Managerial competence and financial performance of district local governments a case study of PDLG.

Abstract

This study examined the effect of managerial competence on financial performance. The study was guided by the following objectives notably; to examine the effect of conceptual skills on the financial performance; to assess the effect of human capacity on the financial performance; and to examine the effect of technical skills on the financial performance. The study used a cross sectional research design, and a quantitative approach. Data were collected from 140 employees of PDLG as a target population consisting of accountants, works, production, education and health sector departments. Data were collected with the aid of closed ended questionnaire and analyzed using Statistical Packages for Social Sciences. Frequency tables, descriptive statistics (mean and standard deviation), reliability, validity, correlation, and regression results were obtained using SPSS v20. The study findings revealed that there is a positive and a significant effect of conceptual skills on financial performance, human capacity on financial performance, and technical skills on financial performance. To ensure improvement in the financial performance of local governments, the study recommended management to conduct regular trainings so as to improve on the employees’ ability to anticipate needs and problems. This would also equip them with the ability to analyze complex situations and effectively utilize available resources to solve eminent problems. Finally, the study concludes that there is a strong predictive power that the dimensions of managerial competence contribute towards enhancing financial performance of PDLG.