Financial Management Practices or Systems in Public Sector
Financial management practices in the public sector is quite crucial as it improve the public management as well as the understanding labour the politics and public institution about the financial performance of an organization. High quality financial information in the public sector allows a complete and accurate assessment and impact on the policy decision. It supports the governments to identify the taxpayers, investors etc. As well as the financial management also make it easier to plan and prepare the budgeting, monitoring accountability in the business. The financial management practices are required to be followed by each of the company in order to assure their corporate social responsibility. In the research paper, a company, Etisalat has been taken into the concern to conduct the study and identify that how the changes in the financial practices affect the overall financial level of the business.
The main research question of this research paper is:
What is the impact of financial management practices in the public sector?
|
Author (year) |
Dependent variable |
Independent Variable |
Sample |
Findings |
Further Research |
|
(Juta Tikk and Arno Almann, 2011) |
Development of the public companies |
Financial management |
Estonian public organizations |
Transition of the financial accounting system and practices result in the emergency, integrated and qualitative new system in public sector at huge level. |
Information technology and the financial factors must be studied further. |
|
(Mr. Patrick Mutai Cheruiyot, Mr. Julius Robert Oketch, Professor Gregory S. Namusonge, Professor Maurice Sakwad, 2017) |
Performance of the country government and public sector |
Public financial management practices |
Financial statement and performance of public sector companies in Kenya |
On the basis of the changes in practices of financial statement, the citizen gets a platform to exercise their rights and evaluate the implementation of the project. |
Other factors of financial practices must also be considered. |
|
( Monir Mir and Wahyu Sutiyono, 2013) |
Performance of the public sector and financial performance of Indonesian companies |
Public financial management practices |
Financial statement and performance of public sector companies in Indonesia |
Mainly the changes in the financial practices are done by the companies and government to improve the financial performance and improve the transparency level in the business. |
The study must be done on more companies in order to get accurate data. |
|
(Albert Lusha, Xhelal Mziu and Fran Brahimi, 2015) |
Public sector performance |
Financial management practices |
Government institutions |
The changes in the budgeting system and other financial practices of the business directly affect the internal and external position of the business. |
Awareness must be improved about the financial practices as well as the independences level of the auditors must be improved. |
|
( Frank Verbeeten, 2008) |
Performance of the public sector and financial performance |
Public financial management practices |
Financial performance of public sector companies |
Mainly the changes in the financial practices are done by the companies and government to improve the financial performance and improve the transparency level in the business. |
The study must be done with different methods to get better outcome. |
According to (Tikk & Almann, 2011), It has been found that the changes in the financial management practices have affected the development and the performance of the public companies at the public sector. It has also been estimated that the strategic financial practices are the new method which is used in the business to measure and manage the performance of the companies. All the internal and external financial practices could influence the public sector performance level. The integration of all the financial factors and practices must be done separately in order to identify the influential level of the financial factors. Information technology factor must also be considered in the report to reach over a better conclusion.
Cheruiyot, Oketchb, Namusonge & Sakwa, (2017), further explains that the financial and non financial performance of Kenya companies is directly influenced with the changes in the financial statement and the financial level of the business. Effective budgeting, management of the public resources, strengthen the public resources, controlling on the financial resources etc are the few factors on the basis of which optimal utilization of the factor and the efficiency level of public sector could be ensured. On the basis of the changes in practices of financial statement, the citizen gets a platform to exercise their rights and evaluate the implementation of the project.
Further research of this article could be the influential level of the financial management practices over the financial performance of the public companies in the Kenya market. The various new acts have been introduced by the Kenya government in order to manage the accountability and control over the financial changes in the public sector.
Mir & Sutiyono, (2013) explains that the study explains that the financial practices have been changed in last few years at the Indonesian market which have affected the financial performance of the business such as at initial level, the cash basis used to be followed by the businesses to record the financial statement but along with the time, it has been replaced with the accrual accounting method. Because of that the financial performance of the companies has been changed at great level. Mainly the changes in the financial practices are done by the companies and government to improve the financial performance and improve the transparency level in the business. It concludes that the reforms in the financial management practices at Indonesia market have synchronised the accounting infrastructure and accounting performance of the public sector companies.
The further research must be done on the professional accounts and the financial managers of the business who could manage and control over the changes in the financial performance of the business. The monitoring activities method must also be evaluated and applied on the financial performance of the companies to identify the factors which have affected the performance of the business.
