CHAPTER THREE

3. Research Methodology

3.1 Introduction

The research states what was really performed and how the study was accomplished describingand
define the type of the research design used and procedures chosen for collecting data &making analysis
together with the reasons behind their application in detail as well as in practical terms.

3.2 Research objective

The main objectives of this study are to assess the budget implementation and controlling system of
Assosa town finance and economic development office.

3.3 Research Approaches

Research approaches are mechanisms of attaining research objectives. The approaches are Depend to
achieve the best alternate possible of the research objectives. Research approaches areal so depend
based on the feasibility of the choose and selected approaches. The common best research approaches
are quantitative, qualitative and mixed research approaches. Quantitative approach uses surveys of
cross-sectional or longitudinal using self administered semi structured questionnaires or structured
interviews for data collection, with the intent of generalizing from a sample to a population (Babbie,
1990).

A qualitative research approach uses strategies of inquiry including narratives, ethnographies, case
studies, observations, interviews, and the results are communicated subjectively through descriptions
using words rather than numbers (Creswell, 2003, p.186-187). Moreover Qualitative researchers tend to
use open-ended questions so that participants can express their views. Under this method contact with
the field of research may be based on interviews, observations, or analysis of documents and other
artifacts.

In addition, literature studies are performed to the extent required to develop sensitivity in observation
and interpretation (Atkinson and Hamersley, 1994).

Finally, a mixed methods approach is one in which the researcher tends to base knowledge claims on
pragmatic grounds (e.g., consequence oriented, problem-centered, and pluralistic). It employs strategies
of inquiry that involve collecting data either simultaneously or sequentially to best understand research
problem (cress 1well, 2009).The data collection also involves gathering both numeric information (e.g.,
on instruments)as well as text information (e.g., on interviews) so that the final database represents
both quantitative and qualitative information. The advantage of a quantitative research approach may
be limitations for a qualitative approach and vice versa. Mixed research approach, is supposed to tap the
limitations of quantitative and qualitative approaches, bases on pragmatic knowledge claims (Sale et al,
2002). The goal for researchers using the mixed methods approach is to draw from the strengths and
minimize the weaknesses of the quantitative and qualitative research approaches by combining
them(Carrie, 2007).

3.4 Research Methods

This research uses both quantitative and qualitative approaches. According to Creswell (2003)each
approach has limitations which are possible to be minimized using the combined research approach. For
example quantitative approach may cause bias in reliability of findings because of the nature of research
problem, non-representativeness of sample or the nature of questionnaires that predicts clue. In
addition it is difficult to minimize the impact of human behavior using quantitative approach. Joseph
(2006) justified that qualitative techniques can increase a research‟s depth of understanding of the
phenomenon under investigation. Qualitative approach is exploratory and flexible in nature to identify
problems that are affected by human behavior. Regardless of the above advantage, qualitative research
design has its own demerits: lack of standardized rules reduces the objectivity of the findings, the
personal view and stand of the researcher may induce bias in the interpretation of the data, and the
findings cannot be statistically generalized for a broader population under investigation (Creswell,
2003).Hence, the combined methods are aimed to complement one another and gather reliable
Information to draw representative outcome and conclusion.

3.4.1 Qualitative Approach

Qualitative research approach is a means for exploring and understanding individuals or groups scribe to
a social or human problem (Creswell, 2009). Qualitative research is typically used to answer questions of
complex phenomena. Thus, in the current study qualitative data is needed to address the final research
objective statedas identifying specific areas of problem in budget utilization and controlling within the
office of finance and economic development2

3.4.2 Quantitative Approach

As noted earlier a quantitative approach is one in which the investigatory primarily usespostpositive
claims for developing knowledge, employs strategies of inquiry such as experiments and surveys, and
collect data on predetermined instruments that yield statistics data. Survey Research provides a
quantitative or numeric description of trends, attitudes, or opinions of a Population by studying a
sample of that population. Even if there are two strategy of inquiry under quantitative approach, this
study will use a survey design. Survey method is advantageous for its merit of economy of design and it
enables to gather enough information, which may not available from other source

