| Content | CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
This research is on the role of negotiation skill in purchasing and contract management. It is natural for any company that engages in buying and selling to use negotiation techniques in its buying strategies. Negotiation is an important aspect of purchasing and supply. Negotiation in purchasing is the process, which provide a legitimate and ethical means for the buyer and the seller through give and take, or eliminate unjustified or unnecessary increment n cost.
Negotiation is a fact of life. Everyone negotiates something every day. Negotiation is a method by which people settle differences. Negotiation is one of the instruments employed by the buyer organization in order to reach a fair and reasonable price through sound discussion. Negotiation forms a substantial part of most purchasing officer or agent’s needs to be able to analyze and interpret information and be aware of danger involved in any wrong decisions by the parties involved.
It is also important to recognize that the main task of the purchasing manager in fulfilling and carrying out his operation of maintaining suppliers is negotiation. The purchasing manager is a specialist in satisfying the needs of the company by seeking suitable sources of supply and negotiating to secure the best terms and services possible. Negotiation involves two or more parties with the aim of reaching an agreement of their term dissemination. Whenever it is required or reconciles two or more differing opinions in order to initiate the action or continue in mutually agreed condition. It is very vital that all buying and selling transactions leave both parties satisfied and hence acceptance on any of the parties.
It should not be construed as a means of stripping the trend or a fair profit or an opportunity for extracting unreasonable concession. In reliability the most successful negotiations are those which produce result to satisfy both side and which to provide the framework long-term mutually beneficial relationship. In my own understanding Negotiation is nothing but an act and science for arriving at common understanding through bargaining on the essential of contract in purchasing context.
Negotiation technique varies from one company to another depending on the type and policy of that company. In most companies and organizations today materials are consideration as vital tools to the success operations.
The purchasing of materials take a lion share of the financial budget in a trading period almost 75% of the Nigerian bottling company, Ikeja total expenditure goes on material procurement. This makes prompt negotiation a function of purchasing. This project work is a case study of the Nigerian bottling company. I have chosen the company for two reasons.
First, it is a manifesting company and they have acquired a lot of knowledge about purchasing function secondly, so that I can critically examine how they carryout local and international negotiation practices in the company and its effect on profitability.
1.2 STATEMENT OF PROBLEM
Negotiation is very important between buyers and sellers. This is because it improves buyer-seller relation.
Unfortunately, negotiation is not effectively employed in some organizations
- What are the roles of negotiations skills in purchasing management?
- b) What are the causes of lack of skilled negotiation personnel?
- c) How to promote negotiation skills among the purchasing personnel?
- d) Why is time pressure a problem faced in the course of negotiation?
- e) What are the unpredictable behaviors of the buyer which the supplier cannot satisfy, that later result into problem between both parties?
1.3 OBJECTIVE OF THE STUDY
The aims of this research work are to:
(i). Examine the roles of negotiation skills in purchasing and contract management of an organization.
(ii). Identify factors critical to successful bargaining.
(iii). Determine how to obtain a fair and reasonable price.
(iv). See how relevant negotiation network is to the buyer and the supplier as a whole.
(v). Determine how to promote the skills of negotiation into the purchasing personnel?
(vi). Examine the causes of lack of skilled negotiation personnel
1.4 RESEARCH QUESTIONS
The following questions will help in solving the research problems:
- What are the roles of negotiations skills in purchasing management?
- b) What are the causes of lack of skilled negotiation personnel?
- c) How to promote negotiation skills among the purchasing personnel?
- d) Why is time pressure a problem faced in the course of negotiation?
- e) What are the unpredictable behaviors of the buyer which the supplier cannot satisfy, that later result into problem between both parties?
1.5 SIGNIFICANCE OF THE STUDY
This study will serve as an indicator to know the roles of negotiation skills in purchasing and contract management. This study is significant in its attempt in bringing out the causes of lack of skilled negotiation personnel in today’s organization using the Nigeria bottling company as a case study.
1.6 SCOPE OF THE STUDY
It is designed to study the Nigerian bottling company and its environments on the impact of negotiation skills in purchasing and contract management.
1.7 DEFINITIONS OF TERMS.
Negotiation: This is the process of planning receiving and analyzing used by the buyer and the seller to reach an acceptable compromise in an aspect of business transaction such as price delivery, specification, terms of payment etc. also it is the act of attiring at a common understanding between the buyer and the seller through bargaining on essential of the contract:
Purchasing:- This term is also here as the process of buying in the market. But in a broader sense, it is a professional term used when buying goods and services by an industries, commerce and co-operation by a professional buyer
Haggling:- Since negotiation is sometime mistaken to means the same thing as haggling it is good at this juncture to point out that haggling means arguing about price.
Expediting:- it is also referred as follow up.
Supply: This is the process of obtaining by legal means materials supplies, services and equipment required in the operation of organization.
