Stewardship effectiveness on the successful financial performance of Zimbabwean local authorities A case study of Kwekwe City Council from 2018 to 2022

Abstract

This study has focused on stewardship effectiveness on the successful financial performance of Zimbabwean local authorities. The research objectives of this study are to examine the stewardship role in managing the finances, assets, and human capital, to assess the success factors that drive stewardship implementation, to determine the causes of bad stewardship that could negatively impact the financial performance of Kwekwe City Council as well as the solutions to bad stewardship that can improve the financial performance of Kwekwe City Council. The reviewing of literature related to stewardship management has unfolded much evidence that good corporate stewardship management is key to the success of local authorities and all other organizations. The research study is underpinned by the stewardship theory which elaborates that a steward’s main aim is to achieve the objectives of the organization. The empirical review literature of the study highlighted what other researchers have done in the context of answering the research objectives. The study adopted a descriptive survey research design that was mutually blended with both qualitative and quantitative research methods. Pragmatism was considered the most appropriate research philosophy for this study as its stance combines both qualitative and quantitative paradigms’ points of view. The target population for this research was Kwekwe City Council stakeholders. A simple stratified sampling was used to draw the sample randomly in a similar proportion from each stratum of the population according to its proportion. Interviews and questionnaires were used as research instruments for this research study. The validity and reliability of the research instruments was ensured by the researcher in various ways such as administering both the interviews and questionnaires in person in order to ascertain that they were given to the right people. In this study, both qualitative and quantitative data analysis techniques were used. The information was then presented through the use of bar charts, pie charts, composite bar charts as well as simple frequency tables. Data collected was analysed using a statistical package for social scientists (SPSS). The package also has graphs, tables, and charts which help to bring about the results of the study. The study findings reveal stewardship influences the effective management of resources i.e. finance, assets, and human capital. Accountability, transparency, professionalism, trust, and responsibility were found to be the success factors of effective stewardship such that if local authorities inherent these as part of their organisational culture then the employees and management would become good stewards of the organisation. It was concluded that stewardship management is key to the successful financial performance of local authorities and all other organizations. The stewardship concept remains important and relevant to public sector institutions as it is associated with responsible management of resources. Public officials are required to be aware of the important role they should fulfill as stewards. The study recommends the local authorities must improve on cooperation with all stakeholders so as to boost trust and confidence and that the government proffers enough support to local authorities by offering enough financial support to secure required resources to fulfill their mandate and as a regulator by putting statutory regulations which are followed by local authorities in their operations.