Greener Journal of Social Sciences

Vol. 9(1), pp. 01-11, 2019

ISSN: 2276-7800

Copyright ©2019, the copyright of this article is retained by the author(s)

DOI Link: http://doi.org/10.15580/GJSS.2019.1.010719005

http://gjournals.org/GJSC

 

Description: GJSS Logo

 

 

                                                                                                                           

 

A framework for Promoting Good governance of Stakeholders in Zimbabwe local authorities: The case of Harare Municipality

 

 

Dr. Faitira Manuere1*; Nelia Eta Marima1; Simon Muzviyo2

 

 

1Chinhoyi University of Technology, Department of entrepreneurship and business management

2Harare Municipality-Zimbabwe

                                                                                                                

 

 

 

ARTICLE INFO

ABSTRACT

 

Article No.: 010719005

Type: Research

DOI: 10.15580/GJSS.2019.1.010719005

 

 

The purpose of this study was to present a framework for promoting good governance of stakeholders in urban municipalities in Zimbabwe. Numerous studies have been done to investigate the quality of service delivery in urban municipalities. Studies on promoting good governance in Zimbabwe urban municipalities are rare. Therefore this study was an attempt to fill this gap in literature. To that end the quantitative approach was adopted. The survey research design was also used. The purposive sampling method was used to select a sample of 480 research participants. The questionnaire approach was used to collect data from the research participants. Data was analysed using frequency tables and pie charts. The results showed that local authorities in Zimbabwe are facing a mammoth task in promoting good governance in their constituencies. This study recommends that appropriate models of governance be utilized in order to satisfy the needs of Harare residence.

 

Submitted: 07/01/2019

Accepted:  11/01/2019

Published: 03/02/2019

 

*Corresponding Author

Dr. Faitira Manuere

E-mail: manuerefaitira@ gmail.com

 

Keywords: stakeholders; Harare residence; frequency tables; local authorities; good governance

 

 

 

 

 

 

 


1. INTRODUCTION

 

The mandate of the urban local authorities in Zimbabwe is enshrined in the Urban Council Act (UCA) chapter 29.15 (1996) and the Local Government Laws Amendment Act of 2008. Local government policy is done by the Ministry of Local Government, Public Works and National Housing (MLGPW &NH) which is the responsible executive. Its role is to provide the legislative and policy framework within which local authorities operate. Functionally, the Ministry is supposed to provide an enabling or facilitative role within which local government operates. The services provided by urban councils as mandated by the law include providing water, provision of health services, libraries, provision of housing and transport facilities, construction and maintenance of drains, sewers and bridges, waste management, prevention of pollution, fire brigades and municipal police, street lighting, provision of parks and  recreation grounds. The complexity of the functions of the urban councils thus calls for strict corporate governance practices. The complexity of the services of urban local authorities has necessitated an increase in concerns by stakeholders in almost all African urban councils to provide efficient services; this has necessitated urban councils to look critically at their governance systems. According to Murimoga and Musingafi (2014), there has been serious decline in service provision by urban councils as explained by poor corporate governance.

Failures by local authorities have also been important in defining the relationship among residents, central and local governments (Pearce and Robinson, 2003; Ritson, 2008). The Zimbabwe Institute of Good Governance (2005) described failure generally as the inability to perform one’s function to a predetermined standard. It may be important to note that not all failures should attract external intervention, as that would seriously compromise local democracy, independence and the whole concept of representative governments at the local level. Failure can be classified into two types namely failure of substance and failure of process.

The institute further highlights the fact that failure of substance concerns non-fulfillment or non-achievement of set standards and targets. The failure of process refers to the non-adherence to procedures that are necessary or prescribed for efficient delivery of service and general good governance (Youssef, 2015; Thompson,1999;Wickham,2001; and Saint and Tripathi,2010). Municipalities in the present circumstances would be charged with failure as evidenced by a number of indicators such as unit costs being persistently high in relation to other local authorities regionally who are in similar circumstances, deterioration of service standards against specified standards or against legitimate expectations by service paying residents and finally the inability to meet specified national standards, such as the ones contained in the legislation.