Specification: This is the process of defining an item in terms of it brand or trade name chemical analysis sample standard, performance or any other relevant characteristic suitable in all aspect for the purpose for which it is intended.
Bargaining: Is an agreement to discussion in order to arrive at a compromise.
Competitive Bidding: Is calling for bids and evaluating the bids to arrive at the best price | CHAPTER ONE
1.0 INTRODUCTION
The rise of e ? business in the late 1990?s led to the development of new opportunities related to procurement: e ? procurement, spend management, outsourcing and joint product design (Lancioni, Smith and Oliva, 2000). According to Oyekola (2007), E ? procurement is a collection web technology ? based purchasing solutions aimed at simplifying commercial transactions within and between organization.
E ? Procurement practices are the electronic management of all procurement activities. To begin with the buyer has to log into an application system on the computer and send information to the supplier. This process ends when goods are supplied and the invoice issued for the goods are paid for. According to Nevalainen, (2003; 6) e ? procurement practice has more advantages when compared with the paper ? based system. Some of the when are that; all the staff in the organization can take part in the procurement process due to ease ? of ? use; self ? service on the internet, a considerable reduction in the cost of processing an order, shorted lead times, faster products and services delivery due to efficiency. A company?s e ? procurement system and do away with paper, such that the procurement system can communicate to other application system and do away with paper, such that the procurement function becomes focused and an important area for cost saving and also limiting maverick buying practices. The primary focus of a company?s e ? procurement strategy is to better manage its operational costs. Every year billions of dollars go into the drain due to inefficient procurement practices.
Most of the companies nowadays can be seen as being composed of three primary processes which are purchasing, manufacturing and distribution based on the overall flow of materials (Thawiwinyu and Laptened, 2009). So, in order for the companies to remain competitive in the market, they must reduce the costs of their component and materials by sourcing from cost saving suppliers. Nowadays most of the organizations are increasingly doing E ? business using information and communication technologies and the additional use of internet too. The traditional procurement which is lowly, back ? end process has been transformed into E ? procurement with the emerging technologies that make everything possible and within reach. Furthermore, with increasing on competitive pressures, supply chain management professionals must continually find solution to reduce costs, increase efficiency, and also to reduce the longest lead time, procurement now is seen as a core quality based competition, cost efficiency, inventory management, and customer uncertainty.
1.1 STATEMENT OF THE PROBLEM
E ? Procurement adoption has both threat and opportunity in terms of business productivity and competitiveness. Even if the benefits of adoption and the potential strategic implications of e ? procurement are recognized, the list of impediments for private sectors includes items that are major potential barriers for an effective adoption: risk, uncertainty, inefficiencies from supplier and catalogue. Content readiness, cultural change, staff resistance, need for firm wide training with likely disruption of on ? going activities each one of these makes it difficult for SMES to implement e ? procurement strategies to the possible extent that the implementation may deemed too difficult. One possible explanation for a slow adoption for a slow adoption process is that the adoption decision is complex. While many benefits arise in the longer term, major impediments and associated potential costs may be very short term (e.g. extensive staff training). Association benefits and costs are difficult to estimate in real terms. It is on this basis that the study examined factors influencing implementation of e ? procurement in private sector.
1.2 RESEARCH OIBJECTIVES
i. To find out the level of the implementation of e ? procurement in the private sector.
ii. To examine the success of e ? procurement implementation in the private sector.
iii. To ascertain the effect of skills id=f private sector employees and supplier on implementation of e ? procurement in private sectors.
1.3 RESEARCH QUESTION
i. What is the level of the implementation of e ? procurement in the private sector?
ii. What is the level of success of e ? procurement implementation in the private sector?
iii. What is the effect of skills of private sector employees and suppliers on implementation of e ? procurement
1.4 SIGNIFICANCE OF THE STUDY
The study will be used by companies to get more knowledge on factors affecting use of e ? procurement in private sector. The knowledge will be used by the researcher to develop more knowhow on e ? procurement; it will assist the scholars interested in conducting research in e ? procurement and related areas as a source of reference. The study will assist policy makers on e ? procurement in companies both for private and public sectors, which will help shape the procurement sectors to perform better with implementing e ? procurement in business activities.
1.5 SCOPE OF THE STUDY
The study of critical factors that influence e ?procurement implementation success in the private sector is limited to the Ibadan Electricity Distribution Company, General Gas, Akobo Ibadan.
The population selected is made up of the private company. The sample size of the workers chose from the Ibadan Electricity Distribution Company in General Gas, Akobo Ibadan.
1.6 LIMITATION OF THE STUDY
High level of illiteracy. The respondents to the questionnaire did not give relevant information needed and most of the questionnaire given out was not return. Sixty questionnaires were given out and only thirty was presented.
