Influence of Process Improvement on Organizational Performance at Consolbase Limited

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VI, June 2021 | ISSN 2454–6186

Influence of Process Improvement on Organizational Performance at Consolbase Limited

Onesmus M. Mwilu, Dr. Lawrence Wainaina
Department of Business Administration, School of Business, Kenyatta University, Kenya

Abstract:
The logistical companies have a complex supply chain management (SCM) that requires huge resources to implement because of the scope of internal functions as well as external parties’ operations. This study investigated the influence of process improvement on performance of Consolbase limited. A descriptive design survey was used for the study. The study population was the employees at the Consolbase Limited in the two branches offices. The study used stratified sampling method to sample the respondents. The study sample size was 130 respondents which was determined using Slovenes formula. Piloting was done to determine reliability and validity by use of 10 respondents. The data was collected by the use of questionnaires as the primary data collection instrument. The study established that process management had a positive and significant influence on organizational performance. The study concluded process improvement enables the organization to optimize existing business processes in order to meet best market standards and improve customer experience. The study recommends that the organization should conduct process improvement on a regular basis as a part of a business strategy. Define and deploy strong business processes to engage employees in a valuable way by distributing responsibility and accountability closer to the work itself.

Keywords: Process management, Organizational Performance, Monitoring, Planning, Resource allocation

INTRODUCTION

The context of performance to the logistical companies and other allied players is examined in the context of the ability to have a smooth flow of information materials throughout the stipulated chains (McLaurin, 2007). The performance of logistical companies has two significant examination angles; the financial and operational performance. Tilokavicahi et al (2012) observe that the competitive advantage of logistical management relies greatly on operational performance. In as much as there are two major categories of performance in logistical management, it can be stated that operational performance impacts more and positively on the financial performance. The major performance indicators are pegged on inventory management, order processing, transportation, distribution and information flow (Talib & Rahman, 2010).
The performance of logistical companies can also be summarized to satisfy customer needs in course of logistical operations. Salaheldin (2009) examined the various performance parameters: logistical costs, production lead time, vendor activities, and orders. The transport network has always been pegged on manufacturers, distributors and third-party players in pursuit of efficient delivery of goods and services. The transport sector players are tossed into two tough choices: decreasing transport costs and improving service delivery choices of customers. This leaves the logistical companies with the balancing act of performance and efficiency (Chao & Lin, 2006). Performance as a management methodology, in the end, relies upon the business execution strategy (Kushwaha & Barman, 2010).

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