Analyzing management practices and staff cost management at National Water and Sewerage Corporation
Nabbanja, Mariam Mpomba
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This study assesses the relationship between management practices and staff cost management in National Water and Sewerage Corporation (NWSC). Specifically, the study aimed at identifying different cost management practices employed by National Water and Sewerage Corporation; examining the level of staff cost performance in National Water and Sewerage Corporation and assessing the relationship between management practices and performance of staff costs in National Water and Sewerage Corporation. The study used convenience sampling from a total population of 66 individuals selected from NWSC and using descriptive statistics like percentages, mean and standard deviation to analyze the results. The results in this study indicate that to a high extent National Water and Sewerage Corporation had implemented required cost management practices in form of budget management, activity analysis and responsibility accounting. On budget management, it was evident that there is preparation of budget plans annually, adherence to budgeting process, bottom-up participation in budget process and full engagement of operational managers in budget planning. On activity analysis, it was explored that NWSC pays its field employees basing on hours attended to the job, there is determination of long- and short-run costs and management endeavors to identify which costs have strategic significance. On Responsibility accounting, corporate social responsibility is given a priority and absorption costing techniques are used. The study found that National Water and Sewerage Corporation is faced with several challenges pertaining to staff cost performance. These range from ever increasing overtime costs, costs incurred on labor, weekend costs and staff overall costs incurred on staffs over the years. Finally, the study revealed that proper budget planning, part-time payments, determining long-and short-run costs, performance management, corporate social responsibility, absorption costing techniques, marginal costing techniques reduces staff costs incurred by NWSC. However, budget monitoring and strategic human resource plan had not reduced on staff costs incurred by NWSC. The study, therefore, recommends the management of NWSC to improve on budget controls. There is a need to have in place an effective audit, supervisory, monitoring, and compliance systems which, monitor and assess the interventions put in place to ensure that budget is implemented as per established plans for purposes of reducing on costs incurred on staff that can be avoided. Lastly, there is a need for the management of National Water and Sewerage Corporation to make the activity analysis more efficient.