INFLUENCE OF PROCUREMENT RECORD MANAGEMENT ON PERFORMANCE

ACASE STUDY OF

UGANDA NATIONAL BEURAL OF STANDARDS

ABSTRACT

The study sought to find out the influence of procurement record management on performance in Uganda National Bureau of Standards.

The research was guided by the following objectives, To establish the different activities in procurement record management, To establish factors that influence performance of UNBS and To establish a relationship between procurement record management and performance in UNBS.

Qualitative and quantitative research designs were used. The researcher used the above methods because many aspects were covered in the study concerning the influence of procurement record management on performance at UNBS, Qualitative research method was used because it collects information within a short time while quantitative was through interview to cross check what has been given.

The study further indicates that Relationship between procurement record management and performance in an organization include; Good record management leads to efficiency in procurement planning  , Gives timely information to an organization for decision making, Procurement records leads to reduction in costs of purchased components, Reduction of emergency procurement can be minimized with good procurement record management, and Efficiency in service delivery is brought about by proper records management.

The results in the study indicate that Relationship between procurement record management and organizational performance, The study recommends the administration to stream line leadership style to ensure that procurement record management ensures proper organizational performance and The study further recommends UNBS to improve on employee training so as to ensure that there is efficiency in procurement record management in UNBS. The study further recommends the following areas for further study; Challenges in procurement planning , Procurement planning and organizational performance , The role of government in procurement planning  , The techniques of effective procurement planning and Influence of procurement staff on organizational performance.

CHAPTER ONE

INTRODUCTI ON

1.0 Introduction

This chapter covers the background of the study, Statement of the problem, purpose of the study, objectives of the study, research questions, scope of the study, significance of the study and definition of key terms.

1.1 Background of the study

The complexity and volume of procurement drastically increased globally in the recent years. Some of the causes that can be attributed to this include globalization, out sourcing, intense competition for existing markets as well as complicated and numerous partnership. Over the last fifty years many, of the world’s largest firms have advanced from being simple manufactures of hard goods, or providers of basic services, to being sophisticated vendors using advanced business models. This means that commitment of customers and suppliers to contractual obligations has increased, thus, the need for sustainable procurement record management, (Krappe and Kallayil, 2003).

Procurement record management is mainly involved with organizations ensuring management of its financial transactions in the purchasing department including both the purchases and disposal.

New regulatory requirements, globalization, increasing number in signed/awarded contracts and their complexity have resulted in an increasing need to put more emphasis on the importance and benefits of effective procurement record management, (Abadeen group, 2004: Elsey, 2007). After an organization awards a contract it must monitor to ensure the service is being delivered as specified. This implies that the service has been provided as to the agreed standards and price. Protiviti, (2009), argues that not having a formal, well defined and documented procurement planning process in place can have significant long term impact on the organization’s ability to track and monitor service delivery as well as meet stakeholders expectations.

Planning enables the establishment of the roles and responsibilities of public and private workers and is key to programme services ORC Marco, 2003).Egger (1997) suggests that contractors should be invited to provide recommendations about the service delivery demands of the organizations. Procurement planners must describe the problem that needs to be solved and under the current level of organizational needs. Sharer, (2006) asserts contract planners should plan considering the objective of the contract to prevent short comings.

Rendon (2008) contents that procurement record management is a key activity in the procurement process. He observes that one of practices involved would be conducting among research to collect and analyse information about how a specific industry or sector process contain types of products and services and the best ways of ensuring that customer needs are delivered and met timely in order to create efficiency in service delivery system. Such information would include contract strategy, type of contract used, pricing arrangements as well as terms and conditions with a view of ensuring service delivery efficiency.

Performance of an organization is determined by numerous organizational techniques including technological advancement in the organization and the financial performance of the organizational resources.

Oosterom(2007) argues that the overall goals of record management must be clearly understood; quality of service (the accessibility, timeliness and quality of service levels); cost of service (value for money obtained); and customer segmentation (the need for different service channels and service offerings based on comprehensive customer insight).

Procurement simply means acquisition by purchase, rental, lease, hire purchase, license, tenure, franchise, or any other, contractual means, of any type of works, service, or supplies or any combination PPDA ACT 2003 procurement effectiveness is procurement of goods, service, works which are needed by end user and therefore meeting their expectations or purpose for which the item or service was meant for ( Lysons 2003).A public procurement process can be said to be well functioning if it achieves the objectives of Transparency, competition, economy and efficiency fairness and accountability World Bank (2004) ,. World commission on environment and development (1989) define procurement effectiveness as procurement of goods, services, and works, to meet the needs of present generation without compromising ability of the future generation to meet their needs.

According to Lysons, (2006) the performance of organizations across the globe is being affected by numerous factors including technology, ICT, human resource, and organizations with limited financial resources have been affected and out competed by the big financially strong organizations.

