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CHAPTER 3
THE PLANNING, ORGANISING, LEADING AND CONTROL OF PROCUREMENT
3.4.6 NETWORK ORGANISATIONAL STRUCTURE
This type of structure is appropriate for an organisation that outsources some
services to separate companies that are working under contract and are
connected electronically to the central headquarters. Figure 3.5 is an organogram
of the network organisational structure.
Figure 3.5:
Network organisational structure.
One of the most important tasks of a procurement department is to develop the
appropriate macro- and micro-organisational structures. The macro-organisation
mainly deals with the teams and sub-teams, whereas the micro-organisation
covers the work flow within the project.
3.5 LEADING
Leadership refers to the ability to influence people towards the attainment of
company goals [7]. It is a process that involves something happening as a
result of the interaction between a leader and followers. However, in order to
understand this process one has to consider the interaction of three elements: the
leader, the followers and the situation. To understand the role of the leader, one
must understand his or her personality, position and experience. Understanding
the role of followers includes considering their values, norms and motivations;
and understanding the situation includes assessing the external and internal
environment.
Amajor challenge facing organisations is how to develop a generation of leaders
who understand how to make procurement a critical core competency. Failure
to do so minimises the chances of winning in the marketplace, particularly
as companies rely on suppliers for an ever increasing amount of value-add.
Effective leadership is a necessary prerequisite for creating an effective supply
management organisation. The skills required of effective leaders are constantly