According to Hart (1995) and Globio (2010) corporate governance issues arise in an organisation whenever two conditions are present. First there is an agency problem, or conflict of interest, involving members of the organisation - these might be owners, managers, workers or consumers. Second, transaction costs are such that this agency problem cannot be dealt with through contract. Corporate governance in local authorities suffers triple blows from the appointed Ministry of Local Government, elected councilors and the team of the town clerk and his management. In practice, the Ministry of Local Government has increasingly played a controlling and directive role especially since the emergence of a formidable opposition with a significant controlling stake over Local Government authorities in the urban areas and this excessive interference in Harare led to the resignation of councilors in August 2004.

 

 

LITERATURE REVIEW

 

Mashavira and Jubenkanda (2005) define corporate governance as the act of governing an organisation by senior management generally known as the board of directors. Johnson and Scholes (1997) point out that corporate governance involves the determination of minimum obligations of an organisation towards its various stakeholders. All management staff and employees are also involved in corporate governance as they are also involved in the running of the business despite being at a lower level.

Abdullah and Valentine (2009) noted that corporate governance is a “conscious, deliberate and sustained effort on the part of corporate entities to strike a judicious balance between its own interest and the interest of various constituents on the environment in which it is operating”. Fernando (2006) states that corporate governance is meant to run companies ethically in a manner such that all stakeholders are treated inequitably. Corporate governance involves monitoring and overseeing strategic direction, socio-economic and cultural context, externalities and constituencies of the organization.  According to Chakaipa (2010), corporate governance is defined as, “a set of mechanisms through which outside investors protect themselves against expropriation by the insiders”. Good corporate governance requires appropriate mechanisms to monitor and report on performance and compliance with legislation, policies, procedures, and the Code of Conduct. Chiromba (2012) and supported by Creswell (1994) indicated that corporate governance is the set of processes, customs, policies, laws and institutions affecting the way a corporation (or company) is directed, administered or controlled. On the other hand, the Cadbury Report (1992) states that corporate governance is a system by which companies are directed and controlled. It is further stated that corporate governance is concerned with practices and procedures for trying to ensure that a company is run in such a way that it achieves its objectives.

 

Corporate Governance in Local Authorities

 

In local authorities, the Urban Councils Act gives guidance on the expectations of the principal Ministry and that of the residents in terms of service delivery. Mutema (2012) alludes to the fact that the Act upholds corporate governance in urban councils through providing for council meetings that are open to the public and the press, council minutes which are available for public inspection and a municipal procurement board that manages the tender system for urban councils.

The study also revealed that despite these positive implications the Act is counterproductive to the practice of good corporate governance in that the Urban Council Act is silent on critical issues such as the minimum academic qualifications for one to be a councillor. The Act also gives excessive powers to the Minister of Local Government, Rural and Urban Development which creates an environment where central government dominates in the affairs of urban local authorities.

 

Theories of corporate governance

 

According to Hakim (2000) a theory is defined as a conceptual framework that provides an explanation of certain occurrences or phenomena. The theories on corporate governance centre on the issue of separation of control and ownership especially the large corporation as well as the business nature of the corporate purposes. The following theories on Corporate Governance were chosen and discussed:

 

Ø  Stakeholder Theory

Ø  Social Contract Theory

 

There has been considerable debate about what the objectives of sound corporate governance should be. Hart (1995) indicates that the different views are considered to be the theories or approaches to corporate governance. The approaches which are discussed here are the stakeholder or pluralist approach and the social contract theory of the firm. In the middle of the debate on corporate governance lies the real or potential conflict of interest between shareholders and either the board of directors as whole or individual board members. The directors may be tempted to take risks and make decisions aimed at boosting short-term performance. Many shareholders and stakeholders are more concerned about longer term business and social investments. Issues in corporate governance where a conflict of interests might be apparent are in financial reporting and auditing, director’s remuneration, decision-making powers, risk-taking and a lack of communication between the directors and shareholders (Mashavira and Jubenkanda, 2003).

 

The Stakeholder Theory

 

It is an alternative view which says the aim of sound corporate governance is not just to meet the objectives of shareholders, but also to have regard for the interests of other individuals and groups with a stake in the company, including the public policy perspective towards corporate governance as well as a corporate perspective (Hart, 1995).From a stakeholder view point corporate governance is concerned with achieving a balance between economic and social goals and between individual and communal goals. Saint and Tripathi (2010) posit that sound corporate governance should recognise the economic imperatives companies face in competitive markets and should encourage the efficient use of resources through sound investment. It should also require accountability from the board of directors to the shareholders for the stewardship of those resources. Within this framework the aim should be to recognise the interests of other individuals, companies and society at large in the decisions and activities of the company (Coyle, 2015).

