Investigating corporate governance practices and their impact on organisational performance in non-governmental organisations: An empirical study of the Namibia Red Cross Society
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Date
2019
Authors
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Journal ISSN
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Publisher
University of Namibia
Abstract
The purpose of the study was to investigate corporate governance practices m non governmental organisations, a case study of the Namibia Red Cross Society. The study
assessed the role of the Governing Board in ensuring proper internal control systems,
assess the performance management tools used by the Board to enforce accountability and
transparency in reporting and internal management controls and assess the performance
indicators used to measure the effectiveness of the NRCS Governing Board. The main
objective ofthe study was to investigate corporate governance practices and their impact
on organisational performance. While the subsidiary objectives were to assess the role of
the Governing Board in ensuring proper internal control systems, evaluate the
performance management tools used by the Board in enforcing accountability and
transparency in management control systems and to investigate the performance indicators
used to measure the NRCS Board's effectiveness. The study followed the convergent
parallel research design with a mixed method. The population for the study comprised of
the Namibia Red Cross Society Governing Board members, senior management team and
employees at supervisory level making a population of 26 participants. The research used
structured questionnaires and interviews with non-structured questions during the
study (Turner, 201 0). Primary data was collected through the use of direct interviews with
individuals and focus group interviews and desk review was used to collect secondary
data. The study used the Statistical Package for Social Sciences (SPSS) to analyse the
data. The linear regression model was used to determine the relations between corporate
governance and organisational performance. Regression analysis is a statistical
technique that allows one to examine the relationship between two or more variables of
interest (Seber, G. A. F and Lee A.J., 2003). The study established that there is a link
between the principal and the Governing Board although it has no effect on an
organisation's performance. There is a significant relation between the Board, practices
and processes, the written agreement, transparency, independence and monitoring and
evaluation of the Board. The executives are the most critical factor that has a profound
effect on an organisation's performance. The analysis further showed a positive
relationship between internal control systems and an organisation's financial
performance. The study recommends the NRCS to adopt the COSCO framework as it is
very comprehensive and applicable to the efficiency and effectiveness of operational and
financial reporting controls. The COSCO framework is simple to understand and
adaptable to start-up and established organisations' operations. The proper
implementation of the COSCO framework can enhance good financial performance
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration (Management Strategy)
Keywords
Corporate governance practices, Non-governmental organisation, Namibia Red Cross Society, Proper internal control systems, Namibia, University of Namibia