Research consultancy
CHAPTER THREE
METHODOLOGY
3.1 Introduction
This chapter presented the methodology which consisted of the research design, area of study, study population, sample population and selection, sampling technique, data collection method, data quality control, data collection procedures and limitations of the study.
3.2 Research design
The study adopted a descriptive research design this is because they provide an in-depth study of a particular situation. The study also used qualitative and quantitative methodologies for data analysis. Quantitative and qualitative methodologies were used in effects of internal control systems on the performance of financial institutions. Quantitative research consisted of those studies in which the data concerned was analyzed in terms of numbers while qualitative describes events, persons and so forth scientifically without the use of numerical data. Quantitative research is based more directly on its original plans and its results are more readily analyzed and interpreted. Qualitative research is more open and responsive to its subject (Hughes, 2006).
3.3 Data type and sources
Data was collected from both primary and secondary sources; this included both qualitative and quantitative data.
Quantitative data is data which is numerical form and its presented inform of graphs, pie charts and Tables and it is normally got by administering questionnaires. Qualitative data is data that is presented in non-numerical form and it’s got from use of interview guide, It specifically presents the feeling of the respondents.
3.3.1 Primary data sources
Data from Primary sources was obtained by the use of questionnaires administered to the target respondents to gain opinions and practices on the Effects of internal control systems on the performance of financial institutions. The questionnaires were designed using Likert scale and were distributed to staff and clients in order to get staff views regarding the topic under study.
3.3.2 Secondary data sources
Data from secondary sources is data which has been collected by individuals or agencies for purposes other than those of a particular research study. It is data developed for some purpose other than for helping to solve the research problem at hand (Bell, 1997). This comprised of literature related to Effects of internal control systems on the performance of financial institutions in an organization in relation to the case study. Secondary data was sourced because it yields more accurate information than obtained through primary data, and it is also cheaper.
Secondary data was got from text books, new papers, magazines, articles, internet and earlier researches on the problem.
3.4 study area and population
The study was carried out at Stanbic Bank, Mukono Branch plot no. Plot No 59-67. Cooper & Schindler (2011) observes that population is the total collection of elements about which one wants to make inferences. The study was conducted among administration, employees, Human resource management, casual workers, procurement officers, finance and accounting, and other stake holders of Stanbic Bank Mukono district.
3.5 Sample Size and Selection Techniques
3.5.1 Sample Size
According to (Amin, 2005) sampling involves selecting a sample of the population in such a way that samples of the same size have equal chances of being selected. The sample size was determined using mathematical formula given by Miller and brewer (2003) as;
n =
Where,
n is the sample size
N is the target population
Margin of error (fixed at 5%)
Stanbic Bank n= n
=52
The reason for the use of this method is used because it involves less bias in choosing the sample size and allows for uniform principle to be applied and different entities.
The study specifically chose 22 employees of Stanbic Bank Mukono branch who specifically included; 1 Branch manager, 4 supervisors, 7 tellers, 6 sales staff and 4 credit staff. The study also chose 30 customers to be included in the study.
3.5.2 Sampling techniques
The study employed Random sampling technique in selecting customers of the bank. According to Amin, (2010) Random sampling is the process of selecting a sample that allows all members of the group or population to have an equal and independent chance of being selected for the sample. This technique was used because it’s not biased.
The study also used purposive sampling technique for selecting Employees of Stanbic Bank. Kothari (2010) purposive sampling technique refers to a process whereby the study selects a sample based on experience or knowledge of the group to be sampled. This technique was used because it’s easy to use and the population understudy was known.
3.6 Data Collection tools/Methods
The major instruments for data collection were questionnaires and interview guide. Surveys were just one part of a complete data collection and evaluation strategy. The major method of data collection for the study was the survey, which was done using selected instruments like questionnaires. The questionnaire provided respondents with ample time to comprehend the questions raised and hence, they were able to answer factually.