In Uganda Baseline Survey Report on Public Procurement Systems in Uganda (PPDAA, January 2010), indicated significant variances between the actual and indicative time frames in contract completion. In addition, Sabiiti notes that the Government at times pays for no work done or very shoddy work and sometimes, purchases are not delivered on time which has affected the ability of the Government to deliver quality services to the general public  and has lead to poor performance of most of government organizations, (as cited in Rwothungeyo, 2013).Meanwhile the Public Procurement and Disposal of Public Assets Authority (PPDA) Audit reports of Uganda National Bureau of Standards, (2009 and 2013) indicate high risks with 27% and 19% in 2009 and 2013 respectively accruing from service delivery management where there were missing procurement management records, delayed payment for received goods and services and delayed deliveries.

PPDA regulations (2014), has re-emphasized the need for procurement record management to all public bodies, Although the UNBS strategic plan for 2010-2015 has put in place mechanisms for tracking and reporting procurement departmental work-plan activities whose key outputs are as a result of good organizational procurement record management through good procurement planning  processes, organizational performance is still not up to the UNBS expectations and this is evident in the complaints of poor quality of products/services received, high cancellation of contracts, high priced goods/services, lack of delivery or partial delivery, delayed completion of contracts, missing contract management documents among others (Mubangizi, 2013).  This study therefore intends to investigate into the influence of procurement record management on organizational performance.

1.2 Statement of the problem:

Procurement record management is instrumental to an organization in order to be in position to achieve; value for money, prevent emergencies in procurement, improve on the performance and competitiveness of an organization and above all achieve better organizational performance, (Lyons, 20O6).

UNBS PDU annual report, (2012) indicates that over 200 awarded procurement contracts in the financial year 2011/2012 but the levels of service received/delivered on most of these procurements remain unknown. Mubangizi (2013) reported high complaints of poor quality products/services delivered with30% contracts cancelled, 5% of contracts either not delivered at all or received in part, 10% deliveries made over the stipulated delivery period and 60% of the contracts performed paid after 30 days stipulated payment period, in addition to these high priced goods/services and having missing procurement management records among other issues.  This study therefore intends to investigate the influence of procurement record management on organizational performance.

1.3 Purpose of the study

The purpose of the study was is to examine the influence of procurement record management on organizational performance.

1.4 Objectives of the study:

1. To establish the different activities in procurement record management.
2. To establish factors that influence performance of UNBS.

• To establish a relationship between procurement record management and performance in UNBS.

1.5 Research Questions:

1. What are the different activities in procurement record management?
2. What are the factors that influence performance in UNBS?

• What is the relationship between procurement record management and performance in UNBS?

1.6 SCOPE OF THE STUDY

1.7 Subject scope

The subject scope of the study covered the different activities in procurement record management, the factors that influence organizational performance in UNBS, and the relationship between procurement record management and organizational performance in UNBS.

1.7.1 Geographical scope

The researcher considered UNBS headquarters in Nakawa,

1.7.2 Time scope:

The study covered a period of eight months i.e. February to September 2016.

1.8 Significance of the study

The study may assist future researchers by adding to the existing body of knowledge, by giving good interventions on procurement record management.

The study may also help the management of UNBS with enough knowledge on factors that influence organizational performance in UNBS and above all help them in implementing good central management policies.

The study will help me acquire the skills in procurement planning.

The research study will enable the research will enable the research gain knowledge and skills in procurement record management

1.9 Definition of key terms

1.9.1 Procurement

Procurement, According to Kenneth Lysons and Brian Farrington (2006), procurement refers to the acquisition of goods, services or works through purchase, rent, lease, franchise or any other legal means considering the 8 Rs like from the Right: place, time, price, quantity, and quality by use of shareholder’s money.

1.9.2 Record management

This refers to management of organizational procurement records in a safe and secure manner to enable an organization make an efficient procurement decision to reduce costs and increase profitability.

CHAPTER TWO

LITERATURE REVIEW

2.0 introduction

This chapter discusses what various scholars have written about, to establish the different activities in procurement record management, To establish factors that influence performance of UNBS and to establish a relationship between procurement record management and performance in UNBS.

2.1 Different activities in the procurement record keeping

According to the PPDA act, (2003), the user department has the responsibility of identifying its needs before any procurement is made, this is also the first step in the procurement process this stage involves the user department in an organization simply identifying what it needs before any procurement is done, in the private sector In the top-down approach, decision makers who are responsible for the permanent analysis of economic and social developments under their authority, will identify situations that need improvement, and/or try to find opportunities for a more prosperous development. Then they request the executive public administration bodies to develop a project idea for example to improve the public infrastructure, or public services in health and education, (Lysons, 2006).

Analyzing of organizational priorities involves a number of activities including; Conduct market analysis to gain awareness of the products/services that are available for procurement, Perform a make vs. buy analysis, Estimate investment costs of the Procurement Plan, Set clear and reasonable timelines for delivery or implementation, Based on the Procurement Plan, obtain authorization to proceed from appropriate levels of approval authority.

