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THE FACTORS HINDERING SUCCESSFUL IMPLEMENTATION OF

PROCUREMENT SYSTEM IN THE ORGANIZATION. (CASE STUDY: COUNTY


OFFICE OF KERICHO)

BY
PRISTY JELOFET

A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE


REQUIREMENTS FOR THE AWARD OF DIPLOMA IN BUSINESS MANAGEMENT
OF THE KENYA INSTITUTE OF MANAGEMENT

SEPTEMBER, 2013

DECLARATION
This research project is my original work and has not been presented to any other body for the
Award of Diploma in Business Management of the Kenya Institute of Management.

NAME
Signature ..

Declaration by the supervisor


This research proposal has been submitted with my approval as the Kenya Institute of
Management supervisor
Lecturers name.
Kericho branch
Signature .. Date

Declaration by the Management for and on the behalf of the Kenya Institute of Management.
Branch executive Name .
Branch Name
Signature Date .

ii

DEDICATION
To my dear Mother, Brother and Sisters for their encouragements, financial support and moral
support throughout my studies. I really appreciate all of them.
I love you all and may God bless you

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ACKNOWLEDGEMENT
I wish to give my profound acknowledgement to my supervisor for the support he accorded to
me throughout the period of my writing. I do give credit also to my pals and family members for
their charismatic support and guidances they gave to me. My sincere thanks goes to our
Almighty God for the good health he accorded to me in my entire endeavors. To all I say thank
you and may the Lord bless you abundantly.

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ABSTRACT
The aim of this paper is to determining the factors hindering successful implementation of
procurement system

in the organization. The researcher used the following objectives in

deriving the conclusion and data of the study: To determine the importances of procurement
systems in the organization, to find out challenges that affects effective implementation of
procurement systems, to determine methods used by the organization in implementing
procurement systems. The researcher uses a sample of 50 respondents to help in data acquisition.
Stratified sampling technique was used it is the most appropriate method for collecting data and
its advantages over other methods. The scope of the study is limited to Kericho County Office
located in Kericho town along Kericho- Nakuru highway, The office is situated within the
Municipality offices . The present study was carried out from the month of May to August.

TABLE OF CONTENTS
DECLARATION ............................................................................................................................ ii
DEDICATION ............................................................................................................................... iii
ACKNOWLEDGEMENT ............................................................................................................. iv
ABSTRACT .................................................................................................................................... v
TABLE OF CONTENTS ............................................................................................................... vi
LIST OF TABLES ....................................................................................................................... viii
LIST OF FIGURES ....................................................................................................................... ix
LIST OF ABBREVIATIONS ......................................................................................................... x
CHAPTER ONE ............................................................................................................................. 1
1.1 Introduction ........................................................................................................................... 1
1.2 Background of the study ....................................................................................................... 1
1.3 Statement of the problem ...................................................................................................... 3
1.4 The study objectives .............................................................................................................. 4
1.4.1 General objective................................................................................................................ 4
1.4.2 Specific objectives .............................................................................................................. 4
1.5 Research questions ................................................................................................................ 4
1.6 Significance of the study ....................................................................................................... 4
1.7 Limitation of the study. ......................................................................................................... 5
1.8 The scope of the study ........................................................................................................... 5
1.9 Conceptual framework .......................................................................................................... 5
CHAPTER TWO ............................................................................................................................ 7
2.0 LITERATURE REVIEW ...................................................................................................... 7
2.1 Introduction ........................................................................................................................... 7
2.2 Main review........................................................................................................................... 7
2.3 Measures and methods to implement procurement process effectively .............................. 10
2.4 Challenges facing procurement system implementation. .................................................... 11
2.5 Methods used by the organization in procurement system ................................................. 17
Order Processing Cycle ......................................................................................................... 23
CHAPTER THREE ...................................................................................................................... 26
3.0 RESEARCH DESIGN AND METHODOLOGY............................................................... 26
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3.1 Introductions........................................................................................................................ 26
3.2 Research design ................................................................................................................... 26
3.3 The target population .......................................................................................................... 26
3.3 Sampling techniques and procedures .................................................................................. 27
3.4 Data collection instruments and procedures ........................................................................ 28
3.5 Validity and reliability of the research instruments ............................................................ 28
3.6 Data analysis techniques and procedures ............................................................................ 29
CHAPTER FOUR ......................................................................................................................... 30
4.0 INTRODUCTION .................................................................................................................. 30
4.1 Data collection..................................................................................................................... 30
4.2 Response Rate ..................................................................................................................... 30
4.2.1. Age of the respondents .................................................................................................... 31
4.2.2 Level of education ............................................................................................................ 31
4.2.3 Marital status .................................................................................................................... 32
4.3. Response on the challenges that affect effective implementation of procurement system in
the organization. ........................................................................................................................ 32
4.4 Response on the methods used by the Organization in implementing procurement system
................................................................................................................................................... 35
4.4.1 Response on the major problem in the organization ........................................................ 36
4.5 .1 Responses on adequate availability of funds and other variables made by the
respondents. ............................................................................................................................... 41
CHAPTER FIVE .......................................................................................................................... 43
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION ........................................... 43
5.1 INTRODUCTION ............................................................................................................... 43
5.2 Summaries of major findings .............................................................................................. 43
5.3 Recommendation ................................................................................................................. 44
5.4 Recommendation for further research. ................................................................................ 45
REFERENCES ............................................................................................................................. 46

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LIST OF TABLES

viii

LIST OF FIGURES

ix

LIST OF ABBREVIATIONS
COF County Office of Kericho
LPO Local Purchase Order
EP Electronic Procurement

CHAPTER ONE
1.1 Introduction
This chapter covers the background of the study, statement of the problem, the study objectives,
research questions, significances of the study, the scope of the study and the conceptual
framework.
1.2 Background of the study
Procurement encompasses the whole process of acquiring property and or services. It begins
when an agency has identified a need and decided on its procurement requirement. Procurement
continues through the processes of risk assessment, seeking and evaluating alternative solutions,
contract award, delivery of and payment for the property or services and, where relevant, the
ongoing management of a contract and consideration of options related to the
contract. Procurement also extends to the ultimate disposal of property at the end of its useful life
(Waters 2004).
Sound public procurement policies and practices are among the essential elements of good
governance (KIPPRA, 2006). Otieno (2004) notes the irregular procurement activities in public
institutions provide the biggest loophole through which public resources are misappropriated.
According to Thai (2001), the basic principles of good procurement practice include
accountability, where effective mechanisms must be in place in order to enable procuring entities
spend the limited resources carefully, knowing clearly that they are accountable to members of
the public; competitive supply, which requires the procurement be carried out by competition
unless there are convincing reasons for single sourcing; and consistency, which emphasizes the
equal treatment of all bidders irrespective of race, nationality or political affiliation.
The rise of e-business in the late 1990s led to the development of new opportunities related to
procurement: procurement system, spend management, outsourcing and joint product design
(Lancioni, Smith, and Oliva, 2000). The advent of the Internet as a business systems platform
has been a catalyst for major changes in the operation and status of organizational procurement.