The benefit in the intention of stakeholder theory is that is affords an alternative view of the purpose of the firm. This theory explains the role of the firm as one to meet the needs of a broader array of societal interests which goes over mere economic value creation for the firm’s owners and as such this theory has become integral to the major narrative of business role in society. The original idea of the Stakeholder theory is associated with Freeman(1984) which offered the position that managers have a moral obligation to consider and therefore must of necessity balance the interests of all stakeholders. Accordingly, Evan and Freeman (1993) stated that, “A stakeholder theory of the firm must redefine the purpose of the firm…the very purpose of the firm is…to serve as a vehicle for coordinating stakeholder interests”. The fundamental expression in the theory is the notion of dependency of the firm on the several stakeholders who have a stake within the firm and any success of the firm therefore needs the support of these stakeholders. In the same vein, Mazhambe (2012) asserts the position that the theory further stretches the idea of firm ownership yonder than of the mere original legal or economic purpose in pursuit of interest of the owners which is very narrow and limiting. It must be noted that primary stakeholders are important to a firm’s progress and secondary stakeholders are therefore less influential but still required to be considered.


 

 

 

Primary Social Stakeholders

Primary Nonsocial Stakeholders

* Shareholders and other investors

* Employees and managers

* Customers

* Local Communities

* Suppliers and business partners

 

* The natural environment

* Future generations

* Nonhuman species

Secondary Social Stakeholders

Secondary Nonsocial Stakeholders

* Government and regulators

* Civic institutions

* Social pressure groups

* Media and academic commentators

* Trade bodies

* Competitors

* Environmental interest groups

* Animal welfare organizations

Source: Hawley and Williams (1996)

 

 


It must be noted that the stakeholder theory started as an alternative view to the shareholder value theory, along two distinct paths which are the normative and instrumental aspects of the stakeholder theory. The normative view asserts that stakeholder theory continues in the original view of the corporation in its relationship with its many different stakeholders and in such a manner that there is no stakeholder having a priority over others. On the other hand, the instrumental path, however, attempts to connect stakeholder management to wealth creation and offering such a position this aspect of instrumentality stakeholder theory automatically becomes a subset of the shareholder value theory.

Another scholar, Hawley and Williams (1996) went further to build on the work of Freeman (1984) and separates the stakeholder theory into yet another three views namely that of strategic, multifiduciary, and a synthesis. He explains that, the strategic approach to stakeholder theory views stakeholders instrumentally as indicated above and in other words stakeholders are a means by the firm of generating a profit for its owners who hold equity in the firm. Then, stakeholders may also be viewed differently depending on the degree to which they can positively or negatively impact on the firm’s profits. On the other hand, the multifiduciary approach views the firm as having a fiduciary responsibility to a plethora of stakeholders and not just the owners of the business. The interests and concerns of the wider members of society must therefore be taken into consideration and in that case there is no one stakeholder who wields dominance over the firm. In the synthesis approach there is a combination of elements of both the views highlighted above and in other words the firm has a moral and ethical duty to its stakeholders however, the fiduciary role remains solely to the business owners.

From a scholarly perspective it can be seen that the stakeholder theory can be represented on a continuum of presumptions as shown in Figure 2 given below. The two ends representing the views stated above, with the right side of the continuum showing the normative stakeholder theory which is in antithesis to the shareholder value theory as explained. It portrays the view of the firm as that of balancing the societal pool of interests for the benefit of many. At the left side of the continuum under the shareholder value theory there is the, instrumental stakeholder theory which attempts to describe the aspect of managing stakeholders who are key to the corporation’s profit motive achievement ability and are therefore merely the business owners.


 

Shareholder Value Theory

 

The purpose of the firm is to maximize shareholder value.

 

 

 

Stakeholder Theory

 

The purpose of the firm is to commercially serve the interests of society.

