Budgetary Control, Managerial Competencies and Performance of Higher Local Governments in Eastern Uganda

  • Gershom Atukunda Bishop Stuart University
  • Johnson Atwiine Bishop Stuart University
  • Benjamin Musiita Bishop Stuart University
  • Aquilionus Atwine Bishop Stuart University
  • Emmanuel Koruragire Lyantode District Local Government
Keywords: Budgetary control, Managerial competencies, Performance of higher local governments, eastern Uganda

Abstract

The study aimed to explore the correlation between budgetary control, managerial competencies, and the performance of higher local governments in Uganda's Eastern region. Through a cross-sectional research design, 30 higher local governments out of a population of 32 were analyzed against predictor variables. Validity and reliability tests were conducted on research instruments to ensure data quality. Findings revealed a positive and significant relationship between budgetary control and performance, as well as between managerial competencies and performance. Moreover, there was a statistically significant relationship between both budgetary control and managerial competencies on performance. Regression analysis showed that 55.9% of performance variation was explained by these factors, leaving 44.1% to other factors not considered. Recommendations include strengthening financial management processes and investing in training programs to enhance managerial skills, ultimately improving local government performance.

Downloads

Download data is not yet available.

References

Abdul, K., Chairil, F. A., & Tenripada, T. (2023). The Effect of Budget, Audit and Government Performance: Empirical Evidence From Indonesian Regional Governments. ????????? ???????, 19(1), 289-298.
Ahmed, F., & Raza, S. (2019). The impact of managerial competence on organizational performance: The mediating role of trust in the context of non-profit organizations. Journal of Organizational Change Management, 32(5), 527-545.
Ahrens, T., Ferry, L., & Khalifa, R. (2020). Governmentality and counter-conduct: A field study of accounting amidst concurrent and competing rationales and programs. Management Accounting Research, 48, 100686.
Aituru, Y. P. (2022). Juridical Analysis Of Regional Income And Expenditure Budget Management And Legislation Functions Of Regional People's Representative Boards In Keerom District. Journal of Positive School Psychology, 7496-7513.
Akotia, J., Awuzie, B. O., & Egbu, C. O. (Eds.). (2023). Mixed Methods Research Design for the Built Environment. Routledge.
Amankwah-Amoah, J., Mensah, Y., & Debrah, Y. A. (2019). Budgetary control and service delivery performance in local governments in Ghana. Local Government Studies, 45(1), 122-142.
Ansell, C., & Gash, A. (2008). Collaborative governance in theory and practice. Journal of Public Administration Research and Theory, 18(4), 543-571.
Asongu, S. A., & Nwachukwu, J. C. (2016). Budgetary control and corruption in African local governments. International Journal of Public Administration, 39(13-14), 1086-1098.
Asukile, F., & Mbogo, C. J. (2022). Influence of budgetary practices on-budget performance of local government authorities in Tanzania. Journal of Finance and Accounting, 10(2), 112-120.
Bäck, H., Heinelt, H., Magnier, A., & Smith, G. (2019). Models of local governance: Public administration and civil society in multi-level governance. Public Management Review, 21(8), 1137-1164.
Bandauko, E., & Nutifafa Arku, R. (2023). A critical analysis of ‘smart cities’ as an urban development strategy in Africa. International Planning Studies, 28(1), 69-86.
Bardhan, P., & Mookherjee, D. (2006). Decentralization, corruption, and government accountability: An overview. In T. Besley & R. Kanbur (Eds.), Governance, decentralization, and reform in China, India and Russia (pp. 45-82). Cambridge University Press.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Bednarska-Olejniczak, D., Olejniczak, J., & Svobodová, L. (2019). Towards a smart and sustainable city with the involvement of public participation—The case of Wroclaw. Sustainability, 11(2), 332.
Berman, E. M., & Wang, X. H. (2000). Budgetary control and organizational performance in local governments. Journal of Public Administration Research and Theory, 10(2), 289-319.
