.

Explanation:

Overall explanation

Below you will find how you can plan and draft the essay. Remember this is an example of one way

you could approach the question. At Level 6 the questions are much more open so your response

may be completely different and that's okay.

Essay Plan

Introduction – definition of power and Max Weber

P1 – charismatic power

P2 – rational/ legal

P3 – using power responsibly: training others, accountability/ setting procedures, ethical sourcing

Conclusion – procurement has a lot of power in an organisation. The key to using power is ‘balance’

and using it responsibly

Example Essay

Power, in the context of organizations, refers to the ability of individuals or departments to influence

decisions, actions, and outcomes. Max Weber, a German Sociologist, identified three types of power:

charismatic, traditional, and rational/legal. In this essay, we will focus on two types of power relevant

to the Procurement department – charismatic power and rational/legal power. Additionally, we will

explore how Procurement can responsibly use these powers to help the organization achieve its

strategic objectives.

Charismatic power refers to a type of influence or authority that is based on the personal qualities,

charisma, and appeal of an individual leader. This form of power arises from the compelling and

magnetic personality of a leader, which inspires and motivates followers to willingly and

enthusiastically support their vision and goals. One well-known example of a charismatic leader is

Steve Jobs, the co-founder of Apple. Charismatic leaders have the ability to inspire and motivate

their followers to achieve goals that might seem challenging or even impossible. They often

articulate a compelling vision for the future and communicate it in a way that resonates with others.

Moreover, they exude confidence and enthusiasm, which can be contagious. Their passion and belief

in their vision can energize and mobilize their followers. For this reason, this type of power is often

linked with Transformational Leadership styles.

Rational/legal power is derived from established policies, procedures, and regulations that govern

business processes. It relies on adherence to legal and ethical standards, ensuring fairness,

transparency, and accountability. Rational/legal power is typically exercised in an impersonal and

formal manner. Rather than being contingent on the personal qualities of an individual as with

charismatic power, rational/ legal power is derived from a person’s position within a formal

organizational hierarchy. Weber associated rational/legal power with bureaucratic structures, where

authority is distributed hierarchically, and individuals hold positions based on their qualifications,

expertise, and adherence to established rules. For example, in the Procurement department of an

organisation, the Head of Procurement would hold Rational/ Legal power through their ability to

sign-off on the activities of others. This form of power emphasizes predictability and consistency in

decision-making. Weber points out the downside to this type of power: that leaders with this type of

power can be inflexible and rigid.

In an organisation, the Procurement department would use a mixture of charismatic and rational/

legal power in order to help the organisation achieve their strategic objectives. Some ways this could

materialise include:

Training: Procurement can use a mixture of charismatic and rational power responsibly by providing

training to other departments on aspects of procurement, especially compliance with legislation

(which is critical in the public sector) and achieving value for money. This ensures that the

organization's practices align with legal requirements and maximize cost-efficiency. Delivering

training requires rational power (the training leader needs to know what they’re talking about and

have experience in this), but also charismatic power in order to engage learners. By training other

departments, this will help the organisation achieve its strategic objectives.

Accountability and Reporting: Procurement can responsibly exercise rational/legal power by

establishing clear accountability and reporting mechanisms. This includes ensuring that procurement

decisions are documented, transparent, and in compliance with relevant laws and regulations. An

example of this is creating Standard Operating Procedures, or ensuring Junior members of the team

get approval from a Line Manager to conduct certain activities. This helps the organisation achieve

strategic goals by eliminating (or significantly reducing) its exposure to risk.

Ethical Sourcing: Procurement can use power to address critical issues such as human trafficking

within the supply chain. By setting and enforcing ethical sourcing standards, they contribute to

responsible procurement practices. Procurement can use charismatic power to convince senior

leadership and supply partners of the importance of ethical sourcing, and legitimate power to ensure

that all stakeholders are complying with CSR policies. This could involve the use of gain-share

mechanisms in contracts with supply partners.

In conclusion, Procurement departments wield considerable power within organizations, and the key

to using this power is balance and responsibility. Charismatic and rational/legal powers can be

harnessed to drive and achieve strategic objectives by ensuring ethical, compliant, and efficient

procurement practices. By training, identifying vulnerabilities, and promoting responsible sourcing,

Procurement contributes to the organization's overall success.

Tutor Notes

- You could bring in many different theories when describing two types of power. I’ve chosen two by

Max Weber (he talks about 3 – charismatic, traditional and rational/ legal). But you could have used

some from French and Raven (expert, legitimate, coercive, reward, referent) or Yukl (2010) –

connection power and negative power. There are others too, these are just the main ones explored in

the study guide

- A similar question was asked in March 22 but power is a big topic so may come up again, either

with or without a case study. Another way they could use this topic is discussing ways of using the

different power types to overcome issues.

- Weber’s Types of Power – p. 171. How procurement can use power responsibly – p.177