The Development Dynamics of Ghanaian Universities in the Context of Effective Financial Management - Research Paper Example

The development dynamics of Ghanaian universities in the context of effective financial management This study paper seeks to analyze the development dynamics of Ghanaian universities in the context of effective financial management. Development dynamics regarding universities are many however, this paper seek to focus on these dynamics in regards to financial management. The purpose is to link financial management to development program and challenges of the universities. A financial management model is applicable in ensuring effective management of funds during development is achieved. The challenges that are to be addresses include rapid population growth, high student intake, unstable economy, high demand for higher education, infrastructure needs, corruption, ICT cost, high HR cost, and others (Guthrie, 2005). There are empirical surveys that have been done to analyze the developments dynamics; however, these researches have not exploited the aspect of incorporating financial management to development dynamics. This paper employs mixed research methodologies to collect primary and secondary data (Creswell & Plano, 2011). Ghana universities like any other universities in Africa face challenges that hinder development. What is needed is a proper analysis of development dynamics. Table of Contents Abstract 2 Table of Contents 3 Introduction 4 Background to the Study 4 Problem statement 5 Objectives 5 Main objective 5 Specific objectives 6 Literature Review 6 Development Agenda 6 Challenges of the universities 7 Methods 8 Results and Discussion 8 Conclusion 11 Recommendation 12 References 13 Introduction There is a necessity for the development of a new era of universities in Africa (Ghana inclusive) that tackle the development necessities of the continent and concentrate on community problem solving. The literature is affluent with cases and theories related to development dynamics, interaction and financial issues (Creemers & Kyriakidēs, 2008). The research illustrated in this study tries to expand the literature via the use of the qualitative and quantitative model to elucidate the association between development dynamics in Ghanaian universities and financial management implications (Addae-Boahene, 2007). Development dynamics denote the forces or properties that motivate development, growth, or transformation within an organization or a process. Financial management refers to efficient and successful use of funds in a way to meet the objectives of an institution. According to CIPFA (the Chartered Institute of Public Finance and Accounting), there is version 3 of financial management model. It is a full FM model universal application and Ghanaian universities can employ it in their development agenda (Unerman, Bebbington & ODwyer, 2007). The objective of this study is to achieve an extensive understanding of the development dynamics of Ghanaian universities in the context of effective financial management (Dovlo, 2007). This paper incorporates empirical research findings, qualitative and quantitative collection methods to analyze the objectives. The findings are interpreted and analyzed using data analysis techniques. Background to the Study Ghanaian universities suffer from irrelevant university development due to various dynamics and financial management constraints. This affects the quality of graduates thus making them not relevant to jobs industries (Elliott, Fourali & Issler, 2010). For university learning to be pertinent to development there is the necessity to generate an interface among the universities, the public and private partners. To generate and maintain this interface, these institutions need to take the initiative and promote their significance so that private and public institutions including employment industries can use their expertise and resources to attain their set objectives and goals. However, development dynamics and financial management issues have been identified as drawback for Ghanaian universities achievement of relevance (Addae-Boahene, 2007). Problem statement Development dynamics of Ghanaian universities deny them chance of empowerment. This is attributed to financial matters, it is apparent that effective financial management is an empowerment strategy. It concerns individuals and organizations identifying their drawbacks, articulating their own requirements and finding their own resolutions to identified problems. The development dynamics for Ghanaian universities are challenges that must be overcome (Aryeetey, Ernest & Augustin Fosu, 2005). Development of any organizations faces challenges and these challenges are manageable. In the context of Ghana universities development challenges such as rapid population growth, high student intake, unstable economy, high demand for higher education, infrastructure needs, corruption, ICT cost, high HR cost, and others; effective financial management is the solution. Development dynamics can be simply described as the forces that are restraining qualitative change and restructuring in an institution set up (Aryeetey, Harrigan & Nissanke). The essence of this study is to