MASTER PROJECT: Awareness and Understanding of Government Asset Management Policy Implementation...

Mohd. Roszaimy bin Musa (MG131002)Master of Asset and Facilities Management22 December 2014

Final Master Project Presentation

Faculty of Geoinformation and Real Estate

A STUDY ON LEVEL OF AWARENESS AND UNDERSTANDING OF TOTAL ASSET MANAGEMENT MANUAL (TAMM) STRATEGIC IMPLEMENTATION

Valen Lim

TABLE OFCONTENTS 01

IntroductionPages 3 - 7

02Literature Review

Pages 8 - 11

03Research Methodology

Pages 12 - 15

04Data Analysis & Findings

Pages 16 - 19

05Discussion, Conclusion & Recommendation

Pages 20 - 23

0102 03 04 05

Universiti Teknologi Malaysia |

INTRODUCTION+ Issues

+ Problem Statement

+ Research Aim

+ Research Questions

0102 03 04 05

+ Issues

A new accounting standards will be introduced in 2015 known as accrual based accounting and one of its main concern is regarding government asset values in hope for better management in future.(Saleh and Pendlebury, 2006).

However, over the years the Audit Office has encountered dismay reports on government asset management activities.

This is one of the reasons why public perception of public governance has always been negative though GAMP and related procedure has been introduced to govern its management.


Accountability Index Result of Government Financial Management

Low level of understanding and awareness amongst asset personnel on TAMM implementation was reported in previous study.

GAMP introduced as strategic asset management

Did send for training but problem persistence

0102 03 04 05

+ Problem Statement


GAO dismay report on government asset management

Personnel commitment and understanding has relationship to success strategic implementation

0102 03 04 05

+ Research Aim


….to investigate the level of understanding and awareness of asset personnel regarding the elements of implementation in Asset Management Strategy for Government of Malaysia

Contribution

Perception

…. examine the relationship

between understanding the elements of TAMM

implementation strategy and

awareness towards it

0102 03 04 05

+ Research Questions


Research question ONE two Create three Refine

What are the TAMM strategic implementation elements that has been emphasised in MAM?

To identify TAMM strategic implementation element as to whether it is aligned with MAM.

++ Research Objectives

++ Analysis MethodContent Analysis

What is the level of awareness and understanding amongst asset personnel concerning on TAMM implementation strategy in MAM?

What is the relationship between understanding TAMM implementation strategy elements towards the awareness of TAMM implementation in MAM?

To investigate the level of awareness and understanding of asset personnel regarding the TAMM strategic implementation elements.

To examine the relationship between awareness and understanding of TAMM strategic implementation elements.

Descriptive Analysis Correlation and Regression Analysis

1 2 3

0102

03 04 05


LITERATURE REVIEW+ Asset and Asset Management

+ Strategic Management and Strategic Asset Management

+ Government Asset Management Policy

Definition of Asset

Definition of Asset Management

Overview of Strategic Management

Strategic Asset Management

GAMP

Structure of Document

Structure of Responsibility

GAMP Strategic Implementation Elements

0102

03 04 05


+ Asset and Asset Management

Asset can be categorised as current assets and fixed asset, or named as tangible such as physical asset that include property, plant and equipment; and intangible which included knowledge and goodwill (Radu and Marius, 2011)

ISO 55000 defined asset as an item, thing or entity that has potential or actual value to an organisation.

Government asset is type of property that under government possession that needs to be managed and administered to enhance the benefit towards service delivery.

…. integrated management activities of different expertise to add values and increase asset benefit towards achieving organisation goals.

Contribution

people process

money

maximise asset value

0102

03 04 05


+ Strategic Management and Strategic Asset Management

strategic formulation

strategic implementation

strategic evaluation

people process

technology

strategic asset management

businessgoal

Jolicoeur& Barret (2005)Bryson (2004)

Kohtamakii (2011)Atkinson (2006)

Lutchman (2006)Amadi-Enchendu (2007)

Laue et. al (2012

David (2012) Bryson, Barbara and Bryson (2009)

need communicateYang, Sun and Eppler (2009) Stapleberg (2006)

Woodhouse (2006) Mardiasmo (2008)

Maheswari (2006)planning

0102

03 04 05


+ Government Asset Management Policy (GAMP)

GAMP Strategic

Implementation Element

process

governance

technology

human

Policy (GAMP)

Manual (TAMM)

Asset Procedure

Supporting Documents

Asset Owner

Asset Managers

Asset Operator

Misnan (2012) claimed that the level of willingness of government officers toward GAMP was high amongst non-movable asset personnel.