Information Technologies have changed the way organizations and governments operate. As
noted by Nelson et.al. (2001), the majority of organizational spending consists of purchasing. In
order to decrease the total costs spent on purchasing process, internet technologies are used and
procurement system has become popular to implement in the latest era by both governments and
enterprises. Although the opportunities for improvement seem abound, both private and public
sector are still cautious as far as the adoption of electronic technologies is concerned (Zheng,
Caldwell, Harland, Powell, Woerndl, and Xu, 2004). Ward and Peppard (2003) indicate that 60%
of Information Technology application in procurement initiatives and projects do not deliver the
expected benefits.
The use of Information Communication Technologies (ICTs) has dramatically changed services,
business models and peoples expectations of the quality and efficiency of information sharing
and service delivery (Brown, 2005; Maniam, 2005).Development in information and
communication technology, especially the Internet helps the application of alliances used by the
manufacturers to become more effective through the integration of firms information
technology (IT) infrastructure
Private and public sector organizations have been utilizing Information Technology (IT) systems
to streamline and automate their purchasing and other processes over the past years. It is only in
the past decade that procurement system systems have attracted attention. While there is debate
about how recently procurement system has emerged, (Dai & Kauffman, 2001; Koorn, Smith &
Mueller, 2001), there is no doubt that the use of the Internet in procurement system provides
several advantages over earlier inter-organizational tools. For example, Electronic Data
Interchange has been providing automated purchasing transactions between buyers and their
suppliers since it was launched in the 1960s. Enterprise Resource Planning (ERP) followed in the
1970s, and then came the commercial use of the Internet in 1980s. It was only in the 1990s that
the World Wide Web the multimedia capability of the Internet - became widely enabled and
provided the essential resource for the automation of procurement (OGC, 2002).
Procurement system refers to the use of Internet-based (integrated) information and
communication technologies (ICTs) to carry out individual or all stages of the procurement
process including search, sourcing, negotiation, ordering, receipt, and post-purchase review
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(Croom& Brandon-Jones, 2004). While there are various forms of procurement system that
concentrate on one or many stages of the procurement process such as e-Tendering, eMarketplace, e-Auction/Reverse Auction, and e-Catalogue/Purchasing, procurement system can
be viewed more broadly as an end-to-end solution that integrates and streamlines many
procurement processes throughout the organization. Businesses have realized that time and cost
savings can be achieved by having a link with major suppliers through private networks such as
electronic data interchange (EDI). The internet has enabled firms to even centralize their
procurement and logistics systems that previously conducted in every country they operated.
Procurement system has become one of the most successful applications of electronic commerce
(e-commerce), having been implemented by many companies seeking better business processes
(Aberdeen Group, 2001). Kalakota and Robinson (2000) have identified benefits in cost saving,
improved efficiency, measurement and single data entry; consequently, these are the three
catalysts driving growth in the procurement system area. Procurement system is the procedure
that involves goods procurement automation by use of internet. This process leads to significant
reduction in both cost and time. As noted by Quinnox (2012), procurement system is a very
comprehensive phenomenon which includes making strategic initiatives and it can be used in
reorganizing the entire purchasing process.
1.3 Statement of the problem
Public procurement has, for long, been overshadowed with inefficiency, corruption and disregard
of fundamental "value for money" considerations. This has adversely impacted the rate and
quality of progress in realizing the objectives of national development, especially in developing
and transition countries. Employees may neither engage in, nor give the appearance of engaging
in, dishonest or unethical actions. Both are injurious to the publics perception of honest
government. As a government employee, you might have access to procurement and other
nonpublic information that could affect a contract bid or the award process. Improper disclosure
of such protected information could violate numerous laws, as well as ethics rules. It also could
subject you to administrative actions, as well as civil or criminal penalties. Management in
contracting authorities should ensure that there is an appropriate focus on good practice in

purchasing and, where there is a significant procurement function that procedures are in place to
ensure compliance with all relevant guidelines.
Officials involved in procurement must not make improper use of their position. Officials may
have access to very confidential and/or market sensitive information. It is unethical to use inside
information provided to the agency as part of a tender process, either for the material benefit of
the official or for another person.
1.4 The study objectives
1.4.1 General objective
i.

The study focus on determining the factors hindering successful implementation of


procurement system in the organization.

1.4.2 Specific objectives


i.

To determine the importances of procurement systems in the organization

ii.

To find out challenges that affects effective implementation of procurement


systems.

iii.

To determine methods used by the organization in implementing procurement


systems.

1.5 Research questions


i. What are the importance of procurement systems to the organization?
ii. What are the challenges that affect effective implementation of procurement system in
the organization?
iii. What are the methods used by the organization in implementing procurement systems?
1.6 Significance of the study
Effective implementation of procurement system in the organization promotes
accountability and transparency hence helps to avoid occurrences of corruption issues in
the firm.
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The results from the study shall enable the Organization to adopt to best procurement
system methods as recommended by the researcher in making orders and tenders.
The study shall provide historical background information to other researcher carrying
out the study in the related field, which would help to develop appropriate measures and
policies to procurement of goods and services in the organization.
1.7 Limitation of the study.
Inadequate availability of funds to the researcher is one of the major hindrance to
comprehensive study of the project.
Lack of enough time for carrying out the study is yet another limiting factor.

1.8 The scope of the study


The study is confined to County office of Kericho. The study focus on determining the factors
that hinders successful implementation of procurement systems in the organization.. The study
will be carried out between the month of June to September and it target population of 50
respondents in aid of data findings.

1.9 Conceptual framework


The conceptual framework explains the relationship between the dependent and the independent
variables in the study. In this study, the dependent variable is procurement success. It is
considered dependent since the success of any procurement system depends on the outcomes
from very many factors. Several single factors acting individually have a collective impact on the
success on an procurement system. The independent variables in this case are the factors that
lead to success of procurement systems. Among these factors are: Staff training; top management
support; users and buyers; selection of actual procurement system; among others. These factors
are the independent variables whose collective effect will lead to the success of procurement
systems.

Independent variables
Dependent variable
Critical success factor

User acceptance of new


information system

Information quality

Trust

Risk perception

Staff training

Users and buyers

Successful procurement
system

Interpretation
Critical Success Factors
User acceptance of new information system- This is the ability of the procurement unit to
adopt the new procurement system in the normal day to day procurement activities
Information quality The information provided by the vendor should be accurate and reliable
so as to avoid giving out fallacious information which will hinders successful implementation of
procurement process in the organization
Trust Procurement procedures should be accorded with total honesty and transparency so as to
enhance accountability of procurement process in the organization
Risk perception The procurement process should not befree of any notion of risk bearing
factor so as to promote efficiency and effectiveness in the organization

CHAPTER TWO

2.0 LITERATURE REVIEW


2.1 Introduction
This chapter shows the factors hindering successful implementation of procurement system in
the organization. The literature review covers, main review and critical review. This literature
will help the researcher get in depth of the problems being investigated. It will help the
researcher to improve methodologies and procedures in the study without duplication of other
studies carried out on the same problem.
2.2 Main review.
In many developing countries, public procurement has not been viewed as having a strategic
impact in the management of public resources. It was largely treated as a process-oriented,
back- office support function often implemented by non-professional staff of the buying
agencies. Consequently, little effort was expended to ensure that the policies and rules and the
institutional framework governing the procurement system were maintained in a manner that
ensured that public funds were used in the most efficient and economic way and that the system
delivered the best value for money. (David 1997 ), Recently, however, this has been changing.
In the face of shrinking budgets and the need to fight corruption, governments are realizing that
significant savings can be gained by a well-organized procurement system. Many developing
countries have also realized that a well-organized procurement system contributes to good
governance by increasing confidence that public funds are well spent.

