The key factors determining board effectiveness in independent schools.
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Date
2015
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Abstract
The role of boards and the topic of good governance in companies both for profit
and non-profit has increased in significance in recent years. This is primarily due to
the many corporate downfalls which left stakeholders questioning what boards had
done wrong. South Africa in particular has introduced the new Companies Act No.
71 of 2008 and been proactive with the King Reports to legislate and guide
companies into governing well. Independent schools are also governed by boards
with similar attributes to corporate boards. Education plays a vital role in the future
growth of any economy and therefore school boards need to be effective bodies in
order to ensure the schools they govern are sustainable and able to positively
contribute to the future growth of the economy. The aim of this study is to investigate
the key determinants of board effectiveness in independent schools. Five
components of board effectiveness were selected for study, these were board
demographic composition, selection procedures, scope of decision making,
competence of board members and their behavioural characteristics. Information
on the sustainability of the school was also collected and used as the effectiveness
measure of the board. The five key determinants were then each correlated to this
final variable. A quantitative study was adopted with a sample taken from the 164
independent schools in KwaZulu-Natal. All these schools were invited to participate
of which 145 board members agreed to take part. A questionnaire comprising
fourteen questions was distributed via an electronic survey tool and 81 board
members responded, which equalled a 73% response rate. Descriptive statistics
and correlation statistical operations were used to analyse the data which revealed
that the majority of boards presented the positive aspects of the components of
effectiveness. Boards still showed weaknesses in the selection processes used, the
involvement in the operational aspect of the school and the lack of interest in board
evaluation. These same boards also all indicated strong sustainable outcomes
showing that the boards have been effective in their purpose. The bivariate
relationships, although mostly positively correlated, were not statistically significant.
This study can benefit both independent and government schools by increasing
awareness of the key determinants of board effectiveness and applying this
knowledge to evaluating their boards annually.
Description
Master of Business Administration. University of KwaZulu-Natal, Westville 2015.
Keywords
School boards--South Africa--KwaZulu-Natal., Private schools--South Africa--KwaZulu-Natal--Management., Private schools--South Africa--KwaZulu-Natal--Administration., School management and organization--South Africa--KwaZulu-Natal., Theses--Business administration., Independent schools.