Yusof (2013) discovered level of awareness and understanding of TAMM were low and nearly 50% did not understand TAMM.

Berahim, Jaafar and Razali (2013) concluded that through good governance would help to minimise problem facing by government agency in managing assets.

Have common traits in research methodology and main respondents. Not touch on all elements of GAMP strategic implementation.

01 0203

04 05


RESEARCH METHODOLOGY+ Procedure One

+ Procedure Two

+ Procedure Three

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04 05


+ Procedure One

Bowen (2009) argued that document analysis provided better triangulation upon potential biases by giving more insight upon situation that need to be observed and verifying the finding from other sources.

Therefore, examining the government’s documents regarding movable asset management would help to enhance the knowledge on asset management practice.

To identify TAMM strategic implementation element as to whether it is aligned with MAM.

GAMP Elements Coding

Governance Controlling Officer, Head of Department, UPA, Asset Officer, Annual Report

Process Registration, Life cycle process, Cost saving, Environmental friendly, Safe and secure, Reporting , Asset performance, Asset condition, Procedure setting

Technology SPA, Asset coding, Cooperation/ collaboration, Provider

Human Number of officer, Competency, Skills, Certified, Appointment of officer, Duration of appointment, Culture / Programme

8 M

AM

Pro

ced

ure

s

5

17

710

TA

MM

01 0203

04 05


+ Procedure Two


002 pilot study session

010 panel of experts select007 experts run validation

032 preliminary respondents

031 data run reliability test

ALL acceptable questions

350 main respondents

152 federal departments

024 federal ministries

003 weeks of completion

ALL email distribution

42 items of questions

18 awareness questions

18 understanding questions

06 background questions

03 sections

05 likert-scale measurement

005 Descriptive analyses

001 Respondent attribute

001 Level of awareness

001 Level of understanding

002 Cross-tabulation

001 Rank Total Mean Scores

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04 05


+ Procedure Three


Hypothesis

Code

Hypothesis Statement Test

Correlation Analysis

Regression Analysis

H1 significant relationship




H5 significant contribution

Total Awareness

Governance

Process

Technology

Human

H1

H5

H2

H3

H4

independent variables

dependent

variables

Level of Understanding

01 02 0304

05


DATA ANALYSIS & FINDINGS+ Findings of Procedure One

+ Findings of Procedure Two

+ Findings of Procedure Three ab

d e

Through content analysis, all 4 TAMM strategy implementation elements were found in 8 procedures documents

Element of process has the highest score of observation.

Most respondents were in Assistant Asset Manager position and from federal departments.

Level of awareness and understanding were good.

However, respondents perceived higher on level of understanding compared to level of awareness.

Correlation analysis has resulted with significant relationship between all independent variables and dependent variable.

Multiple regressions analysis has demonstrated that the element of process contribute 55.40% toward the awareness level of asset personnel.

01 02 0304

05


+ Findings of Procedure One

MAM Procedure Documents

Governance

Process Technology Human

Role and Responsibility

Introduction to MAM

Receiving of Asset

Registration of Asset

Handling, Safekeeping and Inspection

Maintenance

Disposal

Theft and Write-off

TOTAL OBSERVATION SCORE 15 43 9 7

… first research objective was successfully accomplished as all 4 elements of TAMM implementation strategy was found in MAM procedures.

Please refer Appendix B

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05


+ Findings of Procedure Two

68%

Respond Rate

60%

Ass. Asset Manager

Involvement

Support Service Group Involvement

53%

Training forMAM

Procedure

61%

Have 1 – 3 Years

Experience

44%

Working in Departmen

t

77%

Managing Movable

Asset

31%

Respondent Attribute

Awareness Understanding

Asset Manager

Ass. Asset Manager

Professional group

Ministry

Work more 5 years

TAMM Training

Both Training

Movable only

Movable and Immovable

0

1

2

3

4

5Governance

Process

Technology

Human

… level of awareness was lower than level of

understanding of TAMM strategic implementation

elements.