Many developing

countries have therefore instituted reforms aimed at making the procurement system more
transparent and efficient and increasing the accountability of public officials.
Reforming public procurement systems has, however, proven to be quite difficult. This paper
discusses some of the major issues developing countries who are considering or who are faced
by in the process of carrying out procurement reform. After a brief discussion of the countries
who are reforming their systems and the impetus for reforms, the paper thus discusses the key
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indicators of a weak procurement system, and the obstacles that developing countries face in
reforming weak systems. The paper then suggests some of the strategies that can be employed in
overcoming such obstacles.
Countries that are reforming procurement systems can be divided into four general categories
characterized by their stage of economic development and the issues driving the reform efforts.
According to Berkowitz (1997), One category consists of those countries whose economies are
in transition from planned or socialist economies to market-based systems. These countries have
no recent history of competitive public procurement as government essentially supplied to itself
through bater or other trading mechanisms between public entities. They therefore have had to
design and implement new procurement systems to provide mechanisms for the government to
buy from the private sector on an open, competitive basis. The second group of countries could
be described as the middle income countries. Many of these countries have had market-based
procurement systems in place but are in the process of modernizing such systems. The push
towards modernizing their procurement systems is motivated by a number of factors, most of
which can be traced to the need to satisfy the demands of a more enlightened citizenry for more
efficient and transparent systems of service delivery by government and for greater
accountability in the management of public expenditures. The third group of countries could be
described as developing countries. In many of these countries, the procurement systems differ
very little from those that were put in place during the colonial era.

Acceptance of the

importance of proper management of public expenditures, including the fight against corruption
have motivated such countries to modernize their procurement systems. Influence from the
donor community has also been a factor in urging and providing resources to support the
reforms.

Reform of public procurement systems is also taking place in the industrialized

economies. The motivation to reform in these countries is largely driven by the fact that
governments are significantly changing the profiles of what and how they are buying (e.g.,
moving away from goods and works into buying services, and using private financing for
delivery of public services including infrastructure), the need to use new information and
communication technologies throughout the procurement process and the introduction of new
concepts of public sector management which establish value for money as a goal of the

procurement process, leaving agencies with a fair amount of discretion on how to achieve this
goal. (Beardent, 2007)
Procurement Restoration in the organization
A strong and well-functioning procurement system would be one that is governed by a clear
legal framework establishing the rules for transparency, efficiency and mechanisms of
enforcement, coupled with an institutional arrangement that ensures consistency in overall policy
formulation and implementation. A professional cadre of staff that implements and manages the
procurement function is also necessary. Studies and assessments of procurement systems in
many developing countries, however, have consistently indicated weaknesses in most if not all of
these areas.
With regard to the legal framework, reviewers have found that developing countries often dont
have a generic procurement law or that, where a procurement code exists, the procedures are
non-transparent or are vaguely defined. Another typical finding in many jurisdictions is the
existence of a multiplicity of legal texts governing procurement that are often contradictory.
Reforms of the legal framework will therefore be aimed at providing a regime that is clearly
identifiable and that has a high enough juridical level to make it easily enforceable.
Furthermore, such a regime should also establish the basis for a competitive and transparent
procurement process with strong self-reinforcing mechanisms. The minimum elements of such a
process should include the following requirements (i) effective and wide advertising of
upcoming procurement opportunities, (ii) public opening of bids, (iii) pre-disclosure of all
relevant information including transparent and clear bid evaluation and contract award
procedures (iv) clear accountabilities for decision making, and (v) bidders enforceable right of
review when public entities breach the rules. This is according to Belch (1995).
With regard to the institutional arrangements, one consistent weakness in most developing
countries is the lack of an entity within government that is charged with overall responsibility for
formulation of procurement policy and to ensure that the system is functioning properly. This
normally leads to diverse interpretations and implementation of existing rules across various
public agencies and even within some of the agencies. More seriously, the lack of an entity that

has oversight responsibilities for the proper functioning of the procurement system creates
serious gaps in the enforcement of rules. The combination of lack of predictability in application
of existing rules and weak enforcement creates enormous opportunities for abuse of the system
often with total impunity. Institutional reforms have therefore been aimed at creating entities
that are empowered to formulate policy, assist in enforcement of the new legal framework and
provide tools for the buying agencies to carry out their functions properly. The other aspect in
which developing countries are reforming the way in which procurement is carried out is by
bringing professionalism to those who carry out and manage the procurement function.
According to Fred R. David,(1998), Raising the strategic profile of procurement by making it
core to good service delivery necessitates the formation of a professional cadre of public officials
to implement this function. Instituting ongoing training programs and having a scheme within
the public service that enables procurement professionals to gain seniority commensurate to their
expertise and experience have been the cornerstones of reforms in this area.
2.3 Measures and methods to implement procurement process effectively
A review of countries involved in procurement reform efforts indicates that, so far,
comprehensive procurement reforms have largely been successful only in those countries in East
and Central Europe that have been implementing a transition from socialist, planned economies
to open, competitive market-based economies. The results in those countries that have had
existing (albeit weak) competitive procurement systems is at best mixed.

Only a few

successfully implemented full-fledged reforms in the three areas mentioned above.


Success in the transition economies can, however, be explained by the fact that governments did
not have a public procurement system based on open competition, transparency and market
principles. In the period of transition, these countries have had to implement market-based
systems including those governing public procurement.

They have done so by enacting

substantive procurement legislation normally based on the Model Law on Procurement of


Goods, Works and Services.

