Essay Sample on Poor Financial Management in Government Ministries

Introduction

Poor financial management in most government ministries has increased over the past five years. According to the surveys conducted on most government ministries, poor financial performance is evident in about 60% of the government ministries due to insufficient understanding of the roles of financial analytics system (Dalton, Daily, Johnson, & Ellstrand, 2014). There have been some attempts to enlighten financial managers on the roles of financial analytics systems, and in the last one-year improvement was shown in some government ministries but the interventions have yet to have any significant effect on the result.

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Lack of a clear understanding of the various roles of financial management systems has been attributed to the poor financial management in most government ministries and has become an area of concern to the government (Flood, Lemieux, Varga, & Wong, 2016). When financial managers lack an understanding on the specific roles of financial analytics systems, they will tend to put the system into use that is not intended for it, hence resulting in poor financial results (Lee, Kwak, & Han, 2016). Addressing this problem will result in an overall effect of boosting financial management in government ministries and result in an understanding of the widespread problem.

While the research accomplished on the topic strives to exhaust the various aspects associated with the roles of financial analytics on the performance of the government ministries, some issues remain uncovered constituting a research gap on the same (Niemira, & Saaty, 2015). For instance, the research does not cover the factors which could make it a challenging task for the financial managers to embrace the significance of the available financial analytics system (Secme, Bayrakdaroglu, & Kahraman, 2017). Besides, coverage is insufficient regarding the future of adoption of the models among the manager. According to Dalton et al. (2014), studies on the topic should consider the trend to determine future implications. Furthermore, a research gap also manifests as the study fails to determine why the success among the few responsive ministries does influence others to embrace the emerging concepts (Flood et al., 2016). Also, the research fails to show the attempts that the government financial institutions have made to go over the confusions that they experience concerning the various roles of financial analytics systems. Next, the research does not cover the old financial analytics systems that have been in use before by the government ministries and what has made the government ministries to shift to modern financial analytics systems (Niemira, & Saaty, 2015). Another research gap manifests when the study fails to give the reasons behind the confusion and misunderstanding of the various roles of the financial analytics systems by most financial managers in government ministries (Flood et al., 2016). Finally, another research gap manifests when the study fails to show the stipulated guidelines and rules that govern the use of financial analytics systems in government ministries (Niemira, & Saaty, 2015). Consequently, these aspects of inadequacy make the basis of the implications of the future.

The main aim of this research will be to understand the experiences of varied people concerning the roles of financial analytics systems and enlighten them on the various roles of the financial analytics systems (Niemira, & Saaty, 2015). It will also investigate the most vital factors that may enhance the effective use of financial analytic systems in the government ministries. This will be done through both quantitative and qualitative methods to assist in gaining insight into the way people perceive the roles of financial analytics systems as well as the difficulties they experience (Dalton et al., 2014). The research will be conducted on various government ministries where the usages of the financial analytic system have been embraced to understand the role of the analytics systems in such ministries (Niemira, & Saaty, 2015). Furthermore, the research will involve carrying out an extensive participatory investigation on various aspects of the financial analytic system at all levels of government ministries and the data gathered will be contextualized with the current literature about the roles of financial analytic systems (Flood et al., 2016). The result will, therefore, help in understanding the role of the financial analytic system in various government ministries and hence, the need to adopt them. This will, in effect, make such ministries to fully enjoy the benefits that arise from the effective usage of the financial analytic systems.

The accomplishment of the study will have a considerable contribution to knowledge. The research problem findings and the subsequent analysis will have an overall effect of providing enlightenment to the government ministries in numerous ways (Dalton et al., 2014). For one, the financial managers in various government ministries will be equipped with the necessary information concerning the various roles that financial analytics systems contributed to the effectiveness and efficiency of financial institutions. This can be put under the consideration of the probable applications in financial industries. Moreover, Lee et al. (2016) claimed that knowledge that will be acquired will be very vital when it comes to the understanding of the interplay between the government and the financial institutions based on the roles that the government plays in promoting the development and adoption of financial analytics systems by various government ministries and how the financial sectors contribute the growth of the economy (Secme et al., 2017). This will be very vital when it comes to understanding the general nature of financial analytics systems in the digital era.

References

Dalton, D. R., Daily, C. M., Johnson, J. L., & Ellstrand, A. E. (2014). The number of directors and financial performance: A meta-analysis. Academy of Management Journal, 42(6), 674-686.

Flood, M. D., Lemieux, V. L., Varga, M., & Wong, B. W. (2016). The application of visual analytics to financial stability monitoring. Journal of business stability, 27, 180-197.

Lee, H., Kwak, W., & Han, I. (2016). Developing a business performance evaluation system: A hierarchical analytic model. The Engineering Economist, 40(4), 343-357.

Niemira, M. P., & Saaty, T. L. (2015). An analytic network process model for financial-crisis forecasting. International Journal of Forecasting, 20(4), 573-587.

Secme, N. Y., Bayrakdaroglu, A., & Kahraman, C. (2017). Fuzzy performance evaluation in the Turkish banking sector using the analytic hierarchy process and TOPSIS. Expert Systems with Applications, 36(9), 11699-11709.