 

 

 

 

 

 

 

Instrumental

Stakeholder

Theory or the

Strategic

Approach to

Stakeholder

Theory

 

The

Synthesis

Approach to

Stakeholder

Theory

 

Normative

Stakeholder

Theory or the

Multifiduciary

Approach to

Stakeholder

Theory

 

Figure 1: Continuum of Stakeholder Theory

 

 


The central question of stakeholder theory is whether it is primarily an instrumental tool to advance the interests of the shareholder or a normative guide balancing the legitimate interests of all stakeholders. Whether stakeholders are ends in themselves or a means to an end for the benefit of shareholders but either way there is plausible explanation on the need to meet interests of each for the firm to continue.

 

2.3.1.1 Instrumental Stakeholder Theory

 

According to Hawley and Williams (1996), the instrumental view “…establishes a framework for examining the connections, if any, between the practice of stakeholder management and the achievement of various corporate performance goals”. From the instrumental body of research we see the terms corporate social performance (CSP), corporate financial performance (CFP), and stakeholder management. An assumption of the instrumental argument is that managing stakeholders will lead to greater profits. Over thirty years of instrumental research suggest a clear positive association between the CSP and CFP of a corporation. In general, of over 130 articles assessing a possible relationship between CSP and CFP, approximately 85% have used CSP as the independent variable predicting CFP. In their seminal article, “Corporate Social Responsibility and Financial Performance,” Gono (2008) measured and linked socially responsible corporate behaviour to financial performance. They proposed that action taken for the benefit of a broader group of stakeholders has a positive influence on shareholder wealth creation. Many other studies support this perspective. For example, Waddock and David (1999) found corporate social performance to be positively correlated to past and future financial performance.

 

Hillman and Keim (2001) describe stakeholder theory from a strongly instrumental view in testing relationships among shareholder value creation, stakeholder management, and the firm’s participation in social issues. They find, “Building better relations with primary stakeholders like employees, customers, suppliers, and communities could lead to increased shareholder wealth by helping firms develop intangible, valuable assets which can be sources of competitive advantage” (Hillman and Keim, 2001). The use of the term stakeholder management is consistent with the dominant view of corporate purpose to maximise shareholder wealth. The majority of the stakeholder literature, often unwittingly, strongly reinforces the status quo of shareholder value theory. Every empirical model designed to link CSP and CFP is an argument implicitly accepting shareholder value theory and relegating stakeholder theory as subordinate.

 

2.3.2.2 Normative Stakeholder Theory

 

Normative stakeholder theory is the “fundamental basis” of stakeholder theory. Normative stakeholder theory assumes that all stakeholders have intrinsic value and no stakeholder has a priority of interests over other stakeholders. The normative aspect has two assumptions that are different from shareholder value theory: relational interest compared with self-interest and balancing instead of maximising. A normative aspect of stakeholder theory embraces a view of the corporation balancing the interests of all stakeholders and not maximising performance for the benefit of the shareholders. Margolis and Walsh (2001; 2003) call for expanded agenda for descriptive and normative research. Business as an agent of World Benefit (BAWB) is an example of a research agenda away from trying to prove the economic value of corporate social responsibility. BAWB is a global action research project to generate and forward a dialogue between business and society. The normative aspects of stakeholder theory account for its difference from shareholder value theory. Normative stakeholder theory provides an alternative explanation of the purpose of the firm and provides a different set of behavioural assumptions. Normative stakeholder theory calls for a view of the firm in broader service to society.

 

Merits of the Stakeholder Theory

 

(a)    The approach tries to balance between economic goals for shareholders and social goals for the other stakeholders.

(b)    It recognizes the stewardship role given to directors who are allowed to use societal resources.

 

Demerits of the Stakeholder Theory

 

(a)    The purpose of the firm is to create wealth or value for its shareholders by converting their investments into goods and services.

(b)    In practice, the directors are only accountable to shareholders and as such they need to ensure that these be satisfied with the performance of the company as they have the power to hire and fire them if the company records poor performance.

(c)    These requirements are not enshrined in law and it is voluntary to satisfy all stakeholders, as it requires money and it therefore increases the agency costs.

