stores management on organizational performance
According to Richard et al. (2009), organizational performance encompasses three main areas: financial performance, product market share, and shareholder return. Financial performance focuses on profits, returns on assets, and return on investment, while shareholder return includes total shareholder return and economic value added. Organizational performance is defined as the actual output or results of an organization measured against its goals and objectives (Jabareen, 2009). It involves minimizing costs and maximizing revenue (Konke, 2003). Organizations that fail to improve performance risk losing their competitive advantage. Performance can be enhanced by increasing output with constant input, increasing output with a slower input growth, maintaining output while reducing input, or reducing both output and input but at different rates (Needharm & Dransfield, 1995).
Store management, according to Kortz (2003), involves the planning and control of store operations. Its objective is to provide the right materials at the right time and in the right condition, efficiently and economically (Ogbo & Onekanma, 2014). A well-managed store includes processes and spaces for receiving, storing, and issuing materials (Miller, 2010). In manufacturing firms, this process creates a cycle to maintain store operations (Kortz, 2003).
The role of the store manager is to oversee goods and issue them as needed by production. Although store management does not directly add value to the product, poor management can increase costs, impacting organizational performance in terms of profits and market share (Schonsleben, 2000). Store-related expenses include land, buildings, equipment, salaries, insurance, maintenance, and inventory costs, which all contribute to the organization’s overhead and ultimately influence the cost of the final product (Ogbo & Onekanma, 2014).
At Sadoline Paints Limited, effective cost management and control are prioritized. The company’s store management is essential, as it spends considerable resources ensuring that critical stock levels are maintained for operations. The stores provide safe custody of materials and goods, with proper stock control systems and measures to prevent abuse, theft, and unauthorized disposal (Ayad, 2011). This has contributed to the company’s improved performance, including high profits and increased market share (Mulondo, 2010). Therefore, this study assesses the impact of store management on organizational performance, using Sadoline Paints Limited as a case study.
