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Procurement is an important part of the supply chain and does not only affect external
stakeholders but also internal stakeholders. This entails that it has potential to add value not
only to the external side of the supply chain but also to the internal supply chain.
This is an important activity found in all organisations, public, private, governmental and
charities and can be responsible for a large amount of spending. Such spending on, for example,
stationery, travel and insurance can constitute a significant amount of money. Most
organisations spend at least one-third of their turnover/income on the purchase o f goods and
From the above, it can be seen that procurement is an important function which affects the
organisation’s budget. It is for this reason that this study will focus on the impact of
professionals. In the Public sector, Section 26 (7) of the Public Procurement and Disposal Act
2005 provides that a procurement unit established under subsection (4) shall be staffed with
procurement Professionals whose qualifications have been recognized by the Public Procurement
Oversight Authority. Section 26 (8) defines a procurement Professional as a person who has
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professional qualifications in procurement and supply management from a recognised Institution
involved and has experience in the practice of procurement and is a member of a recognised
In examining the utility of an internal service perspective for procurement, Stanley and Wisner
(2002) reinforced the links between internal and external service quality, supporting the
contention that positive internal customer service provided by procurement has a significant
Employees are the most important asset of any organization and a resource that needs to be well
managed. In every institution, employees leave their place of employment due to one reason or
the other, therefore making up the organisation’s membership rarely constant. The employees in
the public service may exit their place of employment voluntarily or involuntarily by transfers,
Whenever employees exit their place of work, a gap is created resulting in under establishment
and loss of expertise in the organisation. Procurement Professionals are important human assets
in many organisations and in many cases, the service level that the final customer gets depends
to a very large extent on the operations of the procurement department. Consequently, this
brings in the concept of internal customer service in the sense that other departments are
served by the procurement department in order for them to provide goods and services for the
end customer who is the external customer. Recognising the importance of the internal
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customer is not new and is very important. If poor internal service exists, then the final
In the recent years, the Public has witnessed an unprecedented level of procurement professionals
exiting their places of employment through transfers, dismissals and so on without much regard
Traditionally, literature on employee exiting employment has focused on how many employees
leave an organization (turnover frequency) without regard to performance of those who quit or
those who stay. This lack of emphasis on performance can distort the true effect of separation on
the organization. According to (Johnson, 2000) a useful way to capture the true effects of staff
separation (exit from place of employment) is to examine it in terms of being either “functional”
(poor performers leave or good performers stay) or “dysfunctional” (good performers leave or
additional critical dimension for evaluating the effects of employee separation and organizational
performance.
The public service has experienced the problem of procurement professionals leaving, being
relieved of their duties or being transferred. The impact to customer service delivery arising
from these separations needs to be analysed. What is not known are the effects of these
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and internal Customer Service.
The main objective of this Study is to assess the impact of exiting of procurement professionals
on internal customer service in the public service. The specific objectives are:-
(i) To establish the common methods through which procurement professionals exit
(ii) To establish the impact of the various staff separation methods on quality of service, pace
of service delivery, complaints and grievances from users and rate of responsiveness to
service delivery
(iii)To establish the impact of the various staff separation methods on procurement
(i) What are common methods through which procurement professionals exit place of work
(ii) Does exiting of procurement professionals from their place of employment impact on
(iii) What are effects of staff separation on the morale and productivity of the
procurement professionals?
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professionals exiting place of employment on internal customer service. Internal customers are
important part of the supply chain and they have great influence on the external customers
and therefore the overall organisation’s success. If it is found that staff separation of
procurement professionals has significant negative effects on internal customers which are
passed on to external customers, then Directorate of Public Procurement shall gain by obtaining
baseline information for decision making on human resource policies affecting procurement
This study is in line with the reforms in the Public Sector where improved service level to the
general public is a priority under the result based initiatives while the University as a research
This study shall focus on the staff in the procurement Department and the three Departments at
professionals are centrally posted to the Government Ministries by the Directorate of Public
Procurement.
Procurement refers to acquisition by purchase, rental, lease, hire purchase, licence, tenancy,
franchise or any other contractual means of any type of works, assets, services or goods
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including livestock or any combination. It is the process of obtaining goods and services in any
Public service comprises of the civil service, teaching and public university services, local
government authorities, the disciplined services (excluding the military), state corporations,
public institutions and Service Commissions whose salaries are funded from the
Government exchequer.
