THE ROLE OF STORE FUNCTION IN THE PUBLIC SECTOR

ABSTRACT

This research work tries to appraise the role of stores function in public sector Ministry of finance, Owerri, as a case study. The research was motivated to review the role of stores functions because a lot of money is pent annually by government buying different classes of materials / goods.

The research wondered whether these materials are taken good care of by stores personnel. The research study starts with the chapter one which begins with chapter one which begins with the background of the study and brief history of the organization, statement of problems, objectives of the study, significance of the study, scope of the study, research questions, hypothesis, limitations and definition of terms.

Chapter two is the review of related literature on stores functions. This is followed by tree which studied research methodology and the methods used in collecting and analysis of data.

Chapter five is the summary, conclusion and recommendations made by the researcher. On these finding, more recommendations are made by the researcher aimed at improving stores function in public sectors and also private sectors.

CHAPTER ONE

1.1 Introduction

1.1 Background of the Study

The Imo state Ministry of finance is located at Port Harcourt road the Imo state capital. The ministry of finance is among the ministries of the state government. It came to being on creation of IMO state in 1976. The ministry has ultimate goal of working towards the attainment of healthy economic growth of the state.

The ministry is now structured in department, following the promulgation of the civil service reform Decree 43 of 1988 that was implemented in 1989. at present, there are six functional departments in the ministry of finance. They are;

Department of Administration and finance
Department of account
Department pf planning, research and statistics.
Department of Investment and Loans
Department of Treasury Operations
Department of Accounts Production.

The ministry's responsibilities cover;

Financial policy
Financial instruction
Taxation (policy)
Control of revenue collection
Licensing (financing aspect)
Audit of public accounts.
Boards of Survey and boards of inquiry.
Advise on stores matters.
Stock verification exercise on government stores.
Banking and so on.

A store is section of the supplies division of the administration and finance department. At present the imo state ministry of finance operates two stores, the administration, which is the sub-stores. The administration stores control the other store and also feed the sub-store. Every organization, be it private or public is established to meet some needs while some are established for profit maximization, others are for services.

Many countries, the world round have shifted from politics to welfare or services countries. Thus, it is the wish of most government now to take care of the welfare of their population/citizens. These include; provision of security, good health service, good infrastructures, and so on.

To afford all these and many more, each government established various agencies to satisfy the social needs of the people. Against these background therefore, it has become necessary that every public sector should have a store unit. The stores unit of an organization plays a complementary role with other units of an organization to achieve the goals for which the stores unit play in a public sector that warrants the need for this project.

Therefore, for this purpose, the stores unit of Imo state ministry of finance has been chosen as a case study.

Stores management is an important aspect of purchasing and supply, though it's a new course in Nigeria but has gained enough ground over the years. Public sector at present emphasizes much on their store function. In trying to review the functions of store in an organization, Morrison (1969) listed the following;

To make available a balance flow of materials components, tools, equipment and other commodities necessary to meet operational requirement.
To provide maintenance material, spare parts and general stores as required.
To receive and issue work in progress and finished products.
To accept and store scrap and other discarded materials as it arises.

Uzor (2003:3) listed the following functions of stores;

To receive, store, control and issue all office equipment and furniture and stationary in an organization.
To ensure that adequate health and safety precautions are taken in relation to the whole stores operations.The ministry of finance is one of the twelve ministries of the Imo State government and it came to being on creation of Imo in 1976.

1.2 Statement of Problem

Store function as earlier stated is necessary for the accomplishment of the organizational goals, be it public or private. At present, while private organization are adopting new strategies technologies and employing professionals within store unit, it is quite unfortunate to note that the stores unit in the employing professionals within the store unit, it is quite unfortunate to note that the stores unit in the public sector is diminishing or dwindling.

A closer interaction shows that the store functions of the sector suffers from non-availability of fund before funds are released to the store for the purchase of material needed in various department fields, it will be too late resulting in most cases to stock out which causes their workers to be idle or a situation of inadequate use of human resource which are being paid for.

Another problem from the research is non professional in the stores. From the research it was discovered that most staff that carries out stores functions are non-professionals thereby causing a lot of problems.

A closer look shows that store unit of the public sector are untidy which is as a result of non-professional carrying out stores function. The ministry of finance being government establishment is a victim of the problems.

The stores of the imo state ministry of finance as indicated earlier serve other department in the ministry and other ministries yet no effort is made to bring it up to an acceptable standard by equipping it with professionals. It is against the back drop of these and many work that has motivated the need for this research. Therefore, the work is to analyze and investigate the role of store function in ministry of finance, Owerri, Imo state.

1.3 Objective of the Study

The main objective of this work is to examine the role of the stores in the public sector and Imo state ministry of finance in particular. The study in specific term tends to:

Find out the activities carried out by stores functions in the ministry.
Find out the quality of stores personnel in the ministry.
Find out the relationship of store with other departments of government ministries.
Review the current stores operations in government ministries-ministry of finance.
Find out if the stores unit of ministry of finance has been performing its functions
Find out the contributions of stores to the attainment of the objectives of the ministry.