 

 

2. Social Contract Theory

 

This theory is of the view that the purpose or objects of the firm are realised by way of contracts, the board enters into with third parties, therefore the company needs institutions like the board of director and senior management to govern and manage these business contracts (Saint and Tripathi, 2010).The nexus of contracts theory depicts the firm in a web of implicit and explicit contracts with stakeholders; however, the shareholder has primacy over other stakeholders. The board and management continue to have a fiduciary responsibility to maximise shareholder value. The firm as a nexus of contracts describes the firm in relation to its environment, which is a view of the firm looking outward into its environment (Coyle, 2015).

 

In yet another theory called the resource dependency theory, it provides a similar view wherein it attempts to describe the power or dependence relationships between the firm and other actors in its operating environment and enables primary attention to those stakeholders in the environment who have the greatest impact on the profitability of the firm.

 

The company in its business operations will need to enter into the following listed contracts:-

 

(a)    With employees and management – contract of employment.

(b)    With the executive directors – contract of employment.

(c)    With non-executive directors – contract of jobbing or work.

(d)    With financiers – contract of loan.

(e)    With transporters – contract of carriage.

(f)     With creditors – contract of purchase and sales.

(g)   With customers – contract of sales.

(h)    With insurance – contract of insurance.

 

The board of Directors according to the contract theory must ensure that the company enters into valid contracts that are enforceable at law and which taken together optimise the shareholders value in the firm (Hart, 1995).

 

 

2.4.11 Responsibilities of business

 

All organizations are created for a purpose and Carroll’s (1979) stakeholder view of the firm has been given as an option to Friedman’s stakeholder theory, both of these concepts consider the economic aspect of business as the primary benefit for society. However, Carroll goes beyond Friedman in defining four important and seemingly comprehensive and legitimate roles of business. Figure 2, replicates Carroll’s four responsibilities of corporate social responsibility.


 

 

 

Figure 2: Responsibilities of Business

Source: Adapted from Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, (October 1979), p. 499.

 

 


As shown in the diagram, the economic role is a must as this allows the organisation to renew itself. The legal role is non-negotiable and it must be done if negative consequences for non-compliance are to be avoided. The ethical issues are important and these relate to what should be done as far as morality is concerned so that society is not harmed, no one is disadvantaged and the discretionary refers to optional activities that the entity might to decide to embark on.

 

2.4.12 Conceptual Framework

 

A conceptual framework is very important as it assists to portray the areas the researcher thinks will be important to investigate in order to find a solution to the identified problem, such as poor corporate governance practice in the City of Harare.


 

 

 

Figure 3: Local Authority Corporate Governance Framework

 

 


There are three key sources and centers of power which influence corporate governance in the City Of Harare and these are the Ministry of Local Government, Mayor/Board of Councillors and Town Clerk/Management Board. The Town Clerk and Directors are appointed by the Mayor/Board of Councillors, whilst these are in turn elected by the residents but then appointed by the Minister of Local Government. Friction is experienced if the Mayor/Councillors come from a different political party from that of the Minister in charge.

 

2.4.13 The Current Legal and Operational Framework

 

The local government system in Zimbabwe is a legislative rather than a constitutional creature. In practical terms, what this means is that Local Government is not an independent sphere of government, but an appendage of central government which determines the birth, development and death of this important sphere of governance. The activities of local government units are coordinated by the Ministry of Local Government, Public Works and National Housing (MLGPW&NH). The ten provinces into which the country is divided are administrative rather than political provinces and do not have elective structures. As such, no really significant powers have been devolved upon Provincial Councils and Provincial Committees.

The juridical framework for local government is set out in several pieces of legislation. The principal Acts governing local authorities in Zimbabwe, the Urban Councils Act and the Rural District Councils Act set local authorities as separate and fairly autonomous legal corporate institutions. The main Acts for local governance purposes are the Urban Councils Act (Chapter 29:15), Urban Councils Amendment Act (Chapter 29:16), Rural District Councils Act (Chapter 29:13), Chiefs and Headmen Act (Chapter 29:01), Communal Land Act (Chapter 20:04), the Provincial Councils and Administration Act, the Customary Law and Local Courts Act (No. 2) of 1990 and the Traditional Leadership Act of 1998. In addition, there are a number of statutory instruments defining the legal parameters of local government.

 

Research Objectives

 

(a) To assess the challenges being faced by local authorities in meeting the needs of their stakeholders.

(b) To establish the methods being used by local authorities in enhancing stakeholder value.

(c) To establish the strategies being used by local authorities in involving stakeholders in organizational activities.