1.7 BRIEF HISTORY OF IBADAN ELECTRICITY DISTRIBUTION COMPANY
IBEDC formally came into existence on 1st November 2013, as part of the unbundling at the electricity sector. Which cover the largest Franchise area in Nigeria, made up of Oyo, Ogun, Osun, Kwara, and part of Niger, Ekiti and Kogi state. To ensure effective and competent management of such a large network, they are organized into five regions namely Oyo, Ibadan, Osun, Ogun, and Kwara regions, the regions are made up of Business Hubs. Each region is manned by a regional technical manager. | CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Since stock of materials represent money: it is important to research into how these materials are received, kept, issued with theoretical knowledge acquired in schools over the years, while the primary function of the store is to provide services to the operating function and these services cannot be provided without proper provisions of storage facilities.
The impact of storage facilities on stores efficiency is to ensure that goods regularly required are stored according and that adequate care of materials held within the organizations is very important. Store staff must be well trained in ensuring that materials held within the stores are well taken care of, storage facilities such as bins, rack, shelves, flat pallet, spillage post, box pallet, stock taking silos and tanks are to be provided.
Some methods of storage are associated with particular method of handling and therefore the task of handling materials and storage methods must be taken into consideration while choosing the methods of storage to be incurred or use. The provision of materials handling is another essential objective of store functions, storage also encompasses store design and store location system. Storage cannot be effectively done within taking into consideration the design of the store which involves planning so that stocks are conveniently grouped and placed for efficient operation. The store should also be designed in such a way that easy flow of items or materials held is to be ensured without hindrances caused by the choosing of gang way, also to ensure that materials can be found when they are needed within minimum waste of time.
There are two major location systems which can be adopted and these are fixed or random location system, all goods location system must not only locate them but also conjure up a mental picture of its position with store house.
In many organization, both public and private sectors much emphasis are being made on procurement of materials and less on storage and associated functions and procedures.
The research work is to reveal the storage procedures and its impact on store efficiency, in doing this the storage and materials handling procedures adopted by Lafarge cement Plc, Ewekero Ogun State shall be looked into ascertain its effects on store efficiency it also hopes that suggestions and recommendations will made regarding modern scientific and better system of storage and materials handling.
1.2 STATEMENT OF PROBLEM
There is enormous variety of material in store house of all kind and yet there are increasing verities very now and then because of advancement in technology due to innovations and renovations, this has brought careful and important roles to be played by the stores as appropriately expected it worth reporting that so many damages had been caused to materials in the store and which as lead to significant losses thanks to materials handling, location system, storage procedures etc. which as help to decrease the rate of damages in the store house. While many materials have lost their strength due to poor storage facilities, poor storage procedures and lack of qualified or experienced and adequate staff to manage the store efficiently. However, financial constraint hindered the purchase of adequate equipment and qualified personnel.
1.3 OBJECTIVES OF THE STUDY
This project is tailored towards the realization of the following:
? To evaluate out how materials handling and storage contribute to store efficiency in terms of cost reduction in cost and wastages and enhanced productivity
? To assesses the objective of materials storage and its contribution to the organization (Lafarge cement Plc)
? To examine the effect of stored design on materials handling in Lafarge cement Plc.
1.4 RESEARCH QUESTION
To aid this study the researcher finds it worthwhile to raise the following under listed question:
? What is the contribution of store to the development of an organization?
? Does materials brings about, enhance productivity?
? Does materials handling brings a wastage of materials
1.5 SCOPE OF THE STUDY
This research seeks to look at the store efficiency through storage and materials handling in an organization especially within Lafarge cement Plc Ewekoro, Ogun State.
1.6 SIGNIFICANCE OF THE STUDY
? It will contribute to the existing wealth of knowledge the area of storage and materials handling in the store house.
? The study will be of access assistance to prospective researcher who may like to research on this topic or improve on the recommendations proffered by the researcher.
? The research will enable the researcher to have broad knowledge of ensuring store?s efficiency through storage and materials handling in an organization
1.7 LIMITATIONS OF THE STUDY
During the course of this research, some problems are encountered which did not make the work as detailed and timely as expected. Among the difficulty confront are following
i) ATTITUDE OF THE OFFICALS: the officials met in the company were reluctant to give useful information that can make this job easy while some did not respond at all.
ii) FINANE: Fund was inadequate in order to enable the research enough. This is responsible for the. Slow in project write-up and printing.
1.8 DEFINITION OF KEY TEAM
Stores: is a term used to describe goods which are held in storehouse or stockyard.
? STORE: means an abode where material either raw, work-in- progress or finished goods are being kept before delivery or dispatch is made.
? EFFICIENCY: is a measure of how well or productive an organization uses resources in producing huge amount of product.
? STORAGE: refers to where or place where goods and materials bought are kept for uses or purpose or materials that await inspection or delivery are kept.
? MATERIALS: are items procured to use in the production process to give a reasonable outcome that is finished product.
