1. 1 Oxford Professional Education Group Ltd 1 Advanced Diploma in Procurement & Supply Management in procurement and supply Introduction to the unit Basic concepts and approach

2. 2 Oxford Professional Education Group Ltd 2 Welcome Management in Procurement and Supply One of the three compulsory units for the Advanced Diploma in Procurement and Supply The CIPS Diploma in procurement and supply is a higher level qualification accredited by the Office of Qualifications and Examinations Regulator (Ofqual)

3. 3 Oxford Professional Education Group Ltd 3 Overarching Learning Outcomes (knowledge and understanding) By the end of this unit you should:  Understand the development of management and organisational behaviour  Understand the main approaches to managing individuals involved in the procurement and supply function  Understand the main approaches to managing work groups or teams involved in the procurement and supply function  Be able to develop a plan for the main aspects of human resource management for the procurement and supply function

4. 4 Oxford Professional Education Group Ltd 4 Learning outcome for this introductory session By the end of this session you will:  Be aware of how to relate the requirements stated on the previous slide to the structure of this learning site  Think about your own style of learning and develop an approach to learning that best suits your needs  Be aware of some introductory management theories and concepts  Be aware of the broad requirements of this unit

5. 5 Oxford Professional Education Group Ltd 5 How is the learning structured for this unit? This unit is divided into 8 learning sessions: Session 1 – Theories of organisation and management Session 2 – Individual difference and diversity and learning Session 3 –Motivation and job satisfaction Session 4 - Work Groups and Teams Session 5 -Co-operation and Conflict Session 6 -Human Resource Management (HRM) Session 7 -Recruitment, selection, training and development Session 8 - The Regulatory Framework

6. 6 Oxford Professional Education Group Ltd 6 The Oxford College of Marketing website  The Oxford College of Marketing website contains a wide range of learning materials including:  Webinars  Example examination questions  Videos  PowerPoint slides  and much more

7. 7 Oxford Professional Education Group Ltd 7 Learning styles Honey and Mumford identified four learning styles:  Activists  Reflectors  Theorists  Pragmatists Honey, P. (n.d.)

8. 8 Oxford Professional Education Group Ltd 8 Some initial concepts This final section of the introduction looks at some basic concepts relating to management in procurement and supply

9. 9 Oxford Professional Education Group Ltd 9 CIPS definition of Procurement ‘Procurement is the totality of acquisition starting from the identification of a requirement to the disposal of that requirement at the end of its life. It therefore includes pre-contract activities e.g. sourcing and post contract activities e.g. contract management, supplier relationship management activities. However, it does not include stores management and logistics that are aspects of the wider subject of Supply Chain Management. Procurement generally relates to goods, works and service(s) requirements’. CIPS (2013)

10. 10 Oxford Professional Education Group Ltd 10 Oxford Professional Education Group Ltd The importance of procurement While estimates may vary there is little doubt that for a typical organisation bought in goods and services represent the single most significant proportion of costs ‘Many organisations now have as much as 80% of their turnover comprising bought in goods and services’.CIPS (2013)

11. 11 Oxford Professional Education Group Ltd 11 Oxford Professional Education Group Ltd The importance of good management The previous slide referred to the significant proportion of costs that bought in goods and services represent. However ‘it is still an inescapable fact that people are the main resource of any organisation.’ (Mullins, 2005, p. 4) The potential for human capital to provide an organisation with a competitive advantage is now widely recognised.

12. 12 Oxford Professional Education Group Ltd 12 Oxford Professional Education Group Ltd The need for good management It is commonly said that many business cease trading due to lack of cash. However, according to Alderman Sir Roger Cook, former Lord Mayor of London, cited in Mullins (2005, p. 4) ‘eighty per cent of business failures are down to bad management’.

13. 13 Oxford Professional Education Group Ltd 13 Oxford Professional Education Group Ltd What is management? There are many definitions of management and we will review more in Unit 1. Drucker, cited in Mullins (2005, p. 190), defines management as: ‘Management is tasks. Management is a discipline. But management is also people. Every achievement of management is the achievement of a manager. Every failure is a failure of a manager’. Management is the process of getting results by making the best use of available human, financial and material resources. CIPS (2012, p. 3)

14. 14 Oxford Professional Education Group Ltd 14 Oxford Professional Education Group Ltd The Chartered Institute of Purchasing and Supply (CIPS) ‘CIPS is the premier global organisation serving the procurement and supply profession. Dedicated to promoting best practice, CIPS provides a wide range of services for the benefit of members and the wider business community’ CIPS (2013)

15. 15 Oxford Professional Education Group Ltd 15 Oxford Professional Education Group Ltd Reading The three core texts for this unit are:  Management and organisational behaviour (10 th edition) by Laurie J Mullins & Gill Christy ISBN13: 9780273792642  Human Resource Management (8 th edition) by Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson ISBN 978-0-273-73232-7  CIPS (2012) Management in procurement and supply, Stamford, Profex Publishing Limited

16. 16 Oxford Professional Education Group Ltd 16 Oxford Professional Education Group Ltd References CIPS (2012) Management in procurement and supply, Stamford, Profex Publishing Limited CIPS (2013) Business needs in procurement and supply, Stamford, Profex Publishing Limited Honey, P. (n.d.) The Learning Styles Questionnaire’ [Online], Available at www.peterhoney,com (Accessed 18 th November 2013)www.peterhoney,com Mullins, L. (2013) Management and organisational behaviour, Harlow, Pearson Education Limited.