CIPS L6M1 Question Answer
Discuss the 5 approaches to management of the Blake Mouton Managerial Grid. How can this be applied to the role of a procurement manager? (25 points)
The Answer Is:
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Explanation:
Introduction
Management effectiveness is critical fororganizational success, particularly in functions likeprocurement, where balancing cost efficiency, supplier relationships, and operational effectiveness is key. TheBlake Mouton Managerial Gridprovides aframework for evaluating leadership stylesbased on a manager's concern forpeople (team members, stakeholders, suppliers)versusconcern for production (task completion, efficiency, and profitability).
This essay will discuss thefive approaches to managementoutlined in theBlake Mouton Managerial Gridand explore how procurement managers can apply them to enhance procurement performance.
Understanding the Blake Mouton Managerial Grid
TheBlake Mouton Managerial Grid (1964)classifies management styles based on two axes:
Concern for People– The degree to which a leader considers employeemotivation, satisfaction, and well-being.
Concern for Production (or Task)– The extent to which a leaderfocuses on achieving organizational goals, efficiency, and productivity.
This results infive distinct leadership styles, each with its strengths and weaknesses.
The Five Approaches to Management in the Blake Mouton Grid
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1. Impoverished Management (Low Concern for People, Low Concern for Production)
Description:
Leaders with animpoverishedmanagement styleexert minimal effortto manage people or production.
They oftenavoid decision-making,fail to motivate employees, andshow little interest in organizational goals.
This approach leads tolow productivity, disengaged employees, and poor procurement outcomes.
Impact on Procurement Management:
❌Weak supplier management– Poor relationships with suppliers may lead todelivery delays and contract failures.❌No cost control– Procurement teams may fail tonegotiate favorable pricingdue to lack of leadership.❌Lack of strategic alignment– Procurementfails to support organizational goals, resulting in inefficiencies.
Example:
A procurement manager whoignores supplier performance reviews, does not enforce contract terms, and fails to manage procurement riskswould be practicing an impoverished management style.
2. Task Management (High Concern for Production, Low Concern for People)
Description:
Task-oriented managersfocus solely on efficiency, cost-cutting, and productivity, whileneglecting employee well-being and engagement.
This style ishighly authoritativeand focuses onstrict rules, efficiency, and results-driven processes.
Impact on Procurement Management:
✅Strict cost control– The procurement team willfocus on cutting costs and maximizing efficiency.✅Strong compliance enforcement– Ensures strictadherence to procurement policies and regulations.❌Supplier dissatisfaction– Overly aggressive cost-cutting and negotiation tactics mayharm supplier relationships.❌Low employee morale– Procurement assistants may feelundervalued, leading tohigh staff turnover.
Example:
A procurement manager whofocuses only on cost reduction and efficiency, without considering supplier relationships or team well-being, would fit this style.
3. Country Club Management (High Concern for People, Low Concern for Production)
Description:
Acountry clubmanager prioritizesemployee satisfaction and relationshipsbutneglects productivity and performance.
This results in afriendly, low-pressure environment, but withlow accountability and inefficiency.
Impact on Procurement Management:
✅Strong supplier and stakeholder relationships– Procurement teamscollaborate well with suppliersbut mayoverpaydue to a lack of tough negotiations.✅High team morale– Employees feelvalued and motivated.❌Lack of cost efficiency– Over-prioritizing relationships mayresult in weak cost controls.❌Ineffective risk management– Procurement managers mayfail to enforce strict supplier performance criteria.
Example:
A procurement manager whodevelops strong relationships with suppliers but fails to hold them accountable for poor performanceis practicing country club management.
4. Middle-of-the-Road Management (Moderate Concern for People, Moderate Concern for Production)
Description:
Balances both people and task concerns, but does notexcel in either.
Ensuressome level of efficiency and employee satisfaction, butlacks a strong strategic direction.
Impact on Procurement Management:
✅Balanced supplier relationships– Ensurescost efficiencywhile maintainingsupplier goodwill.✅Moderate employee engagement– The team feelsreasonably motivated, butlacks innovation and strong leadership.❌Missed cost-saving opportunities– Procurement mightfail to maximize valuedue to a lack of strategic focus.❌Lack of strong risk mitigation– The procurement manager may notaggressively manage risks, leading to supply chain disruptions.
Example:
A procurement manager whoperforms adequately but does not drive significant improvements or cost savingsfits this style.
5. Team Management (High Concern for People, High Concern for Production)
Description:
The most effective leadership style, where the managerprioritizes both team well-being and achieving high performance.
Encouragescollaboration, innovation, and accountability.
Focuses onboth supplier relationships and cost efficiency.
Impact on Procurement Management:
✅Optimized supplier performance– Ensuresstrong contract management, strategic sourcing, and supplier collaboration.✅High employee morale and performance– Employees areengaged, trained, and motivatedto drive procurement success.✅Balanced cost and quality approach– Focuses onachieving cost efficiency while maintaining quality standards.✅Encourages innovation in procurement– Usesdata analytics, AI, and technologyto improve procurement processes.
Example:
A procurement manager whomentors their team, fosters supplier partnerships, and ensures cost savings while maintaining ethical procurement practicesfollows ateam managementapproach.
Application of the Blake Mouton Grid to Procurement Management
TheBlake Mouton Grid helps procurement managers identify their leadership styleandimprove team performance and supplier management. Here’s how:
Developing High-Performance Procurement Teams– Procurement managers should strive for ateam management approach, ensuring bothefficiency and employee engagement.
Enhancing Supplier Relationship Management– A balanced approach ensuresfair negotiations, long-term partnerships, and cost efficiency.
Strategic Cost Management– Managers should avoid being overlytask-focused (cost-cutting)ortoo lenient on supplier pricing.
Improving Risk Management– Ensuringstrong governance and compliancewhile maintaining good supplier relationships.
Continuous Improvement– Encouraginginnovation, sustainability, and procurement technology adoption.
Conclusion
TheBlake Mouton Managerial Gridprovides valuable insights intoleadership effectiveness in procurement management. Among the five approaches:
Team Management is the most effective stylefor procurement managers, balancingsupplier relationships, cost efficiency, and employee engagement.
Task Management may be useful in cost-control situations, but must be balanced withethical supplier management.
Country Club, Middle-of-the-Road, and Impoverished Management styles are less effective, as theyfail to balance procurement efficiency and supplier relationships.
Byadopting a "Team Management" approach, procurement managers candrive strategic value, optimize supplier performance, and enhance procurement team capabilities, ultimately contributing to long-term business success