(d) To find out the conflict resolutions mechanisms used by local authorities to pacify stakeholders.

(e) To make appropriate corporate governance recommendations to improve practices on sustainability and service delivery.

 

 

METHODOLOGY

 

The descriptive survey design was adopted with a view to providing explanations on the corporate governance problems being faced by urban municipalities in Zimbabwe. The study was conducted in Harare, the capital city of Zimbabwe. Harare Municipality is the biggest local authority in Zimbabwe. The population of the survey comprised of all the ratepayers of Harare.In the absence of a well - defined sampling frame, the researcher used a convenient sampling method to establish a sample of 480 Harare Municipality Ratepayers. The Ratepayers or research participants involved in this study were people who lived in Harare in the past five years. This was done in order to ensure that the Rate payers had a good knowledge of the corporate governance problems affecting Harare Municipality. Therefore a structured questionnaire was used to collect data from the research participants. The questionnaire consisted of both closed and open –ended questions. A likert- type of instrument with 5 point rating scale was used to measure the respondents’ perception with regards to the variable under investigation. Data was analyzed using frequency tables (Kothari, 2004; Krejcie and Morgan, 1970; Marshall and Rossman, 1990).


 

 

DATA ANALYSIS AND DISCUSSION

 

Table 1: Respondents by gender

 

Frequency

Percentage

Male

71

65

Female

39

35

Total

110

100

Source: Primary Data (2017)

 

Table 1, shows that 71(65%) of the respondents were males whilst 39(35%) of them were females. It is therefore noted that local authorities particularly at the councillor, senior management levels were dominated by males.

 

 

Table 2: Respondents by age range

Age range

20-35 years

36-55 years

>55 years

Total

Frequency

27

75

8

110

Percentage

25

68

7

100

Source: Primary Data (2017)

 

Table 2, shows that the ages of the respondents were distributed as follows: 27(25%) were between 20 and 35, 75(68%) were between 36 and 55 years whilst 8(7%) were above 55 years and approaching retirement.

 

 

Table 3: Marital status of Respondents

 

Married

Single

Total

Frequency

60

50

110

Percentage

55

45

100

Source: Primary Data (2017)

 

Table 3 shows 60(55%) were married whilst 50(45%) were single.

 

Table 4: Highest Academic qualifications of Respondents

 

O level

A level

Diploma

Degree

Masters

Total

Frequency

10

12

50

33

5

110

Percentage

9

11

45

30

4

100

Source: Primary Data (2017)

 

Table 4 shows that10 (9%) of the respondents had Ordinary Level qualifications, 12(11%), had Advanced Level qualifications, 50(45%), had Diplomas, 33(30%) had undergraduate degrees whilst only 5(4%) had masters degrees.

 

Table 5: Respondents by number of years as Rate Payers

 

<5 years

5-15 years

15-25 years

>25 years

NA

Total

Frequency

5

50

33

22

0

110

Percentage

4

45

30

20

0

100

Source: Primary Data (2017)

 

Table 5 shows that 5(4%) of the respondents had 5 years’ experience as Rate Payers, 50(45%) had between 5 and 15 years, 33(30%) had 15 to 25 years, 22(20%) had more than 25 years.

 

Table 6: Challenges faced by local authorities in meeting the needs of their stakeholders

 

Low revenue inflows

Corruption

Political interference

Polarisation of council

Leadership failure

Total

Frequency

40

17

18

12

23

110

Percentage

36

15

16

11

21

100

Source: Primary Data (2017)

 

Table 6 shows that 40(36%) of the respondents indicated low revenue inflows,17(15%) of the respondents indicated corruption, 18(16%) indicated political interference, 12(11%) cited polarisation of council and 23(21%) indicated that one of the challenges was leadership failure.

 

Table 7: Adequacy of council’s action in enhancing stakeholder value

 

Quite a lot

A lot

Enough

Too little

Nothing at all

Total

Frequency

25

30

10

28

17

110

Percentage

24

27

9

25

15

100

Source: Primary Data (2017)

 

Table 7 shows that 25(24%) indicated that it was quite a lot, 30(27%) said that it was ‘a lot’, 10(9%) said it was enough, 28(25%) indicated that it was ‘too little’ whilst 17(15%) indicated that the local authority was doing ‘nothing at all.