Most of them have also established entities whose role is

procurement policy formulation and general oversight over the procurement system. They have
also attempted to professionalize the procurement function by instituting continuous training
programs for those carrying out procurement.
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Outside the transition economies, success in achieving comprehensive procurement reforms has
proven more difficult. While many countries have attempted to implement fundamental changes
to procurement systems, there isnt much evidence of these efforts achieving full fledged,
fundamental reforms. Most post-colonial states, for example, have maintained procurement
systems that largely resemble pre-independence regimes. Where attempts have been made to
bring about significant changes, these have essentially amounted to marginal tinkering with some
of the rules while leaving the general framework intact.
2.4 Challenges facing procurement system implementation.
Reasons for this lack of success in implementing reforms are varied but also interlinked. The
most difficult obstacle is the lack of political will at the highest levels of Government to
significantly overhaul an existing system. The underlying reasons for this may be many. The
following are the most apparent:
Deeply vested interests and lack of political will:
Public procurement is the process by which large amounts of public funds are utilized by public
entities to purchase goods and services from the private sector. Vast amounts of money are
therefore expended through the public procurement system. A procurement system that has loose
or opaque rules and which are also poorly enforced provides opportunities for misuse of the
contract award process through corruption or other patronage arrangements. Those in the private
sector and their collaborators in the public institutions who benefit from such flawed systems
have a very deep vested interest in the maintenance of the status quo. Vested interests in such
systems can also manifest themselves in various other ways. They could, for example, include
local business cartels who may have an interest in maintaining a legal framework that prohibits
competition from foreign suppliers. In many developing countries, access to public contracts
also serves as a means to reward political supporters and of financing political parties.
According to Belch (1995),Fundamental reforms to a system in which some or all of those vested
interests exist calls for the dismantling of entrenched practices and institutions (both formal and
informal) with a view to injecting greater transparency and competition to the system and
increasing the accountability of public officials. However, those wishing to maintain the status
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quo resist change quite strongly because such reforms will normally involve the loss of direct
economic and or political benefits. Furthermore, the political leadership often lacks the will to
expend the political capital necessary to overcome the resistance of often powerful economic
forces.(Donald, 1996)
Further, while the opposition to reform will rarely be public or overt, it is also evident that it is
much more difficult to achieve significant changes in those countries where the system has been
identified as seriously flawed. The experience in a number of those countries is that despite
many attempts at implementing change and the use of significant resources to bring about
reforms. In many cases achievements are limited, funds may be used in preparation of reports,
recommendations and position papers, draft laws and other instruments may be discussed but no
action is taken to implement the proposed changes.
Another group with a vested interest in maintaining the status quo is often the individuals or
entities managing the reform process. Whoever drives the process essentially determines the
outcomes. However, the government officials who are in charge of overseeing or managing the
flawed system that needs to be fundamentally reformed are often put in charge of the reform
effort or have some control over how the process proceeds. Management of the reform process
by those in the bureaucracy who have a stake in the maintenance of the status quo leads to
inaction and lack of implementation even where there is no discernable public opposition to
reforms..
Inability to overcome the resistance of those with vested interests can manifest itself in many
ways. For example, even where the government may have publicly committed itself to reforms,
endless and circular discussions on what the reforms should constitute including such issues as
the type of legal instrument that should be prepared and the manner of administrative
arrangements to put in place are used as a means of forestalling progress. As these discussions
continue, no actual steps are taken to change the existing structures.
Paucity of technical knowledge and capacity:
In addition to the problems associated with resistance of vested interests and lack of political will
is the paucity of technical knowledge on the key ingredients of a well-functioning, modern legal
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and institutional public procurement framework. This is further compounded by the lack of
knowledge on how to marshal reforms through the political and bureaucratic processes and on
how to manage change.

Preparation of a proper and comprehensive procurement legal

framework demands that those undertaking the work possess a combination of good legal skills
and substantial knowledge of good procurement practices and procedures including related
institutional issues. Ideally, the team managing the reforms should also be well versed in
overcoming the challenges inherent in implementing reforms in an environment that may not be
fully supportive of such reforms, Hile (1996)
However, most procurement practitioners in developing countries posses only some technical
procurement skills but normally lack knowledge the larger policy and other issues necessary to
plan, manage and implement wide-ranging reform efforts. It is even more difficult to find local
lawyers who are technically proficient on procurement matters. This paucity of technical skills
locally necessitates the use of foreign consultants in drafting of laws and other legal instruments.
And while access to foreign skills can be very useful in transferring knowledge, such consultants
need to take great care to ensure that proposed legislation corresponds to the local legal
structures and traditions. Drafting of such texts by foreign consultants without strong input from
local lawyers may also contribute to a lack of buy-in by those who should be managing the
reforms locally.
Complexity of substantive issues involved:
An added complication to the dearth of technical skills and knowledge is the fact that some of
the issues that have to be considered in the context of implementing fundamental reforms are
quite complex and often require innovative thinking and some hard decisions. Some of the more
difficult issues that reformers have to tackle include the type of legal instrument to be used, how
to optimally organize the procurement function and what kind of institutional arrangements to
put in place.
Organizing the procurement function
One issue that raises difficulties in implementing procurement reform is the extent to which the
procurement function should be decentralized. Although the organizational arrangements may
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differ significantly between different countries, many developing countries have generally
maintained elements of a centralized procurement system. This is according to Visar and Nisar
(1999). This normally includes mandatory prior review of all contracts above a certain threshold
by a central tender board, centralized purchasing of common user items and little delegation of
authority to the user agencies. Problems of inefficiency and lack of accountability associated
with such a centralized system has, however, led many countries to move towards a more
decentralized arrangement where the user agencies manage all the procurement for their own
needs. One of the key benefits of a centralized arrangement is that it removes the diffusion of
accountability for procurement decisions by placing this within the agency that holds the funds.
It also enables capacity to be built in the user agencies where there is a greater need. However,
in contemplating the move to such a decentralized system, a number of difficult issues have to be
tackled. These include the manner in which oversight over the decentralized system should be
managed, how to leverage the buying power that comes with centralized purchasing especially of
common user items and how to create adequate capacity in the buying agencies to tackle types of
procurement they had no responsibility over before.
In dealing with the oversight problem, many countries have coupled decentralization of the
procurement function with the creation of central entities with oversight and enforcement
responsibility. However, in countries without the history of such an agency, vigorous debates
can occur regarding the powers and responsibilities that such an entity should have, the extent to
which it should be endowed with operational independence and where such an entity should be
placed within existing government structures. This is in regard to Ingram( 1988).
Enforcement
In carrying out assessments of existing procurement systems, one constantly finds that abuse of
the procurement system arises largely due to weak or inconsistent enforcement of the prevailing
rules. This is clearly reflected by the dissonance between the prevailing formal rules and what
actually takes place in practice during the procurement process. Public entities will go to lengths
to create a semblance of formal compliance with procedural and other requirements while
seriously compromising the intent and spirit of such rules. In severely compromised systems,

14

even this veneer of formal compliance is not observed mainly because public officials and their
private sector accomplices have no fear of retribution.1
Ambiguities and gaps in the rules also lead to different interpretations and practices that are
mainstreamed. And, when the problem is framed as one of lack of enforcement, doubt is often
expressed as to whether replacing existing rules with a new legal framework will, result in any
radical improvements. This can be a difficult question because, while the lack of enforcement
can partly be traced to the weakness in the rules themselves, a solution will require a multifaceted approach. It will include for example, strengthening the right of bidders to obtain redress
when the public entities breach the rules, forcing greater transparency into the decision-making
process (including public notification of contract awards) coupled with other institutional
oversight mechanisms such as procurement audits. The challenge lies in achieving proper
balance so that mechanisms of enforcement do not become so heavy as to make the system
inefficient and costly. Bearden Forge (2001).
Methods of providing solution to the implementation process
Develop a Strategy:
The most important step towards overcoming obstacles to fundamental reforms of the public
procurement system is an analysis of where the problems with the system lie, what solutions
would be needed to solve the identified problems and the obstacles that would be faced in trying
to achieve those solutions. Once the assessment indicates that significant problems with the
procurement system are of a systemic nature, it is crucial to formulate strategies aimed at
diffusing obstacles to the far-reaching reforms that are needed. The strategy must include a
realistic analysis of such obstacles to reform and the means of managing them.
According to David (1997), Evidence from countries where reform efforts have stalled for a long
time indicates that it is very difficult to achieve wholesale, systemic changes to the legal
framework in the absence of consistent political commitment and support from within the
highest levels of government. Only support at such levels can overcome the process and
substantive obstacles to reform.

15

However, even where there is a lack of high level political support, it should be possible to
explore ways in which different aspects of reforms can be entertained.

