FACTORS AFFECTING THE FINANCIAL MANAGEMENT SYSTEMS EFFECTIVENESS: A SURVEY OF HEALTH ORIENTED CIVIL SOCIETY ORGANIZATIONS IN KENYA
DOI:
https://doi.org/10.47604/ijfa.298Keywords:
financial management systems, effectivenessAbstract
Purpose: The purpose of the study was to identify the factors affecting the financial management systems effectiveness in Kenyan health oriented civil society organizations.
Materials and methods: The study was conducted through a cross sectional descriptive survey. The target population of the study was 1065 Nongovernmental organizations in Kenya. The accessible population refers to the 606 Nongovernmental organizations located in Nairobi County. A sample of 10% equivalent to 61 Nongovernmental organizations was selected from the Nongovernmental organizations located in Nairobi County. The respondents were financial managers in every selected Nongovernmental organization. Data was collected by use of a questionnaire and was analyzed by use of inferential and descriptive statistics. Descriptive statistics included frequencies and means. Inferential statistics included correlation, regression and ANOVA analysis. The tool for data analysis was the Statistical Package for Social Sciences (SPSS) version 20. The results were presented using tables and pie charts.
Results: The study results indicated that information technology management in Nongovernmental organizations are reliable and flexible enough to support the financial management of the organization. Additional results indicated that Nongovernmental organizations had invested in a management information system which had lowered administrative costs. The usage of IT led to efficient management of processes of budget accounting. The findings imply that information technology has significant positive effect on financial management system.
Recommendations: The study provided recommendations to the NGOs and other organization that ICT development should be maximized fully in the organization especially if the objective is to improve efficiency and financial management systems effectiveness. Human resource management must be fully functional in a company with continuous training of the staff to ensure up to date competences and increased knowledge in financial management. Further recommendations to the organization is to ensure that financial governance ought to be thorough throughout the company with sound rules and regulations that govern the accounting and financial sector of the organization. This will ensure timely and accurate disclosure of all financial matters regarding the corporation to the regulatory body thus showing the efficiency in financial management systems.Downloads
References
Asian Development Bank. (2005).Governance: Sound Development Management: The Good Governancewww.adb.org/Documents?Policies?Governance/gov350.asp?=policies.html
Bass, B. M., (1985). Leadership and performance beyond expectations. New York: Free Press.
Black, J. S., &Gregersen, H. B. (2000).The right way to manage expats. In J. E. Garten (Ed.), World view: Global strategies for the new economy (pp. 187-200). Boston: Harvard Business School Press.
Boice,J.(2004).The Accountability.afpet.org/contentdocuments/marap04cover.pdf www.afnet. Org/ contentdocuments/marap04cover.pdf
Brown ,D. and Moore.M. (2001).Accountability, Strategy and International Non-Governmental Organizations, Hauser Centre for Non-Profit Organizations, Harvard.
Cliche, P. (2012). Budget, in L. Côt and J.F. Savard .Encyclopedic Dictionary of Public Administration, [online], http://www.dictionnaire.enap.ca/Dictionnaire/en/home.aspx
Cohen.J. (2003).Governance by and of NGOs, Institute of Social and Ethical Accountability, UK.
Cohen, Krisnamoorthy and Wright. (2004).The Corporate Governance Mosaic and Financial Reporting Quality, Journal of Accounting Literature
Doornbos, M. (2003). Good Governance: the metamorphosis of a policy metaphor. Journal of International Affairs, 57, (1), 2-17.
Ebrahim, Alnoor, (2003). Accountability in Practice: Mechanisms for Donor NGOs, World Development, Vo. 1394.
Edwards, M., and Hulme, D. (1996). Beyond the Magic Bullet, NGO Performance and Accountability in the Post-Cold War world, Connecticut, Kumarian Press.
Eyong T. O. (2001). Promoting Good Governance in the Management of NGOs.
Ferguson, C., and Seow,P. S. (2011). Accounting information systems research over the past decade: Past and future trends, Accounting & Finance, 51, 235-251.
Fowler.A. (2000).Relevance in the Twenty-first Century: The Case for Devolution and Global Association of International NGOs" in D. Eade (Ed).
Gudykunst, W. B. (1998). Applying anxiety/uncertainty management (AUM) theory to intercultural adjustment training. International Journal of Intercultural Relations, 22, 227-250.
Harris M. (1996). Do we need Governing Bodies? in D. Billis and M. Harris (Eds) Voluntary Agencies: Challenges of Organization and Management.
Heidmann, M., Schaffer, U., & Strahringer, S. (2008). Exploring the Role of Management Accounting Systems in Strategic Sense making.Information Systems Management, 25(3), 244-257.
Hope K. (2002).The New Public Management: A Perspective from Africa, in K. McLaughin, S. Osborne and E. Feline (Eds), New Public Management: Current trends and Future Prospects: London: Routledge
Institute of Corporate Governance of Uganda (ICGU). (2001). Manual on Corporate Governance: Incorporating Recommended Guidelines for Uganda.
Kameri-Mbote, P. (2000). The Operational Environment and Constraints for NGOs in Kenya: Strategies for Good Policy and Development. Switzerland: International Environmental House.
