| This study investigated the perceptions of representatives of four departments of a major computer software development company that work with the procurement department. It looked at the “value added” by the procurement department and the implications to organizational development. The study reviewed a business case in an educational framework. Findings revealed that the procurement department holds an important place within a large organization. The procurement department is known to contribute to the profitability of a company by controlling the cost of goods and services and negotiating best value. The perception that the procurement department's contribution provides added value was supported.; The role of the procurement department is perceived as helpful in that it performs a technical assistance function and accomplishes the standardized “tactical” purchasing needs of the company. It, however, sometimes lacks the technical skills to fulfill some strategic procurement transactions. In the company under study, it lacks credibility and is sometimes viewed as “uncollaborative.” Collaboration is a primary shared value within this company, although certain departments in the organization bypass the procurement team during contract negotiations; thus potentially weakening its negotiating leverage. When procurement is viewed as collaborative, its role as supporting organizational development is viewed more favorably.; The McKinsey 7S Framework (Pascale & Athos, 1981; Peters & Waterman, 1982; Waterman et al., 1980), composed of seven interrelated elements: structure, strategy, systems, shared values, skills, style, and staffing, was used as the theoretical framework for analysis. The procedures and methods revealed in the 7-S Framework were viewed as most definitive and fitting for this qualitative study. To succeed in its relationships, the procurement team must treat all departments fairly. Therefore, implementing standardized procedures in requesting, purchasing, and contracting for goods and services help the organization maintain consistency both in policy and procedure.; Because the literature on the procurement function in terms of organizational development frameworks has been extremely limited, this study adds to the research on the role and function of the procurement department as a key player in the social network that comprises today's complex corporate environment. |