Boyatzis, R. E. (2018). Competencies in the 21st century. Oxford University Press.
Brewer, G. A., & Walker, R. M. (2011). The impact of managerial competence on strategic planning in local government. Public Administration Quarterly, 35(2), 210-235.
Brockhaus, R. H. (1980). The risk-taking propensity of entrepreneurs. Academy of Management Journal, 23(3), 509-520.
Brown, T. L., & Potoski, M. (2019). Competency, collaboration, and coordination in crises: Lessons from natural gas explosions. Administration & Society, 51(5), 867-894.
Brynskov, M., Raitisoja, G., Campolargo, M., Kerschot, H., Bianchi, I., Fagiani, F., ... & Fachada, J. C. (2022). DIGISER. Digital Innovation in Governance and Public Service Provision.
Bukh, P. N., & Svanholt, A. K. (2020). Empowering middle managers in social services using management control systems. Journal of Public Budgeting, Accounting & Financial Management, 32(2), 267-289.
Bukhari, S. K. U. S., Gul, R., Bashir, T., Zakir, S., & Javed, T. (2021). Exploring managerial skills of Pakistan Public Universities (PPUs)’middle managers for campus sustainability. Journal of Sustainable Finance & Investment, 1-19.
Bulkeley, H., Andonova, L. B., Betsill, M. M., Compagnon, D., Hale, T., Hoffmann, M. J., ... & VanDeveer, S. D. (2014). Transnational climate change governance. Cambridge University Press.
Buller, P. F., & McEvoy, G. M. (2012). Strategy, human resource management and performance: Sharpening line of sight. Human Resource Management Review, 22(1), 43-56.
Chenhall, R. H., & Morris, D. (1995). The impact of structure, environment, and interdependence on the perceived usefulness of management accounting systems. The Accounting Review, 70(2), 202-221.
Chong, V. K., Eggleton, I. R., & Sohal, A. S. (2007). The effect of participation in budgeting and job?related tension on managerial performance and job satisfaction. The British Accounting Review, 39(1), 71-87.
Cinquini, L., Collini, P., Marelli, A., & Tenucci, A. (2014). Performance measurement and management control systems: A literature review and a research agenda. Measuring Business Excellence, 18(1), 4-18.
Collins, J. C., & Clark, K. D. (2003). Strategic management of professional service firms: Theory and practice. Long Range Planning, 36(3), 349-366.
Cornwall, A., & Gaventa, J. (2001). From users and choosers to makers and shapers: Repositioning participation in social policy. IDS Bulletin, 32(4), 50-62.
Deng, H., & Zhang, Q. (2018). Budgetary control and accountability in Chinese local governments. Public Management Review, 20(10), 1510-1531.
Ditillo, A., & Liguori, M. (2012). The relevance of performance measures in public organizations: Evidence from the Italian experience. Public Administration, 90(3), 718-737.
Duraku, Z. H., Maloku, K., & Krasniqi, B. A. (2020). Budgetary control and performance-based budgeting in local governments in Kosovo. Public Money & Management, 40(5), 373-382.
Ekemam, H. I., & Njoku, B. N. (2021). The impact of monetization policy on the cost of governance and productivity in public service: a study of the federal ministry of science and technology, Owerri, Imo state (2015-2019). African journal of social and behavioral sciences, 11(1).
Emerson, K., Nabatchi, T., & Balogh, S. (2012). An integrative framework for collaborative governance. Journal of Public Administration Research and Theory, 22(1), 1-29.
Fulmer, R. M., Stumpf, S. A., & Miller, M. J. (2020). Competence at work: Models for superior performance. Oxford University Press.
Gamayuni, R. R., Dharma, F., & Cinintya, C. (2023). The Effect of Good Government Governance and Discretionary Accrual on the Level of Corruption in Indonesia's Local Government. Review of Integrative Business and Economics Research, 12(4), 184-198.
