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Solution
Executive Summary
In this module of leadership and management in procurement and supply, a business report has been developed which evaluate the approaches to leadership and management within Eco2Solar organisation. This entail an evaluation of the impact of leadership and management on organisational behaviour, impact of leadership approaches on job satisfaction and the sources of power within the organisation and their use. This report has also evaluated on the importance of equality and diversity policies within Eco2Solar organisation. By using PESTLE external analysis tool, this research has identified leadership and management as being two different concepts despite often used interchangeably. Also, they have been identified to have a significant implication on the organisation behaviours. The leadership styles impact directly the organisational behaviours. Also, leadership and job satisfaction have been evidenced as directly correlated. By use of available peer reviewed works and CIPS Notes, leadership approaches have been noted to impact on an organisation employees wellbeing. This is with a people-cantered leadership being evidenced as the most appropriate as opposed to task-centered for organisation success in highly competitive business environment. Further, by use of Mendelow Matrix, stakeholders analysis has been conducted which has evidenced the scope in which power is distributed and exerted for the success of the organisation. This is with Eco2Solar organisation equality and diversity policy being identified and the potential benefits incurred. Finally, due to the identified gaps and suggestions of improvement, a set of recommendations have been generated which include;
- initiating coaching and mentoring sessions to enable followers to appreciate their leaders roles
- Integrate transformational with situational leadership which Eco2Solar
- Invest on an appropriate communication plan for influencing their different stakeholders.
- Establishing a system to ensure they harness efficiency in their resolution with minimal hindrances
- Diversify their eProcurement system to net suppliers who meets the other departments in the organisation diversity requirement.
- Merging departments to enhance efficiency and eliminate wastages associated with their current leaders and managers roles duplication
1.1 Organisation Background and Procurement and Supply Management (PS&M) 5
1.2 Selected Category of Spend in Eco2Solar Organisation. 6
2.0 Impact of Leadership and Management on Organisational Behaviour 7
2.1 Leadership and/or Management in Eco2Solar 7
3.1 Concept of Job Satisfaction. 11
3.2 Leadership approaches impact on Job Satisfaction. 11
4.0 Sources of Power within the organisation. 16
4.2 Sources of Individual Power 18
6.0 Conclusion and Recommendations. 21
Figure 1:Leadership and Management in procurement benefits. 5
Figure 2:Eco2Solar organisation Procurement and Supply Leadership and Management 6
Figure 4:Model of diagnosis of organisation behaviour impacts. 9
Figure 5: Nadler-Tushman Congruence Model 10
Figure 6:Factors influencing Eco2Solar Employees satisfaction. 11
Figure 7:Leaders Role on Employees Wellbeing. 13
Figure 8:Eco2Solar Organisation Leadership Grid. 14
Figure 9:Eco2Solar Stakeholders Categories. 16
Figure 10:Mendelow Matrix Stakeholders Analysis. 17
Figure 11:Sources of Individual and Organisation Power 18
Figure 12:Power/Dependency Matrix. 19
Figure 13:Eco2Solar Organisation contents of the Equality and diversity policy. 20
1.0 Introduction
In modern business environment, organisations fail to appropriately spend their million of dollars budgeted for procurement and supply owing to lack of appropriate leadership and management. This is supported by CIPS (2021) which note that a successful adoption of procurement approaches after the foundational spend analysis, it is dependent on an entity support structure, systems, processes, policies set and performance measures which link the organisation behaviours. The importance of this is identified by Asante and Boakye (2019) as the leadership and management as supporting influence of entire aspects of procurement and supply which range from new systems development, green procurement, and improvement of transparent practices. As a result, inexistence of leadership and management supply lead failure of multiple procurement and supply strategies as the top managements and leadership fails in harnessing the sustainable relationships and promoting a high-level interaction in negotiation as a best practice. This importance of leadership and management was also affirmed by Delloitte (2022) which had focused on 481 top-performing global CPOs from 38 countries with the organisations representing an integrated annual turnover of upwards of $5 trillion. The findings in the report on the importance of leadership and management are as illustrated in figure 1 which evidenced value creation at 50%, digital transformation (45%), leverage on competitive advantage (30%) and maximising productivity as the importance of integrating leadership and management approaches.
