Vendor Management IT Management Process

Vendor Management

IT management process under the Vendor management system is a recent trend used by various organizations. Many organizations are using this centralized program to control their staffing. According to research conducted on it services vendors, over 91% organizations are currently using the vendor management systems. This trend entails introducing it procurement process in organizations. However, the trend is facing numerous challenges because of the many resources required to adapt it. Evolution and introduction of VMS into corporations occurs because of the varying business environments experienced within the organizations. In recent decades when Vendor management programs took hold of vital business operations, the demand for it services increased. In this respect, VMS became a business approach that enhanced human resources by recruiting competent vendors in timely and effective procedure. Businesses structured VMS programs accordingly by integrating it procurement process.

The it process streamlined all business transactions and operation through a single system for purposes of competence. Organizations integrate new measures of it in procurement sector. Though it is an effective trend used to manage business processes especially when the economy turns sour, managers must take caution to sustain vendors and stakeholders. This paper identifies it procurement management process as a current trend in Vender Management in human resources and procurement management (Abramson & Paul, 2007).

Discussion:

Measurement, Assessment, Evaluation in it procurement process

Most organizations prefer adopting it procurement process for the purposes of having a reliable and legitimate way of analyzing and evaluating performance. This is an assessment technique and a measure aimed at improving both the external suppliers and internal procurement process. With this new trend, procurement managers intend to search for an objective way of evaluating and illustrating their contribution to the success of the various projects in the organization. The trend mainly emphasizes on supplier assessment, and this indicates that for the organization to record high-quality supplier productivity, there is a need for enhanced relationship.

External Relationships [ER] and Internal Relationships [IR]

The trend stresses on the significance of developing valuable working relations. The significance of such a relation is to develop a cross-functional nature of the it procurement process. This is between the organization and employees within the context of internal and external environment. The management creates it Procurement Performance Metric that assists in benchmarking the it Procurement Process. The management undertaking a project requires suitable performance parameter; however, most organizations lack effective metrics for their it procurement processes. Some of the performance metrics of significance to it procurement management are Efficiency metric, Effective metric, Suitable metrics, and Time conscious metrics

For effective performance of the current trend, managers should define the roles in the procurement procedure to create efficient Internal and External Relations. It procurement remains a cross-functional process amidst strong relation between various organizational participants. Within organizations that are customer-oriented, the organization as well as the employees must work hand in order to purchase, set up and utilize it products and services in the organization.

Collaboration and treaties with suppliers and other external stakeholders are significant in outsourcing and making syndicate plans. However, the organization faces a key challenge of how to structure and manage such complex relationships. Internally, organizations must develop and enhance efficient relations between the organizational structures, functions, principles, policies, and processes. Externally, the contractual projects must define the objectives and responsibilities between the participants (Abramson & Paul, 2007).

The form of collaboration is unrestricted, that is, there is no need of a formal reward in order to initiate collaboration. Proper job descriptions, processes and contracts are unnecessary in identifying the type of relationships. Managers must generate cultural and other techniques that create a favorable environment for a collaborative internal and external relationship. It is difficult to adopt it procurement in continuing organization processes. This is due to lack of required procurement process structures essential in reengineering the it Procurement Process.

There are several sub-processes comprised in the requirements evaluation and procurement stages. The new trend reduces both the procurement process and contractual time established for completion of various projects. The procurement process involves a linear series of activities, and the organizations use new it procurement process in evaluating and creating a compression approach that decreases that contractual cycle time by developing few sub-processes. In the adoption of a new technology, most organizations are likely to experience tremendous employees turn down (Carnall 2007). The trend adopted may overwhelm the employees in terms of the expertise used in operating the technology. The party must offer training to employees likely to use the trend. This leads to withdrawal by the employees not favored by the trend.

Either the organization may dismiss the employees, or employees may voluntarily turn down their tools. The organization desires retaining its employees because of their loyalty and effective productivity. However, it also requires growing and expanding its activities and adopting a new trend is one of the strategies that support development. Employees must therefore accept the strategies undertaken by the organization for its own welfare. The agendas undertaken by the management establishes a foundation for the introduction of the it procurement management in vendor management projects.

As the procurement of information resources becomes market-oriented, it procurement management becomes significant in strengthening internal processes. The future it proficient will require less expertise skills since external vendors will provide the necessary skills. The skills that are necessary for future it organizations and others are the marketplace skills found in it procurement organizations (Cohen et al., 2006). Currently, various developments experienced in organizations reveal the significance of new trends adopted by organizations. In addition, the following elements of management contribute to improving the efficiency of organizational activities.

1. The management process strategy

2. The management decision support system

3. Human resource behavioral approach

4. Effective competitive advantage

The four elements match each other and provide a significant foundation for vendor management system. The management process strategy highlights on the efficiency of management. This is by pinpointing management roles in the organization and then explaining every role in detail. There is a general accord concerning the purpose of planning, organizing and regulating in the organization. A major belief is that by evaluating management alongside functional principles, it is easier to construct a framework that entails current management activities. Thus, the management team plays the role of coordinating numerous related functions, which are neither arbitrary nor severely predetermined (Barzelay, 2007).

