Analysing financial management of ULSA basis for efficient resource allocation

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 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 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: 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 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 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 services provision Investment in program The interest of program Professional development and quality of the faculty and Suitability of program with student Faculty and managerial staff satisfaction Student career development Developme nt career Investment in labour administrative procedure Providing information Is equipment and house sufficient? Efficient resources allocation Is equipment and house suitable? Investment in educational equipment and infrastructure Solving comments and queries Is equipment and house modern? 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= N + Ne = 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 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 point Likert’s Scale: Scale Range Choice Description – 0 Strongly Agree 4 – Agree – 3 Fairly Agree – Disagree 1 0 – Strongly 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 Valid Frequency Percent Valid Percent Cumulative Percent 77 34.8 34.8 34.8 144 65.2 65.2 100 221 100 100 Frequency Percent Valid Percent Cumulative Percent 20-30 49 22.2 22.2 22.2 30-40 69 31.2 31.2 53.4 103 46.6 46.6 100 221 100 100 Male Female Total Ages Valid over 40 Total Education level Valid High school diploma Frequency Percent Valid Percent Cumulative Percent 1.4 1.4 1.4 Associate degree 19 8.6 8.6 10 Bachelor degree 91 41.2 41.2 51.1 98 44.3 44.3 95.5 10 4.5 4.5 100 221 100 100 Master degree an upper Other Total Per average income Valid Frequency Percent Valid Percent Cumulative Percent under 50 22.6 22.6 22.6 5-under 59 26.7 26.7 49.3 7-under 10 85 38.5 38.5 87.8 over 10 27 12.2 12.2 100 Total 221 100 100 How long have you teach in university Valid Percent Frequency Percent Valid Under year Cumulative Percent 29 13.1 13.1 13.1 6-Mar 33 14.9 14.9 28.1 8-Jun 21 9.5 9.5 37.6 138 62.4 62.4 100 221 100 100 Frequency Percent Valid Percent 157 71 71 71 64 29 29 100 221 100 100 over Total Oposition Valid lecturer manager Total Cumulative Percent 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 Verbal description Strongly Agree Agree q1tb – Salary Frequency Fairly Agree Disagree Strongly Disagree Total Valid Percent 0 17 7.8 149 68.4 47 21.5 2.3 218 100 q2tb – professional development and teaching quality Verbal description Strongly Agree Agree Fairly Agree Disagree Frequency Valid Percent 0 27 12.3 169 76.4 25 11.3 Strongly Disagree Total 0 221 100 q3tb – development career Verbal description Frequency Valid Percent Strongly Agree 0 Agree 28 13 Fairly Agree Disagree Strongly Disagree 162 75.4 25 11.6 0 Total 215 100 q4tb – Effect of resource for equipment and infrastructure Verbal description Frequency Valid Percent Strongly Agree 0 Agree 2.3 Fairly Agree Disagree 125 57.1 79 36 Strongly Disagree 10 4.6 Total 219 100 q5tb – Effect of resource for investing program Verbal description Strongly Agree Frequency Agree Fairly Agree Disagree Strongly Disagree Total Valid Percent 0 45 20.4 134 60.6 41 18.5 0.5 221 100 q6tb – Effect of resource for investing in providing services Verbal description Strongly Agree Agree Fairly Agree Disagree Strongly Disagree Total Frequency Valid Percent 0 17 7.7 131 59.2 46 20.9 27 12.2 221 100 Almost answers are in the normal range to less than agree The range of to less than 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 to less than 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 description Frequency Valid Percent Strongly Agree 0.9 111 50.6 83 37.9 23 10.6 0 219 100 Agree Fairly Agree Disagree Strongly Disagree Total 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 + 0.292x2 + 0.287x3 + 0.19x5 + 0.121x6 + 0.192x1 + 0.133x4 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 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 + 0.192x1+ 0.292x2 + 0.287x3 + 0.133x4+ 0.19x5 + 0.121x6 This showed that the relationship between these factors, so financial management of ULSA in terms of resources allocation currently require to be renewed, the resource allocation in order of priority: labor course programs equipment and infrastructure service provision On this basis, ULSA can allocate appropriate financial resources to achieve the best performance as follow: Table 5.1 The optimal rate of items in resource allocation No Items rate of 2012 A B 1 Salary for faculty 42.60% professional development and teaching quality 7.70% Career development 2.10% equipment and infrastructure 10.00% Course program 12.10% service provision 25.50% Total 100.00% The The optimal relative rate by coefficient formula The suggested optimal rate 1.00 42.60% 4= 3* total(1) /total(3) 46.11% 1.52 1.49 11.70% 3.13% 12.67% 3.39% 0.69 0.99 0.63 6.90% 11.98% 16.07% 92.38% 7.47% 12.97% 17.39% 100.00% 3=1*2 From that, ULSA can plan appropriate financial allocations based on existing financial resources and its ability to mobilize and consistent with the actual situation of ULSA, have appropriate strategy to improve the quality of training [...]... 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. .. 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. .. 0.133x4 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. .. 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... 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 + 0.192x1+ 0.292x2 + 0.287x3 + 0.133x4+ 0.19x5 + 0.121x6 This showed that the relationship between these factors, so financial management of ULSA in terms of. .. terms of resources allocation currently require to be renewed, the resource allocation in order of priority: 1 labor 2 course programs 3 equipment and infrastructure 4 service provision On this basis, ULSA can allocate appropriate financial resources to achieve the best performance as follow: Table 5.1 The optimal rate of items in resource allocation No Items rate of 2012 A B 1 1 2 3 4 5 6 Salary for faculty... 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,... 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... ALLOCATION FOR ULSA q7tb – Evaluating generally financial management and resources allocation Verbal description Frequency Valid Percent Strongly Agree 2 0.9 111 50.6 83 37.9 23 10.6 0 0 219 100 Agree Fairly Agree Disagree Strongly Disagree Total Overall, through the evaluation table of evaluating generally financial management and resources allocation, preliminary assessment is that the financial management. .. Total Cumulative Percent 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 Verbal description Strongly Agree Agree q1tb – Salary Frequency Fairly Agree Disagree Strongly Disagree Total Valid Percent 0 0 17 7.8 149 68.4 47 21.5 5 2.3 218 100 q2tb – professional development and