The Influence of Procurement Practice on Public Organizational Performance

Abstract

The present study intended to examine “The Influence of Procurement Practice on Organizational Performance” a case study of Arusha City Council (ACC). The study had the following specific objectives, to evaluate the influence of procurement planning, professionalism and supplier selection on organization performance within the public sector. The organizational the performance was considered as a composite of the degree of compliance to laws and regulations as well as meeting value for money requirements as in the context of PPRA and NAOT performance audits in Tanzania. The researcher adopted the qualitative research design with non-probability or purposive sampling techniques to get a sample of 50 respondents from a population of 250ACC respondents. A descriptive research design was used and data mainly qualitative in nature, were collected through questionnaires, interviews,s and documentary review. Data analysis used qualitative and quantitative statistics and were analyzed using frequency tables and charts, with the aid of appropriate computer applications. Based on the findings the study revealed that the organization has no procurement training programs to enhance employee skills, there was inadequate training in procurement practices that lead to the poor performance of the organization, the organization has no documented policies that guide training in procurement practices and there was no periodic supplier audits undertaken to correct compliance errors. The study concluded that, procurement planning, ethical professionalism, and supplier selection has a significant influence on the organization performance in terms of the ability to achieve VfM and complying with procurement legislation in force in Tanzania. The study recommends that Arusha City Council should engage competent staff to handle procurement inefficiently and the effective manner by providing enough time for their staff to attend pieces of training and seminar concerning procurement especially those led by PPRA and PSPTB so as to get competent personnel.