? HANDLING EQUIPMENT: are facilities used to carry or move material from one point to the other in an organization e.g Forklift.
? OPERATION: Refers to as an action of functioning or the fact of been active or in effect. An action scope or method of working.
? OUTPUT: means end result of production activities an outcome of an operation either in production or any activities.
1.9 HISTORY OF LAFFARGE CEMENT PLC
Lafarge cement plc, formally as West Africa porland Cement plc was established in 1959 with its first factory in Ewekoro Ogun State Nigeria in 1960. The discovery of limestone in Sagamu area made it easy for the establishment of second Cement factory in Shagamu Ogun State and Commissioned the Hon. Minister of labour and industry Sir Roland Adeleye in way1978. The company commenced production with an initial capacity of 200,000 tones per annum, but these later grew with demand to about 1.5 million metric tones per annum.
In response to a growing demand for Cement and aligned products, West Africa Portland Cement Plc remained the flagship product of the essential input to build in Nigeria which is symbolized by elephant; its brand- has continued to depict power, maturity, Resilience, durability and reliability.
Elephant cement has continued to expand and assert itself as a market leader across borders, despite the overall instability and weakness of the market. Brand is successful due to its outstanding quality complimented by their Superior sales and world class logistics from work to position the elephant brand as a clear leader in prod class
From the late 90?s the company began to witness reduction in output due to age the inaugural plants in Ewekoro. However to cope with future challenges through increase productivity, improve efficiency and cost effectiveness a modern productivity, improve efficiency and cost effectiveness a modern State-of-the-art plant was commissioned in Ewekoro in August 2003 to replace the absolute and aged plant. The new plant capacity of 1.32 million metric tones per annum has since commence production with attendant result of increased output by the company.
Lafarge Contribute to the construction of city around the world through its innovative solution providing them with more housing and making them more compact; more durable, more beautiful, and better connected with the world leading building materials, Larfarge places innovation at the heart of its priority in other to contribute to more sustainable construction and to better serve architectural creativities. They promote social economic development job creation, adult training programmes and employee opportunity to make a positive contribution in the community around our sites.
CORPORATE SOCIAL RESPONSIBILITY (CSR) OF LAFARGE CEMENT PLC OGUN STATE
Another representative of Ewekoro community, Chief J.O Idowu submitted that ?the company gave our students scholarship youth empowerment through revolving capital and educational relief materials. Lafarge WAPCO also introduced mechanized farming into our villages in Ewekoro by giving us tractors? youth representatives, under the aegis of Sagamu youth Council led by Mr. Jamiu Olododo said the company has equally demonstrated its commitment to the development of Sagamu through a number of activities ranging from the building of public toilet to yearly scholarships and a community learning center for youth empowerment.
Our commitment to the communities is supported by a methodology focusing on awareness, dialogue and collaboration designed to create shared values for local stakeholders and for the operations. We have set ambitious targets to promote local socio-economic development. We also support, conduct, or sponsor many adult training programs ranging from basic competences to specific trade skills.
The ACES is designed and wholly sponsored by Lafarge in its drive towards solving technical skills deficit in the society, the scheme is targeted at young school leaver from the host-communities along with others from the lager Nigerian society for them to acquire skills in Electrical, Mechanical, and instrumentation/ Automation crafts man ship, in furtherance of this- Lafarge as a member of the board of the Cement Technology institute of Nigeria (CTIN). Over 1,000 people have benefited from the acquisition scheme from the centre in various trade tests with a training period of three and half (31/2) years and a take away of a National Board of technical Education certificate (NABTEB) o ?level certificate. | CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
E-procurement involves the use of internet, information networking systems, such as electronic for the purchase and sale of supplies, work, and services between the government and other firms. E-procurement value chain consists e-Tendering, e-Auctioning, of indent management, e-Informing, vendor management, catalogue management, Purchase Order Integration, Order Status, Ship Notice, e- invoicing , e-payment , and contract management.
Baily (2008) classifies e-procurement into the seven categories: the first is Web-based ERP (Enterprise Resource Planning)., E-MRO (Maintenance, Repair and Operations), E-sourcing, E-tendering ,E-reverse auctioning , E-informing ,and E-market site. According to Eadie et al (2007), the benefit of E-procurement include, Price reduction in tendering, efficient for the finding and connecting of new sources, Lower Administration costs, Reduction in procurement staff and competitive advantage over competitors. A centralized department in the firm can oversee the coordination of all procurement activities for different branches and different offices worldwide can access the same documentation when required, this gives a distinct advantage over the much slower process of having to post documentation between offices. This extends the supply chain beyond geographical boundaries to a much wider group. It facilitates timely delivery and quality delivery of products and services, greater market access but also increased productivity. The research seeks to investigate the effects of e-procurement in the public sector.