Kaushal R, Shojania KG, Bates DW. (2003). Effects of computerized physician order entry and clinical decision support systems on medication safety: a systematic review. Arch Intern Med 2003;163:1409e16.
Kealey, D. J., &Protheroe, D. R. (1996). The effectiveness of cross-cultural training for expatriates: An assessment of the literature on the issue. International Journal of Intercultural Relations,20(2), 141-165.
Keating, Elizabeth &Frumkin. (2003). Assessing NonProfit Making Financial Measures, Accountability and Evaluation, Non-Profit Sector Research Fund.
Keziah, M. (2010).The Strategic Responses Adopted by KPA to Changing External Environment. University of Nairobi: Unpublished MBA Project.
Leat, D. (1988). Voluntary Organizations and Accountability, Worcester, UK., Policy Analysis Unit, National Council for Voluntary Organisations.
Mano.R.S. (2009).Information technology, adaption and innovation in nonprofit human service organizations.Journal of Technology in Human Services, 27(3), p227-234.
Mareta, N.C. (2007). The Strategic Response of Glaxosmithkline Pharmaceuticals towards competition in Kenya.Unpublished MBA Thesis. University of Nairobi
Marshall M. (2002). Legitimacy and Effectiveness: Civil Society Organizations' Role in Good Governance, Paper presented at the Poverty Reduction Strategies Forum, Austria, October 29 - November 1, 2002.
Matveev, A. V. (2002). The perception of intercultural communication competence by American and Russian managers with experience on multicultural teams, Dissertation, Ohio University. Ann Arbor, MI: UMI Dissertation Services.
Matveev, A. V., & Nelson, P. E. (August 2004). Cross-cultural communication competence and multicultural team performance: Perceptions of American and Russian managers. International Journal of Cross Cultural Management, 4(2): 253-270.
Matveev, A. V., Rao, N., &Milter, R. G. (2001).Developing a scale to measure intercultural communication competence: A pilot study in multicultural organizations. Paper submitted to the International and Intercultural Communication Division of the National Communication Association, Atlanta.
Mendenhall, M. E. (2001). New perspectives on expatriate adjustment and its relationship to global leadership development. In M. W. Mendenhall, M. K. Torsten, & K. S. Günter (Eds.), Developing global business leaders: Policies, processes, and innovations (pp. 1-18). Westport, CT: Quorum Books.
Moosmüller, A. (1995). Learning objectives in intercultural competence: Decoding German everyday knowledge from a Japanese perspective. In A. Jensen, K. Jaeger, & A. Lorentsen (Eds.), Intercultural Competence, 2 (pp. 191-207). Aalborg: Aalborg University Press.
Mudanya, S. M. (2007). Response Strategies to Environmental Challenges to firms in the Cement Industry in Kenya. University of Nairobi: Unpublished MBA Project.
Murray, Bradshaw and Wolpin. (1992). Do Nonprofits Boards make a difference? An exploration of the relationships among the board structure, process and effectiveness, Nonprofit and Voluntary Sector Quarterly.
Mutua, C.K. (2010). Strategic Responses by the Deposit Protection Fund Board to Changes in the External Environment. University of Nairobi: Unpublished MBA Project.
Njihia, N.N. (2009). Strategic Responses of Kenya Commercial Bank Limited to Changes in Kenyan Banking Industry. University of Nairobi: Unpublished MBA Project.
Odongo, T.O. (2008). Strategic Responses by Kenya Tourist Development Corporation to Changes in its Environment. University of Nairobi: Unpublished MBA Project.
Spiess, E. (1998). Daz konzept der empathie. In E. Spiess (Ed.), Formen der cooperation: Bedingungen und perspektiven (pp. 53-62). Göttingen: Hogrefe.
Sutton, S. G.(2008). Reflections on the future of AIS research, International Journal of Accounting Information Systems, 9, 201.
Tilt. (2006). Considering NGO Accountability: A Note of Caution, Eighth Biennial Conference, School of Commerce, Flinders University.
Turban, E, .andVoloninoL. (2011). Information technology for management.(Wiley).
Unerman, J. and O'Dwayer, B. (2006).Guest Editorial: On James Bond and the Importance NGO Accountability, Accounting, Auditing & Accountability Journal, Vol. 19 No. 3, pp 305-318.
Waddell, S. (2006).Complementary Resources: the win-win rationale for partnerships with NGOs, in Bendell, J. (Eds), Terms for Endearment, Greenleaf Publishing, Sheffield, pp.193-206.
Waddell, S. (2006).Complementary Resources: the win-win rationale for partnerships with NGOs,inBendell, J. (Eds),Terms for Endearment, Greenleaf Publishing, Sheffield, pp.193-206.
Wamai, G.R. (2004). NGO and Public Health Systems: Comparative Trends in Transforming Health Care Systems in Kenya and Finland. Researcher. University of Helsinki, Finland. Department of Social Policy/Institute of Development Studies.
Welsch, G. A. &Short,G. (1987). Fundamentals of Financial Accounting 5th Edition IRWIN Homewood Illinois 60430.
Zadek, S. (2004).The path to corporate responsibility, Harvard Business Review, Vol. 82 No.
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
