Eskom Procurement Book 2015

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

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