Financial Management and Public Sector Performance of Selected Ministries Hargiesa Somali Land

ABSTRACT 

This study established how financial management impact on public sector performance of selected ministries in Hargiesa, Somaliland. The study was based on these three objectives; 1) to examine the extent of financial management in Hargaysa Somaliland. ; 2) to determine the performance of public sector in hargeisa Somaliland.; and 3) to find out whether there significant relationship between the extent of financial managements and public sector performance. A descriptive correlational and cross sectional survey design involving both qualitative and quantitative approaches was employed. Using Slovene's formula, a sample size of 97 was used to collect data from employees of the selected ministries through purposive and systematic random sampling techniques. a researcher made questionnaire was used to collect data, which was analyzed using frequencies and percentages, mean scores and ranks, Pearson's Linear correlation coefficient and Linear regression analysis. The findings revealed that financial management was effective in the selected ministries (overall mean= 2.60); performance of the selected ministries was also found to be high (overall mean 2.85); the relationship between effectiveness of financial management and public sector performance of the selected ministries in Hargiesa was also positive and significant average (at r =.0.625; R2 = 0.716; and sig. = 0.000). Basing on the individual items under financial management, this study found out that effectiveness in data validation; financial analysis and financial making decision and control have positive and significant relationship with performance of the selected ministries. This finding is demonstrated by the ~ values of 0.912; 0.592, 0.252 and 0.572 at significant values of 0.000; 0.435; 0.006 and 0.000 respectively at standardized significant value of 0.05. However, data storage and accuracy did not have any significant relationship with performance of selected ministries as its significant value computed in 0.435 and this is greater than the standardized significant value of 0.05, so the null hypothesis was accepted. The researcher concluded that financial management in the selected ministry in Hargiesa is effective; the performance of the selected Ministries is high; and that there is a strong, positive and significant relationship between financial management and the public sector performance of the selected ministries in Hargiesa. The study recommends that the directors of the selected ministries should work hand in hand with their finance managers to ensure improvements are ensured in the areas of data validation financial reporting and information as well as data storage and accuracy such that improvement in performance of the ministries can be enhanced.

Table of Contents

DECLARATION A ....................................................................................................... ii

DECLARATION B ...................................................................................................... iii

ACKNOWLEDGEMENT ............................................................................................... iv

LIST OF ABBREVIATIONS .......................................................................................... v

LIST OF FIGURES AND TABLES .................................................................................. vi

ABSTRACT .............................................................................................................. vii

CHAPTER ONE ....................................................................................................... 1

1.0 Introduction ....................................................................................................... 1

1.1 Background of the Study ..................................................................................... 1

1.1.1 H istorica I perspective .. . .. .. . . .. . . .. . .. .. .. . . .. .. . .. .. .. .. . .. .. . .. .. . . 1

1.1.2 Conceptual perspective .............................................................................. 3

1.1.3 Theoretical Perspective .............................................................................. 5

1.1.4 Contextual Perspective ............................................................................... 6

1.2 Statement of the Problem ................................................................................ 7

1.3 Purpose of the Study ....................................................................................... 8

1.4 Objectives of the study .................................................................................... 8

1.5 Research Question .......................................................................................... 9

1.6 Research Hypothesis ....................................................................................... 9

1.7 Scope ............................................................................................................. 9

1.8 Significance of the Study ................................................................................. 10

1.9 Operational Definitions of Key Terms ............................................................... 11

CHAPTER TWO ..................................................................................................... 12

RELATED LITERATURE ........................................................................................ 12

2.0 Introduction ................................................................................................... 12

2.1 Theoretical review .......................................................................................... 12

2.2 Conceptual frame work ................................................................................... 14

2.3 Conceptual Reviews ........................................................................................ 15

2.4 Public sector performance ............................................................................... 19

2.5 Relationship between financial management and Performance .......................... 25

2.6 Related studies ............................................................................................... 26

2.7 Existing Gaps in the Literature ......................................................................... 30

CHAPTER THREE METHODOLOGY ...................................................................... 31

3.0 Research Design ............................................................................................. 31

3.1 Research Population ....................................................................................... 31

3.2 Sample Sizes .......................................................................................... :: ...... 31

3.3 Sampling procedure ........................................................................................ 32

3.4 Data Collection Methods ................................................................................. 32

3.5 Research Instrument ...................................................................................... 33

3.6 Validity and Reliability of the Instruments ........................................................ 33

3.7 Data Gathering Procedure ............................................................................... 34

3.8 Data Analysis .................................................................................................. 35

3.9 Ethical Considerations ..................................................................................... 35

3.10 Limitation of the Study .................................................................................. 36

CHAPTER FOUR .................................................................................................... 37

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA ......................... 37

4.0 Introduction ................................................................................................... 37

4.1 Profile of Respondents .................................................................................... 37

4.2 Description of the Level of Financial Management ........................................... .40

4.3 Description of the Level of public sector performance ...................................... .43

4.4 Relationship between financial management and public sector performance ..... .47

CHAPTER FIVE ..................................................................................................... 50

FINDINGS, CONLUSIONS AND RECOMMENDATIONS ....................................... 50

5.0 Introduction ................................................................................................... 50

5.1 Findings ......................................................................................................... 50

5.2 Summary of the Findings on Extent of Financial Management ........................... 51

5.3 Summary of the Findings on Extent on the Level of public sector performance ... 51

5.4 Summary of the Findings on Relationship and differences between financial Management and public sector performance of selected ministries .................. 51

5.5 Conclusion ..................................................................................................... 52

5.6 Recommendations .......................................................................................... 52

5.7 Areas for Further Research ............................................................................. 53

REFERENCES .......................................................................................................... 54

APENDICES ............................................................................................................. 59

APPENDIX 1 A: TRANSMITTAL LETTER .................................................................... 59

APPENDIX 1B: TRANSMITTAL LETTER FOR THE RESPONDENTS ................. :~ ............. 60

APPENDIX C: CLEARANCE FROM ETHICS COMMITTEE .............................................. 61

APPENDIX D: INFORMED CONSENT ......................................................................... 62

APPENDIX E: QUESTIONNAIRE ................................................................................ 63

APPENDIX F: INTERVIEW GUIDE ............................................................................. 65

PPENDIX G: TIME FRAME FOR RESEARCH PROJECT ................................................. 67

APPENDIX VII: THE PROPOSED BUDGET .................................................................. 68

APPENDIX H: Curriculum Vita .................................................................................. 69