01 02 0304

05


+ Findings of Procedure Three

Total Awarenes

s

Gover

nanc

e

.685

*

Process.744*

Human

.631*Te

chno

logy

.647

*

R2 = .5670.00*

R2 =.554

X2

.000**.008**

R2 =.013

X1

X3 X4

Y = 0.452 + 0.206X1 + 0.610X2

* P < 0.05 ** ΔF Sig. < 0.05

… there were positive relationship between understanding the elements of TAMM strategic implementation towards total awareness of asset personnel

… understanding the element of process and governance have significantly contributed 56.70% towards the total awareness of asset personnel while 44.30% is contributed by other variables.

01 02 03 0405


DICUSSION, CONCLUSION & RECOMMENDATION

+ Discussion

+ Conclusion

+ Recommendation

+ Summary of the study

RQ No. RQ ObjectiveAnalysis Used

Results

1To identify TAMM strategic implementation element as to whether it is aligned with MAM.

Content Analysis

All 4 elements of TAMM implementation strategy has been found in MAM procedures.

2


Descriptive Analysis

Level of awareness and understanding were good. However, respondents perceived higher on level of understanding compared to level of awareness.

3


Correlation and Regression Analysis

Understanding the elements of TAMM strategic implementation has positive relationship with total awareness of asset personnel.Besides, elements of process and governance contributed 56.70% to increase their total awareness.

01 02 03 0405


+ Discussion

RQ No. Results Author (Year) Supported Literature

1

All 4 elements of TAMM implementation strategy has been found in MAM procedures.

Mardiasmo (2008)Asset management performance rest in governance issues that materialised from working procedure, reporting setting, dedicated organisation and officers.

2

Level of awareness and understanding were good. However, respondents perceived higher on level of understanding compared to level of awareness.

Misnan (2012)Yusof (2013)

Has commitment to improve practice in GAMP.Contrary to the findings on TAMM implementation awareness and understanding amongst non-movable asset managers were low and nearly 50% did not understand what TAMM is all about.

3

Understanding the elements of TAMM strategic implementation has positive relationship with total awareness of asset personnel.Besides, elements of process and governance contributed 56.70% to increase their total awareness.

Atkinson (2006)Kohtamaki (2011)

Lack of understanding, staffs participation in strategic planning has significant impact towards strategy implementation and effected organisation performance.

Lutchman (2006)Laeu (2014)Mardiasmo (2008)Berahiim, Jaafar and Razali (2013)

Understanding the process function linked people and technology to produce a better quality in delivering its service to achieve organisation desired goal. Emphasised good governance contribution to help in minimising problem in managing government asset.

01 02 03 0405


+ Conclusion

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+ Recommendation

Federal asset personnel should have knowledge or understanding of those elements to interpret its presence in the procedure.

Assistant Asset Manager and Support Service Group officer need further training to increase their understanding on TAMM.

Federal ministry and department agency should have prudent plan to increase the understanding level of its asset personnel regarding TAMM

Improving the sample technique to include asset personnel from state and district department, thus a bigger population of UPA can derive a better result in future

It is recommended that to look from Asset Owner or Asset Operator or User perspective of Government Asset Strategic Management

UPA OFFICER FEDERAL AGENCY FUTURE STUDY

Thank You


APPENDIX A : VALIDITY AND RELIABILTY TEST RESULT

Sekaran and Bougie (2009) had mentioned that any item under 0.60 is considered to be poor and value that falls between 0.60 and 0.70 is considered acceptable for internal reliability level of research instrument. It has been suggested to accept question code B14 because panels of expert have validated it and no suggestion from any panels to drop or amend the question during the first phase of pilot study session.

TAMM Elements

Component

Governance Top management involvement

Organisation structure

Management review

Process Asset recognition

Asset Life Cycle

Cost Saving

Established process

Process setting

Clarity of the process

Performance indicator

Reporting

Technology System usage

Monitoring system

Promoting innovation

Human Qualified workers

Competency development

Competency assessment

Foster culture change

Universiti Teknologi Malaysia |Page 25

APPENDIX B : STRATIFIED SAMPLING TECHNIQUE

n = number of sampleN = number of populatione = p-value (0.05)

*each federal agency has an average of three (3) officers to manage the assets.


APPENDIX B : DESCRIPTIVE ANALYSIS


APPENDIX C : CORRELATION ANALYSIS


APPENDIX C : MULTIPLE REGRESSION ANALYSIS

MASTER PROJECT: Awareness and Understanding of Government Asset Management Policy Implementation...

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