The user department fills in the departmental in the departmental work plans that states the requirements that they need to procure in the final year Lee, (2003). The procurement departments write to the different heads of departments requesting them to fill in the department work plans and submit them to the procurement department such that the procurement department can come up with the master plan. (Basheka, 2009) adds that the heads of departments mobilizes their departments ad comes up with their needs for the whole financial year . the user department needs is vital to be captured in the procurement plan because it is useless to make a pprocurement plan without getting view of the users wants and the period of time they need it to be fulfilled.

After filling these departmental work plans by the user departments and fully signed by the heads of the departments, the procuring department consolidates these different departmental plans to come up with the procurement plan or the master plan that has to be used in the procurement of works, services and supplies for the whole financial year. The procurement plan is supposed to be prepared in a quota systems and each department has to be planned for in the whole financial year (Marianne 2010). In consolidating a procurement plan, the procuring organization should ensure that this task is handled by a competent person from the procurement office who will be able to ensure that all the necessary information is captured in the plan (Barnow, 2008)

Simatupang, (2005) stated that after the Procuring unit consolidating the procurement plan, it is submitted to the contracts committee for approval. The contracts committee has to ensure that the consolidated plan meets with the needs of the procuring entity; it was drafted by a technical person, consolidated from the different departmental work plans and ensuring that it is in line with the budget. The contracts committee makes a decision on the procurement by either rejecting it or approving it and if it rejects it the procuring unit makes the adjustments and resubmit it and if it approves it, the procuring unit continues with the procurement process (Basheka, 2008) added that the contracts committee should ensure that the consolidated plan is in line with the needs of the organization and also ensure that it captures the needs of the user. In case it is found that the plan is contradicting with the organization needs and goals, it is rejected.

The approved procurement plan is again submitted to the management/ board or council of the entity such that the management can read through and see if the procurement plan is in line with the objectives of the entity and also to ensure that it meets with the entities budget and needs. The management of the entity can make changes on the procurement plan in case it is found not satisfying the company objectives (Simatupang, 2007). The board or council of the organization reviews that budget and compare it with the organization resources plus the capabilities of the organization such that it can suit the required goals and also meets the company potential (Batenburg, 2006).

According to Basheka, (2004) an stake holders need to analyze the priorities of an organization and be in position to make decision that fully determines both the present and the future needs of an organization in order to ensure that the organization is fully aquires what it needs in the procurement process. He further asserts that a stakeholder is any person or organization that is actively involved in a project, or whose interests may be affected positively or negatively by execution of a project.

Determination of budget is essential in the procurement process in order to determine the ability of the organization to meet the needs the running expenses and targeted budget of a given financial year, (Basheka, 2004); The budget of a company is often compiled annually, but may not be a finished budget, usually requiring considerable effort, is a plan for the short-term future, typically allows hundreds or even thousands of people in various departments (operations, human resources, IT, etc.) to list their expected revenues and expenses in the final budget.

Specification development; According to Bailey et al (1996) argues that there are two approaches to specifications; performance and conformance and both determine the quality of products which will result into procurement effectiveness, bailey further says that when specification is made by end users, purchasing function becomes efficient in provision of goods and services.

Specification involves Exact statement of the particular needs to be satisfied, or essential characteristics that a customer requires (in a good, material, method, process, service, system, or work) and which a vendor must deliver. Specifications are written usually in a manner that enables both parties (and/or an independent certifier) to measure the degree of conformance. They are, however, not the same as control limits (which allow fluctuations within a range), and conformance to them does not necessarily mean quality (which is a predictable degree of dependability and uniformity),( Bailey, 2004). Specifications are divided generally into two main categories: (1) Performance specifications: conform to known customer requirements such as keeping a room’s temperature within a specified range. Technical specifications: express the level of performance of the individual units, and are subdivided into individual unit specifications which state boundaries of the unit’s performance consisting of a nominal value and tolerance (allowable departure from the nominal value, acceptable quality level which states limits that are to be satisfied by most of the units, but a certain percentage of the units is allowed to exceed those limits, and distribution specifications which define an acceptable statistical distribution (in terms of mean deviation and standard Deviation) for each unit, and are used by a producer to monitor its production processes.

