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Part A – What is needed for a group to be effective (15 points):

For a group to be effective, several conditions must be in place.

Firstly, the group must haveclear objectives and purpose. Without shared goals, members may pull in different directions, leading to inefficiency.

Secondly,strong leadershipis needed to guide the group, set direction, and balance concern for people with concern for tasks. Leadership provides motivation and resolves conflicts.

Thirdly,good communicationensures information is shared openly, problems are raised quickly, and collaboration is smooth. In procurement, this means buyers, finance, and operations align on sourcing decisions.

Fourthly, groups needdefined roles and responsibilities. Clarity prevents duplication of work and ensures accountability. For example, one person may manage supplier contracts while another handles negotiations.

Finally,trust and cooperationare essential. When group members respect and support each other, they are more willing to share knowledge, take risks, and commit to decisions. Psychological safety is key to team performance.

Part B – Importance of different roles in a group (10 points):

It is important that each person plays a different role within the group. According toBelbin’s Team Roles theory, groups are more effective when individuals contribute complementary strengths. Roles may include “Shapers” who drive action, “Plants” who bring creativity, “Implementers” who turn plans into reality, and “Monitor Evaluators” who provide critical analysis.

If everyone in the group plays the same role, important skills may be missing. For example, a procurement team made up entirely of “Shapers” may generate energy but lack careful analysis, leading to poor supplier selection. Conversely, a balanced team ensures creativity, organisation, and delivery are all present.

Conclusion:

For a group to be effective, it needs clear goals, leadership, communication, defined roles, and trust. It is also important that members bring different strengths and roles, as this diversity improves problem-solving and ensures the group performs to its full potential.

Theories of management provide different ways of understanding how organisations can be led effectively. Two important perspectives are thesystems approachand thecontingency approach. Both move beyond early “one best way” classical theories and instead highlight the complexity and adaptability required in modern organisations.

Thesystems approachviews the organisation as an integrated whole made up of interdependent subsystems such as HR, finance, operations and procurement. It is based on systems theory, seeing organisations as “open systems” that interact with their external environment. Inputs such as people, information and resources are transformed into outputs such as products, services and stakeholder value. Feedback loops are essential to monitor performance and make adjustments. The key idea is synergy — the whole is greater than the sum of the parts. For example, in procurement, sourcing decisions influence not only supplier performance but also finance (budgets), operations (continuity), and CSR (sustainability). A systems approach ensures that procurement strategies are aligned to wider organisational goals and continuous improvement.

Thecontingency approachdevelops this idea further, arguing that there is no universal way to manage. Instead, the best approach depends on situational factors such as environment, size, technology, or workforce capability. It rejects “one-size-fits-all” rules and stresses that management must adapt. For example, in a stable market, a hierarchical structure with formal rules may work well, whereas in volatile markets, flexible and decentralised decision-making is more effective. In procurement, this could mean using strict process controls for routine, low-value items, but adopting agile, collaborative approaches when managing strategic supplier partnerships in uncertain global supply chains.

In comparison, the systems approach gives managers aholistic viewof how different parts of the organisation connect and interact with the external environment, while the contingency approach emphasisesadaptabilityand situational leadership. Together, they suggest that effective managers need both a broad systems perspective and the ability to tailor their approach depending on context.

In conclusion, the systems approach stresses coordination, integration and feedback across the organisation, while the contingency approach stresses flexibility and the idea that “it depends.” Both are highly relevant to procurement and supply leaders who must integrate across functions and adapt strategies to dynamic and uncertain supply environments.

Definition of Emotional Intelligence (5 points):

Emotional Intelligence (EI), popularised by Daniel Goleman, is the ability to recognise, understand, and manage one’s own emotions as well as the emotions of others. It involves self-awareness, self-regulation, motivation, empathy, and social skills. A high EQ enables individuals to manage stress, build strong relationships, and influence others effectively.

Benefits of High EQ in Procurement (20 points):

Improved Negotiation Skills:Procurement professionals with high EQ can read emotions, adapt communication styles, and manage conflict effectively during supplier negotiations. This leads to stronger outcomes and sustainable supplier relationships.

Stronger Stakeholder Management:EQ helps buyers understand the needs and concerns of internal stakeholders (finance, operations, CSR). This fosters trust, persuasion, and collaboration in category strategies.

Conflict Resolution:In diverse teams or complex supply chains, conflict is common. High EQ managers can defuse tensions, listen actively, and find win-win solutions, maintaining team cohesion and supplier cooperation.

Resilience Under Pressure:Procurement often deals with supply crises, deadlines, or cost pressures. High EQ professionals manage stress, stay calm, and make rational decisions under pressure, maintaining credibility.

Team Leadership and Motivation:Managers with high EQ can inspire, coach, and support individuals, recognising different personalities and motivations. This improves morale, retention, and performance in procurement teams.

Ethical and Responsible Behaviour:High EQ includes empathy and awareness of wider impacts. Procurement leaders with EQ are more likely to consider ethical sourcing, sustainability, and supplier welfare, aligning decisions with organisational values.

Change Management:Procurement functions often undergo transformation (e.g., digital tools, supplier consolidation). Leaders with high EQ can communicate sensitively, understand employee concerns, and build buy-in for change.

Conclusion:

Emotional intelligence is the ability to manage emotions and relationships effectively. In procurement, high EQ strengthens negotiations, builds trust with stakeholders, resolves conflicts, motivates teams, and supports ethical and sustainable practices. It is therefore a critical capability for procurement leaders aiming to achieve both operational excellence and strategic value.