Table Of Contents

Title Page
Abstract ..........................................................................................................I
CHAPTER ONE..........................................................................................................................................2
1. INTRODUCTION...............................................................................................................................4
1.1. Background of the study..............................................................................................................4
1.2 Statement of the problem...................................................................................................................7
1.3 Objectives of the study......................................................................................................................8
1.3.1 General Objective.......................................................................................................................8
1.3.2 Specific Objectives.....................................................................................................................8
1.4 Significance of the study....................................................................................................................8
1.5 Scope of the study..............................................................................................................................9
1.6 Limitation of the study.......................................................................................................................9
1.7 Ethical consideration.........................................................................................................................9
CHAPTER TWO.......................................................................................................................................10
LITERATURE REVIEW..........................................................................................................................10
2.1 Theoretical Framework....................................................................................................................10
2.1.1 Institutional Theory...................................................................................................................10
2.1.2 Socio-economic Theory............................................................................................................10
2.2 Empirical Review............................................................................................................................11
CHAPTER THREE...................................................................................................................................13
RESEARCH DESIGN AND METHODOLOGY......................................................................................13
3.1 Research Design..............................................................................................................................13
3.2 Target Population............................................................................................................................13
3.5 Data Collection Procedure...............................................................................................................14
3.6 Data Analysis Methods....................................................................................................................14
4. WORK PLAN AND BUDGET PLAN..................................................................................................15
4.1 Work Plan........................................................................................................................................15
4.2 Budget plan......................................................................................................................................16
REFERENCE............................................................................................................................................17

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Abstract

Procurement plays a key role in every organization. It provides an opportunity for all
stakeholders to meet and discuss procurement requirements and objectives that can help to
improve the organizational developments. The study focused on effects of procurement
procedures on organizational performance at Asela Teaching and Referral Hospital. The
objectives of this study were; to establish tendering procedures influencing organizational
performance at Asela Teaching and Referral Hospital to determine the effects of supplier
assessment on organizational performance at, Asela Teaching and Referral Hospital, and to
evaluate the effects of material control procedure and organizational performance at Asela
Teaching and Referral Hospital. The study employed a case study research design in collecting
relevant information.

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CHAPTER ONE

1. INTRODUCTION

1.1. Background of the study

Hospitals are well managed with enough staff and equipment to provide diagnostic and

therapeutic services in most cases field of curative medical care with regard to the patients‟

needs (Halchin, 2012). Service delivery are that main focal points of hospital serving the general

public, education sector and many others Hospitals are mainly the focal points of service

delivery to the public, instruction for the health experts and medical studies are required for

advancement of the field of medicine (Dolbeer, 2007). The administration of healthcare facility

is very complex to manage it therefore requires the knowledge of hospital setup, peculiar

conditions prevailing in hospital administration (Goyal, 2006). Medical care is complex and

there has been an increase in the accommodation of hospital as a service. Therefore, distinct

services to enhance the usual medical and nursing care are being introduced. The complexity of

these institutions makes them perform complex functions like employing qualified and skilled

personnel and provide the best facilities and this makes their operations costly. The same in

Asella teaching Hospital distinct services are required in every hospital; service delivery may be

enhanced by well procured goods and services.

Effective management of healthcare institutions emphasize broadly on the mission and vision to

measure organizational performance, continuous improvement of the quality and responsiveness

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to the needs of the patients, employees and community stakeholders. According to Sivakuraman

(2013), different variations for example the size, nature and the surrounding environment

influence the healthcare facility administration posing challenges. The discipline of management

in health care institutions is that there is need for knowledge and skills of varying degrees with

greater emphasis on particular professional skills. Like any other hospital, Asella teaching

Hospital needs high skilled human resources in order to manage challenges which may arise with

regard to procurement of goods and services.

On a world level an inquiry team consisting of more that forty interview sessions were done in

over 1200 healthcare institutions in Canada France, Italy United Kingdom and United States and

Germany. Nieneber (2006) did a study on determining how talents affect the outcome. The

outcome from the Hospital statistics that were accessible widely in United States and United

Kingdom showed a significant association between the precise institutions management practice

and specific hospital health consequences. This indicates better clinical outcomes and high

satisfaction levels of the patient and an enhanced economic performance. It was established that

the hospitals with a higher score in administration had better medical results with higher level of

contentment along with improved monetary performance. Nieneber (2006) further noted at one

point a development in the administration practice which was indicated by a decline of the death

rates from chronic ailments by 6% in the United Kingdom.

