Analysing financial management of ULSA basis for efficient resource allocation

Thus, "Financial Management at the University of Labor - Social: basis for allocation resources" were chosen as the thesis.. To propose a basis for resources allocation for ULSA From th

SUMMATION DISSERTATION BY DO THI THANH HOA

PREFACE

In this summary dissertation, all figures and tables are numbered as in dissertation Financial management in public universities and university general labor - in particular society is always a hot issue that is needed attention, but in fact there is a few research on this issue Financial mechanism of the university need to be renewed The allocation of financial resources for labor did not provide enough motivation for the development, salaries is average, so do not encourage the dynamism and creativity of teachers and administrators; allocation mechanism for the organization is irrational, uncontrollable quality on a large-scale investment from the state budget Attracting investment from social resources for higher education (including public schools) is also limited Thus, "Financial Management at the University of Labor - Social: basis for allocation resources" were chosen as the thesis

The structure of dissertation includes 6 chapters

CHAPTER I: INTRODUCTION

1.1 BACKGROUND OF STUDY

Education in our country over the next decade in the context of developing world are more rapid and complex changes Globalization and international integration in education has become an inevitable trend Fast-growing demand for education to meet the demands

of industrialization and modernization of the country, economic development in depth knowledge with advanced technologies and international integration, while the the resources to education is limited, will create pressure on educational development

From the unreasonable current status of resources allocation in ULSA:

- The quality of the teachers is inadequate, the salary of each teacher is not high, and method of payment of salary for each teacher on fix rank and seniority to lose the its leverage

- Training program is now not really completed, ULSA invested about 12% for program but basic teaching methods are still in the old lines, mostly by traditional methods Students are not interested in program Therefore, the school should innovate program and method to meet current needs

- The amount of investing equipment and facility of ULSA is small The procurement of equipment and facilities were not timely and did not meet the requirements

- Providing services of ULSA now account for a relatively large proportion of 25.5%, but the service is not really efficient Administrative procedures are cumbersome, providing information to students and parents is slow and inaccurate, service attitude is not good

ULSA need to allocate resources suitable to get high quality Thus, analyzing the financial management: basis for efficient resources allocation is very necessary

1.2 STATEMENT OF THE PROBLEM

In recent years, many principals have errors in financial management, leading to serious disunity, even corruption cases occur, adversely affecting the reputation of the school as well as the professional subject.(Thanh Binh, 2012)

This study focuses on financial management of ULSA, so that we can allocate suitably resources because ULSA today are still subsidized so it is not interested much in financial efficiency

The specific objectives of this dissertation are:

1 To determine the profile of the respondents in terms of the following

1.1 gender

1.2 age

1.3 highest educational attainment

1.4 monthly average income

1.5 position

2 To assess the effect of financial management in resources allocation in the

following areas:

2.1 labor

2.1.1 salary 2.1.2 professional development and teaching quality 2.1.3 career development

2.2 equipment and infrastructure

2.3 course program

2.4 service provision

3 To propose a basis for resources allocation for ULSA

From the reality of management systems in public universities in general and the university of Labor and Social Affairs in particular, the allocation of resources is important in the financial management of the university Appropriate resources allocation will help financial managers to achieve better efficiency and improve the quality of training, to be the basis for implementing of strategic objectives most effectively, to avoid waste and inefficient in the use of resources So this dissertation is necessary to contribute to strengthen financial management: the basis for efficient resources allocation

1.3 SIGNIFICANCE OF THE STUDY

In the future, before the training needs of the society increasing, financial management solution of ULSA will effectively improve the quality of training, investment efficiency and raise the responsibilities of the education and training facilities

to meet the demand of high quality human resources of the country, protect the legitimate interests of learners and require continual innovation knowledge to serve society

The beneficiaries of this dissertation research is firstly managers of ULSA, especially financial managers; managerial staff; faculty of ULSA; students of ULSA; the other public university and the budget allocation planner

So the research on financial management of ULSA is very meaningful in this context This will be the basic for allocating resources This study is expected to help improve the financial management of ULSA effectively

1.4 SCOPE AND LIMITATION OF THE STUDY

- Field of study: Effect of financial management: the basis for resource allocation

