Effects of procurement practices on organizational performancespecial emphasis on jimma university

Abstract

Procurement practices are vital activities in the public sector, since procurement process is generally a critical part of organizations’ expenditure. The linkage of procurement to organizational performance in particular, makes the embracing of best practices important to success of organizations. The main aim of this study was to examine the practices in procurement and its effects to organizational performance of Jimma University. The study based on the assumption that proper inventory management; procurement monitoring, procurement controls, procurement planning, and training of workforce can result to better organizational performance of Jimma University. Descriptive research design was followed. The target population of the study was the 250 employees working at the department of procurement and property administrations from which primary data was collected using structured questionnaire from 186 respondents. Data analysis was done using descriptive and regression methods. The study established the Jimma University had adopted procurement practices to a moderate extent. It further found out that procurement planning procurement monitoring and procurement controls are important in influencing the organization’s performance. The study concluded that application of the procurement practices in the organization is founded on proper procurement planning, procurement monitoring and procurement controls. Therefore, recommends that the key procurement actors should come up with viable ways of managing procurement process. Revitalization of the entire procurement process should be a requirement as it can help in ensuring that organizations embrace modern technological ways and trends in handling and addressing procurement issues.