2.2 Factors that influence performance in UNBS

Procurement planning, According to procurement news (2005) it was reported that were procurement planning is inadequate; it has resulted in short comings of poor procurements made. Sakire & Unit (2006) in their analysis of the public procurement procedures in Turkey singled out more specifically that the first step as an important activity of procurement planning or procurement law is determination of needs. Therefore procurement planning has to be done after knowing needs of end-user. Law is determination of needs. And that procurement carried out under appropriate conditions and timely manner leads to efficiently use of resources. LGDP reports and guidelines (2001 to 2005) also support the above view. According to Drury, (2000), coordination of various future activities of an organization is by preparation of plans actions for future periods this minimizes risks and increases the degree of organizational success. Drury also further says that procurement plans made by the district should be to help in organization control and facilitate communication to ensure success in achievement of the required objectives. Cole (1997) also argues that planning can lead to improved efficiency and effectiveness in delivery of goods and services he further says that planning is a deliberate attempt to design a future course of action with view to optimize the use of resources. He goes ahead to certain that an organization without a plan has planned to fail because it had not had particular route to follow. According to UN (2006), Good procurement planning is essential to optimize the contribution of the procurement function towards achieving the overall goals of the organization. UN (2006) asserts that good procurement planning supports: transparency, Development of Key Performance Indicators (KPIs) according to milestones and accountabilities set in the procurement plan, and use of the same to monitor performance, Effective and timely solicitation of offers, award of contracts and delivery of the goods, services and works required,  Early requisition to reduce any delays in procurement and timely delivery to project sites,  Early identification of right commodities and quantities to meet programme needs, Sourcing the right suppliers on time to avoid cutting corners under rush procurement to meet deadlines or budget expenditure, Effective supply strategy and timely programme and project implementation.

Coordination between end user with procurement staff; Procurement staffs decide on the contracts to take on, the tenders to award preparation of bids, advertisement of bids and also proposing appropriate procurement methods (PPDA ACT and regulations 2003). Procurement staff also is completely aware of the market situation so they were always advice end user on the better alternatives available. Public procurement contracts provide the mechanisms by which the national development goals of states can be attained. According to Arrow (1997), public procurement contracts are means of achieving national development objectives. According to New vision (2011) Public procurement is often plagued with corruption, unfair practices and price collusion in view of the huge amounts of money involved and there should coordination between different departments to encourage effectiveness in the system.

Basheka B.C (2009) observed that in the last five years, corruption has been placed high on the international agenda. Corruption has taken an alarming dimension in recent years at the same time spreading in geographical and growing in intensity. Illicit payments now account for approximately ten to twenty percent of international transactions.

Procurement policies; If policies are ineffective, employees lack comprehension and it is difficult to explain to end users the why of the policies. Policies are only good if everyone understands them and can explain and defend them. Planning is deciding in advance what to do, how to do it, who will do it and when it will be done. If your employees don’t know why your business does what it does, where the business is going and how you will measure success, then it’s difficult to communicate your business value to your end users therefore good procurement policies need to be adopted and developed in order to achieve procurement effectiveness Erridge (2001).

Communication between buyers and supplier; In order to supplier what is needed According, to Nicol w (2003), all correspondence and communications with the vendor regarding problems, proposed changes, or the implementation of the procurement decision should be effective , According to McIvor (2005), in managing outsourcing relationships, communication with the vendor is of utmost importance during the life of the contract. Knowledgeable internal staff must be available to identify problems and work with the vendor to resolve them. Vendor selection should have provided a vendor whose business/functional culture aligns with that of the organization, so that communication is fostered and developed to support the effort should be documented and kept in order to resolve disputes or identify areas of strengths and weaknesses.

Public entities involved in procurement should practice and encourage competition and accountability. Erridge et al (2001) point out that competition should deliberately enable bidders to compete with one another under the same terms and conditions using a relevant procurement method with a view to maximizing value for money. They point out that such competition should be non-restrictive, give sufficient time for bidding, and use standard bidding document and make bid evaluation using the same criteria. The authors describe accountability to include promotion of information sharing among all the players indicating reasons/ bases for certain actions / decisions and providing written or spoken description of what has happened under ones trust.

2.3 Relationship between procurement record management and performance

Records represent a particular and crucial source of information that is reliable, legally verifiable and a source of evidence of decisions and actions taken (International Records Management Trust, 2000).  Ngoepe (2008) and Mampe etal (2012) assert that better procurement performance begins with better records management. Bola (2011) and Kimoni (2007) believe that proper record management helps governments to realize and achieve their service delivery goals which include; organization decision making, accountability, requirements of the law, future reference and management of state resources. Accordingly, the Better Practice Guide, (2007) states that all records created and received in conducting a procurement activity, either paper based or electronic or both should be captured in an entity’s recordkeeping system(s) in accordance with the entity’s recordkeeping policies and procedures  (Manuals – Public Procurement Act, 2003, Act 663). The contract management guide (2010) indicates that relevant documents relating to procurement processes should be maintained as per company policies and procedures.

There are a number of countries in Africa that are increasingly reforming their public sectors to make them more efficient with scarce public resources, competitive and customers focused (Chittoo, et al 2009:31), governments neglect to incorporate records management in their strategic planning. Sichalwe, et al (2011:23) is of the view that the reforms cannot be successful without proper, reliable and readily available records indicating that the management of public sector records which are a critical aspect of public service reform programme, because they enhance the efficiency and effectiveness of the public service.

In support of the above, Ngoako (2011) argues that governments must ensure permanent management of its records since it needs to account to its citizens for its administrative actions taken by it. An effective records management will enable compliance with transparency requirements. Kemoni (2008) warns that poor records management practices would have adverse consequences for public procurement.

