openness (from models like the Big Five) influence how individuals communicate, make decisions, and fit into teams. For example, an extrovert may thrive in negotiation roles, while an introvert may excel in analytical procurement tasks.

Secondly,attitudes and valuesshape how individuals respond to work situations. Values around ethics, sustainability, or fairness can influence motivation and alignment with organisational culture. In procurement, a professional with strong ethical values may be more resistant to corruption risks.

Thirdly,perception and motivationaffect behaviour. Individuals interpret situations differently, and motivation theories such as Maslow, Herzberg or McGregor’s Theory X/Y show how personal drivers impact performance. Some may be motivated by pay, others by recognition or career development.

Finally,abilities and skillsdefine what individuals can contribute. These include technical competencies, problem-solving skills, and interpersonal abilities. A skilled negotiator, for example, adds significant value to a procurement team.

Managers must also choose effective ways to lead teams. Three common approaches are:

Autocratic leadership– where the manager makes decisions without consulting the team. This can be effective in crises or routine, highly regulated tasks (e.g., compliance procurement), but risks low morale if overused.

Democratic or participative leadership– where managers involve team members in decision-making. This improves engagement, creativity, and buy-in. For example, involving procurement staff in category strategy development can generate stronger results.

Laissez-faire leadership– where the manager provides minimal direction, allowing the team high autonomy. This works well when teams are highly skilled and self-motivated, but may cause confusion if individuals lack experience.

In conclusion, individuals are shaped by their personality, values, perceptions/motivations, and skills, all of which affect their workplace performance. Managers can choose between autocratic, democratic, or laissez-faire leadership depending on the situation. Successful leaders adapt their style to the individuals and teams they manage, ensuring both high performance and motivation.

Part A – Sources of Conflict (15 points):

Conflict is natural in groups and arises when individuals or teams have incompatible goals, interests, or behaviours. Three common sources are:

Task-based conflict– This occurs when members disagree about the content of the work, objectives, or methods. For example, in a procurement team, conflict may arise over whether to prioritise cost savings or sustainability in supplier selection.

Relationship conflict– This stems from personality clashes, communication breakdowns, or differences in working styles. For instance, an extroverted negotiator may clash with an introverted analyst who prefers data-driven approaches.

Resource conflict– Groups often compete for limited resources such as time, budget, or staff. In procurement, this could occur if multiple project teams require the same supplier’s resources or internal budgets.

Part B – Outcomes of Conflict (10 points):

Positive outcomes:

Can lead to creativity and innovation as different perspectives are debated.

Encourages problem-solving and improvement of processes.

Strengthens understanding when conflicts are resolved constructively.

Negative outcomes:

May reduce morale and trust if personal attacks or unresolved tension occur.

Can delay projects, damage productivity, and harm relationships with stakeholders or suppliers.

Creates stress and alienation, leading to higher turnover if prolonged.

In procurement, positive conflict may lead to innovative supplier solutions, while negative conflict may damage supplier negotiations or internal collaboration.

Conclusion:

The three main sources of conflict are task, relationship, and resource issues. Conflict is not always harmful – it can drive improvement and creativity if managed well, but if left unresolved, it can damage morale, performance, and stakeholder relationships. Managers must therefore encourage constructive conflict while minimising destructive forms.

One widely used model for classifying stakeholders isMendelow’s Power-Interest Matrix. This model categorises stakeholders based on their level of power (ability to influence decisions) and their level of interest (degree of concern in the issue). It helps managers decide how to engage with different stakeholders effectively.

High Power / High Interest – Key Players:These stakeholders must be closely managed and fully engaged. For example, the Finance Director or Hospital CEO when approving a high-value purchase. Procurement should provide detailed briefings, involve them in decision-making, and ensure their concerns are addressed.

High Power / Low Interest – Keep Satisfied:These stakeholders can influence outcomes but may not have strong interest in day-to-day procurement. For instance, regulatory bodies or legal advisors. Procurement should provide concise updates and ensure compliance to avoid dissatisfaction.

Low Power / High Interest – Keep Informed:These stakeholders care about the outcome but have limited influence. For example, end-users of medical equipment or nurses in a hospital setting. Procurement should communicate progress, seek feedback, and maintain transparency.

Low Power / Low Interest – Minimal Effort:These stakeholders require only basic information. For example, general staff not directly impacted by a procurement decision. Simple updates or summaries are enough to keep them engaged.

When communicating about ahigh-value purchase, the Procurement Function should tailor its communication strategy according to this classification. Key players (high power, high interest) must be involved early with full transparency, including risk assessments and supplier evaluations. Stakeholders with high interest but low power should be consulted to build trust and buy-in, while those with high power but low interest should receive enough information to stay satisfied. Procurement should also ensure consistent, professional communication that reflects the importance of the purchase and builds confidence in the process.

Conclusion:

Mendelow’s Power-Interest Matrix provides a structured way to classify stakeholders. By adapting communication to each category – managing key players, keeping others satisfied or informed – the Procurement Function ensures effective stakeholder engagement, minimises resistance, and gains approval for high-value purchases.

