Improving organizational effectiveness through meaningful involvement of municipal purchasing departments - case studies from ontario canada
| Pages | 145-163 |
| DOI | https://doi.org/10.1108/JOPP-05-02-2005-B001 |
| Date | 01 March 2005 |
| Published date | 01 March 2005 |
| Author | Joseph J. Schiele |
| Subject Matter | Public policy & environmental management,Politics,Public adminstration & management,Government,Economics,Public Finance/economics,Texation/public revenue |
JOURNAL OF PUBLIC PROCUREMENT, VOLUME 5, ISSUE 2, 145-163 2005
IMPROVING ORGANIZATIONAL EFFECTIVENESS
THROUGH MEANINGFUL INVOLVEMENT OF MUNICIPAL
PURCHASING DEPARTMENTS – CASE STUDIES FROM
ONTARIO CANADA
Joseph J. Schiele*
ABSTRACT. This paper could have implications for both public service
managers and academics alike. Some of the most difficult challenges facing
public purchasers, including those associated with public sector procurement,
purchasing consulting services, and purchasing department involvement are
discussed. This paper presents insight into the beliefs of municipal purchasing
department managers as they relate to meaningful involvement of their
departments in consulting service acquisition processes. These research findings
may assist others with developing the strategies necessary for increasing
municipal purchasing department involvement in these acquisition processes in
order to improve organizational effectiveness.
INTRODUCTION
Purchasing by public agencies (federal, state, provincial, county,
municipal, public school systems, public libraries, public hospitals,
public colleges and universities, and various other government agencies)
is characterized by a unique set of problems (Leenders & Fearon, 1997).
In fact, some of the earliest literature acknowledges the difficulties
associated with public sector procurement (Forbes, 1929; 1941;
Weidenbaum, 1965) and in particular, the challenges associated with
---------------------
* Joseph J. Schiele, Ph.D., is an Assistant Professor of Operations Management
at Oakland University’s School of Business Administration, Rochester,
Michigan. His research and teaching interests focus on purchasing and supply
chain management and quality as it relates to manufacturing and service
operations.
Copyright © 2005 by PrAcademics Press
146 SCHIELE
municipal purchasing including legal restraints, administrative
regulation, and rapid growth and change (Liuzzo, 1967).
Purchasers in the public sector face the classic dilemmas related to
public sector organizations, that is, political scrutiny of their activities
through both audit and in-house reviews, intensive review by the public
for any suggestion of mismanagement of public funds, and sudden
changes of policy that characterize government decision-making
(Gordon, Zemansky & Sekwat, 2000; Mechling, 1995; Pettijohn &
Qiao, 2000). In addition, the set of required purchasing procedures
followed by the public sector often increases the number of potential
suppliers to consider – managing a much larger number of tenders and
suppliers increases the management complexities associated with the
selection process. The imperative for public accountability and the
increased complexities associated with managing this responsibility
make studying the problems associated with public procurement
important.
THE PROBLEM OF LOW INVOLVEMENT
The purchasing department has been shown to play a significant role
in helping to ensure that funds are spent properly, improve the quality of
goods and services purchased, and save both time and money (Ellram &
Birou, 1995; Mendez & Pearson, 1995; Leenders & Fearon, 1997).
Despite this, purchasing department involvement in purchase decisions
relating to consulting service acquisitions has been noted as an area of
significant weakness. A 1995 CAPS (Center for Advanced Purchasing
Studies) study, that surveyed 34 government organizations in the United
States, found that in terms of the total dollars spent on consulting
services only 5% included any input from the purchasing department
(Fearon & Bales, 1995). This study did not describe the type of
involvement that occurred nor the basis for these low involvement levels.
These findings might suggest that these services are being acquired
without appropriate consideration of organizational goals and or
objectives and the possibility that taxpayer funds are being spent
improperly.
These low-involvement levels may be of even greater significance if
one considers the types of services that are being purchased. Consulting
To continue reading
Request your trial