4 Working Capital Management And Organizational Performance in Selected Telecommunication Companies in Bosaso, Puntland, Somalia

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Date
2012-11
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Kampala international University college of economics and management
Abstract
This dissertation is entitled “working capital management and organizational performance is selected telecommunication companies in Bosaso, Somalia”. The study was carried out based on four specific objectives. The first major objective of this study was profile of respondents in which the study indicates that male dominate (71.4%) female (28.6%) in the three organizations staff, the study also revealed that 49.6% which is the very majority of the employees in the sample were aged below 40 years; 48.1% were 40-59 years old; 2.3% were 60 and above years old. The study shows that selected telecommunication companies, which was established mid 1990s in 200, employed a great number of academicians (46.6%). This is an indication of that selected telecommunication companies attracted and retained highly educated employees who are likely to perform their duties well. In second objective, the study shows that, on the overall, the level of working capital management (as to: cash management, receivable management, inventory management, ) is good (grand mean = 2.67) and in third objective the study indicates that the level of organizational performance was found to be good (grand mean = 2.75). The last objective of the study was to determine whether there is a significant relationship between the level of working capital management and level of organizational performance in selected telecommunication in Somalia. The study used Pearson Linear Correlation Coefficient to measure and describe the relationship between the two variables of the study and to test the null hypothesis. The study also uses regression analysis to rank the effect of the three working capital components have on organizational performance. The level of working capital management was found to be positively and significantly correlated with the level organizational performance (sig. < 0.05 and r-value = 0.417). Based on the findings of the study the following conclusions are drawn: According to the analysis the average mean of level of working capital management is 2.68, which showed that majority of the respondents agreed that the level of working capital management is good because the mean is in between 2.37- 2.93. As indicated in the analysis of chapter four, the average mean of the level of Organizational performance of the selected telecommunication companies is 2.75, this indicated that majority of the respondents agreed that the organizational performance of the telecommunication companies is good according to the average mean which lays in between 2.98-2,41.This study used descriptive survey design and correlation research design. Descriptive in that data collected used to describe a phenomenon; correlation in that it is interested in relating receivable management , cash management , inventory management , to organizational performance. It recommends that there is all employees should be given training in the maintaining the inventory of the organization and control system of all telecommunication companies in Somalia and to carry out their daily work to maximize their performance. The owners of the telecommunication should invest in the technological improvement to keep their business competitive in the market and maintain market sharing to other telecommunication companies in the market, The telecommunication companies should maintain sales volume to the market that the telecommunication companies sharing their competitive in the market.
Description
A Thesis Presented to the College of Higher Degrees and Research Kampala International University Kampala, Uganda in Partial Fulfillment of the Requirements for the Master’s Degree in Finance and Accounting.
Keywords
4 Working Capital Management, Organizational Performance, Puntland, Somalia, Telecommunication Companies
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