Popoola (2007) stated that, the problem of records management is not with records and information per se but with those having interface and interactions with these two vital resources during the service delivery process. The problems of records management can be summarized into inadequate knowledge of the life-cycles of records, inertia in implementing a form of system and information. He further notes that information and records management are the foundation of business activity. If there is no information, the management is crippled in its planning and decision-making processes. Information serves as the factor input in achieving rational organizational decision-making and high quality service delivery. It is needed to develop, deliver and assess the effectiveness of organizational policies, make informed choices between alternative courses of action, provide the basis for openness and accountability, protect individual rights and enforce legal obligations. Lynch (2013) supplements by indicating that there should be a systematic approach to recordkeeping from the beginning of the contracting cycle through to service delivery completion.

According to Nadiope, (2005) there is need for trained procurement personnel in order to ensure service delivery improvement in government parastatal, the author further observes that the government lacks trained procurement personnel as most of the procurement officers either lack professional competence or the academic qualification. In Uganda the need for training procurement personnel particularly to contract management can only be established after what is known about the same has been established. Public Procurement Authorities must continuously formulate and implement strategies to address the existing capacity gaps within PDEs especially in the area of contract award and management so that service delivery efficiency is meant and realized by the government parastatal bodies. This is evidenced by the PPDA Capacity Building Report (2010) which noted that some PDEs had serious constraints in execution and monitoring of contracts

In an effort to attain these demands, organizations constantly look for employees who haveskills necessary to deal with the wide variety of tasks (Monczka et al., 1998; Sauber et al., 2008). Notwithstanding the above, Lan, Riley and Cayer, (2005) suggest that finding, hiring and retaining dedicated, energetic, and ethical employees with special skills is always hard. The supervisors (contract managers) should be knowledgeable in contract management. Organizations must, therefore, assign experienced staff to supervise the consultant and contractors for effective service delivery. This should be accompanied by proper record keeping in order hence eliminating errors in the contract management process in order for the service delivery effectiveness realization.

The public procurement regulatory framework dictates that contracts must be drawn carefully involving all stakeholders for completeness to avoid as unnecessary deviations in order for the achievement of service delivery effectiveness to the population, Minahan (2007) notes that it is possible to design contracts that are robust enough to profitably continue operations in the face of expected deviations and unexpected disruptions and quickly recover from disasters. The foundation is a strong, stable supply network forged from good supply base management, strong supplier links, and continuous improvement and a corporate culture that embraces change and flexibility. But one may ask whether multi-stakeholder collaborations are important and how sustainable are they? While attending the Common Market for Eastern and Southern African (COMESA) Trainers of Trainers Workshop held in Addis Ababa, Ethiopia from 25th July-5th August 2010, participants identified key issues that can influence contract management to assure service delivery to the public as follows; apportioning of resources; clear reporting lines, defining of roles and responsibilities, ensuring timely payments and managing of risks.

According to, Thai (2005) and Bolton (2006),  procurement management challenges in both public and private organisations are endemic in any contractual relationship due to lack of transparency and poor record keeping the authors further recommend for an increased level of transparency in contact management for the attainment of efficiency in service delivery in public organizations. Successful procurement management and completion is often defined, as procurement of the right item, in the right quantity, for the right price, at the right time, with the right quality, from the right source (Thai, 2004), The author further contends that effective management of the contract enhance transparency in contract management so that service delivery effectiveness in public institution is achieved. However Prager (1994), contends that proper and effective management and monitoring of contracts helps improve the quality of goods and services and reduces procurement cost thus achieving three broad goals: quality products and services, timely delivery of products and services, and cost effectiveness (within budget).

CHAPTER THREE

METHODOLOGY

3.0       INTRODUCTION

This chapter presents the methodology which consists of the research design, area of study, study population, sample population and selection, sampling technique, data collection method, data quality control, data collection procedures and limitations of the study.

3.1       RESEARCH DESIGN

Qualitative and quantitative research designs were used. The researcher used the above methods because many aspects were covered in the study concerning the influence of procurement record management on performance at UNBS, Qualitative research method was used because it collects information within a short time while quantitative was through interview to cross check what has been given.

3.2 AREA OF THE STUDY

The study was carried out at UNBS

3.2       STUDY POPULATION AND SAMPLE SIZE

The study targeted, the procurement staffs, Accounting officers, administrators and the regional directors of UNBS.

3.3       SAMPLING TECHNIQUES

According to (Amin, 2005) sampling involves selecting a sample of the population in such a way that samples of the same size have equal chances of being selected.

The sample comprised of 30 respondents that werer selected in a way that 3 respondents were from the procurement department, 10 from administration, 10 from accounting department and 7 regional directors. While carrying out research, purposive sampling was applied to the above different categories of respondents.

TABLE SHOWING THE DIFFERENT CATEGORIES OF RESPONDENTS

Table 1: Sample size of respodents

3.4          DATA COLLECTION METHODS

Source of data was from both primary and secondary sources.

• Primary data

Primary data was obtained from the questionnaires administered on the target respondents to gain opinions and practices on influence of procurement record management on performance at UNBS.