The different articles and studies explain that the financial practices and the changes in the financial method are the independent variable which affects the performance and the position of the public sector. It lays a crucial role in the performance of public sector and thus the companies are required to make the changes in the policies and rules accordingly. High quality financial information in the public sector allows a complete and accurate assessment and impact on the policy decision. The financial management practices and the policies make it easier for the stakeholders and government to plan and prepare the budgeting, monitoring accountability in the business.
The research design is crucial in order to choose a suitable method for the research topic. It helps the researcher to identify the better method and reach over a better conclusion. There are various tools, strategies, methods, techniques etc to improve the feasibility level and get a better result from the study. In addition, there are few tactics and tools which are mainly used by the researchers to reach over a conclusion about the research philosophy, research approach, research methodology, and data collection methods, sampling, limitation and ethics. These few research tools make it quite easier for the researcher to identify the measure all the related factors and reach over a conclusion efficiently.
The data collection methods and strategies explain about the usage of the information and some reliable proofs which are helpful for the researcher to reach over a conclusion about the performance of the business. Mainly, there are two types of data collection methods which are primary data collection method and secondary data collection method. in the primary data collection method, the researcher evaluate the market place and gather the information from the respondents or the market directly in order to reach over a conclusion whereas, in the secondary data method, the researcher evaluate the already collected data and the information to reach over a conclusion about the research problem.
In the research paper, the secondary data would be taken into the concern to measure that how the changes in the financial practices affect the financial performance of a company and the public sector performance. In order to identify and evaluate the topic and get over an outcome, Etisalat Company has been taken into the concern. A literature review study has also been done to identify the outcome.
Sampling tools are used in the research to identify the suitable sample and sample size from the available information and the marketplace. In the research topic, there are mainly two kind of sampling method which could be used i.e. non probability sampling tool and probability sampling tool. For this paper, non-probability sampling method has been chosen to obtain the information and conduct the research. In the paper, the financial statement of the company of last 3 years has been taken into the concern along with the changes in the financial practices of the business. In order to mitigate the bias risk and factors in the research, the literature review and other research papers have also been taken into the concern so that a better study could be done.
the research is limited to only one company at the market place which could affect the quality outcome of the research paper as well as the available resources, time and cost would also be lower to conduct the study at huge level
The research time scale is an imperative technique which is used to examine the total time period while conducting the research. The following table has been demonstrated to explain the total time period which has been consumed while conducting the research:
|
Activity name |
Start Day |
Last Day |
Duration (Days) |
|
Proposal of investigation |
21/10/2018 |
21/11/2018 |
30 |
|
Literature Review |
22/11/2018 |
22/01/2019 |
60 |
|
pooling of facts and figures |
23/01/2019 |
24/03/2019 |
61 |
|
Assessment of data |
25/03/2019 |
25/04/2019 |
30 |
|
Final submission of report |
26/04/2019 |
27/04/2019 |
30 |
It explains that the time was limited for the paper and thus the quality outcome of the research has been affected. With respect to the above given gantt chart, it has been analyzed that there are certain activities which is considered while reading the research paper such as issues reseach devlopment time, aim and objetive of the erseahc paper, reesrahc matter, infortaion about the research topic and report submission. in the research paper, it has been found that the primary data collection consumes more time than other data collection methods and thus the choosing of secondary data collecton method was better idea to conduct the research and reach over a conclusion about the imapct level of the financial managment practices on the public scector financial performance.
References:
Cheruiyota, M. P. M., Oketchb, M. J. R., Namusonge, G. S., & Sakwa, M. (2017). Effect of public financial management practices on performance in Kericho county government, Kenya: A critical review. [online]. retrieved from: https://www.ijern.com/journal/2017/December-2017/18.pdf
Lusha, A., Mziu, X., & Brahimi, F. (2015). Financial management in the public sector. European Scientific Journal, ESJ, 11(7).
Mir, M., & Sutiyono, W. (2013). Public sector financial management reform: A case study of local government agencies in Indonesia. Australasian Accounting, Business and Finance Journal, 7(4), 97-117.
Tikk, J., & Almann, A. (2011). Developments in public sector financial management in Estonia. Business & economic horizons, 5(2).
Verbeeten, F. H. (2008). Performance management practices in public sector organizations: Impact on performance. Accounting, Auditing & Accountability Journal, 21(3), 427-454.
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