ANALYSIS OF FLEET MANAGEMENT PRACTICES AND ITS EFFECT ON OPERATIONAL PERFORMANCE OF HAGBES PLC

Abstract

Fleet management concerns with the management of a company’s vehicles which includes the purchase, maintenance, inventory, disposal and work scheduling with the main objective of to achieve efficiency and productivity for the organization. The main purpose of this study was to analyze the effect of fleet management practices on operational performance of Hagbes Plc. This study attempts to see the effect of maintenance and repair, Utilization, Availability and Replacement on the operational performance of the company. The study has incorporated both primary and secondary source of data. The primary data was collected using questionnaire and interview. Secondary data was collected from journal articles, internet website, annual report and journals. The study was done on a sample of 192 people from three divisions in Addis Ababa (head office and two branch offices), and 143 replies were obtained, representing an 80 percent response rate. The necessary data was gathered utilizing a mixed data collecting strategy, which included a questionnaire and an interview. The respondents were chosen using a simple random sampling technique. Explanatory research designs were used, and IBM Statistical Packages for Social Sciences version 20 was used to analyze the data. The data was analyzed using regression, correlation, and Cronbach alpha coefficients. Descriptive data analysis method through the use of Statistical packages for social science (SPSS) version 20.0 software was used to analyze the data. The study incorporates four independent variables in which all of them were measured on a 5-point Likert-Scale and the mean was used as a measure of central tendency. The results indicate that, operational performance of Hagbes Plc. is improving the fleet management practices using FMS (fleet management system) software. The study also found that all variables except Availability and Replacement have significant effect on operational performance of the business company. All variables Fleet utilization, vehicle repair and maintenance, Vehicle availability and replacement have positive effect on operational performance. Finally, the results on the conclusion entails us that the four research questions developed in this study were considerably rated all above average mean by the employees which actually indicates the organization fleet management practices are in a good manner. And also, the study recommends proper maintenance and repair, optimized usage of fleet, Availability and replacement practices in order to bring effective operational performance.