THE EFFICIENCY OF CASH MANAGEMENT PRACTICES AT GOVERNMENT AGENCIES IN MELAKA
Abstract
The purpose of this study is to explore the efficiency of cash management practices at government agencies in Melaka. The case study was conducted mainly at the Melaka’s Land and District Offices (Melaka Tengah, Alor Gajah and Jasin) and as well as the Melaka's Land and Mineral Office. A survey was carried out through a set of questionnaires. Out of 472 sample sizes, 215 responses have been obtained from the staff that is directly involved with the cash management practices in those four (4) agencies. Based on the findings, 97.2% of the respondents believed that the Green Cash Management (GCM) practices with the use of the e-SPEKS system have eased the top management to monitor and control the agencies’ cash flows. The findings also recognized that most of the respondents believed the time consuming for transferring the cash has been reduced with the use of Cash in Transit (CIT) (95.4%). In terms of Physical Cash Management (PCM), 88.3% of participants agreed that the quality of services has steadily improved with the practice of physical cash management. Apart from that, based on the responses associated with Talent Management (TM), 98.6% of the respondents agreed that the main priority on talent management of cash management practices is to increase the quality service of the government agencies. The result also indicated that there was a positive relationship between GCM (.628), TM (.657) and PCM (.662) with the Implementation of Cash Management (ICM) practices. In fact, the result also showed that there was a strong positive relationship between CIT (.761) with the ICM practices. The hypothesis results are accepted because all variables which indicate the GCM, CIT, PCM and TM have yielded the positive effects on the ICM practices in government agencies. Acknowledgement of these recommendations is imperative since the cash management practices have the potential to thrive in Malaysia. It will also assist the organization in implementing cash management practices more efficiently including the effectiveness, accountability, transparency and quality.
Keywords – Cash Management Practices, Green Cash Management (GCM), Cash in Transit (CIT), Physical Cash Management (PCM), Talent Management (TM).
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