Effect Of Procurement Procedures On Organizational Performance: A Case Of Moi Teaching And Referral Hospital, Eldoret

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 Moi Teaching and Referral Hospital, Eldoret. The objectives of this study were; to establish tendering procedures influencing organizational performance at Moi Teaching and Referral Hospital, Eldoret, to determine the effects of supplier assessment on organizational performance at, Moi Teaching and Referral Hospital, Eldoret and to evaluate the effects of material control procedure and organizational performance at Moi Teaching and Referral Hospital, Eldoret. The study employed a case study research design in collecting relevant information. The total populations for this study were 3600 respondents with a sample size of 384. Stratified and simple random sampling techniques were employed. Questionnaires were used as the main data collection instruments. Data was analyzed through descriptive statistics and later presented in frequency tables and percentages. The study was carried out in at Moi Teaching and Referral Hospital, Eldoret in the month of May and September 2016. The study adopted institutional and socio-economic theory to provide a relevance to the study. The statement of the problem mainly focused on major issues facing the procurement procedures and analyzes their effects on organizational performance. Data was collected using a questionnaire and the findings were analyzed using both descriptive (frequencies and percentages) and inferential statistics (correlation analysis). The study established that there is no strong correlation between tendering, supplier assessment and organizational performance, while material planning was highly correlated with performance. This meant that through tendering and material control, the organization can achieve its objectives which will lead to organizational performance. Material planning was found to be necessary in any procurement in an organization. Since material control could be used to explain 54% influence in an organizational performance. More importantly organizations should encourage tendering, supplier assessment and material planning in procurement of goods and services. This will enhance the organizational performance and increases the financial stability of the organization and provide quality services within the organization. This can also be achieved through efficiency and effectiveness.