Purchasing refers to the acquisition of goods or services in return for a monetary or equivalent
payment.
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CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
This chapter reviews the literature by discussing the conceptual and Theoretical framework of
the Study and other related literature. It then evaluates the concepts of organizational
performance, the relationship between separation methods and customer service delivery and
finally, the group will draw conclusions on the literature review on separation methods and its
It is expected that the Literature review will offer this study a thorough theoretical background.
the researcher see the proposed relationship between the variables easily and quickly. In this
study, the conceptual framework is based on seven independent variables that are presumed
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Independent variables Dependent variable
Transfers and
secondments Low productivity due to additional work load
Promotions
This section has two streams of research which will form part of the theoretical framework of the
study. These are the concepts of staff separation and the concepts of customer service delivery in
In every organization, the first function of human resource management is procuring employees
from the society for use in the organization. The term staff separation means different things to
different people. However, according to York et al. (1960) the term can simply be defined as a
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process through which employees leave employment. More formally, the term separation is
associated with cessation of service of agreement of the organization for one reason or the other.
Broadly, staff separation is either voluntary or forced. Armstrong (2003) notes that employees
leave organization voluntarily either to further their careers (pull factors) or because they are
dissatisfied by the existing conditions in the organization (push factors). In either case,
Cole (1993) states that separation from an organization is influenced by external factors which
may include economic conditions, ill health or dismissal. On the other hand, according to
Cumming (1980), separation from employment takes various methods which may include
(2003) states that resignations are prompted by either pull or push factors. Pull factors such as
seeking for independence, self-fulfillment, wealth and other desirable outcomes attract people to
leave organizations. Similarly, push factors which is negative external force such as job
dissatisfaction, insufficient salary, lack of upward mobility and or inflexible work schedule may
resign voluntarily for better jobs (opportunities) elsewhere. This may be caused by mal-
adjustment of the organization’s policy while according to (Torrington and Hall 1987), it is also
a stream of people moving to do other things which may be prompted by either the push factor
being stronger than the pull factor. Nzuve (1997) states that organizations with poor working
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conditions, undesirable jobs, pay inequities and limited opportunities for commitment and
uncertainty are some of the factors that influence separation of staff. On the other hand,
misconduct on their part. For example in 2003, Kenyan judges who had been implicated with
corruption in the Judiciary were asked to leave the bench voluntarily and honorably instead of
being subjected to rigorous process of a tribunal which could be also humiliating (Kipng’eno R.
Campbell (1970) argues that management and organizations that reward workers who
which in turn increase the individual effort ending up producing more and prompting
Dismissal
inadequate service delivery which may be deliberate or due to violation of rules of code of
Nzuve (1997) observes that some managers tend to use de-hiring as a dismissal technique. De-
hiring is a process of getting an employee to quit by making the working environment unpleasant
and hostile. It is generally reserved for serious offences and especially where there is a written
employment agreement. Saleemi (1997) argues that before dismissal, every employee should be
given an opportunity to explain his position and defend himself. According to the Code of
Regulations (Section G.33-35), civil servants are given a chance to make their defense before
disciplinary action which may include dismissal is taken against them. Flippo (1984) on the
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other hand states that a discharged employee and the union feel that the forced separation is
unjust, most procedures provide for intervention of the third party, who may be an outside
arbitrator.
Retirement
Hira and Mugenda (1998) as cited in Mugenda and Mugenda ( 1999), retirement refers to the
condition in which an individual is forced or allowed to leave the labour market or is employed
less than full-time and in which his income is derived at least in part, from a retirement pension
earned through past years of service as job holder. It is therefore the final phase of occupational
life cycle. Generally, retirement occurs after the attainment of a predetermined age, Nzuve
(1997).
However, age may not be an accurate determinant of the commencement of retirement since it
largely fails to consider individuals physical, mental and performance capability on the job. For
example, judges and lecturers in Kenya go beyond 70 years as long as they are capable while
civil servants retire when they are 60 years. This means that forced retirement may result in loss
of real talents and skills. Retirement has the advantage that it has plenty of notice and succession
There is also life after retirement as retirees may continue to offer their skills and talents that can
be used to improve organizational performance, (Torrington and Hall, 1987). Flippo (1984)
argues that retirement is a major event in one’s life cycle and the organization has a major
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Retrenchment
It is a situation where an employer releases qualified employees from employment. This is due to
break down of plants and machinery, accumulation of stock, financial constraints of the
organization and slump in the market for their goods and services among factors. According to
Waweru (1984) in a free enterprise economy, jobs cannot be absolutely guaranteed. He argues
that the business cycle dictates the levels of national employment and unemployment. To avoid
difficulties with the unemployed, the economists will in those organizations advice the
government/organizations to carefully adjust their fiscal policies with a view to inducing the
private business to absorb more of the unemployed until the level of unemployment is tolerable.
