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The Effects of Outsourcing on Employee Performance at the Logistics Department at East African Breweries Limited.

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dc.contributor.author Wagachire, Teresia Mwihaki
dc.date.accessioned 2019-01-18T07:25:10Z
dc.date.available 2019-01-18T07:25:10Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4175
dc.description A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract The purpose of this study was to establish the effect of outsourcing on employee performance: A case of the logistics department at the East African Breweries. The study was guided by three research questions, namely; what is the effect of structure on employee performance due to outsourcing?;what is the influence of decision making processes on employee performance as a result of outsourcing decision making processes?; and what is the influence of culture on employee performance due to outsourcing. The study adopted a descriptive research design. From the population of 660 employees, a sample of 81 respondents was given questionnaires for data collection out of whom 75 responded giving a 93% response rate. Data was analyzed using descriptive statistics where mean and standard deviation was calculated. Inferential statistics was also employed to analyze the relationship between the dependent and indepenent variables. The data was organized according to the research objectives and presented using tables and figures. Majority agreed that they have a clear defined structure, detailed ways of working and systematic procedures in your organization and change in structure has affected ways of working. It was also revealed that respondents support different reporting and escalation matrix due to the availability of third party logistics provider, they also agreed that there was a need to improve the overall structure in the institution. A Pearson correlation was done to establish the relationship between employee performance and other factors and the findings revealed that there was a positive relationship between employee performance and company structure. The study revealed that there is a clear matrix used by managers on decision making process. The results also showed that there was a need to improve the overall decision making process in the institution. A Pearson correlation done to establish the relationship between employee performance and organization decision revealed a negative insignificant correlation between employee performance and organization decision. The respondent agreed that organizational culture has an influence on employee performance reliability. They also noted that a change in culture, beliefs and the environment affects employee performance. At the same time outsourcing strategies has a negative impact on the perceived quality of work-life dimensions. A Pearson correlation was done to establish the relationship between employee performance and organization culture revealed that there was a positive and significant correlation. The study concluded that East African Breweries has ensured that companies that they outsource maintain a clear defined structure that has the capability to detail ways of working and systematic procedures. Secondly, there is a clear matrix used by managers on decision making process and the decision making process has affected employees ways of working in relation to decisions made by the managers or business in general. Thirdly, there is a lack of awareness among employees in regard to cultures exercised in the organization although there is an agreement that organizational culture has an influence on employee performance reliability. On the basis of the findings, it was recommended that EABL should strive to maintain a clear defined structure, detailed ways of working and systematic procedures. Managers should also be encouraged to offer closer guidance to the low level staff in order to encourage self-actualization and freedom of action.The study recommends that EABL should ensure that there is a clear matrix used by managers on decision making process. All issues need to be dissolved and this is made possible by minimization of bureaucracy in the organization structures. Lastly, there is a need to create awareness on the expected culture from the outsourced firms, in order to ensure good working relationships. Outsoucing firms should be encourged to work together despite there different cultures to ensure EABL meets its mission. The researcher recommends that the study be extended to other departments that are either directly or indirectly affected by outsourcing. So as to gauge the interdependency of departments during outsourcing with regards to the firms overall effect on an organization‘s competitiveness. A study on the factors that affect co-dependency of employees during outsourcing would also be viable. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Outsourcing en_US
dc.subject Employee Performance en_US
dc.subject Logistics Department en_US
dc.subject East African Breweries Limited. en_US
dc.title The Effects of Outsourcing on Employee Performance at the Logistics Department at East African Breweries Limited. en_US
dc.type Thesis en_US


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