find out how effective financial management can be used to encourage Ghanaian universities development despite the dynamics. Objectives Main objective The main objective of the study is to link financial management to development agenda and challenges of the Ghanaian universities. Effective financial management is a key ingredient to effective development (Yankson & University of Ghana, 2006). The challenges that are associated with development can be pointed to mismanagement of finances. Therefore, the essence of this study is to incorporate version 3 of FM model application in universities development agendas. This is a model that with FM Strategy, audit capabilities, financial reporting capacity and provide stakeholder confidence in financial management. The development agenda for Ghana universities would be to create relevancy in the education center. There is a necessity for the establishment of a new era of universities in Africa that address the development necessities of the continent and concentrate on community predicament solving (Brunner, & OECD, 2012). These requirements necessitate a clear development agenda development and challenges management procedures. Specific objectives 1. To determine how effective financial management can assist the development agenda of Ghanaian universities to overcome development dynamics 2. To determine how challenges facing Ghanaian universities can be reduced through proper financial management. 3. To demonstrate how integration of financial management to development agenda and challenges of the universities is effective (Cloete, 2011). Literature Review Development Agenda The Ghana government through ministry of education in conjunction with high education board established agenda to create relevancy in education sector (Cloete, 2011). According to Dovlo (2007), in Ghana, the expression ‘relevance’ dominates the discussion of the administration, industry, and the media in issues linking to the universities (Dovlo, 2007). Government and the head of manufacturing in Ghana protest that graduates from their universities require to be retrained to suit into employment industries (Hanson, Kararach & Shaw, 2012). They frequently urge universities to progress from theoretical knowledge and hypothesis to a more practical and hands-on education that would rally development needs. This led to ICT4AD (Information and Communication Technology for Accelerated Development) policy creation (Kwapong, 2010); however, much progress is yet to be realized due to management hiccups. The capacity for educational development and organization of the education industry is essential both for making more successful utilization of resources and for encouraging other stakeholders comprising civil society and the public to contribute to schooling provision (World Bank, 2010). Of the entire the systematic strategies being sought, the most significant is decentralization. Decentralization is essential in improving the effectiveness of education services and management (World Bank (Washington, DC), 2002). The capacity development I financial oriented thus effective financial management will ensure effective implementation of development agenda (Kyvik & Lepori, 2010). Challenges of the universities Some of the challenges that have to be tackled to spin this idea of development agenda in Ghanaian universities into reality comprise: linking academic acquaintance to industry relevant skills; creation of relevant curricula (Lauer & Anyidoho, 2012); providing quality training in the face of a scholar population explosion; pertinent staff training and development; financial support for universities; and encouraging the ideal to developing new universities. According to ISSER (Institute of Statistical, Social and Economic Research) of Ghana, for Ghana economy and human development to be achieved skilled based development agenda must created in Ghanaian universities (Ndulu & Chakraborti, 2007). ISSER strives to encourage advocacy for enforcement of local entrepreneurship and, a facilitating environment as instruments for poverty eradication in Ghana. Furthermore, ISSER seeks to encourage good management institutions as the basis upon which effective economies are developed (ISSER, 2012). Methods The methodology for this research is mixed method. It involves the compilation of both qualitative and quantitative data and the integration of the potencies of each to answer study questions (Sandelowski, Voils & Knafl 2009). Quantitative that is mainly deductive methods are model for measuring commonness of known fact, comprising conclusions of causality (Teddlie & Tashakkori, 2009). On the other hand, qualitative (mostly inductive) methods permit for recognition of previously unidentified processes, clarifications of why and how incidence occurs, and the extent of their effects (Pasick et al., 2009). In this research, observations and surveys are employed to assist collect data that relate to the objectives (Morse & Niehaus, 2009). Results and Discussion The first objective was to determine how effective financial management is essential in Ghanaian universities development agenda (OECD, 2006). The survey conducted revealed that ICT4AD agenda has been successful in over 70% of