The rise of e-business in the late 1990’s led to the development of new opportunities related to procurement: e-procurement, spend management, outsourcing and joint product design (Lancioni, Smith, and Oliva, 2000). E-procurement is defined as an Internet-based purchasing system that offers electronic purchase order processing and enhanced administrative functions to buyers and suppliers, resulting in operational efficiencies and potential cost savings.
Most of the companies nowadays can be seen as being composed of three primary processes which are purchasing, manufacturing and distribution based on the overall flow of materials (Thawiwinyu and Laptened, 2009). So, in order for the companies to remain competitive in the market, it’s must reduce the costs of their components or parts and materials by sourcing from cost saving suppliers. Nowadays most of the organizations are increasingly doing E-Business using information and communication technologies and the additional use of internet too. The traditional procurement which is lowly, back-end process has been transformed into E-Procurement with the emerging technologies that make everything possible and within reach. Furthermore, with increasing on competitive pressures, supply chain management professionals must continually find solution to reduce costs, increase efficiency, and also to reduce the longest lead time. Procurement now is seen as a core player in supply chain focus on time to market, product quality based competition, cost efficiency, inventory management, and customer uncertainty.
According to Monczla and Morgan (2000), this can be solved by the key competitive priorities for the 21st century is the maximization of Internet-based technologies such as E-Procurement. In 1990's along with rapid growth of the Internet, Electronic Commerce (EC) in traditional market was founded. This study attempts to assess the e-Procurement success factors in telecommunication organizations of Nigeria. The main purpose of this study is to understand how the various factors play their role in making e-Procurement technology a success for the business.
Despite the e-procurement application benefits seen in the simplification and speeding up all stages of procurement, including tendering, design and production development projects, ordering, requisitioning, stock management and payment. However, the electronic infrastructure of Tanzania cannot absorb the current technological changes occurring at a fast rate. Information technology is also costly when it comes to replacing the former system. Moreover, managing the risks, which may arise due to the radical change in business process and the attitude of the people who operate the system, is challenging (Ishobeza, 2006). Through public system, the Public sector always experiences delays in completing the procurement process by using manual procurement (tendering system), which consumes a lot of money to complete the procurement cycle from the planning stage to receiving the goods or services in time. Such cumbersome procurement reduces the efficiency of using public funds.
Moreover, the procedure applied in public procurement systems in Nigeria covers many sub functions, which involve the user department, Procurement Management Unit, Tender Board and the Accounting Officer. Usually, user departments initiate the procurement process and disposal by tender requirements. They also propose technical inputs in the statements of requirements and forward them to the Procurement Management Unit. The tender board on the other hand, is responsible for the adjudication of recommendations from the Procurement Management Unit and awarding of contracts and the Accounting Officer who approves the procurement in the public sector as stipulated by the public procurement Act No. 21 of 2004 and its regulations of 2005.
It has been established that breaking down the physical barriers of electronic procurement allows more transparent and efficient information flow. It also, improves access to information and services. Beneficiaries of enhanced procurement include not only the government and suppliers but also the public whose access to transparent information on the expenditure of the taxpayer’s money is enhanced.
Presently, however, electronic procurement has yet to be fully used to maximize the efficiency of public procurement needs. Nevertheless, if such a system is properly implemented, it would enhance the provision of accurate information in terms of procurement of goods, works and services.
1.2 STATEMENT OF THE PROBLEM
E-procurement in the public sector offers a lot of promise. A government can negotiate good deals with suppliers when it can accumulate all of its purchases and negotiate as an entity. The negotiated agreements when made available in the e-procurement system can be accessed by the end users by logging into the system via the internet. The end users can place the order electronically utilizing the negotiated deals. The e-procurement system when interconnected with an organization’s internal financial system minimizes the transaction processing costs. E-procurement via automated administrative procedures can enhance monitoring abilities and minimizes opportunistic behavior among purchasing officials.
Moreover, public sectors strive to find new ways of cutting down on costs and save time while improving records management. To meet these challenges, public sectors are required to consider their attitude towards electronic procurement and its benefits. After all, the formulated electronic procurement can help the organization to ensure economy and efficiency in the use of public funds, integrity, accountability, fairness and transparency in the procurement process.
To promote electronic procurement, the Government of Nigeria through the Public Procurement Regulatory Authority, started first by training all procurement practitioners in the Public Sector on the Procurement Management Information System (PPRA Annual Performance Evaluation Report, 2008/2009). Through such a system, the government can reduce corruption or collusion by minimizing the risk of data manipulation or misuse. At the same time, the procurement data and information can be made transparent for government decision-makers who, by using these data, can make informed decisions regarding public procurement. Despite these efforts and potential, Tanzania has yet to implement the electronic procurement.
As such there was a need to determine, the E-procurement challenges in the public sector in an attempt to deliver the value of products, works, or services at a minimum cost the study was conducted in the broadcasting corporation of Oyo state as a case study of the public sector operating in Nigeria.
