The role of strategic leadership practices in financial management of the eThekwini Municipality, KZN.

Abstract

People live in a complex world with vast competition, challenges, and many opportunities that we are faced with. Strategic leadership has thus become one of the vital focus points in organizations and in academics as well. For an organization to be successful, effective, and efficient strategic leadership is imperative together with distinct understanding of the leadership practices involved. This specific study investigated the role of strategic leadership practices in financial management of the eThekwini Municipality, KZN. The main aim of the study was to investigate how the finance department of the eThekwini Municipality adopted the leadership practices and if these were fully known and understood by the department. A positivist (quantitative) approach was used for the study, by using a questionnaire to collect the data. A sample size of 169 participants out of a target population of 300 employees was made use of. The primary objective was to identify the role of strategic leadership practices in financial management of the eThekwini Municipality. Financial Management is on its own a vital need in the municipality. Having a good and sound finance team will aid the financial stability of the municipality. Strategic leadership practices for ensuring effective financial management were identified in the study proving that the study was effective. It was also confirmed that 59% of the participants strongly agreed that a powerful guiding union was formed by having effective leaders to lead the finance team. Most of the participants strongly agreed to the effectiveness of the leadership practices such as that of being able to plan and create short term wins for visible improvements. Recommendations made, were to attend to the municipality making sure that resources are readily available to be able to meet organizational goals. The unavailability of resources hinders most processes of the municipality especially that of finance. Another recommendation made was the delegation of responsibility. Every employee should know their responsibility so that one will be able to be accountable for their doings.