ENHANCING PROJECT PERFORMANCE THROUGH PROCUREMENT, SUPPLY CHAIN AND BEHAVIOURAL MANAGEMENT: A CASE STUDY

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ABSTRACT

The study aimed at determining how project performance could be enhanced through procurement, supply chain and behavioural management at the MAK Catering Services Limited. In this quantitative study, questionnaires were used as the research tool to investigate the perceptions the employees had of supply chain and behaviour management at the company. Data obtained was collated, organized and analysed using the Statistical Package for Social Sciences (SPSS) analysis software to produce results.

The results produced suggested that production, inventory and information were the processes (critical success factors) within the MAK Catering supply chain that the company had significant challenges with, and which had the greatest impact on performance in their service delivery. The study also revealed that the behaviours of the people within the supply chain was very crucial, because the supply chain could not exist without the people. Orientation and training, particularly on the mission and vision as well as communication were found to be critical to behaviour management at MAK Catering. With these findings, KPIs and a framework were developed to assist in the measurement and management of the identified aspects of the supply chain and employee behaviour that needed attention.

The researcher recommended that, periodic performance measurement and management systems could be introduced at MAK Catering, using the framework and KPIs developed from the study; to enhance the performance of the supply chain and push employees to meet the mark. In addition, the management could invest in the employees primarily through orientation, to help employees to have a clearer perception of the importance of their job and make them aware of the critical role they have to play in order for the vision to be attained.

SECTION ONE INTRODUCTION

        Background

Growth in the food service and hospitality industry is driven by an increase in market penetration by the addition of new restaurants (Chon & Maier, 2010). Procurement of spaces or buildings is a mechanism key to this industry and has characterised their work. Chains of restaurants exist today in different countries and spaces not originally owned by the restaurant operators. After establishment, work goes on in the new restaurants with the service provided being similar to the “mother” restaurant. The role played by the proper management of the supply chain and employee behaviour to enhance performance in these instances cannot be overemphasised.

Supply chain is an avenue for competitive advantage and if leveraged, can be of great benefit to businesses. In a highly competitive market such as hospitality, owning market shares is not enough; cooperation is the new thing (Mentzer, 2004). In present times, hospitality and food service firms are collaborating with for instance estate developers for mutual benefits. Foodservice firms operate restaurants, eateries or hotels at buildings belonging to real estate firms and other institutions to increase market penetration and client base and to make profits. They enjoy the expansion and more clients while the real estate firms enjoy rent payments as well as marketing.

The hospitality industry is a service industry and one in which there is a direct relationship between customer’s satisfaction and employee behaviour (Lashley & Lee-Ross, 2004). The onus lies on employees to influence the customer’s perception of the quality of service and to satisfy them. Therefore, the importance of the management of employee behaviour cannot be downplayed. It is critical to the success of the firm.