 

Table 8: Methods being used by local authorities in enhancing stakeholder value

 

Raising service charges

Running business ventures

Reducing wage bill

Improving service delivery

Implementing governance structures

Total

Frequency

12

17

35

25

21

110

Percentage

11

16

32

22

19

100

Source: Primary Data (2017)

Table 8 shows that raising service charges was selected by 12(11%), running business ventures was indicated by 17(16%) of the respondents, reducing wage bill was chosen by 35(32%), the need to improve service delivery was cited by 25(22%) and lastly implementing governance structures was recommended by 21(19%) of the respondents. Harare Municipality needed to reduce the wage bill which was gobbling as much as 95% of the revenue inflows.

 

Table 9: Methods of involving stakeholders in organizational activities

 

Joint meetings

Feedbacks from councillors

Council bulletins

Meetings with residents association representatives

Engaging residents

Total

Frequency

31

15

20

25

19

110

Percentage

29

13

18

23

17

100

Source: Primary Data (2017)

 

Table 9 shows that 31(29%) selected the use of joint meetings, 15(13%) indicated the use of feedbacks from councillors, 20(18%) indicated the need to use council bulletins, 25(23%) favoured meetings with residents association representatives whereas 19(17%) showed interest in creating special committees to represent the needs of stakeholders. This arrangement was likely to improve on service delivery.

 

Table 10: Areas where there is conflict between council and its stakeholders

 

Poor Service delivery

Politicisation of council business

Corruption

Misuse of council property

Poor corporate governance

Total

Frequency

52

4

23

1

30

110

Percentage

48

3

21

1

27

100

Source: Primary Data (2017)

 

Table 10 shows that 52(48%) of the responses cited poor service delivery,30(27%), cited poor corporate governance, 23(21%) cited corruption, 4(3%) chose politicisation of council business as a source of conflict and finally, 1(1%) cited ‘misuse of council property’.

 

Table 11: Conflict resolution mechanisms that should be used by the Harare Municipality

 

Joint meetings

Government policy

Consultation

Improved service delivery

Strategic planning

Total

Frequency

13

33

24

10

30

110

Percentage

12

30

22

9

27

100

Source: Primary Data (2017)

 

Table 11 shows that 13(12%) of the respondents favoured joint meetings, 33(30%)  cited use of government policy, 24(22%) indicated the need for consultation, 10(9%) indicated improved service delivery and 30(27%) indicated that the local authority should  engage in strategic planning as a way of resolving conflicts between the local authorities and the Rate Payers.

 

 


4.3 CONCLUSION

 

The purpose of this study was to present a framework for promoting good governance of stakeholders in urban municipalities in Zimbabwe. Numerous studies have been done to investigate the quality of service delivery in urban municipalities. Studies on promoting good governance in Zimbabwe urban municipalities are rare. Therefore this study was an attempt to fill this gap in literature. To that end, the quantitative approach was adopted. The survey research design was also used. The purposive sampling method was used to select a sample of 480 research participants. The questionnaire approach was used to collect data from the research participants. Data was analysed using frequency tables and pie charts. The results showed that local authorities in Zimbabwe are facing a mammoth task in promoting good governance in their constituencies. This study recommends that appropriate models of governance be utilised in order to satisfy the needs of Harare residence.

 

 

REFERENCES

 

Abdullah, H. & Valentine, B. (2009) Fundamental and ethics theories of corporate governance, Middle Eastern Finance and Economics.

Chakaipa, S. (2010). Local Government Institutions and Elections.

Chiromba,S. (2012) Corporate governance and firm performance, emerging market financial institutions analysis.

Coyle, B. (2015) Corporate Governance, 5th Edition, ICSA, The Governance Institute, UK.

Creswell, J. (1994) Research Design: Quantitative and Qualitative Approaches, Thousand Oaks, CA, Sage.

David, R. (1999). Strategic Management: Concepts and Cases, 7th Edition, New Jersey, Prentice Hall.

Globio, E.M. (2010) Dissertation writing and Design from website Erwin-globio@ yahoo.com accessed on 25 January 2017.

Gono, G. (2008) Zimbabwe’s Casino economy: Extraordinary measures for extraordinary challenges. Harare: Zimbabwe Publishing House.