Gaventa, J., & Barrett, G. (2012). So what difference does it make? Mapping the outcomes of citizen engagement. IDS Working Paper, 2012(405), 1-76.
Gioia, D. A., & Sims, H. P. (1985). Ethics, morale, and burnout among human service professionals: A social psychological perspective. Journal of Social Issues, 41(4), 111-126.
Goldsmith, S., & Eggers, W. D. (2004). Governing by network: The new shape of the public sector. Brookings Institution Press.
Grimmelikhuijsen, S., Unger, M., & van den Bos, J. (2019). Training the next generation of leaders: The role of professional development in managerial competence. Public Administration, 97(2), 419-436.
Guo, C., & Feng, Y. (2019). Budgetary control and performance evaluation in Chinese local governments. International Journal of Public Sector Management, 32(1), 102-116.
Hammerschmid, G., Van de Walle, S., & Andrews, R. (2016). Public administration reforms in Europe: The view from the top. Public Administration, 94(1), 1-14.
Hansen, S. C., Otley, D. T., & Van der Stede, W. A. (2018). Management control: Theories, issues, and practices (4th ed.). Cengage Learning EMEA.
Hartmann, F. G., & Langfield-Smith, K. (2020). Budgetary control and risk management in local governments. International Journal of Public Administration, 43(10), 841-854.
Hartmann, F., & Mastrangelo, A. (2019). Leadership competencies and performance in local public organizations: A multilevel analysis. Public Administration Review, 79(5), 647-659.
Hayati, N. R. (2021). Strategic Human Resources Management And Organizational Performance: A Literature Review. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(9), 82-86.
Hood, C. (1995). The ‘new public management’ in the 1980s: Variations on a theme. Accounting, Organizations and Society, 20(2-3), 93-109.
Hope, J., & Fraser, R. (2003). Beyond budgeting: How managers can break free from the annual performance trap. Harvard Business Press.
Hoque, Z., & Alam, M. (2014). Budgetary control and resource allocation efficiency in local governments in Bangladesh. Journal of Accounting & Organizational Change, 10(2), 162-184.
Horngren, C. T., Sundem, G. L., Schatzberg, J., Burgstahler, D., & Schatzberg, J. (2017). Introduction to management accounting (16th ed.). Pearson.
Hult, G. T. M., Snow, C. C., & Kandemir, D. (2016). Competence perspectives on new business creation: Conceptualization, assessment, and implications. Journal of Business Venturing, 31(1), 1-12.
Jensen, M. C. (2001). Corporate budgeting is broken—Let's fix it. Harvard Business Review, 79(10), 94-101.
Jiang, J., Zhang, Y., & Zhang, J. (2019). Budgetary control and financial sustainability in Chinese local governments. International Review of Public Administration, 24(2), 103-121.
Jones, G. R., & Butler, J. E. (1992). Managing internal corporate entrepreneurship: An agency theory perspective. Journal of Management, 18(4), 733-749.
Jones, M. L., & Butler, J. E. (1992). The impact of managerial competence on small bank performance. Journal of Small Business Management, 30(4), 48-56.
Joy, N. (2022). Rural Area Field Attachment (Doctoral Dissertation, Makerere University).
Judge, T. A., Colbert, A. E., & Ilies, R. (2020). Intelligence and leadership: A quantitative review and test of theoretical propositions. Journal of Applied Psychology, 105(4), 379-412.
Kamwaka Basoona, N. (2021). An evaluation of rural road management as a driver of economic development: A case study of Kabarole district (Doctoral dissertation, Kyambogo University).
Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard: Translating strategy into action. Harvard Business Press.
Kharrazi, A., Rovenskaya, E., & Fath, B. D. (2019). The role of managerial competence in achieving sustainable urban futures. Sustainability, 11(3), 837.
Kickert, W. J., Klijn, E. H., & Koppenjan, J. F. (Eds.). (1997). Managing complex networks: Strategies for the public sector. SAGE Publications.
