How Employee Perceive The Effect Of Outsourcing Fleet Management Functions On The Operational Performance Of ILRI (International Livestock Research Institute)
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Date
2018-09-15
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Addis Ababa University
Abstract
This study investigates the impact of outsourcing fleet management functions on the operational performance of International Livestock Research Institute (ILRI). This study attempts to see the impact of outsourcing procedure, service quality, relationship quality with the supplier, supplier fleet management system and financial value on the operational performance of the institute.
The main aim of the research is measuring operational performance from employee perspective using the objective of outsourcing which are focus on core competency, improved flexibility and improved customer service. The study employed mainly quantitative data analysis techniques. Descriptive statistics such as mean, and frequency tables were used to describe the data. Inferential statistics such as ordered logit model were employed in order to answers the basic questions. The study incorporates five independent variables in which all of them was measured on a 5-point Likert-Scale, with “1” stands for “Strongly agree” and “5” stands for “Strongly Disagree”. Mean was used as a measure of central tendency. Moreover, the results of the study suggest that, operational performance of ILRI is not improved by outsourcing the fleet management functions. The study also found a positive correlation among all of the variables (Procedure of outsourcing, service quality, relationship quality, financial value & supplier fleet management system) which thought to determine the operational performance of the institute. Regarding the correlation, it is possible to conclude that there is a strong and positive relationship among the five variables on which this study was relied. All variables except supplier fleet management system are significant effect on operational performance of the institute. Outsourcing is justifiable if it has positive impact on operational performance which can be explained in improved quality in terms of service and relationship, cost reduction & achieved the intended objective.
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Operational performance, Fleet management, Outsourcing