3.4.3 Survey Instrument

The survey instrument contains both open and closed ended questions. There is one open-ended
question that gives the respondent freedom to indicate the area not mentioned in the close ended
questionnaire. The close ended questionnaires are developed in three sections. The first one is on the
general aspect of the respondent and the second one is developed based on standard of budget
utilization and controlling and to evaluate whether the status and experience of the respondents has the
challenge of integration of budget and plan &also used to the reason for budget variation from actual
performance and the third one is how to conducting performance audit and internal control are in those
samples of BoFEDThis section uses questions to finance and internal audit employees with response
ranging from strongly agree to strongly disagree. Finally this method of data collection was considered
appropriate because the information sought is not publicly available and the finance department
employees including internal auditors in the office are in a good position to know the answers to the
questions asked (see the instrument in appendix I).

3.4.4 Sample Design

According to research scholars, sample shouldn‟t be too large to be economical and shouldn‟t be too
small to keep validity of findings. Despite the fact that this study used two sampling stages. Therefore
the researcher is to collected data from Assosa town finance and economic development office 20
employees (including top management body). 3

3.5. Data Sources

The type of data collection method is a great value to interpret them properly. The data gathered
through primary and secondary methods were analyzed using both primary and secondary data analysis
methods. The data collected in the course of questionnaire, analyzed and presented through descriptive
statistics such as tables, graphs, and percentages. Qualitative method of data analysis was also
employed for feedbacks obtained using open-ended questionnaires and structured interviews for each
of response given by respondents of budget user staffs Assosa town Administration Finance and
Economic Development Bureau & other pull sector.

Budget Experts and from Audit Bureau Auditor general in explanatoryway. For possible achievement of
the objective of the paper the researcher would use bothprimary and secondary data, Primary data was
obtained from oral interview and questionnaire from in charge, and higher official and observations and
Secondary data was collected from These include data that have been already collected and readily
available from other sources.

3.6. Sampling Techniques

The researcher would use judgmental sampling technique is used to gather data. Because it was
believed that judgmental sampling was more representative and appropriate to gather the necessary
data for this particular research.

3.8. Data Collection Methods

In order to gather the data, the researcher employed both open and closed questionnaires since it is
more convenient and easy to collect the required information.
Interview: the bureau of finance and economic development plan, budget, monitoring and evaluation
process to get the correct baguette preparation and implementation system of Assosa town finance
bureau ,

Questionnaires: two types of questionnaires that one is for plan, budget, monitoring and controlling
process employee and the other for Finance core process and Modern Internal AuditCore Process
employees. The questionnaires which comprise both close ended and open-4ended is prepared in
English that respondents easily understand the question and give appropriate answer.

3.9. Data Analysis

According to the researcher, the appropriate method of analysis for the study is descriptive method.
Categorization or separations of data set was also a form of analysis to make the data easily
manageable. Organizing, editing, ordering and manipulating the data were provided descriptive
information that answered questions in the problem defined. The study has attempted to describe
consistency in the analysis of data. The research employs quantitative data analysis, such as percentage,
simple tables, charts and qualitative methods because the researcher using the percentage to make
dealer the assumption of respondent Both ways of budget implementation and controlling practice the
data analysis is based on the reply by the respondents on their degree of agreement or disagreement
with each of the Questions on a Liker response scale (Likert, 1932) however the analysis is based on how
many responses of the respondents is close to this expected value.

3.10 Expected result and output of the study

The researcher tries to enhance the economically, effectively and efficiently utilization of budget for
development and also mitigate the existing problem to sustaining rapid and equitable growth, therefore
the expected result on this study is they may be improper utilization of budget with lack of continues
controlling and taking corrective action for poor management .To measure budget performance, they
need to monitor the extent to which budget estimates match actual results. This helps ensure financial
control and identify where change is required. Monitoring budget accuracy is the responsibility of all
managers, effective monitoring of budget performance requires that managers be provided with
relevant, timely and accurate information appropriate to their level of responsibility. It also requires
managers to provide feedback in a timely manner about underlying causes and effects of budget
variations, as well as planned actions to manage variations. The effectiveness of internal financial
reporting is likely to be enhanced when reports are prepared for each level of budget accountability and
summarized appropriately for each level of management4