Kim, S., & Choi, C. (2017). Effects of New Public Management practices on public employees' motivation and performance in South Korea. Public Performance & Management Review, 40(4), 737-758.
Kim, S., & Choi, J. N. (2011). Top management leadership and innovation performance: A panel data analysis. Leadership Quarterly, 22(2), 212-226.
Kim, Y., & Lee, K. (2015). Impact of public managers' competencies on employees' job satisfaction and organizational performance: Evidence from local governments. Public Performance & Management Review, 38(1), 135-163.
Kunicova, J., & Rose-Ackerman, S. (2005). Electoral rules and constitutional structures as constraints on corruption. British Journal of Political Science, 35(4), 573-606.
Lado, A. A., & Wilson, M. C. (1994). Human resource systems and sustained competitive advantage: A competency-based perspective. Academy of Management Review, 19(4), 699-727.
Lægreid, P., & Rykkja, L. H. (2023). Strategic public management in crises. In Handbook on strategic public management (pp. 114-132). Edward Elgar Publishing.
Lægreid, P., Verhoest, K., & Christensen, T. (2019). Explaining public sector reform: An agenda for the next generation. Public Administration, 97(3), 549-564.
Larson, T. (2020). Factors that Influence Adoption of Mobile Payment Systems: A Correlational Study (Doctoral dissertation, Capella University).
Li, X., Zhu, Q., & Shen, Y. (2016). Budgetary control and interdepartmental coordination in Chinese local governments. Public Performance & Management Review, 39(1), 80-103.
Libby, T., & Lindsay, R. M. (2010). Beyond budgeting or budgeting reconsidered? A survey of North American budgeting practice. Management Accounting Research, 21(1), 56-75.
Liu, S., Liao, X., Zhou, Y., & Ma, Y. (2020). The influence of public manager competence on public crisis management performance. Public Performance & Management Review, 43(2), 321-351.
Local government assessment report of Uganda (2020).
Local government assessment report of Uganda (2021).
Local government assessment report of Uganda (2022).
Luna-Arocas, R., & Lara, F. J. (2020). Talent management, affective organizational commitment and service performance in local government. International Journal of Environmental Research and Public Health, 17(13), 4827.
Manor, J. (1999). The political economy of democratic decentralization. The World Bank.
Marsuni, N. S., Rasulong, I., & Adzim, F. (2022). Factors Affecting the Implementation of Good Government Governance (GGG) and Its Implications for Performance Accountability. Jurnal Ekonomi Balance, 18(1), 29-36.
Masuku, M. M., & Jili, N. N. (2019). Public service delivery in South Africa: The political influence at local government level. Journal of Public Affairs, 19(4), e1935.
Masuku, M. M., & Jili, N. N. (2019). Public service delivery in South Africa: The political influence at local government level. Journal of Public Affairs, 19(4), e1935.
McClelland, D. C., Spencer, L. M., & Spencer, S. M. (1987). Competency assessment methods: History and state of the art. In Competency-based assessments (pp. 15-34). Springer.
Meijer, A. J., & Curtin, D. (2019). Government performance and managerial competence: How could we know it when we see it? Public Administration Review, 79(3), 334-343.
Méndez, F., & Sepúlveda, F. (2015). Corruption and local governance: The impact of electoral accountability. Journal of Development Economics, 114, 128-139.
Merchant, K. A., & Van der Stede, W. A. (2003). Management control systems: Performance measurement, evaluation and incentives. Prentice Hall.
Merchant, K. A., & Van der Stede, W. A. (2017). Management control systems: Performance measurement, evaluation and incentives (4th ed.). Pearson.
Mintzberg, H. (2017). Managing. Berrett-Koehler Publishers.
Muguti, E. (2020). Determinants of the Quality of Public Financial Management (PFM) on Budget and Budgetary Control in Zimbabwean Fiscally Decentralised Local Governments (Doctoral dissertation).
Mujennah, M., Artinah, B., & Safriansyah, S. (2019). Performance-based budgeting as surveillance for the accountability of local governments. Asia Proceedings of Social Sciences, 4(3), 125-128.
