Ethical Behaviour in Procurement Decision Making A Case Study of Kipkelion District Procurement Office

TABLE OF CONTENTS

DECLARATION .............................................................................................................................. i

APPROVAL .................................................................................................................................... ii

DEDICATION .............................................................................................................................. iii

ACKNOWLEDGEMENT .............................................................................................................. iv

TABLE OF CONTENTS ................................................................................................................ v

ABSTRACT ................................................................................................................................ viii

CHAPTER ONE ............................................................................................................................ I

INTRODUCTION ........................................................................................................................... I

l .O introduction ................................................................................................................................ I

l. l background of the study ............................................................................................................ I

l .2 Statement of the problem ........................................................................................................... 2

l .3 Purpose of the study .................................................................................................................. 2

l .4 Objective of the study ................................................................................................................ 2

1.5 Research questions .................................................................................................................... 2

l .6 Scope of the study ..................................................................................................................... 3

l.6.l Geographical scope ................................................................................................................ 3

l .6.2 Time scope .............................................................................................................................. 3

I. 7 Significance of the study ........................................................................................................... 3

1.8 Background of the Organisation ................................................................................................ 3

1.9 Conceptualization of Study Variables ...................................................................................... .4

CHAPTER TV0 ........................................................................................................................... 6

LITERATURE REVIEW ................................................................................................................ 6

2.0 Introduction ............................................................................................................................... 6

2. l Factors Affecting Ethical Decision-Making .............................................................................. 6

2. l. l Individual different factors ..................................................................................................... 6

2.1.2 Situational ( organizational) factors ........................................................................................ 7

2. l .3 Issue-related factors ................................................................................................................ 8

2.2 Process of Ethical Decision Making .......................................................................................... 9

2.3 Impact of ethical decision making on moral development.. .................................................... 11

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2.4 Strategies of Enhancing Ethical Decision Making .................................................................. 13

2.5 Stages of moral development .................................................................................................. 15

2.5.1 Pre-conventional ................................................................................................................... 15

2.5.2 Conventional ......................................................................................................................... 16

2.5.3 Post-Conventional ................................................................................................................ 17

2.6 Conclusion ............................................................................................................................... 18

CHAPTER THREE ..................................................................................................................... 19

METHODOLOGY ........................................................................................................................ 19

3.0 Introduction ............................................................................................................................. 19

3.1 Research Design ...................................................................................................................... 19

3. I. I Qualitative ............................................................................................................................. 19

3.1.2Quantitative ........................................................................................................................... 19

3 .2 Population and sample size ..................................................................................................... 20

3.3Sampling design and procedures .............................................................................................. 20

3.3.1 Purposive sampling........................................................................................... . ... 20

3.3.2 Simple random sample ......................................................................................................... 20

3.3.3 Stratified sampling ................................................................................................................ 20

3.3.4 Sampling procedures ............................................................................................................ 21

3.4 Data collection methods .......................................................................................................... 21

3.4.1 Questionnaires ...................................................................................................................... 21

3.4.2 Observation ........................................................................................................................... 21

3.4.3 Interviews ............................................................................................................................. 21

3.5 Measurement of the variables .................................................................................................. 21

3.6 Validation of the instruments .................................................................................................. 22

3.8 Data presentation, processing and analysis ............................................................................. 22

3.9 Summary and conclusion ........................................................................................................ 23

CHAPTER FOUR ....................................................................................................................... 24

RESULT AND DISCUSSIONS OF FINDINGS .......................................................................... 24

4.0 INTRODUCTION ................................................................................................................... 24

4.1 FINDINGS ON GENERAL INFORMATION ...................................................................... 25

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4.11 Response on employees who have used their authority for personal gain: ........................... 25

4. I 2 Standards of integrity put in place by the district for employees to us in all business

relationships both inside and outside the organization .......................................................... 25

4.13 Standards of competence fostered in the procurement activities in the district. ................... 27

4. 14 Employees' optimization of the resources for which they are provided ............................... 29

4. I 5Does the district offices comply with the letter and spirit of the following aspects .............. 29

4. 16 Do the procurement officers in your district ever declare any of their personal interest that

may impinge your business dealings? .................................................................................... 31

4.17 giving misleading information for personal gain .................................................................. 32

4.18 Have any employees ever been involved in a business arrangement that prevented the

effective operation of fair competition of the district's procurement, and if yes, how was the

situation rectified .................................................................................................................. 33

4.19 has any employee ever received a gift from the district's supply, and if so, what disciplinary

action did the office take against him or her? ......................................................................... 34

4.20 Have the employees been involved in any business hospitality that had an influence in

making business decision? ..................................................................................................... 35

CHAPTER F!VE: .......................................................................................................................... 36

DISCUSSION, CONCLUSION ARE RECOMMENDATIONS ................................................. 36

5.0 Introduction ............................................................................................................................. 36

5.1 Summary of Findings .............................................................................................................. 36

5.2 Discussion of Findings ............................................................................................................ 36

5.2.1 The level of ethical decision making in the district.. ............................................................ 36

5.2.2 The impact of ethical decision making on moral developrnent.. .......................................... 37

5.3 Conclusion ............................................................................................................................... 37

5.4 Managerial and policy recornmendations ................................................................................ 38

References .................................................................................................... .40

QUESTIONNAIRE ....................................................................................................................... 43

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ABSTRACT

The topic of my research was ethical behavior in procurement decision making and the area of my study was at the District Commissioner's office in Kipkelion District. The study took place at the months of September and October 2011. The purpose of the study was to identify the level of ethical behavior in decision making in Kipkelion district and to determine the impact on the moral development on the employees. Determining the strategies of enhancing ethical decision making was important during the study. The study was conducted mainly by questionnaires which were distributed to the members of the staff in the procurement department who were required to give their views. Direct interviews and observation was also paramount in establishing the findings. The findings showed that the level of ethical decision making in Kipkelion district was ve1y high but its impact on moral development was not greatly felt. Rewarding employees, provision of guidelines and peer support were the main strategies for enhancing moral development.