Research Article | | Peer-Reviewed

Managerial Competences and Financial Performance: A Study on NGOs in Central Division-Fort Portal City

Received: 7 May 2024     Accepted: 24 May 2024     Published: 13 June 2024
Views:       Downloads:
Abstract

Democratic Governance Facility (DGF) still remain the biggest funder of most NGOs in the region, however most NGOs still face challenges in not only obtaining funds but also managing them. This study was carried out to examine the relationship between managerial competences and financial performance of NGOs in Fort Portal Tourism City. A quantitative research design was adopted to achieve the research objectives. Out of a total population of 320 employees, 183 respondents were selected using simple and stratified random sampling techniques. The study used structured questionnaires to collect data from managers, accountants, field officers, office assistants and secretaries. Apparently, one hundred eighty three copies of the questionnaire were administered to respondents but only one hundred seventy three were properly filled and returned constituting response rate of 94.50%. Construct and content validity were adopted and the reliability co-efficient of the items in the instrument ranged between 0.70 and 0.78. Descriptive and inferential statistics (simple and multiple linear regression analyses) were used to analyze data. The study findings reveal that managerial competences have a significant effect on financial performance of NGOs in Fort Portal Tourism City (Adj. R2 = 0.375; F (4, 427) = 61.906, p<0.05). The conclusion drawn by this study is that managerial competences affect financial performance of NGOs in Fort Portal Tourism City. The study recommends that management of NGOs in Fort Portal City should make extra effort in investing in their managerial competences in order to improve their financial performance. Management of NGOs should constantly review the managerial competence profile for better managerial decisions and performance improvement.

Published in International Journal of Economics, Finance and Management Sciences (Volume 12, Issue 3)
DOI 10.11648/j.ijefm.20241203.15
Page(s) 185-195
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Financial Performance, Competence Management, Critical Skills, Knowledge, Attitudes, Customer, NGOs