They are, however, vibrant as the process develops. Another belief is that intellectual evaluation of management roles can derive management principles. By dividing the roles of managers into functional elements, it is essential to extract functions based on the management principles. Managers design management functions to enhance operational effectiveness. Regardless of hierarchical level, managers must perform all management functions (Cohen et al., 2010). Eventually, managers develop management values that establish relations between human and other resources.

An established philosophy assists the manager enhance the relationship within the firm. The management decision support system strategy assists managers in making quality decisions significant in solving operations and production problems. The decision support system emphasizes on giving management with significant information. Managers focus in defining objectives and constrictions, and to generate evaluation models in solving intricate problems affecting organizations. In decision support system, managers focus in maximizing profits and search of a functional model of the entire organizational system. In achieving managerial objectives, managers use various operations research approaches, such as programming services and other it services. In addition to increased use of functional models, information systems, decision support systems, computer services are another trend used by the managers (Abramson & Paul, 2007).

Organizations are also using artificial intelligence in solving management problems. The behavioral strategy used by human resources is significant because management use available workforce carrying out business operations. Effective management team acknowledges the significance of human resource management in improving human factors like, motivation, leadership qualities and teamwork. In this regard, some managers may stress on interpersonal behavior that emphasizes the significance of motivating employees. The key contributions made by managers in improving the performance of management include:

1. The Implementation of ideologies and explanations regarding individual and team behavior in the company

2. The practical testing of the ideologies systematically in many diverse tentative and field settings, and

3. The foundation of authentic managerial strategies and decisions for functions based on the theoretical and systematic structures

Effective competitive advantage engenders from efficient management approaches. As Michael porter asserts, strategy entails ensuring fitness in all the business activities. The efficiency of a strategy relies on the effectiveness of the management and the approaches used in integrating them. When managers formulate wrong strategies, there is little sustainability in the management. In this perception, successful organizations must enhance and line up the numerous processes ongoing to their planned vision. Strategic positioning in this trend entails:

1. Generating an exceptional and significant position

2. Formulating trade-offs compared to rivals

3. Ensuring company activities are fit.

Project managers must know their significance in organizations and the roles they play in various strategic positions. For instance, the project manager must define the strategic goals that are necessary for marketing new products. In this regard, a project manager must have a follow-up on facilities development in order to ascertain success.

Strategic Planning and Project Programming

A good strategic plan shapes programming of essential capital projects in an organization. Market demands and resource constrictions impede the success of the projects. The programming activities linked with planning, and other management functions establishes the priorities and time required for completion of various projects to achieve the goals of the organization (Bruhn et al., 2007). Managers make such a decision while initiating a project and market fluctuations may determine the success or fate of the completion. Among the different projects influenced by market fluctuations is the construction project. If the organization fails to hit the market, it may short-live the demands for the products. With the current trend in both local and global markets, there is intensive competition. However, only the technology intensive organizations succeed in marketing for their products. In essence, it plays a larger role not only in procurement management, but also in marketing organizational products. However, some managers may overlook planning and feasibility studies because they consider them expensive. Invariably, if there are any changes that alter the scope of the project, this increases the costs incurred. In this regard, the organization requires a system that guarantees personnel are accountable for their actions. In addition, the it trend adopted by the organization ascertains that the models used in evaluating the resources required are accurate and efficient for the project. Furthermore, when the estimates of the project exceed the budgeted resources, managers use the it services, for instance, computers in identifying the errors committed. If there any errors identified, managers attribute this to the uncertainties intrinsic in the projects. This compels the project managers to increase the duration of time set for the project in order to revise the entire process. Insufficient planning and poor practical studies may be the cause of unsuccessful projects (Aucoin 2009). Early business premises face diverse challenges caused by premature planning of it services adopted by the organization solves the problem. Project managers hold the basis to the success of projects because any decision they initiate at the onset of a project determines progression. The plan and project decisions will affect the operating costs in progress and revenues accrued. Therefore, managers should have the competence of expertise to offer sufficient planning and viable studies. In addition, organizations must create a good relationship with the external consultants enable their success. The response between the organization and the outside consultants is mainly through telecommunication networks. If there is communication breakdown, the company lacks the significance of consultants and investors.

In earlier times, reaching out to external environments was difficult because of unstructured ways of communication and marketing. Recently, organizations realize the significance of establishing viable communication network and marketing strategies. Even among those vendors that embrace the traditional ways of communication and marketing, they acknowledge the new trend of marketing for their products. Most of them regard the new trend as less costly because of less time used in covering a large market. In essence, they accept the efficiency of having it procurement services in a business premise.

