Abstract:
Organizations normally place procurement department at their lower level In the organization
structure. The practice has significant impact to the organization because procurement department fail
to contribute effectively towards the organizational goals. The aim of this study was to assess the
factors influencing management of the organization placing procurement department at their lower
level of organization structure. The concentration of the study was limited to KCMC Referral Hospital
a service organization owned by Good Samaritan Foundation (GSF). Primary data were collected
through questionnaires. interviews and observation. Secondary data emanated from review or
documentary records. Purposive and simple random sampling techniques were used to collect data.
Descriptive statistical techniques were used for data analysis and data presentation in form of tables
and percentages. The research employed six variables namely: Factors influencing placement of the
procurement department at KCMC; level of interference, performance of procurement department at
KCMC. perceptions of management towards procurement staff and qualification/ experience of
personnel. There are several factors that influence low positioning of procurement department in
organizations. They include. Interference from non professionals, negative perception top
management towards procurement personnel. Non representation of procurement department interests
in strategic decision ma king organs and non adherence of Public Procurement Act regulation and
financial regulations. Recommendations have been suggested on how to improve the current situation
at KCMC.