References
[1] Gooding, K, “The role of NGOs’ service delivery experience in developing relevant research agendas: experience and challenges among NGOs in Malawi” Health Res Policy Sys 15, 38, 2017.
[2] Muhwezi, W. W., Mbabazi, J., Kasalirwe, F., Atukunda, P., Ssemakula, E. G., Otile, O. M., Mukwaya, N. R., and Akena, W, “The Performance of the COVID-19 District Task Forces in Uganda: Understanding the Dynamics and Functionality”, Kampala, ACODE Policy Research Paper Series No. 101, 2020.
[3] Murphy, H, “Rethinking the roles of non-governmental organizations at the world trade Organization”, Australian Journal International Affairs, 66: 4, 468-485, 2012.
[4] Islam, J. N., Mohajan, H. M., & Datta, R, “Aspects of microfinance system of Grameen Bank of Bangladesh”, Int. J. Eco. Res., v3i4, 76-96, 2012.
[5] Ocen, P., Acanga, A., & Mwesigwa, D, “The involvement of Non-Governmental Organizations activities in Household Poverty reduction in Oyam District, Uganda”, International Journal of Developing Country Studies; Vol. 3, Issue No. 1, pp 74 – 99, 2022.
[6] Banks, N., Hulme, D., & Edwards, M, “NGOs, States, and Donors Revisited: Still Too Close for Comfort?” World Development, 66, 707–718, 2015.
[7] Vandeputte, N., “The suspension of the Democratic Governance Facility in Uganda: the illusion of“politically smart aid”, Development in practice; 2023.
[8] Amiri, M., & Pagheh, B, “Problems and Challenges of Non-Governmental Organizations in Pune City, State of Maharashtra, India” Eligación. Revista de Ciencias Sociales y Humanidades, vol. 4, núm. 13, pp. 374-382, 2019.
[9] Uganda Water and Sanitation NGO Network (UWASNET), “NGO performance report, FY2017/2018”, World Vision; Kampala Uganda, 2018.
[10] Marcos Dieste, Roberto Panizzolo & Jose Arturo Garza-Reyes, “A systematic literature review regarding the influence of lean manufacturing on firms’ financial performance”, Journal of Manufacturing Technology Management, Vol. 32 No. 9, 2021 pp. 101-121, 2021.
[11] Pimpong, S., & Laryea, H, “Budgeting and its impact on Financial Performance: The case of Non-Bank Financial institutions in Ghana”, International Journal of Academic Research and Reflection, Vol. 4, No. 5, 2309-2334, 2016.
[12] Helmut, A., & Toepler, S, “Policy Neglect: The True Challenge to the Nonprofit Sector”, Journal Nonprofit Policy Forum; 10 (4), 2019.
[13] Jacob, G. M, “Influnce of strategic managemnt practices on performance of floriculture firms in kenya- Asurvey of kiambu county, kenya”, International Journal of Economics Commerce & management, 3(7). pp 497-513, 2015.
[14] Kamukama, N., Kyomuhangi, D. S., Akisimire, R., & Orobia, L. A, “Competitive advantage: mediator of managerial competence and financial performance of commercial banks in Uganda”, African Journal of Economic and Management Studies, Vol. 8 Issue: 2, 2017.
[15] Martina, K., Hana, U., & Jiří, F., “Identification of Managerial Competencies in Knowledge-based Organizations” Journal of Competitiveness; Vol. 4, Issue 1, pp. 129-142, 2012.
[16] Emmanuel, I. E., Rikwentishe, R., Attayi, I. F, “Managerial competencies and small business venture performance: an emerging economies perspective”, Journal of Enterprise and Development (JED), Vol. 5, No. 1, 2023.
[17] Wolff, S. B., Pescosolido, A. T., & Druskat, V. U, “Emotional intelligence as the basis of leadership emergence in self-managing teams”, The Leadership Quarterly, 13(5), 505–522, 2002.
[18] Harter, S, “Effectance motivation reconsidered” Human Development, 21, 34-64, 1978.
[19] Jörg, F, “A competence-based theory of the firm”, Management Revue, ISSN 1861-9916, Rainer Hampp Verlag, Mering, Vol. 15, Iss. 1, pp. 27-52, 2004.
[20] Ssekakubo, J., Ndiwalana, G. & Lwanga, F, “Managerial Competency and the Financial Performance of Savings, Credit and Cooperative Societies in Uganda”, International Research Journal of Arts and social Science; Vol. 3(3), pp. 66-74, 2014.
[21] Mwenda, B., Ngollo, M., Mwasota, A, “An Empirical Study on the Effects of Managerial Competence on Firm Profitability”, Ilomata International Journal of Tax & Accounting. Volume 4, Issue 3; Page No. 491-507, 2023.
[22] Apreku-Djan, P. K., Ameyaw, F., Ayittah, S. K., Opare, E. A., & Apreku, I. K. O, “Effect of Managerial Competence on Value-Based Financial Performance of Banks”. International Journal of Academic Research in Business and Social Sciences; 12(7), 692 – 726, 2022.
[23] Yahaya, R., & Segbenya, M, “Modelling the influence of managerial competence on managerial performance in the Ghanaian banking sector”, Humanities and social sciences communications, 2023.
[24] Wijaya, E. R., Irianto, D, “Analysis Influence of Managerial Competence, Technical Competence, and Strategic Competence on Firm Performance in Electrical Engineering Company in Bandung”, Materials Science and Engineering, 319 (2018), 2018.
[25] Torres Rivera, M. P., Pedraza Melo, N. A, “Management Competencies and Their Relationship with Organizational Performance in Small and Medium-Sized Family Businesses”, European Journal of Family Business, 13(2), 220-233, 2023.
[26] Ngumo, H. M, “Managerial Competence and Performance: A Theoretical Review”, International Journal of Science and Research (IJSR); Volume 10, Issue 1, 2021.
[27] Inam Bhutta, A., Sheikh, M. F., Munir, A., Naz, A., & Saif, I, “Managerial ability and firm performance: Evidence from an emerging market”, Cogent Business & Management, 8(1), 2021.
[28] Marrocu, E., & Paci, R, “Education or creativity: what matters most for economic performance?”, Economic Geography, 88(4), 369–401, 2012.
[29] Siepel, J., & Camerani, R., & Masucci, M, “Skills combinations and firm performance”, Small Bus Econ, 56: 1425–1447, 2019.
[30] Chakraborti, S., & Sparks, R. S, “Statistical Process Monitoring and the Issue of Assumptions in Practice: Normality and Independence. In distribution-free Methods for Statistical Process Monitoring and Control, 137-155, 2020.
[31] Le Thi Kim, N, Duvernay, D., & Le Thanh, H, “Determinants of financial performance of listed firms manufacturing food products in Vietnam: regression analysis and Blinder–Oaxaca decomposition analysis”, Journal of Economics and Development, Vol. 23 No. 3, 2021 pp. 267-283, 2021.
[32] Ibrahim, S., & Lloyd, C, “The association between non-financial performance measures in executive compensation contracts and earnings management”, Journal of Accounting and Public Policy, 30(3), 256-274, 2011.
Cite This Article
  • APA Style

    Amanyire, A., Nimusima, P., Rwambale, K., Mbabazi, G. M., Muhumuza, G. (2024). Managerial Competences and Financial Performance: A Study on NGOs in Central Division-Fort Portal City. International Journal of Economics, Finance and Management Sciences, 12(3), 185-195. https://doi.org/10.11648/j.ijefm.20241203.15