1.4 Research Questions

Does the public ministry of finance have stores unit/department?
Does the public sector make use of the professionals in running the stores?
Does the role of stores functions load to improved productivity in the public sector?
What are the factors militating against effective stores functions on the ministry of finance?
Is there any relationship between the stores and other departments?
What roles do the stores functions play in an organization?
Does efficient stores function enhances services delivery in your organization?

1.5 Statement of Hypothesis

Hypothesis 1

Null Hypothesis (Ho): The stores function does not play any important role in government ministries
Alternative Hypothesis (Hi): The stores function plays any important role in government ministries.

Hypothesis II

Null Hypothesis (Ho): Efficient stores functions are required for efficient service delivery in the public sector.
Alternative Hypothesis (Hi): Efficient stores functions are required for efficient service delivery in the public sector.

1.6 Significance of the Study

The significance of this study is necessary because it will contribute positively towards effective store stores function in the public sector in general and ministry of finance to see the need for effective stores functions.

This need will motivate the management of the ministry to action that will lead to efficiency and job satisfaction which is the objective of every public sector.

In the need for professionals, this study will also provide the public sector with scientific and useful information, which will guide it in the formation of stores policies by giving such attention to this subject matter- effective stores functions. This study will stimulate the interest of the public sector (government) especially the Imo state ministry of finance in effectives stores function as a means of motivating their workers which will lead to increase in productivity/ serviceability.

This study will also bring reforms is put in practice by the sector in their stores. It tends to solve the problems being encountered by the stores. The study will also service as a reference materials not for the public sector, but to those who are fully employed in purchasing and supply functions, students, lecturers, and other researchers will benefit from the research work. Its findings will add also produce a report, which may give rise to further debate, discussion or research on stores function. Above all, a research work is a pre-requisite for the award of Higher National Diploma to the researcher.

1.7 Scope of the Study

This study is delimited in nature. It is only made to cover the public sector and only ministry of finance , Owerri. The reason for limiting this work only in the ministry of finance is that everything pertaining stores and its functions being controlled by the finance department.

1.8 Limitation of the Study

The first limitation of the study is the limiting of the study to only the public sector and also only ministry of finance , Owerri. Another limitation suffered by the researcher is lack of materials. There was also the problem of respondents hiding information.

Finally, the finance to equip the reach work was inadequate.

1.9 Definition of Terms

Stores:

A store can be defined as any space reserved and equipped for holding materials, which are awaiting dispatch to customers for further processing or final consumption.

Hypothesis:

It is an assumption is statement made well in advance of observation about what can be expected to occur concerning one more populations under state or given condition.

Public Sector:

These are government owned establishment, e.g ministries and so on.

Store Function:

These are the series of activities that are carried out in the store from the date of delivery to the time it is dispatched to the appropriate user.

Board of Survey:

This is a board constituted in the ministries/ extra ministerial department to take charge or to be in- charge inspection.

Board of Inquiry:

This is a body constituted in the public sector to handle losses of stores in government stores.

…

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …

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TABLE OF CONTENTS
PRELIMINARY PAGES

Title page
Approval page
Dedication
Acknowledgement
Table of Contents
Abstract

CHAPTER ONE

1.0 Introduction 1

1.1 Background of the study 1

1.2 Statement of the problem 5

1.3 Objectives of the study 7

1.4 Research questions 7

1.5 Statement of Hypothesis 8

1.6 Significance of the study 9

1.7 Scope of the study 10

1.8 Limitation of the study 11

1.9 Definition of terms 11

CHAPTER TWO

2.0 Literature Review 13

2.1 Introduction 13

2.2 Definitions of stores 15

2.3 Responsibilities of the store functions 16

2.3.1 Economy 16

2.3.2 Identification 17

2.3.3 Receipt 20

2.3.4 Inspection 20

2.3.5 Issue and dispatch 22

2.3.6 Stock records 22

2.3.7 Stock control 23

2.3.8 Stores Accounting 24

2.3.9 Stock taking 24

2.3.10 storage 24

2.3.11 security of stores 25

2.3.12 Materials Handling. 25

2.4 Organization of stores 25

2.4.1 Policy directive 26

2.4.2 Internal Organization 26

2.4 Position within the supply organization. 27

2.6 Relationship with other Department 29

2.6.1 Production Department 30

2.6.2 Design and Engineering Department. 31

2.6.3 Quality control and Inspection Department 31

2.6.4 Finance department 32

2.6.5 Transport department. 33

2.6.6 Purchasing Department 33

2.6.7 Personnel department 34

2.6.8 Sales Department 35

2.6. 9 maintenance department. 36

CHAPTER THREE

3.0 Introduction 37

3.1 Research design 37

3.2 Questionnaire design 37

3.3 Sources /method of data collection 38

3.3.1 Primary source 38

3.3.2 Secondary source 39

3.4 Population /sample size 39

3.5 Sample Technique 40

3.5.1 The survey 40

3.5.2 Observation 40

3.6 Validity and Reliability of measuring instrument 41

3.7 Data analysis method 42

CHAPTER FOUR

4.0 Introduction 43

4.1 Presentation of data 43

4.2 Analysis of data 44

4.3. Test of Hypothesis 60

CHAPTER FIVE

5.0 Introduction 63

5.1 Summary 63

5.3 Recommendations 65

REFERENCES
68
APPENDIX 69
QUESTIONNAIRE. 70

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