The impact of non-compliance with Eskom procurement policies
- Authors: Mvelase, Thokozile Olivia
- Date: 2015
- Subjects: Eskom (Firm) , Industrial procurement -- Management
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10948/9140 , vital:26468
- Description: Supply Chain Management (SCM) has an overwhelming impact on firms as it directly impacts on sales and costs. Therefore, it must be a core competency for any organization and thus SCM expertise is highly valued in organisations. Procurement of goods and services has a major impact on the successful execution of the project. Procurement can help the business, ensuring that all the goods and services they buy will be of the right quality, quantity and price, and they will be delivered ‘just in time’. The application of procurement policies and practices, using fair and open procedures, is crucial not only for attracting efficient contractors and suppliers, but also to safeguard the principle of accountability and the cost-effective use of funds. Before awarding a tender, there is a substantial amount of work to be undertaken by the project manager, contracts manager, end user, buyer, and authorising committees. Commitment from personnel involved in contract awarding is not adequate. Furthermore, the Eskom governance process sometimes contributes to delays in awarding a contract. before the enquiry and tender documentation is sent out to the suppliers on the tender list, the core team involved in the procurement process verifies that the enquiry is complete and correct. Should there be contractual or legal issues during the execution of the project in the form of say a contract that has been issued with unsuitable clauses, solving the problem becomes difficult. Contractors will sometimes use contract clauses to suit themselves, and take advantage of the employer, causing cost overruns due to the difficulties in managing the contract. Eskom’s commercial activities are governed by the Public Finance Management Act (PFMA) and Constitution of South Africa, which states that an organisation such as Eskom should have in place “an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive, and cost-effective.” This can eliminate irregularities in contracts, since they can have a serious economic impact, interfere with fair competition, and destroy confidence in the integrity and functioning of public administration Such irregularities may lead to costs overruns on projects where incompetent contractors are awarded a contract. Incorrect financial forecasting is a very serious issue, and needs to be addressed in order to help strengthen the cash flow and forecasting within Eskom. This research strategy is intended for quantifying observations of human behaviour, with the emphasis on exact measurements. The primary data for this study was generated through the administration of a structured questionnaire survey conducted among engineers, project managers, contract managers, and forensics personnel. The secondary data for the present study was gathered from literature in the form of open ended questionnaire from the same personnel. Poor commitment of buyers and chain approval meetings being shifted affect the delays in awarding of contracts. Lack of training of contract managers, absence of legal representative’s advice and squad checking meetings not being represented properly contributes to contracts being awarded with unsuitable clauses. Managers specifically forcing contracts to be awarded to a specific contractor, nepotism or favoritism, politics and contractor greediness, relate to irregularities in contracts. Lack of experience, revision of scope (unclarified scope), project delays, less effort being made when forecasting and unforeseen circumstances, such as strikes, and forces of nature, relate to incorrect financial forecasting. Continuous training and commitment of all personnel involved in the project environment is important, therefore Eskom personnel in the project environment should work as a team in an integrated way. Adequate time should be spent, and thorough checks made, to ensure that documents sent out for tendering conform to requirements. Involvement of all the supporting functions must be maximised. Code of ethics training and application is very crucial in the project environment, and the current governance policies should be adhered to by all stakeholders in the project.
- Full Text:
- Date Issued: 2015
- Authors: Mvelase, Thokozile Olivia
- Date: 2015
- Subjects: Eskom (Firm) , Industrial procurement -- Management
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10948/9140 , vital:26468
- Description: Supply Chain Management (SCM) has an overwhelming impact on firms as it directly impacts on sales and costs. Therefore, it must be a core competency for any organization and thus SCM expertise is highly valued in organisations. Procurement of goods and services has a major impact on the successful execution of the project. Procurement can help the business, ensuring that all the goods and services they buy will be of the right quality, quantity and price, and they will be delivered ‘just in time’. The application of procurement policies and practices, using fair and open procedures, is crucial not only for attracting efficient contractors and suppliers, but also to safeguard the principle of accountability and the cost-effective use of funds. Before awarding a tender, there is a substantial amount of work to be undertaken by the project manager, contracts manager, end user, buyer, and authorising committees. Commitment from personnel involved in contract awarding is not adequate. Furthermore, the Eskom governance process sometimes contributes to delays in awarding a contract. before the enquiry and tender documentation is sent out to the suppliers on the tender list, the core team involved in the procurement process verifies that the enquiry is complete and correct. Should there be contractual or legal issues during the execution of the project in the form of say a contract that has been issued with unsuitable clauses, solving the problem becomes difficult. Contractors will sometimes use contract clauses to suit themselves, and take advantage of the employer, causing cost overruns due to the difficulties in managing the contract. Eskom’s commercial activities are governed by the Public Finance Management Act (PFMA) and Constitution of South Africa, which states that an organisation such as Eskom should have in place “an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive, and cost-effective.” This can eliminate irregularities in contracts, since they can have a serious economic impact, interfere with fair competition, and destroy confidence in the integrity and functioning of public administration Such irregularities may lead to costs overruns on projects where incompetent contractors are awarded a contract. Incorrect financial forecasting is a very serious issue, and needs to be addressed in order to help strengthen the cash flow and forecasting within Eskom. This research strategy is intended for quantifying observations of human behaviour, with the emphasis on exact measurements. The primary data for this study was generated through the administration of a structured questionnaire survey conducted among engineers, project managers, contract managers, and forensics personnel. The secondary data for the present study was gathered from literature in the form of open ended questionnaire from the same personnel. Poor commitment of buyers and chain approval meetings being shifted affect the delays in awarding of contracts. Lack of training of contract managers, absence of legal representative’s advice and squad checking meetings not being represented properly contributes to contracts being awarded with unsuitable clauses. Managers specifically forcing contracts to be awarded to a specific contractor, nepotism or favoritism, politics and contractor greediness, relate to irregularities in contracts. Lack of experience, revision of scope (unclarified scope), project delays, less effort being made when forecasting and unforeseen circumstances, such as strikes, and forces of nature, relate to incorrect financial forecasting. Continuous training and commitment of all personnel involved in the project environment is important, therefore Eskom personnel in the project environment should work as a team in an integrated way. Adequate time should be spent, and thorough checks made, to ensure that documents sent out for tendering conform to requirements. Involvement of all the supporting functions must be maximised. Code of ethics training and application is very crucial in the project environment, and the current governance policies should be adhered to by all stakeholders in the project.