1.3 OBJECTIVES OF THE STUDY
- To determine the effects of e-procurement in the public sector
- To investigate if the implementation of e-procurement can serve as a mechanism to challenges in public sectors
- To establish the extent of e-procurement adoption among public corporations in Nigeria
- To establish the challenges facing the adoption of e-procurement in public sectors of the country
- To determine the relationship between e-procurement and procurement performance in Nigeria’s public sector
1.4 RESEARCH QUESTION
- What is E-procurement?
- What is the effect of e-procurement in the public sector?
- What electronic procurement challenges do the public sectors faces in the effective use of the public funds through procurement?
- To what extent does the Public sector use the e-Procurement to acquire goods, works and services?
- What are the benefits of using e-Procurement in the public sector Organization’s?
- What nature of e-Procurement implementation challenges does the public sector face?
- Which system is suitable for the Public sector procurement practices?
1.5 SIGNIFICANCE OF THE STUDY
The study shall proffer an appraisal of the effects of e- procurement in the public sector E-procurement involves the use of internet ,information networking systems, such as electronic for the purchase and sale of supplies, work, and services between the government and other firms . E-procurement value chain consists e-Tendering, e-Auctioning, of indent management, e-Informing, vendor management, catalogue management, Purchase Order Integration, Order Status, Ship Notice, e- invoicing , e-payment , and contract management.
The findings of the study have provided information for other researchers to conduct further investigation in the area. The research report would also serve as a study guide for the students. Moreover, the evaluations and recommendations from the study would be useful to public sectors leaders in Nigeria, as it provides a clear picture on the reality of electronic procurement method.
Above all, the study has contributed to the body of knowledge on procurement in the public sector of Nigeria.
1.6 RESEARCH HYPOTHESIS
Ho: E-procurement serves as a mechanism to challenges in the public sector
Hi: E-procurement does not serve as a mechanism to challenges in the public sector
1.7 SCOPE OF THE STUDY
The study focuses on the appraisal of the effects of e- procurement as a mechanism to the challenges in the public sector is limited to the Broadcasting Corporation of Oyo State, Nigeria (BCOS)
1.8 LIMITATIONS OF THE STUDY
The study was confronted by some constraints including logistics and geographical factor. | CHAPTER ONE
1.0 INTRODUCTION
In every business organization which is profit enterprises, it is very pertinent to adopt promotion as a tool for increasing sales volume for communicating with the target market (potential consumer). This is because business environment is very dynamic, hence, for a business to strive successfully in such environment and its continued existence, products and service offered and develop favourable attitude toward them.
However, promotion as one of the element of marketing mix is a form of communication that has significant role of creating customers awareness and boosting of sales, as stated by many author.
Promotion comprises of promo tools which are element of prom tools which are element of promotion mix. These are used or combined in appropriate way to design promotional sales volume.
Promo-tools are: personal Selling, Sales Promotion, Advertising, Publicity and Public Relations increase in competition and declining sales volume have necessitated us of effective promotional sales volume. In essence, a high quality product with reasonable price that is made available at appropriate place may not have many sales without the role of promotion in a depressed economy of Nigeria.
Therefore, there is a need to give strict attention to promotional ses volume which is a effective marketing sale volume in business organization in Nigeria for organizational goal i.e. profit making.
1.1 STATEMENT OF PROBLEM
This research work involves some problems and these are:
1. What is the effect f promotion as a tool for increasing sales volume in business organization like Nigeria Breweries PLC?
2. What is the general importance of promotional sales volume in business organization?
3. Which of the promo-tools is more effective in customer?s awareness and boosting of sales?
4. Can any of this promo-tools be used in isolation
1.2 OBJECTIVES OF THE RESEARCH
1. To make known important of promotion as tool for increasing sales volume in business organization with a special reference to Nigeria Breweries Plc, in Ibadan.
2. To identify promo-tools used by company.
3. To claim that none of the promotional tools can be used in isolation.
4. To find out which of the promo-tools is more effective
1.3 RATIONALE FOR THE STUDY
1. This research work will reveal that promotion as a tool for increasing sales volume in Brewery industry which must be given out strict attention in business organization be it private or public enterprises.
2. It is s pre-requisite for the award of Higher National Diploma in marketing to blend theory and practice.
3. For necessary practical exposure in my field of study
1.4 SCOPE OF RESEARCH
This study is limited to promotion only as an element of marketing mix. This is limited to the sales department of the Nigerian breweries Plc, Ibadan.
The study will cover various promo-tools to those that are combined to design a promotion sales volume in every business, organization, as given by many authors, particularly in Nigeria Breweries Plc Ibadan.
