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Introducing shared services within Eskom's Transactional Procurement and Supply Chain Management.

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Organizations normally introduce and implement changes in their respective departments. The general assumption is that the changes are meant for the improvement of operations, efficiencies and cost control measures, among other things. This research project was prompted by the fact that Eskom is introducing Shared Services within its Transactional Procurement and Supply Chain Management. It is important that this study is undertaken, through a survey, involving top executives, upper and middle management, as well as operational employees. Perceptions of the inherent successes or failures the new system might have on Eskom as an organization will be ascertained. Perceived difficulties will make the results more interesting, in that the sampling methodology used has to be compatible with the targeted research market. The results of the survey are important for sharing with Eskom’s management as the findings have a direct bearing on the improvement of the project. Whether Eskom should proceed or not with the introduction of Shared Service within the Transactional Procurement and Supply Chain Management is the problem statement of this research project. Although this project is meant for a particular market sector in the organization, the consequences of the benefits accrued and/or losses incurred will reverberate throughout the whole organization as it has multiple independent transactional procurement and supply chain outfits running in all their departments in South Africa. Whether the previous dispensation was beneficial or not, is subject to what is referred to as the ‘burning platform’ in Chapter 1. The researcher was an Eskom employee at the time of the research project, and the project was aimed at looking at Eskom’s corporate challenges. The survey was conducted conveniently among Eskom employees comprising two sets of respondents: executive management and operational employees drawn from upper and middle management together with supervisory and front staff. Convenience Sampling was done among what was believed to be the employees within the value chains of Procurement and the Supply Chain. The survey results have shown the distinct difference between the perceptions of the executive management and operational employees in that the former are more supportive of the project and well aware of its introduction, while the opposite is true for the operational employees. There was also a marked agreement noted where both responding groups regard the current set-up within the procurement and supply chain management as being fraught with problems. Both groups also agree that this section does not yield the required results. These research findings are significant for Eskom’s management to take note for benefits to accrue by virtue of a buy-in from the different stakeholders. The Eskom employees are expected to implement, manage and improve the efficiencies within the Procurement and Supply Chain Department, and this research project can be taken to have served as an unofficial but important research tool on behalf of the company.


Thesis (M.Com.)-University of KwaZulu-Natal, Westville, 2011.


Shared services (Management), Decentralization in management., Organizational change., Theses--Leadership and management.