EFFECT OF CORPORATE GOVERNANCE PRACTICES ON ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF HORMUUD TELECOMMUNICATION COMPANY
Abstract
This study aimed at identifying the effect of corporate governance on performance of Hormud Telecommunication Company. The population of this study comprised of a population consisting of 879 both part time and full time employees at Hormuud telecomunication company. The study had a sample size of 275 respondents. Data obtained was analyzed using a Statistical Package for Social Sciences (SPSS) version 24. Both qualitative and quantitative results was documented to build up literature. The result study revealed that there was statically significant effect of corporate governance practices on organizational performance in Hormuud Telecom. Specifically the study showed that there was a significant effect of corporate governance on risk management practices, managerial autonomy, organizational culture and leadership integrity. The research indicated that corporate governance practices enables the organization to concentrate on its core functions which enable the company to achieve strategic advantage and at the same time act as a means in which a business conditions or problems can be alleviated in a manner that is more efficient or effective. The implication of the research; the company should maximize on its human capital as it most priced asset, the research identified that majority of its staff are well educated and it should therefore ensure that it retain them so as to maximize on their expertise, the study found out that the company’s corporate governance was affected by factors resulting from non-adherence to planning and it is therefore recommended that the company should have formal corporate governance practices so that they can make decisions which would result to management of risks and securing added value and continuous improvement. The study also established that the company was faced with issues to do with managerial autonomy, like lack of empowering employees, and those in management exercising their powers negatively. It is therefore recommended that the company should put all measures in place to ensure that they do not face severe losses as a resulting from poor managerial autonomy. Finally, the management should ensure that respective heads of department should adhere to integrity leadership so as to meet the profitability goals of the company.
Key Terms: Risk management, managerial autonomy , organizational culture , Leadership integrity , corporate governance
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i1.657
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