31 Summary


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


BLC 304/05 Procurement Management Copyright © 2009 by Wawasan Open University. All Rights Reserved.


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