Group Conformity (10 marks):

Group conformity refers to the tendency of individuals to align their attitudes, beliefs, and behaviours with the norms of the group to which they belong. People conform because they want acceptance, fear rejection, or assume the group’s judgement is correct. Conformity ensures cohesion and cooperation but may limit creativity. For example, in procurement, a junior buyer may adopt the team’s approach to negotiations, even if they personally believe another method could achieve better results.

Groupthink and its Effects (15 marks):

‘Groupthink’, a term developed by Irving Janis, occurs when the desire for consensus overrides realistic appraisal of alternatives. Members suppress doubts, ignore risks, and fail to voice disagreements to maintain harmony. This can seriously affect group behaviour in several ways:

Illusion of invulnerability– Groups may become overconfident and underestimate risks. For example, a procurement team might agree to single-source a supplier without considering supply chain risks.

Suppression of dissent– Members may withhold concerns to avoid conflict. This stifles creativity and prevents better solutions from being considered.

Pressure for uniformity– Individuals may feel obliged to agree even when they disagree. A buyer may stay silent when senior managers push for a supplier contract, even if they know the supplier has performance issues.

Biased decision-making– Groups may ignore warning signs or alternative perspectives, leading to flawed decisions. In procurement, this could mean overlooking ethical issues in a supplier relationship to maintain harmony with stakeholders.

Reduced accountability– Responsibility is shared across the group, so individuals may feel less accountable for poor decisions.

Groupthink can therefore lead to poor decision-making, increased risk, and lost opportunities. It is particularly dangerous in high-stakes environments like procurement, where mistakes in supplier selection or contract negotiation can damage cost, quality, and reputation.

Conclusion:

Group conformity means individuals adapt to group norms to gain acceptance, while groupthink is a negative consequence where consensus is prioritised over critical evaluation. For managers, recognising the risk of groupthink is vital. By encouraging open discussion, appointing a “devil’s advocate,” and welcoming diverse views, leaders can ensure group decisions are both inclusive and effective.

TheCIPS Code of Conductsets out the ethical standards expected of procurement professionals. By adhering to this code, buyers are guided to remain impartial, transparent, and fair in all their decisions, ensuring that supplier selection and procurement practices are ethical and free from bias.

Firstly, the code requires professionals to act withintegrity. This means avoiding conflicts of interest, declaring personal relationships with suppliers, and making decisions based on facts and evidence rather than personal preferences. For example, a buyer cannot award a contract to a supplier owned by a friend without declaring the relationship.

Secondly, the code emphasisestransparency and fairness. Procurement professionals must ensure all suppliers are treated equally and given the same information during tendering processes. This prevents favouritism or hidden advantages for certain suppliers.

Thirdly, the code demandsprofessional competence. This includes basing supplier decisions on objective evaluation criteria such as cost, quality, risk, and sustainability, rather than subjective or biased views. By applying standard evaluation models, professionals avoid unconscious bias.

Fourthly, the code promotesaccountability. Procurement professionals are expected to keep proper records of decisions and provide audit trails. This reduces the opportunity for unethical practices such as bribery or corruption and ensures decisions can be justified.

Finally, the code supportssustainability and social responsibility. By considering environmental, ethical, and social factors in procurement, professionals act in the best interests of society and avoid discriminatory or exploitative practices.

Conclusion:

By following the CIPS Code of Conduct, procurement professionals remain unbiased by avoiding conflicts of interest, ensuring fairness, and using objective criteria. They also act ethically by maintaining transparency, accountability, and responsibility to wider society. This builds trust with stakeholders, improves supplier relationships, and protects the reputation of both the individual and their organisation.

When major change is introduced, employees often experience strong emotions. TheChange Curve, based on Elisabeth Kübler-Ross’s grief model, describes the stages staff may go through when faced with organisational change.

The first stage isShock/Denial. The procurement assistants may initially resist the idea of e-procurement, insisting that the paper-based system “has always worked.” Sayed should communicate openly about why the change is needed and provide clear facts about its benefits.

The second stage isAnger/Resistance. Staff may feel threatened, fearing loss of control or concern that they will not have the skills to manage digital systems. They may complain or openly resist. At this point, Sayed should listen empathetically, address concerns, and provide reassurance that training and support will be available.

The third stage isExploration/Acceptance. Gradually, staff begin to see potential benefits, such as less paperwork and faster processes. Curiosity grows, and employees start experimenting with the new system. Here, Sayed should encourage participation, offer pilot training, and allow staff to test the system in a safe environment.

The fourth stage isCommitment/Integration. Once staff feel competent and confident, they fully adopt the change. At this stage, Sayed should reinforce the success, recognise achievements, and celebrate improvements, such as reduced errors or faster ordering.

How Sayed Should Act:

Communicate clearly– explain why digitalisation is important (efficiency, accuracy, competitiveness).