3.6.1 Questionnaires
The questionnaire was used to collect quantitative data. The study administered the questionnaires to respondents in different departments; procurement, administration, on Effects of internal control systems on the performance of financial institutions which was designed basing on study objectives and questions. Respondents read and wrote the questionnaires themselves. The questionnaires were close ended and were considered convenient because they were administered to the literate and its anonymous nature fetched unhindered responses.
3.6.2 Interview Guides
Qualitative data was collected from the informants using interviews. The interview guide was structured. The interviews were held with administration, and took approximately thirty to sixty minutes. This was used since it’s the best tool for getting first-hand information /views, perceptions, feelings and attitudes of respondents. Both formal and informal interviews were used to get maximum information from the different respondents to participate in the research.
3.6.3 Documentary review
A documentation technique involves selecting; reviewing and recording characteristics of objects or phenomenon were used. Documentary review checklist was also used to review the response from the respondents in the study while examining the effects of internal control systems on the performance of financial institutions. This helped the researcher identify strength, weakness and gaps which could have been omitted in other tools.
3.7 Data presentation and analysis
Raw data was processed into meaningful information. The process involved editing, tabulation and analysis with a view of checking the completeness and accuracy of the information.
3.7.1 Editing
This is intended to detect and eliminate errors that could occur. Only relevant, correct and crucial information was identified and used to draw conclusion.
3.7.2 Tabulation
Some data was presented in table to enable analysis and identification of relationship between variables.
3.7.3 Data analysis and presentation
The findings of the research were written down and worked out, edited and analyzed using comparison and percentage approaches with the help of computer program known as data statistical package for social scientist and Excel program to draw conclusions and recommendations. This helped the researcher to determine the effects of internal controls on the financial performance of financial institutions in Uganda in light of research objectives and literature review. The study used correlation to study the relationship between the variables of internal control systems and financial performance, in addition to that regression analysis was also carried out to determine the level at which internal control systems affects financial performance in an organization this helped in determining the relationship and answering objective three.
3.8 Data collection procedures
A letter of introduction was obtained from the Dean, School of management and entrepreneurship, Kyambogo University seeking permission to conduct the study. It was presented to the officials of Stanbic Bank seeking permission to carry out the study in the division. After being granted the permission, the researcher proceeded to make appointments with the selected respondents. Thereafter, the researcher administered questionnaires and the required data was collected. The researcher personally administered questionnaires to the respondents in order to avoid delay, to avoid collecting wrong data, ensure completeness and accuracy and confidentiality of the data collected is strictly adhered to.
The questionnaire pilot tested on ten (10) workers of the banks. The pilot testing of the questionnaire enabled the determination of any ambiguities in the questionnaires and the questions improved. The respondents indicated that the questions were understandable. After questions were updated, the questionnaires were distributed among the staff of Stanbic Bank.
3.9 Data validity and reliability
3.9.1 Validity
Data analysis in this study focused on data validity and reliability. To establish the validity of the questions, pre-testing was done amongst the selected categories of respondents. Their comments were incorporated in the final instruments to suit the data requirement of the study. The final amended research instruments were reviewed jointly by the researcher and the supervisor.
3.9.2 Reliability
Reliability was checked using the test –retest practice advocated for by Amin (2005). In other words, the questions were put to course mates and their comments noted, they then presented to the respondents and their views were compared with those of the course mates. On receipt of the questionnaires, manual editing was done, followed by coding. Frequency count of different variables will be done and this gave the number of occurrences and percentages out of total occurrences.
3.10 Limitations of the study
The research was hampered by the following challenges.
Non-responses
The researcher also experienced a problem of non-response from respondents who were given the questionnaires to fill. However, the researcher assured the respondents that any information given was treated with maximum confidentiality.
Cost
The researcher experienced a problem of limited finances with respect to this study. Costs regarding this limitation included transport, printing and photocopying of relevant materials. However, the researcher had to borrow some money from relatives, friends and use it sparingly so as to overcome the cost constraint.
Time
The researcher experienced time constraint in data collection, analyzing of data and in final presentation of the report. However, the study overcame this problem by ensuring that the time element was put into consideration and that all appointments agreed upon with respondents shall were fully met.