    Copy | Download

    ACS Style

    Amanyire, A.; Nimusima, P.; Rwambale, K.; Mbabazi, G. M.; Muhumuza, G. Managerial Competences and Financial Performance: A Study on NGOs in Central Division-Fort Portal City. Int. J. Econ. Finance Manag. Sci. 2024, 12(3), 185-195. doi: 10.11648/j.ijefm.20241203.15

    Copy | Download

    AMA Style

    Amanyire A, Nimusima P, Rwambale K, Mbabazi GM, Muhumuza G. Managerial Competences and Financial Performance: A Study on NGOs in Central Division-Fort Portal City. Int J Econ Finance Manag Sci. 2024;12(3):185-195. doi: 10.11648/j.ijefm.20241203.15

    Copy | Download

  • @article{10.11648/j.ijefm.20241203.15,
      author = {Agnes Amanyire and Pereez Nimusima and Kadhiri Rwambale and Grace Mary Mbabazi and Godfrey Muhumuza},
      title = {Managerial Competences and Financial Performance: A Study on NGOs in Central Division-Fort Portal City
    },
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {12},
      number = {3},
      pages = {185-195},
      doi = {10.11648/j.ijefm.20241203.15},
      url = {https://doi.org/10.11648/j.ijefm.20241203.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20241203.15},
      abstract = {Democratic Governance Facility (DGF) still remain the biggest funder of most NGOs in the region, however most NGOs still face challenges in not only obtaining funds but also managing them. This study was carried out to examine the relationship between managerial competences and financial performance of NGOs in Fort Portal Tourism City. A quantitative research design was adopted to achieve the research objectives. Out of a total population of 320 employees, 183 respondents were selected using simple and stratified random sampling techniques. The study used structured questionnaires to collect data from managers, accountants, field officers, office assistants and secretaries. Apparently, one hundred eighty three copies of the questionnaire were administered to respondents but only one hundred seventy three were properly filled and returned constituting response rate of 94.50%. Construct and content validity were adopted and the reliability co-efficient of the items in the instrument ranged between 0.70 and 0.78. Descriptive and inferential statistics (simple and multiple linear regression analyses) were used to analyze data. The study findings reveal that managerial competences have a significant effect on financial performance of NGOs in Fort Portal Tourism City (Adj. R2 = 0.375; F (4, 427) = 61.906, p<0.05). The conclusion drawn by this study is that managerial competences affect financial performance of NGOs in Fort Portal Tourism City. The study recommends that management of NGOs in Fort Portal City should make extra effort in investing in their managerial competences in order to improve their financial performance. Management of NGOs should constantly review the managerial competence profile for better managerial decisions and performance improvement.
    },
     year = {2024}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Managerial Competences and Financial Performance: A Study on NGOs in Central Division-Fort Portal City
    
    AU  - Agnes Amanyire
    AU  - Pereez Nimusima
    AU  - Kadhiri Rwambale
    AU  - Grace Mary Mbabazi
    AU  - Godfrey Muhumuza
    Y1  - 2024/06/13
    PY  - 2024
    N1  - https://doi.org/10.11648/j.ijefm.20241203.15
    DO  - 10.11648/j.ijefm.20241203.15
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 185
    EP  - 195
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20241203.15
    AB  - Democratic Governance Facility (DGF) still remain the biggest funder of most NGOs in the region, however most NGOs still face challenges in not only obtaining funds but also managing them. This study was carried out to examine the relationship between managerial competences and financial performance of NGOs in Fort Portal Tourism City. A quantitative research design was adopted to achieve the research objectives. Out of a total population of 320 employees, 183 respondents were selected using simple and stratified random sampling techniques. The study used structured questionnaires to collect data from managers, accountants, field officers, office assistants and secretaries. Apparently, one hundred eighty three copies of the questionnaire were administered to respondents but only one hundred seventy three were properly filled and returned constituting response rate of 94.50%. Construct and content validity were adopted and the reliability co-efficient of the items in the instrument ranged between 0.70 and 0.78. Descriptive and inferential statistics (simple and multiple linear regression analyses) were used to analyze data. The study findings reveal that managerial competences have a significant effect on financial performance of NGOs in Fort Portal Tourism City (Adj. R2 = 0.375; F (4, 427) = 61.906, p<0.05). The conclusion drawn by this study is that managerial competences affect financial performance of NGOs in Fort Portal Tourism City. The study recommends that management of NGOs in Fort Portal City should make extra effort in investing in their managerial competences in order to improve their financial performance. Management of NGOs should constantly review the managerial competence profile for better managerial decisions and performance improvement.
    
    VL  - 12
    IS  - 3
    ER  - 

    Copy | Download

Author Information
  • Sections