Mumford, M. D., Zaccaro, S. J., Harding, F. D., Jacobs, T. O., & Fleishman, E. A. (2000). Leadership skills for a changing world: Solving complex social problems. The Leadership Quarterly, 11(1), 11-35.
National synthesis report (2023). Local government management of service delivery performance assessment.
Ngunjiri, F. W., Ashly, M., & Johnson, J. (2006). The management of a diverse workforce in the public sector: Strategies and skills for human resource practitioners. Public Personnel Management, 35(3), 217-232.
Ngunjiri, F. W., Powers, P. D., & McDaniel, M. A. (2006). The influence of management's perceptions of gender on the evaluation of managers. Journal of Business Ethics, 64(2), 139-149.
O’Loughlin, C. T., & Wilson, P. W. (2021). Benchmarking the performance of US Municipalities. Empirical economics, 60, 2665-2700.
Obisanya, A. R., & Hassan, I. K. (2022). Improving local government performance through financial autonomy and accountability at Nigerian state. Journal of Public Administration, Finance and Law, 23, 222-235.
Ogwang, O. G., Obici, G., & Mwesigwa, D. (2023). Achieving a pro-poor local government budget process in Dokolo Kalinzi, C., Mpeera Ntayi, J., Kabagambe, L. B., Muhwezi, M., & Munene, J. K. (2022). Exploring the quantification and measurement of public procurement performance expectations gap in community roadworks in Uganda: evidence from the comprehensive survey. Journal of Public Procurement, 22(2), 180-203.district, Uganda: The role of civil society organizations.
Olivas-Luján, M. R., Sánchez-Pérez, I., & Ramírez-López, I. (2017). The impact of managerial competence on the ethical behavior of public employees: Evidence from Mexico. Public Integrity, 19(3), 255-270.
Ongâ, G. O., & Abbey, K. (2019). Internal control and quality service delivery in a public health sector: A case study of a Local Government in Uganda. African Journal of Business Management, 13(16), 557-563.
Onibokun, A. G. (2019). Urban growth and urban management in Nigeria. In African Cities in Crisis (pp. 68-111). Routledge.
Onofrei, M., Bostan, I., Cigu, E., & Vatamanu, A. F. (2023). Ensuring Budgetary Resources at the Level of Local Communities in the Current Social-Economic Context: Evidence for Romanian Municipalities. Economies, 11(1), 22.
Otley, D. T. (1999). Performance management: A framework for management control systems research. Management Accounting Research, 10(4), 363-382.
O'Toole Jr., L. J., Christensen, R. K., & Laegreid, P. (2008). Interorganizational network effects local government performance. Public Administration Review, 68(1), 44-57.
Pasaribu, F., Bulan, T. R. N., Muzakir, M., & Pratama, K. (2021). Impact Of Strategic Leadership and Organizational Innovation on Strategic Management: Mediational Role of Its Capability. Polish Journal of Management Studies, 24(2), 354-369.
Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2019). Managing and using information systems: A strategic approach. John Wiley & Sons.
Pierre, J., & Peters, B. G. (2000). Governance, politics and the state. Macmillan International Higher Education.
Pollitt, C., & Bouckaert, G. (2017). Public management reform: A comparative analysis (4th ed.). Oxford University Press.
Pollitt, C., & Bouckaert, G. (2017). Public management reform: A comparative analysis—New public management, governance, and the neo-Weberian state. Oxford University Press.
Pratolo, S., Sofyani, H., & Anwar, M. (2020). Performance-based budgeting implementation in higher education institutions: Determinants and impact on quality. Cogent Business & Management, 7(1), 1786315.
Sanchez, R., Heene, A., & Thomas, H. (2011). Competence-based strategic management. John Wiley & Sons.
Shegafi, B., & Lee, G. (2023). Forging a new job design: a mixed method study exploring cardiac surgical assistants' perspectives in the Kingdom of Saudi Arabia (Doctoral dissertation, King's College London).