1.5 HISTORY BACKGROUND OF NIGERIA BREWERIES
The Nigerian Brewery Plc, the point and the largest breweries company in Nigeria was in cooperated in 1946, its Ibadan Brewery was established in June 1982, this was followed by Aba-brewery in 1963 and on September 1993, company acquired its fifth breweries in Nigeria Enugu.
Thus, from its humble beginning in 1949, the company now has breweries from which its high quality product is distributed to all part of many great countries.
Nigeria Breweries Plc has rich portfolio of higher quality brands. Star larger beer (1949), Guilder lager beer (1970), Maltina (1976), legend extra stout (1992), Amstel Malta (1994) and Schweppes soda water (1992) was launched in December 1996.
They were followed in November 1997 by the introduction of Crush orange. In June 1998, the company also launched Heineken larger into the Nigeria market.
Nigeria breweries PLC, has increased export business that dates back in to 1986 currently, the breweries Plc keeps striving successfully internationally since this time.
In order to continue maintaining its goodwill in these international markets, the company established and development at centre at Ibadan in 1987 to enhance its research in all aspect of the breweries operation.
ªªª | CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The role of leaders in ensuring excellent organizational performance cannot be over emphasized. Adequate motivation, suitable work environment, compensation, efficient communication between managers and subordinates play an important role in promoting this goal. Planning and organization of work is also very crucial in organizational attainment. Some researchers have argued that the most common problems affecting organizational performance in Nigeria business and other institutions are poor attitude to work among workforce, inefficiency as well as ineffectiveness of leaders in most places, though others share a contrary view. This second school of thought believes that organizations in Nigeria are mange through leadership styles that are strange to typical Nigerian are managed through leadership styles that are strange to typical Nigerian culture. In the wake-up call to address this issue, management practitioners in Nigeria have embarked on series of studies in an attempt to establish the relationship between effective leadership and organizational performance. Some found out that effective leadership styles are positively related to organizational performance while others have a different view. Still there is no empirical evidence to show how effective leadership styles impacts on organizational performance. Again given our cultural background, educational qualifications, environmental factors it is still not too clear how effective a leader can be if he must combine the three types of leadership styles to achieve high performance in Organizations Usoro 2000. Given this scenario, this study will be important in that it tries to fill this gap. The extent (degree) to which all members of an organization use their abilities and influences in the effective utilization of resources depends upon how well the leaders of the organization understand and perform their jobs. Maddock and Fulton 1998 in Iyang (2006) explain that leadership styles and other processes of the organization must be such that can ensure maximum probability within all interactions and relationships with the Organizations, each member will in the light of his background, values and expectation view the expenses as supportive and one which can build and maintains his sense of personal worth and importance.
Despite the above, we should note that individuals have their needs to satisfy and that is why they offered their labours to become organizational members and the extent to which they are committed to the organization depends on the degree of their conviction that their membership of the organization will enable them realize their predetermined objectives. In this case, the support an organization gets from the individuals will be based on the realization that by doing that, his personal objectives and goals will be met; otherwise his interest in the organization will wane. Based on that, leadership effectiveness should be given adequate attention it the organization intends to achieve its objectives. That is why it is a common agreement among management scholars that the success or failure of an organization is largely a function of leadership and its styles. I yang on his part sees effective leadership as a unique ways and integrating employees with the organization to achieve its vision or objectives and that to a large extent the effectiveness of a leader is largely dependent to the styles adopted by mangers which he says is central in the management of Organizations. Speaking in the same vein Edem, observes that failure or success of an organization, which affect the subordinates, the customers and agencies within and outside the organization. Although there is no standard method through which a leader can be effective in achieving high performance in an organization but that what is required is the modification and the combination of the variables that make leader effective if the goals and objectives of the organization have to be realized (Edem 2002).
1.2 Statement of the Problem
Managing people in Organizations is parts and parcel of management Process. Therefore, managers should realize, that people are the critical elements in organizations and that they should be recognized as being synonymous with the organization. But the problem is, to what extent do managers recognize this fact that employees are synonymous with Organizations and that they should be adequately motivated so that they can give their best to ensure high performance? Again the leadership behavior/style in most organizations which believe that workers could be treated anyhow as a result of unemployment situation in the country which makes job switch difficult has resulted in the hardship workers face in their places of work in Nigeria. This behaviour/style of leadership has an impact on reforming and/or creating organizational culture which in turn affects organizational performance and commitment. So given this situation, how effective can a leader be to elicit the best response from subordinates and make for the highest or best performance (Usoro, 2000). Furthermore, some researchers are of the opinion that the most common problems affecting organizational performance in Nigeria businesses and other institutions are poor attitude to work among the
Workforce, inefficiency and ineffectiveness of leaders in most places, others still belief that organizations in Nigeria are managed through leadership styles and behaviors that are strange to typical Nigerian culture.
In view of the above contending issues, it was necessary to look at effective leadership and organizational performance in Nigeria using National Youth services corps Kogi State Secretariat as a case study.