In Africa, Ghana mainly deals their service delivery as they directly involve in brand new and
sophisticated health care delivery facilities. This involves rural health centers and community
health workers. They also invest in the invention of new incentives like contracts to encourage
the introduction of new facilities in the non-governmental sector (Deber, 2004).
In case of Ethiopia the research by Getacho Zeleke indicate that the occurrence of poor quality
and delayed purchases critical hindrances on the effective purchasing performance. Further the
minimum weight given by management for the function expedites the problem. The research

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objectives include analyzing the purchasing procedure, exploring management support and
organizational structure and identifying the effects of organizational structure on purchasing
performance. Additionally learning how purchases are being accelerated and finding out about
the purchasing plan of the organization are mentioned as research objectives. The paper details a
number of findings, which explain the reason behind the critical problems. This includes that
there is no sound and strong relationship with suppliers, purchases are not properly planned,
implemented and expedited, the absence of clear specification of items. Feasible
recommendations were given by the researchers to improve the purchasing performance.
Consequently the need for improved and strong relationship with suppliers is suggested. Besides
this, the management is suggested to have effective plan and follow up system for purchasing.
Further the paper proposes that the order processing system should be revised to meet current
purchasing needs. Even though the findings show wrong purchases resulted from lack of clear
specifications, the paper didn’t propose on the importance of having specifications
(Getacho,2006). This is single case of procurement procedure.

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1.2 Statement of the problem

Most researches in Ethiopia and Asella teaching hospital are basically conducted on customer
satisfaction, problems related to material costs and suppliers problem and put the possible
solution they got in there findings. Even though they did their contribution still there are many
problems of literature in the area of procurement procedure in organizational operation.
Especially on case of hospitals in Ethiopia one can say that there is no literature on the area.
So, having this problem of literature gap indicated above this paper will fill the gap of reference
for researchers who want to deal on the effects of procurement procedure on organizational
operations in case of health care delivery facilities.
The finding of this study may help the management of the hospital and policy makers by
indicating the gap of health care delivery services in the hospital and benefits the customers also
on the service they get from the organization.

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1.3 Objectives of the study

The general and specific objectives of this study are given as follows.

1.3.1 General Objective

The general objective of this study is to investigate the effects of procurement procedures on

organizational performance in Asella teaching Hospital.

1.3.2 Specific Objectives

1. To establish how Tendering Procedures influences organizational performance at Asella

Teaching Hospital.

2. To determine how supplier assessment procedures affects organizational performance at

Asella Teaching Hospital.

3. To evaluate the effect of material control procedures and organizational performance at

Asella Teaching Hospital.

1.4 Significance of the study

The findings arrived at the study may the hospital management in formulating methods and

means of selecting and deploying their employees. The findings may assist the Hospital

management to measure the day to day activities of the staff in every procedure and to formulate

good relationship strategies in the organization.

The findings of this study will be of beneficial to the government as it may use the study to fast

track improvements and amendments on procurement to enhance effective service delivery. The

findings may also assist the organization to change drastically the level of performance of all the

staff in the purchasing function by rising and measuring them in a much broader area.

Finally, the findings of the study may provide other upcoming stakeholders and researchers with

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adequate information and rich literature in relations to procurement procedure and service

delivery.

1.5 Scope of the study

The study focused on the effects of procurement procedure on organizational performance at Asella

Teaching Hospital in the year 2018-2019 GC. The respondents are employees of the hospital.

1.6 Limitation of the study

The main limitation of this study is that the absence of detail literature to refer on procurement
procedures on the case of health care delivery facilities in Ethiopia.

1.7 Ethical consideration

Since the researcher design to collect the data from employee of the hospital via the knowledge
of government official and the result of the study will benefits the government for policy making
and the population getting services from the organization, both government and customers will
accept the project positively.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Theoretical Framework

According to Defee et al., (2010), a good research should theoretically be grounded. The study
will therefore guided by institutional theory and socio-economic theory. The institutional
approach is the traditional approach that is used to observe features of public procurement
(Obanda, 2010).