• Secondary sources

Secondary sources of data involved reviewing existing related information on the

Study such as reports, journals, magazines, newspapers, textbooks and electronic data bases.

3.5       RESEARCH INSTRUMENTS.

   The study used self-administered questionnaires to collect accurate data.

3.5.1    Questionnaire

Questionnaires were used because they take shorter time to cover a larger sample fact evident and documented; they also eliminate the element of shyness in respect of interviewing and yet gave the respondent enough time to avail accurate answers. The researcher used both open-ended and closed ended questions for the purpose of having all research questions answered.

3.6        DATA COLLECTION PROCEDURES

Upon receiving the institution’s permission to carry out research, the area of study was be visited for the purpose of familiarization.  The researcher sought permission from management and once allowed to proceed with research, questionnaires were issued and interviews carried were carried out with the selected staff.

3.7       QUALITY CONTROL OF DATA INSTRUMENTS

The instrument was taken to the supervisor to check its correctness there after pilot study was carried out to find out if it measured what it is meant for.

3.8       DATA PROCESSING AND ANALYSIS

The raw data was coded, edited, and arranged ready for analyzing only completed raw data was analyzed using statistical tables and graphs.

3.9        LIMITATIONS OF THE STUDY

Financial constraint, cash flow did not flow as   expected but this did not affect the study. Respondents delayed in filling the questionnaires and feared to give information; they were persuaded that the information is confidential and would be kept secret.

CHAPTER FOUR

PRESENTATION, ANALYSIS, INTERPRETATION

OF FINDINGS

4.0 Introduction

This chapter presents the results in reference to objectives in chapter one. Gender of    respondents, Age of respondents, education level of respondents, different activities in procurement record management, factors that influence performance of UNBS and relationship between procurement record management and performance in UNBS.

4.1 FINDINGS ON GENERAL INFORMATION

Table 2: Gender of respodents

Source: primary data

Table 4.1 above shows that 63.33% of respondents were male and 36.67% were female. That means that the biggest percentage of respondents and employees in the organization were male and apart from that it also shows that male gender dominate the work force of UNBS.

FIGURE 4.1 : GENDER OF RESPODENTS

Figure 1 BAR GRAPH SHOWING THE GENDER OF RESPONDENTS

The findings in the study further clarifies that the male gender dominates the response rate in the study.

4.2 FINDINGS ON THE AGE OF RESPONDENTS.

Table 3: Age category of respondents

Source: primary data

The table above shows that 30% of the respondents are in the ages of 18-29 while 36.67% of the respondents are in the ages of 30-39 while the remaining respondents are in the ages of above 40 years.

FIGURE 4.2: AGE CATEGORY OF RESPODENTS

Figure 2 Bar graph showing the age of respondents

The graph above shows that majority of the respondents were in the ages of 30-39, this therefore shows that majority of the respondents are mature and therefore were able to give accurate information.

Table 4 shows findings on education level of respondents

Source: primary data

Table above shows that the majority of staff is degree holders and their percentage is 50%, masters 26.67%, while 20% of the respondents are diploma holders and the rest of the respondents have other qualification.

FIGURE 4.3: EDUCATIONAL LEVEL OF RESPODENTS

Figure 3 The line graph showing education level of respondents

The line graph above shows that majority of the respondents were degree holders, this showed that majority of the respondents were highly educated and therefore easily answered the questionnaires without difficulty, it further showed that seconds largest percentage of respondents have masters degree.

4.4 FINDINGS NUMBER OF YEARS OF WORKING

Table 5 showing the number of years respondents have worked at UNBS.

Source: primary data

The table shows that majority of the respondents have worked for the time period of 6-10 years, and their percentage stands at 50% of, 20% of the respondents have worked for 3-5 years, while 16.67% of the respondents have worked for and respondents who have worked for above 10

Figure 4 The above graph showing the number of years respondents have worked at UNBS.

The graph shows that marjority of the respondents have worked for a period of 6-10 years at UNBS this therefore shows that marjority of the respondents have good understanding of the operations of UNBS and  therefore gave right answers to the questions asked by the interviewer.

4.2 DIFFERENT ACTIVITIES IN PROCUREMENT RECORD MANAGEMENT

Table 4: Different activities in procurement records management

Source: primary data [

From table 4.6 above, findings revealed that, 50% of respondents strongly agreed that Identification of user needs in UNBS is done by department, 33.33% agreed while 16.67% were Neutral this therefore shows that majority of respondents agree that with the fact that  Filling of the procurement necessities  is done at UNBS.

According to the table 60% of the respondents strongly agreed that Filling of market analysis results is done at UNBS  , while the remaining 40% agreed this therefore shows that all the respondents agree with the fact that Filling of market analysis results is done at UNBS .

According to the table above, 73.33 % of the respondents strongly agreed that Analyzing departmental work plan is done while 16.7% agreed, 3.3% of the respondents were not sure while the remaining 10% disagreed basing on this response it is therefore clear that Analyzing departmental work plan is done, this therefore shows that most of the record kept at UNBS involves departmental work plan.

