The Influence of Perceived Human Resource Risk Factors on Financial Problems Faced by Overberg District Municipalities

  • Juan Pierre Bruwer Cape Peninsula University of Technology Graduate Centre for management, South Africa
  • Jean-Pierre Rossouw Cape Peninsula University of Technology Graduate Centre for management, South Africa
Keywords: Human resource risk factors; Financial Problems; Overberg District; Municipalities; South Africa.

Abstract

Abstract: Municipalities are at the forefront of South Africa’s developmental agenda. To assist in the foregoing, the municipalities perform the primary task of service delivery - mandated by the Constitution of South Africa. The efficiency of the municipal service delivery function is depended on municipal funds, as derived from various sources. Apart from these funds, municipalities also receive funding through National and Provincial grant allocations, in addition. Notwithstanding the aforementioned most South African municipalities are experiencing financial problems which may adversely affect their relevant service delivery tasks. A possible contributor to the financial problems of South African municipalities is that of human resources (HR) risk factors. For this study, the emphasis was placed on testing whether perceived HR risk factors had any influence on the financial problems experienced in Overberg District Municipalities. Empirical research was conducted through the means of collecting quantitative primary data from 106 respondents, all of whom had to adhere to relevant delineation criteria. Stemming from the results, it was found that perceived HR risk factors did not have any statistically significant influence on the financial problems experienced in Overberg District Municipalities.

Downloads

Download data is not yet available.

References

Amo, T. (2018). The Negative Effects of a Lack of Training in the Workplace.
Auditor General. (2018). 2016/2017 MFMA Consolidated General Report on the Local Government Audit
Outcomes.
3 In order for a factor to be recognized as a legitimate factor, items should have a Cronbach Alpha of at least
0.700 and a KMO value of at least 0.600.
Bruwer, J. P., Masama, B., Mgidi, A., Myezo, M., Nqayi, P., Nzuza, N., Phangwa, M., Sibanyoni, S. & Va, N. (2013).
The need for a customized risk management framework for small enterprises. Southern African
Accounting Association: Conference Proceedings.
Bruwer, J., Siwangaza, L. & Smit, Y. (2018). Loss Control and Loss Control Strategies in SMMEs Operating in a
Developing Country: A Literature Review. Expert Journal of Business and Management, 6(1), 1-11.
COSO. (2004). Enterprise risk management – integrated framework, Executive summary.
Drake international. (2018). Poor employee relations.
Indexmundi. (2018). South Africa.
Johnson, J. B. & Reynolds, H. T. (2011). Political Science Research Methods 7th edition. SAGE Publications,
London.
Kitchen, H. (2002). Canadian municipalities: Fiscal trends and sustainability. Canadian Tax Journal / Revue
Fiscale Canadienne, 50(1), 156–80.
Local Government Action. (2018). South Africa.
Menze, M. (2006). The impact of stress on productivity of employees at the education training and
development practices: Sector education and training authority. Unpublished Manuscript
(Dissertation), University of Pretoria: Pretoria.
ODM. (2016). 2014/2015 Draft annual report. Published on 26 January 2016.
National Treasury. (2018). Media Statement: Local government revenue and expenditure: Fourth Quarter
Local Government Section 71 Report. Published on 23 August 2018.
Randenberg, D. (2017). The Effects of a Failed Recruitment & Selection System.
Smit, Y. (2012). A structured approach to risk management for South African SMEs. Unpublished Manuscript
(Thesis), Cape Peninsula University of Technology: Cape Town.
South Africa. (1996). The Constitution of the Republic of South Africa. Pretoria: Government Printer.
South Africa. (2003). Municipal Finance Management Act, Act No. 56 of 2003. Government Gazette, Pretoria:
Government Printer.
South Africa. (1998). The Municipal Structures Act, Act No. 117 of 1998. Pretoria: Government Printer.
South Africa. (2016). Local government.
Swellendam Municipality. (2015). Revised risk management policy.
Tchankova, L. (2002). Risk identification – basic stage in risk management. Environmental Management and
Health, 13(3), 290-297.
Van Vuuren, L. (2014). Ethics Risk Handbook. 5th ed. Pretoria: The Ethics Institute.
Vesterinen, A. (2018). Occupational Safety: Why is it so important?
Western Cape Provincial Government. (2006). Micro-economic Development Strategy Synthesis Report.
Published
2019-03-10
How to Cite
Bruwer, J. P., & Rossouw, J.-P. (2019). The Influence of Perceived Human Resource Risk Factors on Financial Problems Faced by Overberg District Municipalities. Journal of Economics and Behavioral Studies, 11(1(J), 48-54. https://doi.org/10.22610/jebs.v11i1(J).2747
Section
Research Paper