2.1.1 Institutional Theory

Scott (2004) asserts that institutions are made of cultural-cognitive and regulative elements that
work with related activities and resources to give an importance in life. He further explains
institutions as regulatory, normative and cultural cognitive. The regulatory pillar lays emphasis
on the application of sanctions, laws and rules as mechanisms of enforcement with compliance to
the same based on its expedience. The normative pillar on the other hand refers to standards
(how to do things) and morals (favored or required), with social obligation as the foundation of
compliance (Bolton, 2006).

2.1.2 Socio-economic Theory

The socio-economic theory of compliance was propounded by the integration of economic
theory with theories from psychology and sociology with an aim of accounting for honest
commitment and social effect as factors of persons‟ decisions on compliance (Sutinen and
Kuperan, 1999). Watson (2010) added that the legitimacy theory hypothesizes that the institution
is accountable to reveal its practices to the shareholders to the public and account for its presence
within the boundaries of the organization. This theory, which emphases on the association and
collaboration between an institution and the society, gives enough lenses for understanding
government procurement system (Hui et al, 2011). It is understood from this theory that the

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policy, planning and sustainable procurement practices in public institutions and their influence
on service delivery to the society, this will therefore provide a link between procurement
procedures and organizational performance as implied from the study.

2.2 Empirical Review

2.2.1 Tendering Procedures on organizational performance

According to regulation II, public procurement entities are under obligation to give all potential
candidates an opportunity to participate to all national open tenders (government user‟s guide
2001). It is stressed that although it was important that procurement be based on the basis of
tenders that are publicly the most vital, affordable and other factors should be carefully
considered; this does not require absolutely that an award be made to the candidate that submits
the lowest tender (Byatt,2002). A potential contender should be financially stable with the
required resources during the time of performance of the contract. A candidate should be able to
adhere to the required delivery considerations with a satisfactory record performance (Hiles,
2005).
Croom& Johnston (2003) argue that the level of compliance with e-procurement is strongly
influenced by the general disposition of the organization as a whole to either electronic process
redesign or the desire to gain perceived benefits from electronic procurement (Soeters, et al.,
2014).

The world has continued to experience massive information, communication and technology
growth, increased knowledge by consumers about foreign goods and services, improved
international relations, co-operations and agreements amongst countries, convergence of socio-
cultural orientation leading to tremendous growth of international business. The procurement
process has traditionally involved slow manual procedures and even slower systematic processes
for handling procurement transactions (Hawking et al., 2011).
Supplier’s financial condition need to be evaluated at the earliest stages of supplier appraisal.
Some purchasers view the processes as a prescreening exercise that a supplier must pass before a
detailed evaluation process can begin (Handfield et. al., 2008).

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Health governance – one of the pillars of a health system – has received appreciable attention
from the Ethiopian health sector over the past decade. Through the leadership of the Federal
Ministry of Health (FMOH), the health sector has various coordinating mechanisms at the
federal, regional, and woreda (district) levels, although the performance of the coordinating
mechanisms weakens as one goes from the federal to the woreda level. To make facilities
responsive to local needs and mitigate administrative complexities, the government initiated
health facility governance reform by introducing boards for hospitals and governing
bodies/management committees for health centers (http://www.en.wikipedia.org).
Generally even though the researcher face limited literature to review from this study the effects
of procurement procedures on organizational operations in case of Asella teaching hospital will
be researched.

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CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Research Design
The study will use a descriptive case study design method. Descriptive survey focuses on
individuals, groups and communities in whom it involves gathering information through
interviews or administering questionnaires to a group of selected target population. The design
allows for a wide range and generalized study covering a number of related items which is used
to generalize for the same business a case study research design is appropriate.

3.2 Target Population

The target population will be the employees of the hospital from different job categories as
respondents. It will from Supply chain Managers, Supply chain officer, Supervisors,
Departmental assistants, Hospital wide staff, Cashiers/Clerks, patient attendants, the
proportionate sampling procedure will use.
3.3 Sample Size and Sampling Procedure
The sample size will be 230 respondents; the sample size will determined using the Sample Size
Formula by Israel (1992). The formula for calculating the sample size for a random sample
without replacement is:
Z 2
n=( )
M
∗P(1−P)

n = Where, z is the z value of 1.96 for 95% confidence level.