Provide training and support– ensure assistants feel capable of using the new e-procurement tools.

Involve the team– allow staff to give feedback on system design or pilot trials to increase buy-in.

Be empathetic and patient– acknowledge fears and provide reassurance during resistance.

Reinforce success– highlight early wins and show how the change benefits both the team and the organisation.

Conclusion:

The team is likely to experience stages of shock, anger, exploration, and eventual commitment as they move through the change curve. Sayed must act as a supportive leader by communicating openly, offering training, involving staff, and recognising progress. This approach will help the team transition smoothly to e-procurement and ensure the change is successful.

Aheterogeneous or diverse workforcerefers to a group of employees with varied characteristics, backgrounds, and perspectives. Diversity can relate to visible differences such as age, gender, ethnicity, or disability, as well as invisible factors like personality, values, experiences, and thinking styles. A diverse workforce is valuable because it brings multiple perspectives, creativity, and innovation, which can improve decision-making and problem-solving. However, it can also create challenges in communication, conflict management, and team cohesion if not managed effectively.

In procurement and supply management, diversity can mean having team members from different professional disciplines, cultural backgrounds, or experience levels. This mix can lead to better supplier negotiations, innovation in category strategies, and greater sensitivity to global ethical standards. For managers, the challenge lies in understanding and leveraging individual differences to build cohesive, high-performing teams.

One useful personality model for understanding team members is theBig Five Personality Traits (OCEAN model). This model is widely accepted in psychology and provides a framework for identifying personality differences across five dimensions:

Openness to Experience– measures creativity, curiosity, and willingness to try new things. In procurement, high openness could support innovation in supplier strategies.

Conscientiousness– relates to organisation, responsibility, and dependability. A conscientious buyer is likely to follow compliance rules and deliver accurate work.

Extraversion– reflects sociability, assertiveness, and energy. Extroverts may excel in supplier negotiations and stakeholder engagement.

Agreeableness– indicates cooperation, empathy, and trust. Highly agreeable individuals may be effective in collaboration but could avoid conflict even when necessary.

Neuroticism (Emotional Stability)– refers to sensitivity to stress and emotional control. Low neuroticism (high stability) is ideal in high-pressure procurement negotiations.

By applying this model, a manager can gain insights into the personalities of their team, allocate roles effectively, and provide tailored support. For example, a procurement leader may assign highly conscientious individuals to compliance-heavy processes, while extroverts may be placed in supplier-facing roles.

The use of the Big Five also helps managers balance team dynamics, identify potential conflict, and design training or coaching interventions. Understanding personality traits supports motivation strategies (e.g., Herzberg, Maslow), builds stronger communication, and enhances trust within diverse teams.

In conclusion, a heterogeneous workforce brings significant benefits but requires skilful management to harness its potential. The Big Five Personality Traits provide a structured and evidence-based tool for understanding individuals, enabling managers to lead diverse teams more effectively and align strengths with organisational goals.

Procurement plays a central role in engaging with different stakeholders. Effective collaboration ensures efficiency, compliance, and value creation. The way procurement collaborates can vary depending on the stakeholder group. Two examples aresuppliersandother departments within the organisation.

Collaboration with Suppliers:

Procurement must develop strong relationships with suppliers to ensure continuity of supply, cost efficiency, and quality. This involves activities such as contract negotiation, performance monitoring, and supplier relationship management (SRM). Collaboration often focuses on building trust, sharing forecasts, and working on joint initiatives like innovation or sustainability. For example, in a manufacturing firm, procurement may collaborate with a fabric supplier to develop new eco-friendly materials. The relationship can be transactional for routine items or strategic for high-value, critical suppliers.

Collaboration with Other Departments:

Internally, procurement must work closely with functions such as Finance, Operations, and Marketing. Collaboration ensures that procurement strategies align with organisational needs. For example, Finance may require procurement to manage budgets and compliance, while Operations depends on procurement for timely materials. Collaboration may involve cross-functional teams, joint decision-making, and regular communication. For instance, procurement and product development may work together to source innovative materials that match design requirements.

Comparison:

Both collaborations require trust, open communication, and alignment of goals.

With suppliers, collaboration often focuses externally on securing value and innovation. With internal departments, it focuses on aligning procurement activity with business objectives.

Supplier collaboration may involve formal tools like contracts, KPIs, and SRM frameworks, whereas internal collaboration relies more on teamwork, communication, and shared processes.

Contrast:

Suppliers are external stakeholders, so procurement must manage risks, legal compliance, and negotiation dynamics. Internal departments are internal stakeholders, requiring influence, persuasion, and partnership.

Supplier collaboration aims at building long-term external relationships; internal collaboration ensures smooth workflows and organisational efficiency.

Conclusion:

Procurement collaborates with both suppliers and internal departments, but the focus differs. Supplier collaboration is about external value creation and innovation, while internal collaboration is about aligning processes and achieving organisational goals. Successful procurement professionals adapt their approach to meet the needs of each group while ensuring overall business success.

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.