Natural attrition/Death
This refers to demise of an officer. This type of involuntary termination is unique, because the
employee is not terminated because of his/her own actions. Service delivery may be adversely
affected especially where the government has spent a lot of positive effort on the employee’s
resourcing and development. The public service shall appear to be in an entirely negative
position. The employee might also depart with the valuable organisational memory that may
never be recovered.
Transfer
arrangement between Authorized Officers provided that the posts carry a salary in the Job
Group ‘L’ and below. In the case of posts in the clerical cadre or posts common to
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departments generally, transfers should be effected in consultation, where necessary,
Group ‘P’ and above should be sanctioned by the Central Postings Committee.
Recommendations for transfer of officers to posts within the purview of the Public Service
An officer can also be considered for transfer if the Service of the other administration or
local authority in which he has applied for appointment, has been declared to be a “Public
Service” for the purpose of the Pensions Act (Cap. 189) of the Laws of Kenya. An officer on
Regulations 2006) .
Secondment
Pr omotion
An officer who is selected for promotion to a Ministry other than that in which he is serving
will be released to take up his appointment on transfer within a period of two months from the
date of the letter authorizing the promotion (Revised code of Regulations 2006) .
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Other literature on staff separation
A number of studies have begun to examine the staff separation methods used by healthcare
organizations. Rondeau and Wager (1998) found that for those Canadian hospitals that had
permanently reduced their workforce, 38% of the reductions were by attrition, 27% by voluntary
In Kenya, a previous study found out that most common method of separation in Kenyatta
National Hospital was retirement at 40%, followed by resignation at 32%, Death at 15%, and
dismissal at 9% and followed by retrenchment at 4% over a period of three years from 200 I to
2003.
In the Public Sector, the focus of every officer should be on providing quality and timely
public services to the Kenyan citizenry. This calls for new ways of working which place the
needs of the public first hence creating a customer and results-oriented culture in the Civil
Service. Officers are expected to acquaint themselves with modern practices which enhance
forward and open manner, place the common good of the service, the customer and the general
public above self interest and Setting clear and explicit standards of service that clients may
objectives. But performance is a matter not only of what people achieve but how they
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The concept of performance has been expressed by (Brumbrach, 1988) as follows:
Performance means both behaviours and results. Behaviours emanate from the
performer and transform -performance from abstraction to action. Not just the instruments
for results, behaviours are also outcomes in their own right - the product of
mental and physical effort applied to tasks - and can be judged apart from results.
Mentzer (1996) and Nelson and Burke (1998) defines performance as objective measures
consisting of economic and financial measures such as sale, growth, change in share prices,
profit, expenditure and productivity. Wager and Rondeau (2000) defines performance as
Perceptual measures which include non-financial goals and global success ratings made by
leaders of the organizations. Both types of measures produce biases. Perceptual measures fail to
capture the financial aspects of the organizational performance and may be subject to common
method variance. Objective measures overcome these problems but may be affected by factors
Alternative view is that the public Service is multi-dimensional in nature and that it is
studies. Thus, it is possible to view for example non-financial goals (such as access to
performance.
Internal customer services are understood as covering those services provided by distinctive
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individuals within the same organisation (O’Riordan, Humphreys, 2003). Internal customer
internal customer service as service provided to fellow employees and other departments
within our own organizations, as well as our suppliers and anyone else with whom we work
with products or services by others in the organization. That is, the employees of an
organization can be considered as internal customers who, like external customers, are looking
upon us to provide products or services which in turn are utilized to create a deliverable for
For an organisation to be truly effective, every single part of it, each department, each activity
and each person and each level, must work properly together, because every person and every
activity affects and in turn is affected by others (Muhlemann et al., 1992). Central to this is
the notion of the internal customer “every part of an organisation contributes to external
customer satisfaction by satisfying its own internal customers” (Slack et al., 2001).
