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 anorm of punctualityfor meetings.

A social norm where colleaguesshare 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.

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.

Part A – Three Ways a Procurement Professional Could Be Biased (15 marks):

Personal Relationships / Conflicts of Interest:A buyer may favour a supplier due to friendship, family connection, or long-standing personal ties. For example, awarding a contract to a supplier owned by a relative, even if another supplier offers better value. This undermines fairness and can damage organisational reputation.

Preference for Incumbent Suppliers (Status Quo Bias):Professionals may repeatedly select the same suppliers simply because they are familiar, ignoring new entrants who could provide better innovation, cost savings, or sustainability. This limits competition and supplier diversity.

Cultural or Geographical Bias:A procurement professional may favour local suppliers over international ones, or show unconscious bias against suppliers from certain regions. While local sourcing can have benefits, excluding other suppliers without objective evaluation reduces fairness and potentially increases costs.

(Other possible biases include brand preference, ignoring SMEs, or favouring suppliers who provide personal benefits – but only three are required for full marks.)

Part B – Benefits of Remaining Unbiased (10 marks):

Remaining unbiased means making supplier decisions based on objective, transparent, and fair criteria such as cost, quality, delivery performance, risk, and sustainability. The benefits include:

Fairness and Transparency:All suppliers have equal opportunity, protecting the organisation’s integrity and compliance with regulations.

Best Value for Money:Objective evaluation ensures the chosen supplier offers the best mix of cost, quality, and service.

Encouraging Innovation:By considering a wider pool of suppliers, procurement can benefit from new ideas and technologies.

Ethical Compliance:Avoids corruption, fraud, or bribery, maintaining alignment with the CIPS Code of Conduct.

Reputation and Trust:Stakeholders and the market see the organisation as professional and ethical, which strengthens long-term supplier relationships.

Conclusion:

Procurement professionals may show bias through personal relationships, favouring incumbents, or cultural preferences. Remaining unbiased ensures decisions are fair, transparent, and ethical, leading to better value, innovation, and stronger supplier trust. This supports both organisational objectives and the professional standards of procurement.

Stakeholders can exert influence over procurement decisions in different ways. French and Raven identifiedfive types of powerthat stakeholders may hold. Each has different implications for how procurement interacts with them.

1. Legitimate Power:

This comes from a stakeholder’s formal position or authority. For example, a Finance Director may require procurement to comply with budgetary controls. Procurement must respect legitimate authority but can also influence decisions by providing evidence and business cases.

2. Reward Power:

This is based on the ability to provide benefits or incentives. For example, senior management may reward the procurement team with recognition or bonuses for achieving savings. Procurement can use this positively by demonstrating performance and aligning with organisational goals.

3. Coercive Power:

This is the power to punish or impose sanctions. For instance, a project manager may pressure procurement to prioritise their project by threatening escalation if deadlines are missed. Procurement must manage this carefully, balancing demands with fairness and compliance.

4. Expert Power:

This arises from specialist knowledge or skills. For example, a procurement professional with strong knowledge of supplier markets holds expert power, which can influence strategic decisions. Conversely, technical departments may hold expert power in specifying product requirements, requiring procurement to collaborate closely.

5. Referent Power:

This is based on personal relationships, respect, or charisma. For example, a well-liked senior stakeholder may influence procurement decisions even without formal authority. Procurement must manage these situations by maintaining objectivity while leveraging strong relationships to gain support.

Comparison of Interaction with Procurement:

Legitimate poweroften requires compliance, while procurement may respond with process adherence and evidence-based justification.

Reward powercreates motivation for procurement, but risks short-term focus if overused.

Coercive powercan create conflict and stress; procurement must use negotiation and diplomacy to manage.

Expert powercan be collaborative, as procurement and stakeholders share knowledge to improve outcomes.

Referent powerrelies on trust and relationships, which procurement can use to build coalitions and support for initiatives.

Conclusion:

The five types of power – legitimate, reward, coercive, expert, and referent – shape how stakeholders interact with procurement. Understanding these power bases enables procurement professionals to adapt their approach, whether through compliance, persuasion, collaboration, or relationship-building. This ensures stakeholder management supports both procurement objectives and organisational goals.

A culture of lifelong learning means that employees see continuous development as a normal part of their work, rather than a one-off event. For a procurement manager, embedding this culture requires leadership, systems, and consistent encouragement.

The first step is tolead by example. If the procurement manager demonstrates commitment to professional learning (e.g., pursuing CIPS qualifications or attending industry events), team members are more likely to follow. Role-modelling is a powerful way of embedding culture.

Secondly, the manager can createstructured training and development programmes. This could include formal training courses on negotiation, category management, or e-procurement systems, combined with informal methods like mentoring and peer learning. Having clear learning pathways ensures staff know how to develop their careers.

Thirdly, the manager should encourageknowledge sharingwithin the team. This may involve “lunch and learn” sessions, after-action reviews of sourcing projects, or creating knowledge repositories where lessons learned are stored for future use. Sharing experiences embeds learning into daily work.

Fourthly,embedding learning into performance managementis key. Training and development goals should be included in staff appraisals. For example, procurement assistants could be required to complete CPD (Continuing Professional Development) hours each year as part of their objectives.

Fifthly, the manager shouldencourage external engagement. Attending conferences, webinars, or supplier innovation workshops exposes staff to new ideas and best practices. In procurement, this is vital for staying ahead of supply chain trends such as sustainability or digitalisation.

Sixthly, the manager shouldrecognise and reward learning efforts. When staff complete training, gain qualifications, or demonstrate new skills, this should be acknowledged publicly. Recognition motivates others to commit to learning.

Finally, the manager should ensure thatresources and time are allocatedfor development. Lifelong learning will not happen if staff are overloaded with daily tasks. By scheduling training days or setting aside budgets, the manager signals that learning is valued.

Conclusion:

A procurement manager can embed lifelong learning by role-modelling development, providing structured training, encouraging knowledge sharing, linking learning to performance reviews, and recognising achievements. By creating this culture, the department becomes more skilled, innovative, and motivated, which ultimately delivers greater value to the organisation.

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.

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.