Smith, A. B., & Gibson, C. J. (1995). Budgetary control and financial performance in local governments. Public Finance Review, 23(2), 214-233.
Song, C., & Kawai, R. (2023). Adaptive stratified sampling for structural reliability analysis. Structural Safety, 101, 102292.
Spencer, L. M., & Spencer, S. M. (1993). Competence at work: Models for superior performance. John Wiley & Sons.
Spender, J. C. (1996). Making knowledge the basis of a dynamic theory of the firm. Strategic Management Journal, 17(S2), 45-62.
Stoker, G. (2006). Public value management: A new narrative for networked governance? American Review of Public Administration, 36(1), 41-57.
Taneo, S. Y. M., Noya, S., Melany, M., & SETIYATI, E. A. (2022). The role of Local Government in improving resilience and performance of small and Medium-Sized Enterprises in Indonesia. The Journal of Asian Finance, Economics and Business, 9(3), 245-256.
Tang, P., Feng, Y., Li, M., & Zhang, Y. (2021). Can the performance evaluation change from the central government suppress illegal land use in local governments? A new interpretation of Chinese decentralization. Land Use Policy, 108, 105578.
Thornton, G. C., & Byham, W. C. (1982). Assessment centers and managerial performance. Academic Press.
Treviño, L. K., Hartman, L. P., & Brown, M. (2014). Moral person and moral manager: How executives
Tsindeliani, I., Gorbunova, O., Vershilo, T., Kikavets, V., Palozyan, O., Pisenko, K., & Matyanova, E. (2019). Influence of the budgetary law on state management in the conditions of the development of the digital economy. Informatologia, 52(1-2), 17-27.
UNDESA. (2007). United Nations public administration network. United Nations Department of Economic and Social Affairs.
United Cities and Local Governments. (2016). Inclusive local governance: A global agenda for equality. UCLG Policy Paper.
Van Dooren, C., Janmaat, O., Snoek, J., & Schrijnen, M. (2019). Measuring food waste in Dutch households: A synthesis of three studies. Waste management, 94, 153-164.
Van Wart, M., Wise, L. R., & Neumann, O. (2020). Competency in government: A systemic view of the capacities of modern governance. Georgetown University Press.
Vargas Merino, J. A., & Zavaleta Chávez, W. E. (2020). The management of the budget for results and the quality of expenditure in local governments.
Verhoest, K., Peters, B. G., Bouckaert, G., & Laegreid, P. (2015). The coordination of public sector organizations: Shifting patterns of public management. Palgrave Macmillan.
Walker, R. M., & Brewer, G. A. (2009). Managerial competence and performance measurement system design: Evidence from local government. Public Administration Review, 69(6), 1097-1108.
Warren, M. E. (2009). Democratic theory and practice. Cambridge University Press.
Wu, C., Zhu, M., Tan, Q., Kartha, Y., & Lu, L. (2023). A comprehensive study of non-adaptive and residual-based adaptive sampling for physics-informed neural networks. Computer Methods in Applied Mechanics and Engineering, 403, 115671.
Yin, J. Z., Zhang, L. Y., & Tan, H. (2013). Budgetary control and strategic decision-making in Chinese local governments. Financial Accountability & Management, 29(3), 249-267.
Zhang, Y., Ren, L., Zuo, J., & Xiao, X. (2018). Does top management team competency matter? The role of managerial competence in stakeholder engagement and performance of local government. Public Administration Review, 78(4), 558-570.
Published
2024-07-03
How to Cite
Atukunda, G., Atwiine, J., Musiita, B., Atwine, A., & Koruragire, E. (2024). Budgetary Control, Managerial Competencies and Performance of Higher Local Governments in Eastern Uganda. Journal of Economics and Behavioral Studies, 16(2(J), 56-69. https://doi.org/10.22610/jebs.v16i2(J).3836
Section
Research Paper