“Centralization and Decentralization of Procurement Functions in Public Organizations in Tanzania
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Mzumbe University
Abstract
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A Dissertation Submitted to the School of Business in Partial/Fulfilment of the
Requirements for Award of the Master’s Degree of Procurement and Supply
Chain Management (Msc. PSCM) of Mzumbe University
The study assessed the centralization and decentralization of procurement functions in public organizations in Tanzania. The study was carried out with four research objectives guiding it to assure information generation to fill the gap that was identified. The objectives include to determine supplies that have been centralized and decentralized; relationship between centralized and decentralized procurement on organization performance; to analyze procurement guidelines for implementation of centralized and centralized procurement for procurement function at TANESCO; and effects of placing procurement functions near or far from end user. It was conducted in Tanzania Electricity Supply Company Limited (TANESCO) using case study design or approach. The study generated facts to fill the gap from the employees of the organization from the sample of 50 respondents and three key informants using structured questionnaires and interviews. Mixed method was employed since the study consisted of qualitative data gathered through interviews and quantitative data and information gathered through questionnaires through causal relationship approach. Data which were collected using interviews were analyzed using content analysis approach and presented using themes to support the results. Moreover, data which were gathered using questionnaires were filled in SPSS data sheet version 23.0 whereas they were analyzed by the software to generate statistics to present the primary data. In that case, descriptive statistics were used to describe the profile of the respondents; while correlation and multiple regression was used describe the relationship between study variables. Narration approach was used to state the findings which were gathered through interviews. Findings of the study indicated various supplies that have been centralized and decentralized prior to the decentralization process in procurement. Also, the relationship between centralized and decentralized procurement on performance of the organization it was noted that all three predicting variables tested on organization performance as the dependent variable were positive and statistically significant to the dependent variable. In addition to that, the study indicated that procurement function in TANESCO is facilitated by the procurement guideline stipulated under the public procurement Act 2011 Act No. 7 and its amendments of 2016 and the procurement manual of the company. The implication of the study is that decentralization practice in TANESCO in procurement function has indeed generated positive results regardless of the shortcomings that may be in place but the reality is that the decision has proved to be worthy as far as performance of the organization is concerned.
The study assessed the centralization and decentralization of procurement functions in public organizations in Tanzania. The study was carried out with four research objectives guiding it to assure information generation to fill the gap that was identified. The objectives include to determine supplies that have been centralized and decentralized; relationship between centralized and decentralized procurement on organization performance; to analyze procurement guidelines for implementation of centralized and centralized procurement for procurement function at TANESCO; and effects of placing procurement functions near or far from end user. It was conducted in Tanzania Electricity Supply Company Limited (TANESCO) using case study design or approach. The study generated facts to fill the gap from the employees of the organization from the sample of 50 respondents and three key informants using structured questionnaires and interviews. Mixed method was employed since the study consisted of qualitative data gathered through interviews and quantitative data and information gathered through questionnaires through causal relationship approach. Data which were collected using interviews were analyzed using content analysis approach and presented using themes to support the results. Moreover, data which were gathered using questionnaires were filled in SPSS data sheet version 23.0 whereas they were analyzed by the software to generate statistics to present the primary data. In that case, descriptive statistics were used to describe the profile of the respondents; while correlation and multiple regression was used describe the relationship between study variables. Narration approach was used to state the findings which were gathered through interviews. Findings of the study indicated various supplies that have been centralized and decentralized prior to the decentralization process in procurement. Also, the relationship between centralized and decentralized procurement on performance of the organization it was noted that all three predicting variables tested on organization performance as the dependent variable were positive and statistically significant to the dependent variable. In addition to that, the study indicated that procurement function in TANESCO is facilitated by the procurement guideline stipulated under the public procurement Act 2011 Act No. 7 and its amendments of 2016 and the procurement manual of the company. The implication of the study is that decentralization practice in TANESCO in procurement function has indeed generated positive results regardless of the shortcomings that may be in place but the reality is that the decision has proved to be worthy as far as performance of the organization is concerned.
Keywords
Centralization and decentralization of procurement, (TANESCO)