There is increasing evidence that staff separation methods may lead to loss of morale, trust and
productivity (Henkoff, 1994). By extension, staff separation methods are associated with
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increased incidences of medical problems. The psychological burden of layoffs is not only borne
by victims laid off, but also their dependants, survivors and by those employees who are called
upon to carry out the functions. Thus, the ‘executioners’ often carry significant emotional
Following staff separation, the psychological contract between the employee and employer is
destroyed, Conn (1978). Although the negative effects of staff separation methods are felt at the
individual level, its organizational consequences are often cited. Cameron et al (1989) have
curtailed creativity and flexibility, compromised leadership and intensified conflicts in the
organization are the most prominent of the twelve. Large reductions in the workforce often lead
to the inexorable loss of organizational memory which may deter the ability of the organization
to grow, adopt and learn in the future (Fisher and White, 2000).
Bedein and Armenakis (1989) suggest that the early departure of the most qualified employees
could leave the organization suffering from ‘cesspool syndrome’ in which less competent people
rise to the top. Wager and Rondeau (2000) demonstrated that a permanent reduction in
workforce led to lower employee satisfaction, heightened conflicts in organizations but not its
organizational efficiency. Campbell (1970) argues that management and organizations that
reward workers who provide essential services to line workers encourage co-operation among
workers which in turn increase the individual effort ending up producing more and prompting
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CHAPTER THREE: METHODOLOGY
3.0 Introduction
This chapter describes the procedures and methods to be used in conducting the study. It deals
with research design, population of the study, sampling techniques, data collection
To answer the research question of this study, survey research design shall be applied. Surveys
are conducted in case of descriptive research studies. Descriptive research studies are those
studies which are concerned with describing the characteristics of a particular individual or
group.
According to Mugenda and Mugenda (2003), a survey is an attempt to collect data from
members of a population in order to determine the current status of that population with
respect to one or more variables. According to Kothari (2004), surveys are only
concerned with conditions or relationships that exist, opinions that are held, processes that
are going on, effects that are evident or trends that are developing. The method of data
existing phenomenon. It also helps explain and explore the existing status of two or more
variables at a given point in time. Surveys are also used in collecting data from large
populations that are not easy to observe directly. This study shall endevour to assess the
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impact of separation methods on internal customer service delivery by procurement professionals
using the Ministry of Livestock Development as the case Study for the Project.
cases or objects with some common observable characteristics while target population refers to that
In this study, the population shall be the middle and senior management employees drawn from
procurement units, accounts and finance, administration, human resource and the two technical
departments who are involved in the procurement process or beneficiaries of the process within
the Headquarters.
using purposive sampling method to reduce the occurrence of undesired responses and because
of ease of data collection, time available and the cost involved in data collection. Different
opinions have been expressed by experts on the subject of sample size. Some suggest the
sample should be five percent of the population while others suggest it should at least be ten
percent. However, none is true or false because the mere size alone does not ensure
representativeness.
According to Mugenda and Mugenda (2003), Purposive sampling is a sampling technique that
allows a researcher to use cases that have the required information with respect to the objectives
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of his or her study. Cases of subjects are therefore handpicked because they are informative or
sampling used when a researcher is not interested in selecting a sample that is representative of the
population. Most qualitative studies use non-probability samples because the focus is on in-depth
Secondary data from research reports, books, journals and internet is to be used to provide a
wider understanding of the issues under research and to supplement primary data. This is
conducted by referring to existing official reports and documents from the named entities,
journals, other empirical researches in the area and any other relevant document from the
questionnaires shall have both closed-ended and open-ended questions. The questionnaires shall
be dropped and picked later from respondents. However, where possible some of the
respondents may fill the questionnaire with the help of the researcher.
A pilot test shall be conducted with a randomly selected sample of five respondents to help
establish the validity and reliability of the questionnaire. Changes where necessary shall be made
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3.6 The Data processing and analysis
Qualitative data shall be derived from reading the responses of the open questions. Other
qualitative data shall also be obtained from past studies and responses to open ended
questions in the questionnaire. The data shall be reviewed, summarised and placed in
The collected data shall be examined and checked for completeness, comprehensibility and
relevancy. Pie charts, bar charts, percentages and frequency tables shall be used to represent data
in a pictorial format, which can easily be used and understood using computer aided software
excel.