Thus, rather than

abandon reform efforts because it is not possible to achieve dramatic results, the strategy may
involve introducing intermediate mechanisms that can be introduced in the interim and
specifically at dealing with one or two of the more serious problems. For example, if one of the
problems is the lack of predictability or uniformity in the rules that public entities will apply, it
may be useful to explore whether the introduction of standard bidding documents including
standard forms of contract may help in establishing some uniformity to the bidding process.
Another example of a mechanism that can greatly increase transparency is to have upcoming
procurement opportunities (and contract awards) announced electronically.

Computer

connectivity is increasing in the major public entities even in developing countries, and the use
of such systems can have a significant impact on transparency and efficiency. Thus, in crafting
strategies for reform, it would be necessary to aim at that which is achievable in each specific
context.
Leverage
Because efforts to bring about fundamental changes to a flawed system may attract direct
opposition if implemented by as a self-standing program, one way to increase the possibility of
success is to implement such reforms within the context of an existing package of reforms aimed
at increasing the overall efficiency of the public sector, Kottle (1997) Since procurement is the
means by which public resources are spent, improvements to the procurement system will have a
developmental impact from many perspectives. Many countries are in the process of improving
their systems of governance of which management of public resources is a key aspect and in
implementing anti-corruption measures. Procurement reform fits well into any such programs
and is bound to attract less direct opposition if it is part of a large reform effort. Furthermore,
many developing countries are implementing governance reform efforts with the support of the
donor community who can also be useful in leveraging support for reforms politically and in
providing resources.

16

Procurement Description
Procurement is the process of obtaining products and services from suppliers. It includes
decisions about how much and when to purchase goods and services, the actual purchasing of
goods and services, and the process of receiving the requested goods or services.Belch et a
(1995). The purchasing cycle ensures that the appropriate quantity and quality of equipment,
material, supplies, or services are acquired at the best price and from the most appropriate
source. Procurement involves and affects more departments than just the purchasing department.
An integrated procurement system provides the purchasing professional with links to information
across all of an organization's functions and departments. Some of the links include activities and
information, including receiving transactions, order revision data, supplier profiles, accounts
payable status, special order processing, and the tracking of incoming purchases through receipt
routing. The procurement process begins when the need arises for items or services. This need is
typically presented to the purchasing department in the form of a requisition. A requisition is a
document that identifies to the buyer what is needed, when it is needed, and the approximate or
actual cost associated with the item or service requested. The requisition can then be used to
generate a quote for suppliers to bid on or to generate a purchase order. The purchase order that
is created from the requisition is the written contract between the buyer and the seller for the
purchase of items or services at an agreed price and delivery date.
2.5 Methods used by the organization in procurement system
Most purchasing organizations use these methods:

Inventory

Non-inventory

Subcontracting

Purchasing for inventory includes items intended for resale, raw materials, and manufactured
items. Information included about the inventory item might include cost, description, supplier,
and units of measure. An example of an inventory item for a manufacturer of computer hardware
would be printed circuit boards.

17

Purchasing for non-inventory includes goods, materials, and services that are used internally or
are subsequently charged to outside parties. Typically, these items and services are recorded in
general ledger accounts. Examples of non-inventory items include office supplies, maintenance,
repair, and operating supplies ,and building services.
Subcontract purchasing is associated with outside operations performed by suppliers, or internal
projects requiring a number of suppliers to charge their services to a common job number.
Receipt Processing
Once a supplier ships items to the warehouse based on the specifications outlined on a purchase
order, the receiving department needs to receive those items. Items are received and services are
performed daily in the organization. When a shipment is received, you typically route it to
several operations that ensure that the shipment is:

Unloaded and checked.

Verified for the quantity due against the quantity received.

Entered in the system with the quantity against the corresponding purchase order.

To ensure a high level of customer satisfaction within the organization, the receiving department
should notify the person who requisitioned the order or the buyer or both that the goods
requested have been received.
Special Order Processing
During the day-to-day activities within a purchasing department, special needs exist that require
different types of documents. The different types of documents include:

Blanket purchase orders

Quote orders

Change orders

Blanket orders are used when the organization repeatedly purchases an item or service. You
create a blanket order based on a specified amount or quantity that has been projected to be used
18

over a period of time, typically one year. As required, quantities are released from the blanket
order and the system creates a purchase order. You use a blanket order to reduce the
administrative costs associated with processing purchase orders and to streamline the
procurement process. Leon et al (2007).
You use quote orders when you want to solicit a competitive bid for an item from a number of
suppliers. The Request for Quote (RFQ) includes the quantity, specifications, delivery date, and
response date needed. After suppliers return the RFQ, the buyer evaluates the information and
awards the purchase order to the supplier that best meets the specifications of cost, delivery, and
quality outlined in the RFQ. Quote orders can be directly generated from requisitions and, in
turn, purchase orders can be generated directly from quote orders.
Change orders enable a buyer to change the original purchase order or contract. Change orders
are important because they provide an audit trail about changes to the original purchase order or
contract.
Approval Processing
Approval processing refers to the steps that a requisition or purchase order goes through to gain
the appropriate authorization to purchase the goods or services specified. The process of
requiring approvals at the requisition level or purchase order level is becoming more common.
Depending on the amount of the requisition or purchase order, different people in the
organization need to approve the order at different levels.
Receipt Routing
Receipt routing enables you to track the location of purchased items after they leave the
supplier's warehouse. Receipt routing enables you to know where products are located: whether
they are on the way to the warehouse, in the receiving process, or in the warehouse. Receipt
routing provides improved customer service levels to the purchasing department's internal
customers. Schit (2007) Receipt routing can also be used to record the disposition of items out of
the receiving process if they do not meet the specifications outlined on the purchase order. An
example of the steps that an item might move through in a given receipt route include:
19

In transit

In customs

In inspection

Received into stock

Supplier Management
A key step in building a strong supply chain for the organization is developing ongoing
partnerships with the suppliers. Some of the tools available to develop these relationships
include:

Performance analysis.

Supplier price comparison information.

Certified supplier status.

Agreed-upon terms.

Item catalog costing.

To monitor the suppliers' performance, you should consider these key areas:

Cost

Delivery

Quality

Cost is determined based on the supplier with the best value and not on the supplier with the
lowest cost. Delivery analysis is based on the number of days late as well as the number of
days early that are agreed upon. Quality analysis evaluates whether the supplier has met the
specifications for the items included on the purchase order after they have been received.
Procurement System Overview
Procurement system consist of the following:

Procurement system description.

Features, terms, and concepts.


20

Order processing cycle.

Procurement System Description


The Procurement system accommodates a diverse range of purchasing activities for:

Replenishing inventory.

Acquiring materials used to complete projects.

Charging purchased goods and services to specific departments, jobs, or cost centers.

Procurement involves order entry through actual payment for the goods and services that you
receive. Setup issues include order types, line types, and order activity rules. activities that are
specific to the procurement operation, such as special order processing, approval processing, and
supplier management. A variety of features are available to help you process orders quickly and
effectively. Extensive review and reporting capabilities can help you make decisions about
current and future purchasing strategies.
Features, Terms, and Concepts
Features, terms and concepts comprises the followings:

Purchasing for inventory.

Purchasing for non-inventory.

Subcontracting.

Procurement environments.

