The fundamental purpose of organisation is to provide a structure that facilitates the motivation of people and the coordination of their efforts towards the common goals of the firm. A poorly designed structure can inhibit such accomplishments, just as a well-designed structure can facilitate them.
This section has explored the various approaches to the Procurement structure within a firm’s hierarchy. The challenge for Procurement executives is to maximise the benefits of their organisational structure, whether it is centralised, decentralised or hybrid.
|Self-tests 2.1 and 2.2
|Questions to self-tests 2.1_2.2
||Suggested answers to self-tests 2.1_2.2