M is the margin of error of 0.05 = + or – 5%.
p is the estimated value for the proportion of a sample that will respond a given way to a survey
question 0.30 for 30%.
n = n = = (39.2)2x (0.15) = 1536 x 0.15=230

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3.5 Data Collection Procedure.
The researcher will use questionnaire to collect the data. Questionnaire is a research tool that
gathers data over a large sample Kombo and Tromp (2006). The questionnaire will the most
appropriate research tool as it allowed the researcher to collect information from a large sample
with diverse background; the findings remained confidential, save time and since they will
presented in paper format there were no opportunity for bias. The data for study will collected
through presentation of the questionnaires to the respondents after getting the relevant clearance
from respective authorities. Primary data is designed to be used. The questionnaires were given
to respondents then collected within a period of 3 to 5 days which is a reasonable time that
ensures the maximum return. This procedure is suitable since the population is literate,
reasonable and the period of data collection is short.

3.6 Data Analysis Methods

The descriptive statistics will used to analyze the quantitative analysis in order to achieve the
objectives of the study. The data analysis tool that I will use is Statistical package for Social
Sciences (SPSS). Numerical values will assigned to responses coding in the questionnaires to
represent measurement of variables, the data will then analyzed and presented in form of tables,
frequencies and percentages.
To determine the association between the variables of interests’ logistic regression model and
chi-square test statistical techniques will adopt.
log ¿ ¿ b0 + b1X1 + b2X2 + b3X 3
Or
p
=e b 0+b 1 X 1+b 2 X 2+ b3 X 3
1− p
Where: X = The independent variables
X1 –tendering
X2 _Supplier assessment
X 3 – Material control
Y = the dependent variable (Organizational Competitiveness)
The interpretation will be the odds of response which is suitable for categorical data.

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4. WORK PLAN AND BUDGET PLAN
4.1 Work Plan
This work plan outlines to be carried out in the specified period of time. Hence, the proposed

research work is scheduled as follows.

Table 4.1: Work Plan

No Activity to be performed Duration

1 Proposal submission September, 2018
Interview schedule development October 2018

2 Pre- test and explanatory survey October 2018

5 Collecting data October 2018
6 Data cleaning, coding and entering November 2018
7 Review of related literature Nov. – December 2018
8 Data analysis and thesis writing Jan., feb. March 2019
9 Completion of first draft April, 2019
10 Final thesis submission June 2019

4.2 Budget plan

Table 4. 2 Supplies

No Description Unit Quantity Unit Price (Birr) Total Price (Birr)

1 Printing paper Rim 5 400 2000.00
2 Photocopy & print Count 500.00
3 Note book(Big) Number 2 40 80.00

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4 Note book(Small) Number 6 20 120.00
5 Pen Packet 1 40 40.00
6 Flip Chart Number 1 100 100.00
7 Marker Packet 1 90 90.00
8 Scotch tape Number 1 20 20.00
9 Rewriteable disk Number 5 20 100.00
10 CD-R Number 5 5 25.00
11 Flash Disk 2GB Number 1 250 250.00
12 Laser jet Cartilage Number 1 1600 1,600.00
13 Laminating cost Number 5 100 500.00
14 Staples Packet 1 15 15.00
15 Travel Bag Number 1 400 400.00
16 Journal Number 4 50 200.00
17 Internet cost 500.00
18 Travel cost 500.00
Grand total 7080.00

REFERENCE
[1] Goyal, r. C.(2006). Hospital Administration and Human Resource Management. 4th Ed. New
Delhi: prentice-hall.
[2] Bolton, P. (2006). Government procurement as a policy tool in South Africa. Journal of
Public procurement.6, 193–217.
[3] http://www.en.wikipedia.org accessed September,2018.
[4] Sutinen, J. G. & Kuperan, K. (1999). A socio-economic theory of regulatory Compliance.
International Journal of Social Economics, 26(1/2/3), 174-193.
[5] Watson, T. J. (2002). Organizing and managing work, Financial Times Prentice Hall.

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