Purchasing for Inventory


The company might manage an inventory or stock-based operation, which includes:

Retail items for sale to customers.

Items for internal consumption.

Manufactured items.

Repair and maintenance items.

21

You must use the purchasing for inventory method to purchase goods for a stock-based
environment.
Retrieves item information such as item descriptions, units costs, and units of measure from the
JD Edwards Enterprise One Inventory Management system.

Updates item information such as on-hand balances, and unit costs in the JD Edwards
Enterprise One Inventory Management system.

In a stock-based environment, item costs are classified as inventory on the balance sheet until
you issue the items out of inventory. If you sell the items, they become cost of goods sold. If you
use the items internally, you determine the expense account to which to charge the items at the
time of issuance.
Purchasing for Non-Inventory
The company might purchase goods, materials, or services that are used internally or are
subsequently charged to outside parties. Purchases might apply to:

Jobs.

Projects.

Internal consumption.

Repair and maintenance.

Parts chargeable on a work order.

You use the purchasing for non-inventory method to charge purchases against general ledger
account numbers. Each account number can represent a job or project. This method
accommodates nonstock, and services and expenditures based environments.
Tracking commitments or encumbrances is a common practice in nonstock and services and
expenditures based environments. A commitment or encumbrance is the recognition of a future
obligation. If you purchase against general ledger account numbers, you can have the system
track commitment or encumbrance amounts when you enter purchase orders.

22

Procurement Environments
The JD Edwards Enterprise One Procurement system provides four different environments in
which you can perform the purchasing activities:

Stock based.

Nonstock based.

Services and expenditures based.

Subcontract based.

The stock-based environment is designed to accommodate those who purchase for inventory.
The nonstock and the services and expenditures based environments accommodate those who
purchase against general ledger account numbers. The subcontract-based environment
accommodates those who procure goods and services through subcontracts.
You select the environment that is most conducive to the operation. For example, the stock-based
environment enables you to perform activities common to inventory operations, such as supplier
management and rebate processing. The nonstock and the services and expenditures based
environments enable you to track commitments and encumbrances. The subcontract-based
environment enables you to enter subcontracts and changes to the subcontract. Jober (2007)
Many activities are common to all four environments. However, the menus and forms for each
are set up differently to accommodate processes and procedures specific to each environment.
The environments you use depend entirely on the organization. Some organizations may choose
to use all environments, while other organizations may choose to use only one environment.
Order Processing Cycle
The purchase order processing cycle consists of three primary steps:

Creating an order.

Receiving the goods or services.

Creating a voucher to pay for the goods or services.


23

After you enter an order, you can enter receipt information in the system (formal receiving
process) to receive the goods or services. If you follow informal receipt processing, you must
compare invoice information to the original purchase order to create a voucher. If you purchase
for inventory, you must use the formal receiving process. If you purchase against general ledger
account numbers, you can use either the formal or informal receiving process.
The method you use to create vouchers depends on the receiving process. If you use the formal
receiving process, you can create vouchers:

Individually by verifying that invoice information matches receipt information.

In batch mode using existing receipt records.

Each time you enter an order, you must provide details about the items and services that you
want to order. For each item or service, you must enter a line of detail that describes the item or
service, including the quantity and cost.
You must specify a line type for each detail line. The line type indicates how the system manages
information on the detail line..
You must set up order processing cycles to indicate how the system is to process the detail lines
for each order type (purchase orders, requisitions, blanket orders, and so forth). For example, you
can set up the processing cycle for inventory purchase orders as follows:

Enter purchase order.

Print purchase order.

Print purchase receiver.

Receive goods or services.

Create voucher.

You use order activity rules to define the operations the system performs for a processing cycle
and to indicate the progression of the steps.

24

You must set up order activity rules for every combination of order type and line type. You use
user-defined status codes to set up the order activity rules. Each status code represents a step in
the processing cycle, for example printing the order.

25

CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 Introductions
This chapter highlights on the research methodology used in the study. It covers areas like
research design, the target population sampling techniques, data collection instruments and
procedures, data analysis techniques and procedures.
3.2 Research design
A research design encompasses the methodology and procedures employed to conduct research
The design of a study defines the study type.
Descriptive survey design was used in the study. This was for the reason that the study comprise
of administering questionnaires to a sample population. The researcher carried out intensive
diagnostic studies on the characteristics of the population in order to explain the frequency in
which the variables occurred and their interrelations.
3.3 The target population
Population is any set of people or events from which the sample is selected and to which the
study results will generalize.
The study targeted the Kericho County office and the departments that are in line with
procurement of assest and stock from them. The population comprise of management staff in the
sales and marketing production and finance department, each department having 2 senior staff
members. 22 middle management staff within the office. 20 employees working in the office
were also included.

26

Table 3.1 Target population


Population category

Target population

Percentage

Top Management

16

Middle management

22

44

Workers

20

40

Total

50

100

Researcher (2013)
3.3 Sampling techniques and procedures
A sampling procedure defines the rules that specify how the system calculates the sample size
and it contains information about the valuation of an inspection characteristic during results
recording .
Stratified random sampling will be used in the study. This is because the population comprises of
varied characteristic and to avoid over representation and under representation. It is appropriate
to use stratified random sampling on each strata of the population 30% of each strata were
included in the sample space.
Table 3.2 Sample population
Population category

Sample size

Percentage

County office

21

Middle staff managers

20

22

Workers

10

57

Total

32

100

Source Researcher (2013)

27

3.4 Data collection instruments and procedures


Instruments
Refers to the device used to collect data, such as a paper questionnaire or computer assisted
interviewing system.The study will use questionnaires as well as observation schedule where
applicable during the study. In the questionnaire both closed and open questions will be used.
For the open ended questions, the respondent will be given brief instructions accompanied the
closed ended questions. This is to ensure that the respondent answered the questions within the
limits specified by the researcher.
Procedures
In the study self-administered questionnaires will be used. The respondents will be issued with
questionnaires and will be requested to fill in the questionnaires during the appropriate time as
per the instructions stated there in. The researcher has to deliver them to the respondents and also
collect after a period of five days. This is to enable the respondents to have adequate time to fill
the questionnaire.
3.5 Validity and reliability of the research instruments
Validity is described as the degree to which a research study measures what it intends to
measure. There are two main types of validity, internal and external. Internal validity refers to
the validity of the measurement and test itself, whereas external validity refers to the ability to
generalize the findings to the target population. Both are very important in analysing the
appropriateness, meaningfulness and usefulness of a research study
In order to ensure admissibility of the data collection instruments i.e the instruments, the
questionnaires will be administered on study areas where it did not form part of the sampled
population within Kericho County office. This is to check for errors that may arise from the
instructions given or the standards of questionnaire were discussed between the researcher and
later approved by supervisor. The instruments produced reliable results and thus proved valid for
the study.

28

3.6 Data analysis techniques and procedures


Data analysis is the process of transforming raw data into usable information, often presented in
the form of a published analytical presentation, in order to add value to the statistical output.
In the study descriptive analysis techniques will be used. The data will be analyzed both
quantitatively and qualitatively. The quantifiable data will be presented by the use of Frequency
distribution tables and pie graph as well as bar graphs.

