Abstract
Procurement practices can be described as activities which involve procurement planning, procurement controls, procurement monitoring and training workforce. Procurement management is used in many organizations to realize the greatest amount of benefit to the company while still effectively managing the costs associated with the acquisition of raw materials and operational components. The overall goal of this research was to examine the effect of procurement management practices on performance of Standard Chartered Bank Nairobi County. Specific objectives were to examine effect of procurement planning, monitoring on performance of Standard Chartered Bank Nairobi County. The research was guided by resource based view theory and relational contract theory. The research used the descriptive research approach. The target demographic was 14 Standard Chartered Bank branches in Nairobi County. The unit of observation was 294 procurement staff. Yamane 1967 formula was used to obtain a sample of 169 procurement staff sampled using stratified random sampling. Questionnaires were used for data collection. A pilot was conducted with 10% of the sample hence 17 respondents. Questionnaires’’ validity was tested using content and construct validity. Reliability was tested using Cronbach's alpha coefficient. Data was analyzed using descriptive and inferential statistics with the help of SPSS Version 28. The descriptive statistics include frequency, percentage and mean while inferential statistics include regression and Pearson correlations. Data was presented in tables. Findings show that; there is a moderate significant relationship between procurement planning and bank performance (r=0.385, p=0.000), and a strong significant relationship between procurement monitoring and bank performance (r=0.618, p=0.000). The recommendations are that; Thorough needs assessment should be undertaken, market capability analysis should be carried out, user departments should clearly specify when they require to utilize required goods and services. The management should employ professional trained procurement staff and continuously train the staff on emerging issues on public procurement practices.
Keywords: Procurement management practices, procurement planning, procurement monitoring, bank performance, commercial banks.