Impact of financial management on the performance of organizations: a case study of Nyakibale Hospital Rukungiri District- Uganda
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Date
2010-02
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Kampala International University, College of Economics and Management
Abstract
This study assessed the f impact of financial management on the performance of organizations and the factors that hinder proper management of finance in the organization using a case study Nyakibaale hospital Rukungiri district –Uganda Three questions guided the study namely, what is the nature of financial management in Nyakibaale Hospital, What factors affects the proper financial management in an organization and finally what is the relationship between financial management and performance in an organization? Using a case study design of, a total of 45 respondents were purposively sampled from the hospital employees s. Questionnaires were used to collect data from 45 respondents, Interview guides were used on some respondents comprised of Accountants, Cashiers and Administrators s and focus group discussions were held with 4 groups comprising of both respondents in financial and non-financial positions. Documentary review of the available records and observation were also applied in this study. The study revealed that the employment in Nyakibaale Hospital is dominated by the female gender; the majorities of the employees are under the age bracket of 20-29 and 30-39 and were mainly single without no formal marriage. Many of the respondents who answered the research questions are employees in the financial section of the hospital with knowledge on financial management. The nature of financial management in Nyakibaale Hospital was spelt out to include: Budgeting, financial statement and dissemination of information to stake holders, audit reports ,keeping accounting books, planning for a financial year, preparing financial statements and reports, custody and safeguarding of securities, and policies of insurance and finally accountably in all transactions done. The respondents understood the factors that hinder proper management of finance in the organization to include, the absence of qualified personal in the accounts department of the hospital, poor reporting procedures and avenues in management, poor record keeping and lack of accountability for transactions made by finance officers The study compared the relationship between financial management and performance in an organization. This suggest that proper financial management promotes efficiency and encourages economic boosting of an organization, it prevents conflicts in decision making and management of institutions , it minimizes unnecessary losses to the organization, it increases public confidence in an organization and this may work to attract external funding/ donations. In order to improve on the nature of financial management in Nyakibaale hospital and organizations generally. The study gives the following recommendations. Disciplinary action should be under taken to those who fail to implement financial management policies, financial managers should apply internal control systems, written policies and rules should be given out by financial managers to all employees in this department.
Description
A research report submitted in partial fulfillment of the requirement for the Award of Degree in Business Administration of Kampala International University
Keywords
Financial management, Performance of organizations