29

CHAPTER FOUR
4.0 INTRODUCTION
This chapter present data collected for the questionnaire and present them in form of; pie charts,
graphs and tables. This chapter is designed to give and analyze the response to the research
hypothesis formulated from the stated problems in chapter one of this write up. It deals with the
presentation, analysis and interpretation of the data collected. Most of the finding are calculated
in percentage and frequency form. The findings are based on the research objectives which were:
To find out the importance of procurement system in the organization.
To find out challenges that affect effective implementation of procurement system in the
organization.
To determine effective ways and methods of implementing procurement system in the
organization.
4.1 Data collection
This refers to the method in which the collected data was obtained. The researcher use
questionnaires and interviews in collecting the data in the field. Questionnaires were
administered to the Kericho County Office and were collected when it was completely filled.
Interviews were carried out to the few of stakeholders and senior staff managers as well as the
employees of the Kericho County Office to determine the reliability of the data obtained.
4.2 Response Rate
Out of the administered 50 questionnaires, 30 were completely filled and returned. This
represents 60% hence indicating that the questionnaires were fairly filled.
Gender balance was encouraged during administration of questionnaire and the outcome was
fairly balance.

30

4.2.1. Age of the respondents


Out of 30 respondents 15 of the workers were aged between 18 - 25 (years), representing 50% of
the respondents, 8 respondents were in the bracket of 26-40 (years) representing 27% of the
respondent. 2 of the remaining respondent age between 41-65(years) representing 7% and the
remaining 5 respondents were above 65 years representing 26%. This indicated that majority of
the workers in the Kericho County Office are of young generation.

Table 4.1 age of the respondent


Age (years)

Frequency

Percentage

18-25

15

50%

26-40

27%

41-65

7%

Above 65

26%

Total

30

100%

Source: Researcher (2013)


4.2.2 Level of education
From the findings, 18 the respondents represented by 60% are diploma holders, 8 of the
respondent represented by 27% are degree holders, 4 of the 30 respondents are post graduate
holders represented by 13% and the remaining 10 are certificates holders represented by 33%.
This shows that majority of employees of Kericho County Office are diploma holders.

31

Table 4.2 Level of Education


Qualification

Frequency

Percentage

Post graduate

3%

Degree

27%

Diploma

15

50%

Certificate

20%

Total

30

100%

Source: Researcher (2013)


4.2.3 Marital status
Majority of the respondents are married since 10 of them are unmarried represented by 33%
while the remaining 20 respondents indicated that they are married and some are divorced. This
is represented by 77% of the total respondents.
Table 4.3: distribution of respondents by marital status
Marital status

No of respondent

Percentage (%)

Single

10

29

Married

15

67

Divorced

Total

30

100

Source: Researcher 2013.


4.3. Response on the challenges that affect effective implementation of procurement system
in the organization.
From the data obtain, the respondent indicated that the organization has many that affects the
organization on procurement implementation process. Due to high number of processes and
decisions involve the system implementation has a varied dynamics that need to be consider

32

before a vital conclusion are made. The response indicated in the questionnaires show that the
organization has a slow implementation process due to many consultation that need to be made ..
The table 4.4 below shows the frequency and percentages of the respondents.
S/no

STATEMENT

agreed disagreed neutral Strongly Strongly

Does the Organization set a site money 20

disagree

disagree

24

for use in implementing procurement


system in the organization?
2

From our experience as employee of the 4


Organization has there been losses
experience by the

Organization from

poor implemented procurement system


at the end of financial year?
3

Does Management avails funds to 21

support staff members on research


matters to aid in effective and efficient
implementation of procurement system?
4

Are there any procedures followed by 18

the Organization in order to allocate


funds

for

implementation

of

procurement system in order to enhance


transparency and accountability to the
organization?
5

The management is concerned with 15


identifying and meeting the training
needs

of

the

members

who

are

responsible for carrying out procurement


activities in the Organization?
From the above findings it is clear that the organization has many challenges in implementing
procurement system as indicated by the respondents from the questionnaires. As from finding an
33

average of 22 respondents shown that the organizations need to improve on administration of


service so as to improve on the implementation of procurement system. This represent 74% of
the total respondents who acknowledge that organization has a varied number of challenges that
need to be taken into consideration.
Response on problems affecting employees and staff

in procurement system

implementation.
Response

Frequency

Percentage

Agree

24

80%

Disagree

20%

Total

30

100%

Source: Researcher 2013

From the finding the respondents indicated that employees and staff are also strife up with
problems on selecting appropriate methods on implementing effective procurement system as
indicate from the table above. 24 respondents comprising 80% of the total respondents
acknowledge the existence of challenges in the organization while 6 respondents represented by
20% were of the contrary opinion.
Below is a pie chart showing the percentages of respondent who agree and those who disagree
with the problems affecting employees and staff in procurement system implementation.

34

Figure 4.4.

Agree
Disagre
e

Source: researcher (2013)


4.4 Response on the methods used by the Organization in implementing procurement
system
The table below shows the respondents feedback on ways that the Organization can use to
determine effective methods of implementing procurement system effectively and efficiency.
Factors affected
Implementing open free system
Organization.
Uses of E-procurement method

in

Of the opinion
the Agree
disagree
yes
No

Proper system design

Agree
Disagree
Frequent procurement system evaluation
Agree
Disagree
Enhancing effective planning on execution of Agree
procurement activities
Disagree
Availing adequate finance
Yes
No
Source: Researcher 2013
35

Frequency
26
4
27
3

Percentage
87%
13%
90%
10%

24
6
25
5
20
10
18
12

80%
20%
84%
16%
67%
33%
60%
40%

The table above shows that majority of respondents agree that the factors that need to be taken
into consideration by the organization in developing appropriate measure on method of
implementing procurement system are:
Implementing open free system in the organization.
Improving process design for effective project implementation
Encouraging the use of E-procurement system in the organization.
Frequent procurements system evaluation.
Enhancing Proper planning on execution of procurement system
Adequate allocation of finance to procurement department.
From the above findings, the organization need to take into the consideration the above
implication in determining effective method to implement in carrying out procurement activities
in the organizations.
4.4.1 Response on the major problem in the organization
Options

No of respondent

Percentage (%)

Lack of adequate use of technology

18

60

Lack of training

20

Lack of remuneration

20

30

100

Total
Source: Researcher 2013

From the above table, 18(60%) respondents were of the opinion that lack of working tools,
appropriate technology and equipment constitute major problem affecting the employees on their
job;6(20%) respondent said lack of training is the major problem affecting the employees on
their job; while the remaining 6(20%) of the respondents were of the opinion that lack of
remuneration is the major problem affecting the employees on the execution of procurement
systems

36

Table 4.5
Does the organization offer any training and development programmed in regard to
implementation of procurement system?
Options

No of respondent

Yes

30

No
Total

Percentage (%)
100

30

100

Source: Researcher 2013


In the above table, the whole 30(100%) respondents agreed to the existence of training and
development programme in the organization
Table 4.6
What are the courses offered during training and development programme?
Options

No of respondent

Percentage (%)

Technical courses

12

40

Administrative

10

33

27

courses
Both
Total

30

100

Source: Researcher 2013.