Therefore, this study will be investigating the following.
- To examine the impact of effective leadership on organizational performance.
- To study the effect of leadership behavior on the execution/implementation of the programmes of the NYSC in Kogi State.
- To find out the extent to which the management structure of Kogi State NYSC influences the performance of the organization.
- To suggest recommendations aimed at engendering effective leadership of the Kogi State NYSC.
1.3 Objectives of the Study
The general objective of this study is to examine the impact of effective leadership on organizational performance. The specific objectives are as follows:
1. To find out the effect of the leadership behavior on the execution/implementation of the programmes of the NYSC in Kogi State.
2. To examine the extent to which the management structure of Kogi State NYSC influences the performance of the organization.
3. To suggest recommendations aimed at engendering effective leadership in Kogi State NYSC.
1.4 Significance of the Study
The significance of any research study lies in the application of its findings for operational purpose. It is believed that this study will be of immense importance because the empirical finding will reveal how effective leadership impacts on organizational performance.
The study among others, seek identify the weaknesses or inadequacies of various variables of effective leadership. It is the researcher?s belief that this work through its findings will change the perception of the National Youth Service Corps Kogi State Secretariat leadership and other organization?s leaders about their leadership behaviour and styles.
Scholars and practitioners suggest that effective leadership behaviours can facilitate the improvement of performance when organizations face challenges (Avery 2008).
Again, leadership is viewed by some researchers as one of the driving forces for improving a firm?s performance. That is why effective leadership is seen as a potent source of management development and sustained competitive advantage for organizational performance improvement. This is because leadership helps organizations achieve their objectives more efficiently by linking job performance to valued rewards and by ensuring employees have the resources needed to get the job done.
Another theoretical significance of this study is that when organizations seek efficient ways to enable them to outperform others, a long standing approach is to focus on the effects of leadership. This is because team leaders are believed to play a vital role in shaping collective norms, helping teams cope with their environments and coordinating collective action?. The absence of leadership is so dramatic in its effects. Without leadership, organizations move too slowly, stagnate and lose their way. If decision making is timely, complete, and correct, than things will go well, yet a decision by itself changes nothing. After a decision is made, an organization faces the problems of implementation ? how to get things done in a timely and effective way. Problems of implementation are really issues about how leaders influence behavior, change the course of events and overcome resistance. Leadership is crucial in implementing decision successfully. Furthermore, the result of this work will be of immense benefit to the leadership of Kogi Sate National Youth Service Corps. As managers of human and material resource, this study will assist them to understand leadership, managing people and other resources, harnessing resources both human and material to achieve organizational goals and objectives and what it takes to achieve maximum performance through effective leadership.
The result of this study will also help officers in managerial positions to become conscious of their roles as the propelling force towards development. It is hoped that the research findings will assist the Federal, State and Local government Areas especially Kogi State and the Local Governments in the state on the ways to adopt the right leadership styles that can support them so that the state secretariat will achieve its goals and objectives like any other state secretariat will achieve its goals and objective like any other state secretariat in the country.
It is also believed that the work will stimulate further interests in future researches who will be involved in research efforts in the same organisation. In addition to the above, it will add to already existing literatures on effective leadership and organizational performance which will serve as reference materials to scholars and researchers who may be interested in embarking on a research of this nature.
1.5 Scope of the Study
The scope of the study covers only National Youth Services Corps Kogi State Secretariat. Thus, the focus of the study is on effective leadership and organizational performance.
However, to facilitate a sound grasp of the subject matter within the thought framework of the objectives of the study, the scope of the study covered such issues as the concept of leadership, the relationship between effective leadership and organizational performance, leadership and motivation. Others include motivation and job performance, leadership effectiveness and job performance and leadership styles. It also includes organizational performance, how to measure organizational performance, leadership and communication, characteristics and qualities of good leadership and managing subordinates in organizations.
1.6 Limitation of the Study
In conducting this research project, the work would have been more thorough if the thirty six States National Youth Service Corps offices in the country including the National Headquarters were covered. However, it was difficult to study all the thirty six States National Youth Service
Corps Secretariats due to costs of associated logistics and time constraints. Owing to these constraints, this study focused on National Youth Service Corps Kogi State Secretariat alone. A major limitation to research work in this part of the country is the inability of the researcher to get the necessary information which could have made the work richer were not obtained due to the unwillingness of the officials to give out rich information so the researcher resorted to getting the little to give out rich information so the researcher resorted to getting the little he could from the staff of the secretariat. Also, due to lack of culture of proper record keeping, only very limited data were gotten by the researcher for this work.
However, in spite of all these limitations and other constraints which may not be mentioned here, it does not in any way affect the reliability of the research work for the purpose of reference and its usage by all the stakeholders in national Youth Services corps especially the Kogi State Secretariat. |
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