- Subject of study: University Labor – Social Affairs

- Space: 43, Tran Duy Hung Street, Ha Noi, Vietnam

- Industry: Education

CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES

2.1 REVIEW OF RELATED STUDIES

This section present of 19 literatures and studies related to the topic

2.2 THEORETICAL FRAMEWORK

The concepts of financial management and the impact of the allocation of resources have been currently scattered in several related documents, including the concept of Arthur M.Hauptman (2006) and the Balanced Scorecard model was developed by Robert Kaplan and David Norton

2.3 CONCEPTUAL FRAMEWORK

From the theories and concepts mentioned above, the thesis proposed main content of financial management: the basis for resource allocation as follows:

Figure 2.3 Research paradigm

financial management:

resources allocation

Investment in program

Investment

in labour

Investment in educational equipment and infrastructure

The

interest of

program

Suitability

of program with student

Faculty and managerial staff satisfaction

Professional

development and

quality of the

faculty and

Student career development

Is equipment and house

modern?

Developme

nt career

Investment

in services provision

administrative procedure Providing

information

Solving comments and queries

Is equipment and house

suitable?

Is equipment and house sufficient?

Efficient resources allocation

CHAPTER III: METHODOLOGY 3.1 RESEARCH DESIGN

This studies is University of Labour and Social Affairs I use the data from questionaire of teachers and managerial staff

3.2 DETERMINATION OF SAMPLE SIZE

I chose sample following Slovin fomular

n = 2

1 Ne

N

+ = 221

This is included:

- n (teacher) 71% = 71% x 221 = 157

- n (managerial staff) 29% = 29% x 221 = 64

3.3 SAMPLING DESIGN AND TECHNIQUES

For the sampling of teachers and managerial staff, I use method of Stratified random sampling (SRS) for the sample: arrange teachers by name and then pick out a sample in order alphabet To determine the gap k = N/n, then chose the first one in the list, then chose 1+k, 1+2k,…

3.4 SUBJECT OF THE STUDY

Study subjects are financial management of ULSA: base of allocation resources To assess financial management and allocation resources must collect original data Thus, for initial data must do sample survey for teachers are teaching and staff are working in ULSA Then I used SPSS 16.0 to process data

3.5 RESEACH INSTRUMENT

- Questionnaire: Used to evaluate the satisfaction level of teachers and managerial staff, assessment of training environment using 5 point Likert’s Scale:

Scale e Range e Choic Desc iption n

5

5 4.2 – 5.00 Stro gly Agree 4

3

3 2.6 – 3.39 Fairly Agree 2

1

1 1.0 – 1.79 Stro gly Disagree

3.6 VALIDATION OF THE INSTRUMENT

- For reliability, I methods T Test – retest method (reliability test)

- Spearman rank difference correlation coefficient may be used to determine reliability of the responses

3.7 STATISTICAL TREATMENT

In this research, I use some statistical method to analyze factors affecting financial management and allocation resources at ULSA Descriptive statistics, ANOVA test were used to analyze relationship between affecting factors with financial management Regression and correlation method were applied to analyze effect of factors

To measure and assess the analysis of the results, the thesis is conducted the reliability test of the collected information with alpha at 5% significance level

CHAPTER IV PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the results obtained from survey data and data collection following the objectives that the dissertation outlined

4.1 PROFILE OF THE RESPONDENT

Gender

Frequency Percent

Valid Percent

Cumulative Percent

Valid

Total

Ages

Frequency Percent

Valid Percent

Cumulative Percent

Valid

Total

Education level

Frequency Percent

Valid Percent

Cumulative Percent High

school diploma

Associate

Bachelor

Master degree

an upper

Valid

Total

Per average income

Frequency Percent

Valid Percent

Cumulative Percent

7-under

Valid

Total

How long have you teach in university

Frequency

Valid Percent

Cumulative Percent Under 3

Valid

Total

Oposition

Frequency Percent

Valid Percent

Cumulative Percent

Valid

Total

The profile of respondents met the survey requirements and are in accordance with the real situation in ULSA