Figure 1:Leadership and Management in procurement benefits
Source: Summarised from Delloitte (2022)
Based on this background information, this business report focuses on evaluating the approaches to leadership and management within Eco2Solar organisation. In this report, the impact of leadership and management on organisational behaviour, impact of leadership approaches on job satisfaction and sources of power within the organisation and how these are used being evaluated. Finally, the importance of equality and diversity policies within the organisation has also been generated.
1.1 Organisation Background and Procurement and Supply Management (PS&M)
Eco2Solar organisation has been in active operations in UK Energy sector since 2007 with a focus of addressing current climatic change threats (Eco2Solar, 202). The focus of the organisation in UK is to reduce the overall CO2 emissions and fuel shortages/costs increase by offering an alternative solar energy. Over these years, Eco2Solar has been offering solar energy solutions to newly constructed residential homes and different commercial installations. The target market of the organisation include and not, limited to the multinationals including Barratts, Taylor Wimpy, Linden Homes, David Wilson and Lovells. For success of the organisation in their business area, being the most appropriate strategy, their business scope has included health centers (40%), learning institutions (50%), care homes (30%) and individuals apartments installations (20%). Today, the organisation has an average of profitability of approximately £10 million which is gained from their past involvement in different projects.
The success of the organisation in its procurement and supply department is because of successfully investing in good leadership and management. As shown in figure 2, through an embrace of hierarchical structure, there is a clear hierarchy of leadership in the organisation. Particularly, in the current COVID-19 pandemic, the organisation has been able to manoeuvre through immense challenges owing to their successful leadership and management system.
Figure 2:Eco2Solar organisation Procurement and Supply Leadership and Management
1.2 Selected Category of Spend in Eco2Solar Organisation
Since early 2021, Eco2Solar organisation had been involved in the implementation of 2000 solar powered projects in UK Estates (Eco2Solar, 2022a). This was an opportunity that the management and leadership of the organisation identified as being essential for Eco2Solar owing to the increased demand for energy in UK after the prevalence of COVID-19 pandemic. As evidenced in Solar Power Portal (2022), it note that 15% of buyers of new build properties had noted solar panels as the most critical installation and feature they prioritise on their operations and influence their decisions of purchasing. Hence, by focusing on the identified project, it would be essential for evaluating the scope in which leadership and management are engaged in the project. This will mirror the overall organisation operations and importance of leadership and management in the organisation.
2.0 Impact of Leadership and Management on Organisational Behaviour
The leadership and management concepts are noted in some research works as being used interchangeably. Core to most of the interpretations, CIPD (2021) identify the leadership as noted as including a process of development of an initial vision and inspiring others on the process of achieving a vision. This is with management including translation of vision into reality through a guidance of actions and behaviours of a group of people every day. In CIPS CIPS (2021) define leadership as being linked with a process followed to influence, encourage ad motivate others. This is with management being linked with control, telling, and implementing tactical actions. Further, while leadership embraces other people, two-way communication, feedback and empowerment, management represent dictation, controlling, authority and the process followed. Hence, in line with the provided definitions, it is evident that both have an appropriate position in an organisation. Often, the managers operate over leaders.
2.1 Leadership and/or Management in Eco2Solar
In Eco2Solar organisation, owing to the nature of their procurement and supply department, they operates both leadership and management. To affirm this, for Eco2Solar organisation to achieve an installation of energy systems to more than 20,000 buildings in UK solar Power Portal (2021) such as learning institutions, hospitals, medical centers, universities and distribution centers, this has been due to an effective management and leadership. For instance, in the organisation, the great managers ensures a smooth and effective running of these projects and ensuring all things are done. They harnessing planning, organising and coordinating all the operations in the identified projects. On the other hand, the leadership in Eco2Solar follows the best practice to inspire, motivate and innovate. For instance, through an appropriate leadership in the procurement and supply department, Solar Power Portal (2019) note that the organisation was able to sign an exclusive supply deal with house building firm Redrow Homes and partnered with heat battering firm Sunamp for delivering pilot project for Solar PV-Powered domestic heating.