- Full Text:
- Date Issued: 2015
An empirical study on staff turnover and retention within Eskom : Eastern Cape Operating Unit
- Authors: Chibba, Rajesh Chagan
- Date: 2015
- Subjects: Eskom (Firm) , Labor turnover -- South Africa -- Eastern Cape , Employee retention -- South Africa -- Eastern Cape , Job satisfaction -- South Africa -- Eastern Cape , Career development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:847 , http://hdl.handle.net/10962/d1017514
- Description: This research paper is broken up into three sections, namely an evaluation report, a literature review and a description of the research methodology. The evaluation report section is an assessment of the factors that could contribute to staff leaving the organisation and why staff would choose to remain with the organisation. The Distribution Division of Eskom is divided into nine separate Operating Units (OU's), in line with the nine Provinces. According to an Eskom Human Resource Manager (Mjali, 2013), as at March 2012 there were 2231 employees in the Easter Cape Operating Unit, while the staff turnover for the same period was 4.53%. Of the 101 staff that had resigned for the period 01 April 2011 to 31 March 2012, there were 27 transfers, 26 resignations and 30 retirements. The balance of 18 staff that left was due to dismissals and deaths. While the statistics suggest a healthy level of staff turnover at present, given the current pressures that Eskom employees are under, it is important to investigate their future intentions and to see what Eskom can do to continue to retain their services. The literature relating to staff turnover and retention was examined to determine the meaning of the terms retention and turnover and to review the relevant turnover topics that were emerging from the exit interview data. The research conducted was quantitative in nature, and a questionnaire was distributed to all managerial staff within the Eastern Cape Operating Unit of Eskom. The questionnaire was sent electronically to the participants via email with the link to the questionnaire. Participants were requested to respond on questions relating to factors on turnover and retention, and the responses were used to assess employee's intention to either remain with the organisation or to leave. The feedback received was analysed with the use of data analysis in Microsoft Excel (2010). The results of the research showed that there were two distinct themes related to employees' intention to remain with the organisation, namely job satisfaction and career development. On the other end of the scale, themes which would cause staff to want to leave the organisation were the performance management system of the organisation, not being listened to (i.e. to the ideas and views of staff) and leadership (i.e. the way the organisation was being led). Recommendations are made to management. The study also recommends future research that can be done to get greater insight into factors relating to staff turnover and retention. A detailed review of the literature is included in Section two of the report. Only essential components of the literature are included in Section one of report. Section three of the report provided a detailed description of the research design and the research procedure that was followed.
- Full Text:
- Date Issued: 2015
- Authors: Chibba, Rajesh Chagan
- Date: 2015
- Subjects: Eskom (Firm) , Labor turnover -- South Africa -- Eastern Cape , Employee retention -- South Africa -- Eastern Cape , Job satisfaction -- South Africa -- Eastern Cape , Career development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:847 , http://hdl.handle.net/10962/d1017514
- Description: This research paper is broken up into three sections, namely an evaluation report, a literature review and a description of the research methodology. The evaluation report section is an assessment of the factors that could contribute to staff leaving the organisation and why staff would choose to remain with the organisation. The Distribution Division of Eskom is divided into nine separate Operating Units (OU's), in line with the nine Provinces. According to an Eskom Human Resource Manager (Mjali, 2013), as at March 2012 there were 2231 employees in the Easter Cape Operating Unit, while the staff turnover for the same period was 4.53%. Of the 101 staff that had resigned for the period 01 April 2011 to 31 March 2012, there were 27 transfers, 26 resignations and 30 retirements. The balance of 18 staff that left was due to dismissals and deaths. While the statistics suggest a healthy level of staff turnover at present, given the current pressures that Eskom employees are under, it is important to investigate their future intentions and to see what Eskom can do to continue to retain their services. The literature relating to staff turnover and retention was examined to determine the meaning of the terms retention and turnover and to review the relevant turnover topics that were emerging from the exit interview data. The research conducted was quantitative in nature, and a questionnaire was distributed to all managerial staff within the Eastern Cape Operating Unit of Eskom. The questionnaire was sent electronically to the participants via email with the link to the questionnaire. Participants were requested to respond on questions relating to factors on turnover and retention, and the responses were used to assess employee's intention to either remain with the organisation or to leave. The feedback received was analysed with the use of data analysis in Microsoft Excel (2010). The results of the research showed that there were two distinct themes related to employees' intention to remain with the organisation, namely job satisfaction and career development. On the other end of the scale, themes which would cause staff to want to leave the organisation were the performance management system of the organisation, not being listened to (i.e. to the ideas and views of staff) and leadership (i.e. the way the organisation was being led). Recommendations are made to management. The study also recommends future research that can be done to get greater insight into factors relating to staff turnover and retention. A detailed review of the literature is included in Section two of the report. Only essential components of the literature are included in Section one of report. Section three of the report provided a detailed description of the research design and the research procedure that was followed.
- Full Text:
- Date Issued: 2015
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