The current trend encounters numerous risks that stems from different sources and often entails many contributors in the project. Most of the project participants precisely, the workforce are the major stakeholders in the organization have a tendency of minimizing the risks at their own capacity. This mostly happens when they realize that the errors committed reflect their own undertakings. In the process of trying to minimize the risks, they put organizational projects on a detrimental state. Any changes or attempts to alter the scope of the project are reflected in the computers. Most of the computers have software that limits the responsibilities of the workforce. Only the assigned personnel have the ability of moderating the plan. In essence, such persons hold the key to particular assignments through appropriate contractual agreement with the management. It is at this point when the significance of Human resource manager becomes significant.

During the recruitment process, the Human resources manager explains to the employees their roles in their respective allotments. Failure to acknowledge and stick to their responsibilities often results to an undesirable outcome. In this regard, organizations have contingency plans that deal with unforeseen events. Any attempt by the employees to alter the scope of their job descriptions or assigned task is reflected by the level of productivity. In recent years, organizations acknowledge the trend of "risk sharing/risk assignment.

Organizations accept using such a concept because it identifies the responsibilities of both the organization and other participants in the project. This new concept falls within the it procurement trend and minimizes the risks involved in the organization. Both managers and the workforce are accountable for their own actions. However, there are uncertainties involved while undertaking some projects. In this regard, managers become liable for any perceived risks involved. They offer incentives to employees as a way of motivating them, for instance, offering bonus and other privileges. The compliance of employees to accept risks often reflects their proficient competence and their aptitude to risk.

Individuals perception of the potential risks involved in a risk-taking project may drive them away from accepting the risk. This is because most organizations deny the liability of putting their employees on danger when indulging them in risky projects. There are numerous risks involved while undertaking various projects and activities in the working environment. They include;

A.

Socioeconomic factors

a)

Environmental safety

b)

Public safety regulation

c)

Economic insecurity

d)

Exchange rate instability

B.

Organizational relationships

a. Contractual relationship

b. Approaches of Labor force

c. Communication breakdown

C

Technological problems

a. Design assumption

b. Environmental conditions

c. Work processes

d. Work occupational safety

The environmental protection agency contributes to the ambiguities encountered because they are unaware of the project requirements and the time it takes before obtaining approval. The prerequisites of continued review of challenges and absence of perfect criteria that are feasible results to added costs incurred. Public safety regulations present related effects mostly in projects that involve coal mining and nuclear power plants.

With ineffective regulations, there is a new aspect of uncertainties experienced, which makes it hard to schedule and accomplish the work within the financial plans (Armenakis et al., 2009). However, with the new trend in information systems, the situation is constantly experiencing shifting guidelines for the persons involved. The project is also moving through effective procedures of planning to construction. In addition, past economic conditions reinforces the aspect of uncertainty with exaggerated inflation and high interest rates. Furthermore, inadequate control of financial institutions generates unexpected problems that affect management of finances set for construction purposes. Organizations should either mitigate or eliminate uncertainties that stem from regulatory movements, environments aspects and financial problems.

A Project manager focuses in achieving a breakthrough that cuts down the cost budgeted for the completion of the project and mitigate the time wasted. A manager seldom plans for such a breakthrough. They occur when there is presence of appropriate conditions, for instance, when there is innovation or when the organization acknowledges the importance of HRM. However, adoption of a new trend in an organization is a bureaucratic process. Some people will accept the effects generated by the trend while others reject the trend (Burke, 2008).

In this case, the management team has to clarify the significance of absorbing the new trend and the effects associated with the trend. In addition, employees must be ready to acknowledge the impacts of the new technology and wait for their repercussions. There are numerous risks associated with adoption of a new trend particularly if the trend influences productivity. Adoption of it procurement services means that all the processes involved in procuring resources and raw materials required by the management are electronically recorded. This means that eliminating the paper work task is costly and organizations must report a sound financial plan before introducing the trend (Burke, 2008).

Most organizations prefer applying it services in conducting most of its operations. It services play a significant role, especially during economic expansion periods. When companies are experiencing tremendous capital expenditures, the financial transactions involved are high. There is a need to control the inflow and outflow of costs incurred and accrued. Prior to adoption of the new trends, most organizations used fixed price contracts. This passed unforeseen risks to consultants who elevated their prices in order to counterbalance the unforeseen risks. Even though the organizations shifted the liability to other parties, this was unnecessary because there was mismanagement of resources (Amis & Trevor, 2008).

The paper work was unreliable because some pertinent information pertaining to management of finances was left out deliberately. With the adoption of it trends, every detail pertaining to the welfare of the organization is reflected electronically, and auditing becomes easier. In essence, problems related to business relationships may seem needless, but they are real. There is a need to adopt a trend that strain relationships between organizations and the employees. When there are ethical aspects, the level of productivity increases. This is because the employees feel motivated and part of the organization (Burke, 2008).