External Resource Management Case Study Example | Topics and Well Written Essays - 2000 words

External Resource Management - Case Study Example No doubt, Ron has done the work delegated to him by the section head in the proper working order. But we are not informed that Simon is aware of Fred Gibson's requisition. Hence, a conflict can arise here, as Simon would think that Ron has taken the initiative to hire the vending machine, because he saw only the usual contract letter, sent to him by Ron for authorising the hire. Purchasing department has its own rules and regulations of weighing the commodity and grouping the supplies. "To bring the user and supplier in direct contact, purchasing must establish the business framework. The buyer researches each commodity and groups the items by family or by possible sources of supply," Harding 1990, p.119). Ron's mistake, although could be unknown to him, is that he did not inform Simon that the vending machine was according to instructions of Fred Gibson, who found the deal cheap and reasonable at only 32 per week as hiring charges. Fred has recommended that Snackshop Vending Machine should be hired from one of the known suppliers, A B Drinks System. Fred, in his requisition slip has also mentioned that he has already spoken to the said suppliers and Mr. Pearce, the Sales Executive of the potential suppliers has agreed to pay 625 for the old snacks vending machine that is being currently used on site and Fred has clearly recommended that the weekly rent and purchase of old machine, both are on the side of their company, and should be attended to immediately. To Simon, this has come in the most unconventional way and not as the usual purchasing function as part of supply chain. "The purchasing function should ensure an optimal supply system, which must be geared towards the needs of production and materials planning. In other words, the purchasing function is a very important link in the production and supply chain of organisation," Weele (2002, p.25). In many traditional organisations, managers do not realise that Procurement management need not be always 'by the book'. It can change in many ways and the main logic behind its constant change is the ultimate service and ethical profit for the company and within this framework, there could be many different approaches. "The overall conclusion must be, however, that there is no simple blueprint which can be applied to successful procurement management. One cannot argue that collaboration is superior to competition, or that partnership sourcing and just-in-time offer a simple route to success," Lamming and Cox (1995, p.20). But many managers like Simon do not look at it from that angle. In the capacity of General Manager, Fred Gibson is within his rights while handling the issue. Perhaps he went slightly wrong in not going through proper channel. Usually people like Simon are conventional while dealing with other people at work place. They usually feel threatened to go out of the written rules. They do not like to create precedents, as they are unsure of workers' temperament. They will be apprehensive about further demands of workers, if more liberty is granted to them. They are usually insecure in their places and guard the connected prestige and hierarchy with great zeal and changing these attitudes is not always easy. "The real problem is to get people to fundamentally change their behaviour so that they become the actors who will operate in such a way that 'best practice'