THE EFFECT OF HUMAN RESOURCE COMPETENCY ON FINANCIAL MANAGEMENT SYSTEM EFFECTIVENESS IN HEALTH ORIENTED CIVIL SOCIETY ORGANIZATIONS

Abstract

Purpose: The purpose of the study was to establish the extent to which human resource competency affects the financial management system effectiveness in health oriented civil society organizations.Methodology: The study was conducted through a cross sectional descriptive survey. The target population of the study was 1065 Nongovernmental organizations in Kenya. The accessible population refers to the 606 Nongovernmental organizations located in Nairobi County. A sample of 10% equivalent to 61 Nongovernmental organizations was selected from the Nongovernmental organizations located in Nairobi County. The respondents were financial managers in every selected Nongovernmental organization. Data was collected by use of a questionnaire and was analyzed by use of inferential and descriptive statistics. Descriptive statistics included frequencies and means. Inferential statistics included correlation, regression and ANOVA analysis. The tool for data analysis was the Statistical Package for Social Sciences (SPSS) version 20. The results were presented using tables and pie charts.Results: Study results show that the majority of respondents agreed with the statement that managers empower their employees at the lowest hierarchy who must be competent to achieve the organizational goals and objectives.Unique contribution to theory, practice and policy: The study recommends that human resource management must be fully functional in a company with continuous training of the staff to ensure up to date competences and increased knowledge in financial management.