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References
Armstrong M. (2003) A Hand book of Human Resource Practice, 9th Edition, Kogan Page,
London
Cole, G.A (1993) Personnel Management Theory and Practice, DP Publications, Ashford
Croom, S., Johnston R. (2003), “E-service: enhancing internal customer service through e-
procurement”, International Journal of Service Industry Management; Vol. 14 No. 5.
Cumming W.W. (1974) The Theory and Practice of Personnel Management, Rand, McNally,
Chicago
Government of Kenya, 2005. The Public Procurement and Disposal Act, 2005. Government
Printer, Nairobi.
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Government of Kenya, 2006. Handbook for Civil Service staff induction. Government Printer,
Nairobi.
Gremler, D.D., Bitner, M.J, Evans, K.R., (1993), “The Internal Service Encounter”,
International Journal of Service Industry Management, USA, Vol. 5, No.2, pp 34-56.
Lysons Kenneth and Farrington Brian Purchasing and Supply chain Management, Prentice
Hall, 7th Edition
Mugenda &M. Mugenda Research Methods Quantitative and Qualitative, Kenyatta University,
Nairobi
Nzuve S.N. (1997) Management of Human Resource - A Kenyan Perspective, Techo Publishers,
Nairobi
O’Riordan, J., Humphreys P.C (2003), “Developing an effective Internal Customer Service
ethos”, Institute of Public Administration, Ireland.
Recklies, D., (2001), “The Value Chain”, Recklies Management Project GmbH,
http://www.themanager.org/Models/ValueChain.htm,
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Rondeau K.V.; Wager T.H. Impact of Human Resource Management of Human Resource
rd
Slack, N., Chambers, S. and Johnston, R. (2001), “Operations Management”, 3 ed.,
Prentice- Hall, London
Stanley, L.L., Wisner, J.D., (2001), “Service quality along the supply chain: implications for
purchasing”, Journal of Operations Management, Vol. 19, Issue 3, pp 287-306.
Waweru (1984) Management of Human Resources Kenya, Kenya Literature Bureau, Nairobi
procurement”
Zenz, G., Thompson, G. H., (1994), “Purchasing and the Management of Materials”, 7th
edition, New York: Wiley.
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Appendix 1
LETTER OF INTRODUCTION
Dear Respondent,
professionals on internal customer Service in the Public Service: A Ministry of Case Study”. The
study is a project paper carried out in partial fulfillment for the award of MSc. in Procurement
and Logistics of the School for Human resource Development, Jomo Kenyatta University of
The information solicited in the questionnaire will be treated with confidentiality and in no
instance will your name be mentioned in this research. Also, the information will not be used for
Yours sincerely,
............................................... ................................................
BOARD ALFRED OMONDI ARUNDA MR. WARIO GUYO
Student –H32-0167-2007 University Supervisor
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Appendix 2
Questionnaire
This survey is conducted as partial fulfillment for the award of Master of Science in
Procurement and Logistics Management of Jomo Kenyatta University of Agriculture and
Technology.
You are therefore kindly requested to fill this questionnaire to facilitate the study of the subject.
The information obtained will be used strictly for academic purposes and will be treated with
utmost confidentiality.
1. In your view, how often do procurement professionals leave employment at the Ministry
of Livestock Development?
Frequently [ ] Rarely [ ] Not at all [ ] Don’t know [ ]
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2. In your view, state the most common method through which procurement professionals
leave Ministry of Livestock Development?
Resignation [ ] Dismissal [ ] Retirement [ ] Retrenchment/Layoff [ ] Natural
attrition [ ] Transfers/Secondments ( ) On promotions ( ) others (specify)………………
3. Has exit of any procurement professional(s) from the Ministry of Livestock Development
had an impact on customer service delivery to the user Departments? Yes [ ] No [ ]
S/No Methods of Poor quality Slow pace of Delay in Increased Loss of Low
exiting/indicator of service by service service reports of morale of the productivity
s of service procuremen delivery by delivery by complaints procurement due to
delivery t procuremen procuremen and staff additional
Department t t grievances work load on
Department Department from users procurement
staff
1 Resignation
.
2 Dismissal
.
3 Retirement
.
4 Retrenchment
.
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5 Natural
. attrition/Death
6 Transfers/
. Secondments
7 Promotions
.
In what other ways if any, does exiting of procurement professional from the public service
through the various exit methods mentioned affect the delivery of services to the user
Departments and what are your recommendations?
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