International Journal of Science and Research (IJSR) ISSN (Online): 2319-7064 Index Copernicus Value (2016): 79.57 | Impact Factor (2017): 7.296 Volume 7 Issue 4, April 2018 www.ijsr.net Licensed Under Creative Commons Attribution CC BY Teachers’ Participation in the Management of Financial Resources on their Motivation Petronilla M. Kingi University of Nairobi Abstract: Achieving transformational knowledge based economy as provided in Kenya’s Vision 2030 requires motivated teachers. There is however a dearth of literature on the effects of teachers’ participation in management of financial resources on teachers’ motivation. The purpose of this study was to establish the relationship between level of teachers’ participation in management of school financial resources and its effect on teachers’ motivation in the secondary schools. The study was anchored on Change Management Model and Hertzberg Motivation Theory. Correlation design was adopted with a sample size of 58 principal and 345 subject teachers. Data was collected using questionnaires for the teachers and principals and self administered observation guide. Stratified random sampling technique was used to get the sample size of the respondents. Validity was established through expert consultation and reliability determined using cronbach alpha. Means were computed to compare the teachers’ and principles opinions on the teachers’ level of participation in management of physical and material resources. Mean of below 2.00 was considered low level, mean between 2 to 3.5 was moderate whereas as mean above 3.5 was regarded high level. ANOVA was used to establish whether the gender for head teachers and teachers had any influence on teachers’ participation. A simple independent t-test was used to establish whether there was a significance difference between teachers and principals on teachers’ participation in management of school finances. Simple regression analysis was conducted to establish the effect of teachers’ participation in the management of financial resources on teachers’ motivation. The findings indicate that teacher were at different levels of participation in the management of finance (means were between 2.00 and 5.0). The study revealed that there was a significant relationship between the principals and teachers participation in management of school finances by gender. The findings also indicated a significant statistical relationship between teachers’ and the principals’ opinions regarding teachers’ participation in management of school finances. Teachers’ level of participation in management of finances had a statistical significant effect on motivation ( = .35, p-value< .01). It was concluded that teachers’ level of participation in the management of school finances was a positive determinant of teachers’ motivation. The study recommended schools to embrace participatory structures that encourage high levels of teachers’ participation in management of school finance in order to increase their motivation. The study recommended sensitization of stakeholders on the need for teachers’ participation in management of school finance through training conferences and workshops. Keywords: Participation; Budget preparation; Managerial Performance, budget control, instructional resources, budgeting objectives, budget requests 1. Introduction Organizational theorists suggest that participatory management often leads to more effective organizations and higher staff motivation. Many studies indicate that budget participation facilitates improved communication, employee motivation, job satisfaction and job performance (Jermias and Setiawan, 2008). Motivation is refers to the feelings and confidence of employees in relation to performance of duties (Setyanto, 2011). He further states that motivation is the interest and individual’s commitment in making organizations more productive and profitable. According to Chalos and Haka (2007) financial management is defined as an activity where budgets were prepared for various activities with actual performance regularly compared with budget. Wisegeek (2012) defined participative financial management as a plan strategy that involves active participation of employees in creating a workable budget for implementation. He argues that financial plan provides feedback in line with organizational targets through monitoring and evaluation. Financial plans results in increased outputs, reduction in unnecessary spending and defines how to expand markets (Suharman, 2011). Cole and Kelly (2011) argued that budgeting process involves formalization of objectives and then arranging for provision of resources in order to achieve desired goals. Studies by Chalos and Haka (2007; Chenhall and Brownell (2011) report that a well organized financial systems encourages stakeholder participation and agreed performance standard with positive motivating effects on the teachers. According Hammond (2007), planning for instructional resources required budget preparation and provision of adequate finances. Moreover, learning outcomes required adequate budgetary allocation to ensure quality out come and motivated people. According Njagi and Jagongo (2013) lack of effective management of school finances was detrimental to teachers’ motivation. However, other studies (Noor and Othman, 2012; Suharman, 2011) report a negative association between participative financial management and public sector performance. Mehta (2015) carried a study of teacher’s participation in decision making in relation to gender roles in India. The purpose of the study was to establish the impact of gender on teachers’ participation in decision making process. Data was collected from 281 university lectures through a questionnaire measuring participation in budget preparation and budget control, project development and research. Construct validity was also established by calculating Cronbach Alfa values for financial aspect indicating actual participation .90 and desired participation .83. Data were analyzed using one-way Annoa. Findings reveal a state of deprivation in teachers’ participation in management of school finances, however, there was no significant statistical Paper ID: ART20181586 DOI: 10.21275/ART20181586 1331