From the table 83.33% of respondents strongly agreed that Consolidating procurement plans is done at UNBS while the remaining percentage of 16.67% of the respondents agreed this makes it clear that the Consolidating procurement plans is done at UNBS.

According to the results in the study Establishing organizational budgets is done in UNBS do promote excellence in procurement; this is represented by a high percentage of 50% and 33.3% agreed, this further implies that  UNBS keeps organizational budgets.

    4.3. Factors that influence performance in UNBS

Table 5: Factors that influence performance in UNBS

Source: primary data

From table above, 60% of the respondents strongly agreed that Procurement planning is necessary for UNBS to achieve better performance while the remaining 40% agreed; this therefore shows that the majority of the respondents agreed that procurement planning is essential for achieving better performance at UNBS.

According to table above it indicates that, 73.33 % of the respondents strongly agreed that Coordination between end user with procurement staff enhances better performance at UNBS, while 26.67% agreed, while none of the respondents, was neutral, disagreed, and strongly disagreed.

According to the results in the study  majority of the respondents assert that procurement policies of UNBS are designed to encourage better performance , none of the respondents disagreed or was neutral.

Findings revealed in table above, shows that 50% of the respondents strongly agreed and the remaining percentage this therefore shows that 100% of the respondents agree with the fact that Efficient communication between buyers and suppliers is done at  UNBS  so as suppliers  are aware of the needs of UNBS and therefore enhances performance of the organization.  According to the table 56.67% of the respondents strongly agreed that Inter-supplier competition is encouraged at UNBS, while the remaining 33.33% of the respondents strongly agreed, while non of the respondents was neutral, disagreed or strongly disagreed.

4.4 Relationship between procurement record management and performance

Table 6: Relationship between procurement record management and performance

From table above, 60% of the respondents strongly agreed that Reduction in costs of purchased components while the remaining 40% agreed; this therefore shows that the majority of the respondents agreed.

According to table above it indicates that, 73.33 % of the respondents strongly agreed record management Gives timely information to an organization to decision making, while 26.67% agreed , while non of the respondents, was neutral, disagreed, and strongly disagreed.

According to the findings in the majority of the respondents assert that good record management helps an organization to have timely information which heklps the management in quick decision making

Findings revealed in table above, shows that 50% of the respondents strongly agreed and the remaining percentage this therefore shows that 100% of the respondents agree with the fact that Reduction of emergency procurement is achieved an organization as a results of efficiency in record management.

The findings in the study shows that most of the respondents in the study assert that record management helps in the reduction of emergency of procurement there by saving an organization costs , none of the respondents disagreed or strongly disagreed.

The findings in the study shows that most of the respondents assert that record management helps in ensuring Efficiency in service delivery is brought about by proper records management.

CHAPTER FIVE

DISCUSSION OF FINDINGS, SUMMARY OF FINDINGS, CONCLUSION, RECOMMENDATION AND AREAS OF FURTHER STUDY

5.0 Introduction

The study aimed at establishing the influence of procurement record management on performance. The study was guided by research objectives and the researcher summarized the findings in consistence to the research objectives.

5.2 Discussions of findings

5.2.1 The Different activities in procurement record management

According to the results in the study filling is done in procurement record management at UNBS; this is also in line with PPDA act, (2003) which asserts that different activities in procurement planning user department has the responsibility of identifying its needs before any procurement is made and therefore during record keeping of organizational records the filling of organizational necessities is done, this is also the first step in the procurement process this stage involves the user department in an organization simply identifying what it needs before any procurement is done then records department fills the organizational records.

The results in the study indicates that filling of market analysis results is done, this is also in line with, Basheka, (2005) who explains that Conducting  market analysis to gain awareness of the products/services that are available for procurement, Perform a make vs. buy analysis, Estimate investment costs of the Procurement Plan, Set clear and reasonable timelines for delivery or implementation, Based on the Procurement Plan, obtain authorization to proceed from appropriate levels of approval authority, ,.

Consolidation of the budget is done in UNBS this is also in line with Simatupang, 2005 who states that procurement and disposal unit consolidates procurement plan then it is submitted to the contract committee for approval.

The budget is reviewed to ensure attainment of procurement goals this finding also coincides with the results of Batenburg, (2006)  who states that  , the board or the councils of the organization reviews the budget and compare it with the resources plus the capabilities of the organization such that it can suit the required goals and also meets the company potential.

5.2.2 Factors that influence performance in UNBS

Co-ordination between procurement and other department this is also in line with Arrow (1997), who asserts that Procurement staff also is completely aware of the market situation so they were always advice end user on the better alternatives available.

Efficiency and effectiveness in procurement this is also in line with Nicol w (2003) who states that all correspondence and communications with the vendor regarding problems, proposed changes, or the implementation of the procurement decision should be effective, According to McIvor (2005), in managing outsourcing relationships, communication with the vendor is of utmost importance during the life of the contract. Knowledgeable internal staff must be available to identify problems and work with the vendor to resolve them.