universities that instituted it in their development plan. The survey involved structured question that were used to collect data from surveyed universities in Ghana. Survey Question Yes NO ICT4AD project succeeded due to effective management 80 (80%) 20 (20%) High demand for higher education is manageable through financial management 70 (70%) 30 (30%) unstable economy is due to poor financial management 90 (90%) 10 (10%) ICT cost increase 78 (78%) 22 (22%) Corruption is a product of ineffective financial management 82 (82%) 18 (18%) Table 1 Fig 1 Table 1 and fig 1 reveals that majority acknowledged effective financial management is essential in Ghanaian universities development agenda. This fulfills objective one of this research paper. The second objective of the research was to determine how challenges facing Ghanaian universities could be reduced through financial management. The high number of student intakes, rapid population growth of Ghanaians, ICT cost and high demand for higher education were the challenges universities had to deal with (Ministry of Communications, 2003). High population and increased student intakes were the first challenge analyzed. The universities development agenda targets youthful Ghanaian populations that are legible for universities education (Braimah & King 2006). The table below provides the target population Table 2: Youthful population percentage This is an indication that the youth population is more than 61% (La, 2004). Fig. 2 The figure poses a challenge to government and leaning institutions. The survey revealed that over 80% agreed that poor financial management and corruption contributed to improper management of youthful generation. This has been made worst by rampant corruption in various sector thus dilapidating development efforts. If proper financial management was in place then at least the problem would be manageable. According to a report revealed in 2004, over 80% of educational staffs in Ghanaian universities were adequately learned (Booth el at., 2004). Because of a lack of financials to fund PhD education overseas, there is the invariable fear that those who learn overseas become fraction of the brain drain. Scholars also obtain paradigms of familiarity that are more pertinent to the nations where they study. With proper financial management with Ghanaian government and education sectors these challenges are manageable. The third objective was to assess importance of effective financial management to both development agenda and challenges for the universalities. Yes No Development agenda is influenced by financial management 80% 20% Challenges are reducible through effective management 88% 12% Table 3 Fig. 3 Table 3 and fig 3 above confirmed the knowledge that with proper financial management development success is inevitable and challenges minimized. Conclusion The study has analyzed effect of effective financial management to Ghanaian universities development agendas. It is clear that all projects execution require resources and funds to be successful. However, development dynamics are associated with financial management with proper management yielding success and poor management affecting development achievement. The main objective of the study was to link financial management to development agenda and challenges of the Ghanaian universities. V3 FM model can provide effective financial management, which is an ingredient to effective development in institutions within Ghana. This has been successfully analyzed through mixed method, literature review and critical assessment. The table and figures summarizes the project through interpretation and presentation in a form understandable to all readers. Recommendation Education sector is a broad industry that entails various stakeholders. The government of Ghana control and fund higher education through education ministry. To enact effective financial management in these institutions there should be a clean system of no corruption from the government to universities management. The recommendation for effective management is that the institutions and the government should form independent financial control committee to ensure that Ghanaian universities development agendas do not suffer financial mismanagement. Mutual answerability in terms of financial flow and attainment of desirable results in development has provided little enhancement over the recent years and goes to substantiate Ghana’s current rank on the CPI (Corruption Perception Index) (Booth el at., 2004). Evidence of enhancements can be observed in terms of joint trust and respect, transparent dialogue and elasticity between DPs and government. Proper coordination between various stakeholders would enforce effective financial management in Ghanaian universities. References Addae-Boahene, A (2007). Ghana: Aid Effectiveness and the Education Sector: Implications for Civil Society. An Alliance2015 report Aryeetey, Ernest and Augustin Fosu (2005), “Economic Growth in Ghana: 1960—2000.” Forthcoming in Aryeetey and Kanbur (eds.), the Economy of Ghana: Analytical Perspectives on Stability, Growth and Poverty. James Currey Booth, D., Crook, R., Gyimah, B., Killick. 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