Effect Of Outsourcing Decision On Organizational Performance In The Manufacturing Industry
[A CASE OF UNGA GROUP LIMITED]

1.10 Assumptions of the Study

The researcher assumed the following during the study. Unga Group Limited outsourced some of its functions.

Unga Group Limited had put in place financial and project management procedures to support their outsourcing decisions.

That the information given by the respondents were true facts as per the status in Unga Group Limited.

Respondents in Unga Group Limited co-operated and submitted relevant documentations.

1.11 Definition of Significant Terms

Outsourcing- This refers to any task, operation, job or process that could be performed by employees within an organization, but is instead contracted to a third party for a significant period of time. In addition, the functions that are performed by the third party can be performed on-site or off-site.

Cost Reduction- This refers to the lowering or cutting of overhead operating expenses in a company.

Employee Competence- This refers to expertness, practiced ability, facility in doing something, dexterity and tact. Skill encompasses experience and practice, and the long standing fact that one has been doing work in the manufacturing industry for a considerable period of time with expertness and ability.

Innovativeness- This refers to the skill and imagination to create new things. A surprising new product from a company that has never been a wellspring of what has been used as product

Core Competencies- This refers to a specific factor and distinctive capabilities that a business sees as being central to the way it, or its employees, works. It fulfills three key criteria: it is not easy for competitors to imitate; it can be re-used widely for many products and markets and it must contribute to the end consumer's experienced benefits.

1.12 Organization of the study

Chapter one has addressed the importance of outsourcing as a powerful means of obtaining desirable organizational performance in manufacturing firms. The chapter clearly outlines the purpose of the study and the research objectives to guide the study within the specified geographical and time scope. The chapter explores the objectives of this study and outlines the research hypotheses to be addressed by the study. The chapter also gives the statement of the problem, the significance and scope of the study.

Chapter two includes review of opinions related to the planned study Mugenda and Mugenda (1999). It shares with the reader the results of other studies that are closely related to the study being reported (Fraekel and Wallen, 1990). According to Marshall and Rossman, (1989) the study relates the larger ongoing dialogue in the literature about outsourcing, filling gaps and extending prior studies. The chapter also provides a framework for establishing the importance of outsourcing, as well as a benchmark for comparing the results of the study.

 Chapter three includes the methodology in terms of the research design, target population, sampling size and procedures, data collection instruments, reliability and validity of instruments and data analysis techniques.

Chapter four has data analysis, presentation, interpretation and discussion of findings as per the study variables. This is then followed by the summary of findings, conclusion and recommendations thereof together with suggestions for further review which constitute chapter five.