Value for money in its procurement this is also in lie with Basheka (2004), who states that Procurement in local government in Uganda has not been corruption-free. Public procurement, at the local government level, is believed to be one of the principle areas where corruption in Uganda takes place (National Public Procurement Integrity Baseline Survey, (2006). Corruption is disastrous to the well functioning of any government department. Corruption has been an intractable problem in many developing countries; especially where it has become systematic to the point where many in government have a stake.

Supply risks are identified and avoided by Procurement and disposal unit, this findings is al;so in line with Nicol, W. (2003) who states that end user participation assist in the development or redefinition of specifications to encourage competitive offers, identifying any standards to which goods or services must comply, it provides information which can assist in negotiations, where this may lead to reduction in the ‘degree of business risk’ and ensure that all procurement activities are done in line with the governing laws.

Reduction in purchasing costs through better negotiation this is also in line with Lysons (

2007), who states that Reduction in costs of purchased components and materials, procurement effectiveness is essential to reduce on avoidable costs in procurement these costs are like purchase of unwanted goods, thought can be used to look for sources of greater value within the supply chain. The increasing development of the procurement function into strategic elements such as the management of the supply chain, world class status, lean supply cost of ownership, and so forth requires end user participation in the procurement process market intelligence to achieve best results.

 5.2.3 Relationship between procurement record management and performance

Organizational policy is imperative in serviced delivery; this is also in line with Nadiope, (2005) who asserts that there is need for trained procurement personnel in order to ensure service delivery improvement in government parastatal, the author further observes that the government lacks trained procurement personnel as most of the procurement officers either lack professional competence or the academic qualification. In Uganda the need for training procurement personnel particularly to contract management can only be established after what is known about the same has been established. Public Procurement Authorities must continuously formulate and implement strategies to address the existing capacity gaps within PDEs especially in the area of contract award and management so that service delivery efficiency is meant and realized by the government parastatal bodies. This is evidenced by the PPDA Capacity Building Report (2010) which noted that some PDEs had serious constraints in execution and monitoring of contracts

5.3 CONCLUSION

According to the results in the study indicate that The Different activities in procurement record management

Filling of the organizational necessities, filling of market analysis results, Analyzing departmental work plan, consolidating procurement plan, and establishing organizational budget.

The results further indicates that the Factors that influence performance include; co-ordination between procurement and other department, There is efficiency and effectiveness in procurement, Supply risks are identified and avoided by Procurement and disposal unit and  reduction in purchasing costs through better negotiation.

The study further indicates that Relationship between procurement record management and performance in an organization include; Good record management leads to efficiency in procurement planning  , Gives timely information to an organization for decision making, Procurement records leads to reduction in costs of purchased components, Reduction of emergency procurement can be minimized with good procurement record management, and Efficiency in service delivery is brought about by proper records management.

5.4 Recommendations

The results in the study indicate that Relationship between procurement record management and organizational performance.

The study recommends the administration to stream line leadership style to ensure that procurement record management ensures proper organizational performance.  .

The study further recommends UNBS to improve on employee training so as to ensure that there is efficiency in procurement record management in UNBS.

5.5 Areas of further

The study further recommends the following areas for further study;

Challenges in procurement planning

Procurement planning and organizational performance

The role of government in procurement planning

The techniques of effective procurement planning

Influence of procurement staff on organizational performance

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QUESTIONNAIRE

APPENDIX I: QUESTIONNAIRE

TOPIC: INFLUENCE OF PROCUREMENT RECORD MANAGEMENT ON PDE PERFORMANCE.

A CASE STUDY: UGANDA NATIONAL BUREAU OF STANDARDS

Dear respondent

I am NAKKU PHIONA a student of UICT, and am carrying out a study on the Influence of procurement record management on PDE performance. You are one of the respondents randomly selected to participate in the study. The information given shall be treated with at most confidentiality and shall only be used strictly for academic purpose.

SECTION A:    GENERAL INFORMATION

Please tick the appropriate box

1. Which department do you belong to in this organization?

PDU           administration                       Accounts

Quality

• Sex: Male                    female

• Age a) 18 -29 b) 30 – 39 c)  40 and above

• Educational level

Certificate                                 Diploma                      Degree             Others

5. For how long have you been working with UNBS?

Less than one year                           2-3 years

1–2 years                                         above 3 years

Please tick one appropriate.

SECTION B:  Different activities in procurement record management

Key: SA=Strongly agree, A=agree, N=neutral, D=disagree, SD=strongly disagree

Please tick one appropriate.

SECTION C: Factors that determine performance

Key: SA=strongly agree, A=agree, N=neutral, D=disagree, SD=strongly disagree

Please tick one appropriate.

SECTION D: 4.7. Relationship between procurement record management and performance

Key: SA= Strongly agree, A=agree, N=neutral, D=disagree, SD=strongly disagree

THANKS FOR YOUR COOPERATION