A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF MANAGEMENT AND LEADERSHIP IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DIPLOMA OF LEADERSHIP AND MANAGMENT OF THE MANAGEMENT UNIVERSITY OF AFRICA

Abstract

The purpose of this study was to find out the factors affecting inventory management in the hotel industry in Kenya: a case study of Silver Springs Hotel Nairobi. The study focused on four key objectives which included; effects of employee training, information technology, cost and internal control system on the inventory management in the hotel industry. The research utilized primary data. The source of data primarily adopted in order to create a room for high reliability of data acquired and also reduce the gap that may exist as a result of technological advancements leading to changes in the economies of scale. The primary data involved use of questionnaires and interviews (personal interviewing) to fill the gaps left. The target population used were employees working at the Silver Springs Hotel in Nairobi estimating about 100 employees. The respondents were drawn from the Top Department, Middle Department and the Support Staff Department since the inventory management efficiency was an issue that affects the entire organization. The sample size obtained was 40. The simple stratified sampling was used since the study involved several departments. Respondents from each stratum were selected using simple random sampling. Purposive sampling was also used to select managers who are directly involved in procurement of goods, works or services. The data analysis and processing utilized frequency tables which were generated to highlight the percentage scores and cumulative percentages for the variables of interest. For quantitative data, tabulated findings, calculated frequencies and percentages on each variable under study was used and then interpreted to make research findings. The information was then presented in form of table frequencies and percentages, pie charts, use of tables to present data. Quantitatively the response of 56% indicated that employee training affects inventory management while 44% indicated that it does not affect. 78% indicated that information technology affect inventory management while 22% indicated that it does not affect inventory control system management. According to the study, 78% of the total respondents indicated that cost affects inventory management while 22% stated that it does not affect. Based on the study, 67% indicated that internal control system affects inventory management while 33% on the other hand stated that internal control system does not affect inventory management. The results from the study have clearly indicated that provision of employee training, information technology, cost and internal control system would go a long way in enhancing business performance. It is recommended that organizations should continuously endeavor to use technology so as to undercut competition; hotels with lower costs can set lower prices that result in greater sales and profits and finally the management needs to understand that security is hygiene factor; when it’s there and inefficient, people hardly notice it at all.