4.2 ASSESS THE EFFECT OF FINANCIAL MANAGEMENT IN RESOURCE ALLOCATION

q1tb – Salary

Ve bal desc iption Frequency Valid Percent

q2tb – professional development and teaching quality

Fairly Agre

Stro gly Disa re

q3tb – development career

Verbal descripto Frequency Valid Percent

q4tb – Effect of resource for equipment and

infrastructure

Verbal descripto Frequency Valid Percent

q5tb – Effect of resource for investing program

Agre

Fairly Agre

q6tb – Effect of resource for investing in providing

services

Agre

Fairly Agre

Almost answers are in the normal range to less than agree The range of 3 to less than 4 is nearly from 60% to 80%

- For the questions: q4tb - Effect of resource for equipment and infrastructure and q6tb - Effect of resource for investing in providing services

Almost answers are in the disagree range to less than normal The range of 2 to less than 3 is nearly from 50% to 80%

- Preliminary assessment is that the financial management and allocation of resources of ULSA are assessed at medium level

4.3 EVALUATING FINANCIAL MANAGEMENT IN TERMS OF RESOURCES ALLOCATION AND PROPOSE A BASIS FOR RESOURCES ALLOCATION FOR ULSA

q7tb – Evaluating generally financial management and

resources allocation

Verbal descripto Frequency Valid Percent

Stro gly Agre

Agre

Fairly Agre

Disagre

Stro gly Disagre

Overall, through the evaluation table of evaluating generally financial management and resources allocation, preliminary assessment is that the financial

management and allocation of resources of ULSA are assessed at fairly agree level two major factors negatively affect the financial management of the school, these are lack of financial resources and unsuitable allocation of the resources

After processing the data by SPSS 16.0 software, the results of the regression model

is expressed as follows:

Y = -0.240 + 0.292x 2 + 0.287x 3 + 0.19x 5 + 0.121x 6 + 0.192x 1 + 0.133x 4

Y Financial management: resources allocation (qtb7)

X1 Salary (q1tb)

X2 professional development and quality (q2tb)

X3 development career (q3tb)

X4 effect of resource for equipment and infrastructure (q4tb)

X5 effect of resource for investing program (q5tb)

X6 effect of resource for investing in providing services (q6tb)

Thus, the factor most strongly affecting the financial management and the allocation of resources is the factor of professional development and teaching quality (a1

= 0.292) The least influential factor on the Y (financial management and the allocation

of resources) is effect of resource for investing in providing services This shows that the investment in labor resources (including satisfaction, professional development and teaching quality, development career) have the most impact

4.4.HYPOTHESIS TESTING

I use the gamma’s test of Goodman and Kruskal and the Tau-b of Kendall to test hypotheses that were presented in chapter one The gamma’s value is received range from -1 to 1 The hypothesis is accepted when the alpha level of significance is less than 0.05

Statistical result showed that the Pearson Correlation value is from 0,5 to 0.8 So, there are relationships between the financial management and the factors The significance level is less 0.05 (Sig = 0.000) to reflect meaningful relationships Thus, all hypotheses are accepted

CHAPTER V: CONCLUSIONS AND RECOMMENDATIONS

5.1 SUMMARY

The dissertation with the aim proposing a suitable way of financial resources allocation, analysis of the factors affecting the allocation of resources in financial management and give a better model of resource allocation for ULSA The dissertation uses the research method through questionnaire survey, descriptive statistical analysis, analysis of regression models to derive the impact of the factors, thereby making appropriate recommendations for financial resources allocation at ULSA

5.2 CONCLUSION

In conclusion, the results of this study on the University of Labor – Social Affairs showed that financial management of ULSA currently require to be renewed, the resource allocation in order of priority: resources for labor should be a top priority, followed by investment in development programs, then followed by equipment and infrastructure, and ultimately to provide services On this basis, ULSA can plan appropriate financial allocations based on existing financial resources and its ability to mobilize

5.3 SOLUTION TO ASSESS AND IMPROVE FINANCIAL MANAGEMENT: ALLOCATION RESOURCES AT ULSA

From the regression model:

Y = -0.240 + 0.192x 1 + 0.292x 2 + 0.287x 3 + 0.133x 4 + 0.19x 5 + 0.121x 6