Hakim, C. (2000) Research Design: Successful designs for social and economic research, (2nd edition) London: Routledge.

Hart, O.(1995) Corporate Governance: Some Theory and Implications: The Economic Journal, Blackwell Publishing for the Royal Economic Society Vol. 105, No. 430, pp. 678-689

Hawley.D,& Williams,D. (1996) Corporate governance principles and code of conduct local authorities

Johnson, G & Scholes, K. (1997) Exploring Corporate Strategy: Text & Cases, 8th Edition, Cape Town, Prentice Hall.

Kothari, C.R. (2004). Research Methodology: Methods and Techniques, New Revised Edition, New Age International Publishers. New Delhi. ISBN (13): 978-81-224-2488-1

Krejcie, R.V. and Morgan, D.W. (1970) Determining Sample Size for Research Activities, Educational and Psychological Measurement, Vol. 30 pp. 607 – 610.

Marshall, C. & Rossman, G.B. (1990) Designing Qualitative Research, Journal of Issues in Applied Linguistics, Volume I Issue 2.

Mashavira, C.B. & Jubenkanda, R.R. (2005) Corporate Governance, Bachelor of Commerce, Module ECON 306, ZOU.

Mazhambe, A.M. (2012) Corporate governance consultancy. Independent Publisher. 

Mutema  E. P.( 2012) Debating the implications of the Urban Councils Act chapter 29.15 (1996) on the practice of good corporate governance in Zimbabwe's urban local authorities

Pearce,F,& Robinson, J. (2003). Strategic Management: Strategy Formulation and Implementation, Delhi, AITNS Publisher and Distributors.

Ritson, N. (2008). Strategic Management. Ventures Publishing

Saint, D.K. & Tripathi, A. N. (2010). The Shareholder and Stakeholder Theories of Corporate Purpose.

Thompson, J.L. (1999): The World of the Entrepreneur, a perspective. Journal of Workplace Learning Vol. 11, No.6 pp. 209 – 224.

Wickham, P.A. (2001). Strategic Entrepreneurship: A Decision-Making Approach to New Venture Creation and Management. London: Prentice Hall.

Yin, R. K. (2003).Case Study Research: Design and Methods. Thousand Oaks, CA: Sage Publishers.

Youssef, M.T. (2015).An Overview of Corporate Governance Around the Globe; Grant Thornton, Egypt.

Zimbabwe Institute (2005) Local Government Policy Review, Cape Town, SA.

Cadbury, A., (1992), The Financial Aspects of Corporate Governance (Cadbury Report), London, UK: The Committee on the Financial Aspect of Corporate Governance (The Cadbury Committee) and Gee and Co, Ltd, pp.

Murimoga, R. & Musingafi, M.C.C. (2014). Local governance and service delivery in Zimbabwe local authorities: The case of Harare and Masvingo urban Municipality,1(3),94-107.

Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, (October 1979), p. 499.

Freeman RE. (1984). Strategic management: A stakeholder approach. Boston, Pitman Publishing Inc.

Evan, W.M., and Freeman, R. E. (1993). A stakeholder theory of the modern corporation: Kantian capitalism. In Beauchamp, T.L. and Bowie, N.E. (eds.) Ethical Theory and Business. Englewood Cliffs, N.J.: Prentice-Hall, 97-106.

Zimbabwe. Ministry of Local Government, Public Works and National Housing 1996. Urban Councils Act Chapter 29:15. Harare: Government of Zimbabwe.

Zimbabwe.1996. Urban Councils Amendment Act. Government Printer. [Laws.]

Zimbabwe. Ministry of Local Government, Public Works and National Housing. 2004. The State of Local Government in the Country. Harare: Government of Zimbabwe.'[Unpublished]

Zimbabwe Traditional Leadership Act, 1998. Harare: Government of Zimbabwe. [Unpublished]

 

Zimbabwe. Rural District Councils Act, 1998. Harare: Government of Zimbabwe. [Unpublished]

 


 

 

 

Cite this Article: Manuere F; Marima NE; Muzviyo S (2019). A framework for Promoting Good governance of Stakeholders in Zimbabwe local authorities: The case of Harare Municipality. Greener Journal of Social Sciences, 9(1): 01-11, http://doi.org/10.15580/GJSS.2019.1.010719005.