For affirming that Eco2Solar organisation has both leaders and managers, the RACI Matrix can be used. As evidenced in CIPS (2020) this is a model used in understanding and managing various stakeholders in a particular project. The project of focus in this case is the recent installation of 20,000 Buildings in UK. The project RACI Matrix is as illustrated in figure 3;
Responsibility– At the initial phase of the project, the procurement manager was to source all materials not available in Eco2Solar organisation for purchasing. This is with the HR leader being tasked with a role of resourcing the best employees to be part of the installation process.
Accountable– As a leader of Eco2Solar, the board of directors leader and CEO had been tasked with the implementation of the project. The positive outcomes of the project would successfully be credited for the process.
Consulted– Prior making the decision making, the finance department manager and also the innovation managers would be engaged in the process and consulted in the entire installation process.
Informed– The top leadership and management in Eco2Solar would be engaged actively in the process implementation. This is with their needs being engaged in the process implementation.
Further, in terms of impact on organisation behaviour, Champoux (2010) note that leaders and/or managers have an influence of how people behaves in an organisation as an organisation does not behave. For the sake of demonstrating the impact of existence of leadership and management in Eco2Solar organisation, PESTLE Analysis can be used. As evidenced in the CIPS NOTES, Nadler and Tushman (1980) model of diagnosis of the organisational behaviour, the factors as shown in figure 4 can be used;
Figure 4:Model of diagnosis of organisation behaviour impacts
Source: Nadler and Tushman (1980)
Hence, as shown in figure 4, the impact to organisation behaviour is dependent on how the PESTLE Analysis factors influence the demand and also the response of system (people, culture, tasks and formal systems).
Political- As a result of the Brexit policy, the leaders, and managers in Eco2Solar were aware of the changes in purchase and selling of electronic equipment and solar system from EU (Solar Energy UK, 2021). In the identified project, this prompted them to establish a new communication program for creating awareness among the employees.
Economic- In UK, owing to the COVID-19 pandemic, UK Parliament (2021) report note that the GDP reduced with 9.7% in 2020. As a result, UK citizens focused on prioritising on strategies for people to reduce the demand for energy. As a result, in 2021, to meet the gap, the leadership recommended the procurement and supply in Eco2Solar to set strategies for meeting the gap of demand for energy.
Social- In UK, the culture has significantly changed influencing the demand for local employment, job opportunities, improving life standards and community development. Similarly, for the Eco2Solar procurement and supply leadership, they prompted an increased investment on sourcing of the renewable materials.
Technological- UK is ranked as one of the best in terms of investment in technology. As such Eco2Solar (2019) highlight that the management has put on plans in the organisation for integrating smart technologies. This is with an intention of meeting the 3% of the UK overall energy demands.
Environmental- Eco2Solar CEO ensures that all their operations are based on achieving the 2009 UK renewable energy policy of achieving 15% of overall energy consumption from renewable resources by 2020 (GSHPA, 2021). This being a formal system, the organisation has been instrumental in the process implementation.
Additionally, to evidence the impact of leadership and management in Eco2Solar, the Nadler-Tuchman Congruence Model can also be used (see figure 5);
Figure 5: Nadler-Tushman Congruence Model
According to GSHPA (2021), the Nadler-Tushman Congruence Model is appropriate to note on the issues impacting on performance and addressing them for improving performance. For Eco2Solar organisation, as a best practice, the management ensure that the tasks set, structure and culture are fitting collaboratively and working harmoniously with each other. Achieving this imply a high-level performance and achieving the set and organisation goals. The leadership in the organisation in turn set the inputs for use which include resources (financial, human, and technical), history (past investment in similar projects). The overall business performance is achieved evidenced in their output which is organisation, group and individual.
Currently, in Eco2Solar, situational leadership style is followed. This is also applied by the management in the organisation. As evidenced in MSG (2022) this has a positive implication in influencing performance and productivity in workplace. This is by encouraging the managers in the organisation to be flexible based on the situations. Nevertheless, there is a need for the leadership in the organisation to invest in capacity development as this is a significant gap that is evident creating a disconnect between their followers and the assigned work roles in the organisation.
3.0 Impact of Leadership Approaches on Job Satisfaction
3.1 Concept of Job Satisfaction…….
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