From the above table, it is observed that 12(40%) of the respondent agree that the organization
offers technical courses during training and development program; 10(33%) respondent agreed
that administrative courses are offered during the training and development program; while
37

8(27%) were of the opinion that both technical and administrative courses are offered during
training and development process in the organization.
Table 4.7
Does training and development improve skills and knowledge of the manpower service in
organization?
Options

No of respondent

Yes

27

No

Total

Percentage (%)
90
10

30

100

Source: Researcher 2013


It is obvious from the table above that 27(90%) respondent believes that training and
development improve skill and knowledge of the manpower in service organization; while
3(10%) respondents are of the view that training and development does not improve skill and
knowledge of manpower in service organization and does not have any implication on effective
procurement implementation process.
Table 4.8
Does training and development improve productivity and better performance of
procurement system in the organization?
Options

No of respondent

Agreed

24

80

20

30

100

Disagreed
Total

Percentage (%)

Source: Researcher 2013


38

From the table above, it was observed that 24(80%) respondents agrees with the fact that training
and development improves productivity and better performance; while 6(20%) respondents
thinks that training and development do not improve productivity and better performance.
Table 4.9
What are the benefits of training and development programmes to

procurement

implementation process?
Options

No of respondent

Percentage(%)

High productivity increases staff morale

30

Enhance proper procurement system

15

50

High productivity is recognize in the

20

30

100

organization
Total

Source: Researcher 2013


The above table indicates that out of 30 respondents,9(30%) agreed that training and
development programme is embarked upon by the management because it enhances high
productivity and increases staff morale;15(50%) respondent believes that high productivity is
enhance in the organization since proper procurement system is implemented.

39

4.5 Response on the importance of procurement system in the organization


The table below shows the data obtained from the respondents
Factor

Of opinion

Frequency

Percentage

There is need for proper

Agree

26

87%

Disagree

13%

Total

30

100%

implementation of
procurement system

Source: Researcher 2013


From the results the respondents indicated that the organization needs to develop a proper
procurement system design that is easy to implement with the available resources. This will
enable the organization to enhance the followings:

Accountability

Transparency

High level of integrity

Reduce occurrence of corruption issues in the organization

The above information can be represented in the chat as shown below.

13%

1disagree
agree

87%

Source: Researcher 2013

40

4.5 .1 Responses on adequate availability of funds and other variables made by the
respondents.
Opinion

Elements to be considered

There should be enough funds for effective Agree

Frequency

Percentage

20

66%

10

34%

18

60%

12

40%

15

50%

15

50%

procurement system implementation


Disagree
The organization should develop budget to Agree
provide

framework

on

procurement
Disagree

implementation process

There is need for the organization to develop time Agree


frame to guide in the system implementation
Disagree

process.
Source: Researcher 2013
Figure 4.5

Graphical presentation of response in regard to the above information.


The figure below shows the average aggregative percentage value on views of the respondents

70
60
50
40

Agree

30

Disagree

20
10
0
Agree

Disagree

Source: Researcher 2013.


41

From the above findings 66 % of the respondents indicated that adequate availability of funds
accounts for effective existence of procurement system in the organization while the remaining
were of the contrary opinion.
.

42

CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 INTRODUCTION
This chapter presents a summary of the data analysis, findings with respect to the objectives of
the study and the basic research questions. Conclusion and recommendation are also presented.
Finally areas of recommended by researcher as stated.
5.2 Summaries of major findings
Effective project management governance is becoming an important topic at all levels of many
organizations. Project governance focuses on making sure the whole of an organization's project
management system is effectively supporting its strategy. Good governance requires that the
governing board sets the strategy and provides direction -- and not become involved in the dayto-day management of the organization. It's up to the organization's managers to implement the
strategy and provide the board with the necessary assurances, information and advice needed to
support the governance process.

Good governance and optimum performance should be synonymous. And developing an


efficient structure to ensure both is a subtle art. The directors need to ask their executive
managers the right questions and the managers need to develop efficient systems that deliver the
right answers..
Procurement implementation process in Kericho County Office has a number challenges and
suggested recommendation need to be taken into consideration. Organization development
projects might be the expeditious creation of new content areas, tools, graphics, site navigation
or other enhancements to Kericho County office, Using a variety of resources including,
producers, editors, programmers, designers, and operations personnel.
Implementation is a body of application of knowledge, skills, tools and techniques to project
activities in order to meet or exceed stakeholder needs and expectations from a project.
The essence of procurement system in the organization cannot be over emphasized. It has
been observed that training is very important in every aspect of an organization. It enhances the
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efficiency of staff, increases output and motivates employees for better performance. The
advanced countries and in most computerized organization, training and development cannot be
overlooked because; human are the ones to operate this equipment procurement systems.
Because of the fact that ours is a world that is currently undergoing rapid change particularly in
the area of skill obsolescence and technological capability, training is not exclusively reserved
for newly employed staff but also for the old employees as well. It is therefore important for the
purpose of enhancing individual performance that training and development should be made a
continuous process that should last through an employees entire working life. This is because
low and middle level employees need to adapt to new skills and technologies while managers
and top management personnel need deeper knowledge and understanding of their jobs, the jobs
of others, a good understanding of where and how their jobs fit into the wider organizational
pattern, an understanding of government and societal constraints, and a sensitive social
awareness of the environment within which the organization operates.
Therefore, effective existence of procurement system is necessary among other things to
improve quality and quantity of work, to increase productivity and to induce certain behavioural
changes in the employees. Every organization should therefore try to incorporate effective and
efficient systems and development of their employees (manpower) in order to achieve their aim
and objectives with ease.
To achieve sustainable and effective implementation strategies by the management, development
strategies must go beyond purely technical considerations to formulate specific objectives and
implement appropriate measures with regard to political, institutional, social, financial, economic
and technical aspects. Effective and appropriate project design need to be put in place by the
organization and develop departments so as to aid in appropriate designing project that meets the
organization goals and objectives.
5.3 Recommendation
The following suggestions are offered which in the opinion of the researcher may go a
long way in addressing issues relating procurement of resources in the organization

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The organization should restructure their organization departmental structure, improve on


administrative courses so as to minimized poor implementation of procurement systems. There
should be free flow of information to enable all the staff aware of the procurement process and
development programme available both internally and externally.
Finally, periodic seminars and workshop which are not too expensive should be organized for
all staff to acquaint them with current changes in management techniques and current
development programme such as E- procurement system.

5.4 Recommendation for further research.


The researcher recommends the following to be research further:
The challenges facing organization in project implementation process
The effect of technology on E-procurement to the organization performance.

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REFERENCES
Akpomuvire, M. (2007). Human Resource Training and Development for the civil service
Nigeria. U.S.A : CatawbaPublishing Company Charlotte.
Lion,S.A. (2007).

Fundementals procurement. Ibadan: college press and publishers ltd.

Chandramohan, A. (2008).purchasing and chain supplies New Delhi: S.B. Nangia APH
publishing corporation.
Cruz, E.M.D. (2002). Staff and Service Management.Kuala lumpur: Golden books centre SDN
Bhd.
Flippo Edwin, B. (1976). Personnel Management. New York: Kogakusha Mcgraw Hill
Incorporated book company.
Isaiah, U.K. (2009). A textbook of Human Resource Management. Delta state: University
printing press.
Michael, S. J.(1995). Management total quality in a global environment. Massachsetts: Black
well publisher.

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