1. technology and computing
2. hardware
3. computer peripherals
4. printers, copiers and fax
5. scanners

THE IMPLICATION OF USING BIOMETRIC SYSTEM ON
PAYMENT OPERATIONS OF AN ORGANIZATION: A
CASE STUDY OF ONE NON-GOVERNMENTAL
ORGANIZATION
BY
NANCY JEPKOECH KOSKEI
UNITED STATES INTERNATIONAL UNIVERSITY
SUMMER 2014
THE IMPLICATION OF USING BIOMETRIC SYSTEM ON
PAYMENT OPERATIONS OF AN ORGANIZATION: A
CASE STUDY OF ONE NON-GOVERNMENTAL
ORGANIZATION
BY
NANCY JEPKOECH KOSKEI
A Project Report Submitted to the Chandaria School of Business in
Partial Fulfillment for the Degree of Executive Masters in
Organizational Development (EMOD)
UNITED STATES INTERNATIONAL UNIVERSITY
SUMMER 2014
STUDENTS DECLARATION
I, the undersigned, declare that this is my original work and has not been submitted to any
other college, institution or university other than the United States International
University in Nairobi for academic merit.
Signed: ____________________________
Date: _________________________
Nancy Jepkoech Koskei (ID. No. 641051)
This project has been presented for examination with my approval as the appointed
supervisor.
Signed: ____________________________
Date: _________________________
Dr. Paul Katuse
Signed: ____________________________
Date: _________________________
Dean, School of Business
ii
DEDICATION
I dedicate this document to the almighty God who kept me healthy during the learning
process. I also dedicate this work to my loving husband, Joshua for his moral and
financial support. I also dedicate this work to my children, Ntinai, Kibos and Sereti for
their understanding that allowed me to strive for academic excellence.
iii
ACKNOWLEDGEMENT
My gratitude goes to Dr. Paul Katuse for his guidance throughout this project. I am also
grateful to the business school faculty staff who indirectly or directly contributed to this
research as well as the respondents from the study organization and Korogocho slum for
their patience and participation in this study.
iv
ABSTRACT
The purpose of the study was to determine the knowledge, attitude and practice towards
the introduction of Biometric System (BS) for payment of Per diems in the organization.
The study reviewed the current per diem payments operational issues, staff and clients
attitude, perceptions, and knowledge using the BS system and recommendations for
improvement.
The study was conducted in Nairobi organization office and the project sites in
Korogocho slum. Staffs in both offices were interviewed using a structured questionnaire.
Both action and descriptive research techniques were used. The target population were
the policy makers and users of the system namely: Program and Finance managers in both
offices, community health workers in Korogocho. Staff from the Department of Family
Health, Ministry of Health. The recommendations from this study assisted inform strategy
on the way forward for the use of the BS system for the payment of per diems.
The study adopted a descriptive research design. The total population for this study was
100 organization and client staff. A sample size of 80 was used and respondents were
given questionnaires to fill, focus group discussion respondents participated. Five
managers through simple random sampling participated in the study. Structured
questionnaires and Focus group discussions were used to solicit for information from
respondents. A pilot test of the tools was done in a non- program site in Kakamega to test
the efficacy of the tools. Data gathered was coded and analysed using the IBM SPSS
Statistics software.
Study results showed that 45% of the respondents agreed that payment of per diem to
clients using BVR has reduced cash handling while three quarters either agreed or
strongly agreed that use of BVR has helped reduce fraud drastically. When asked whether
use of BS has made payments easy, more than three quarters (83%) agreed or strongly
agreed. Nearly one third of staff disagreed that use of the system has fastened the
reconciliation of advances.
A majority of staff (79%) said there was proper communication regarding the new system
to all staff before it was launched. 29% of respondents said they have not seen a manual
v
on which they can make reference while slightly more than one quarter (16.3%) were not
sure whether such a manual exists. Only 57% of participants in the study felt they were
competent enough to comfortably use the system. Nearly half (49%) said they is no or
were not sure whether a feedback mechanism on the system was in place which could be
used by staff. Almost two-third of staff agreed that compared to the previous system, the
BVR was excellent.
The study concludes that the use of biometric system in operational issues has made it
more efficient and the risk involved minimized, as well as achievement of technological
advancement as the organization is headed towards having paperless payments. This BS
payment system has saved on time, cost and the system has reduced untimely receipt of
perdiem payment, hence the BS has made payment processing efficient and faster. The
employees also perceive this system as excellent compared to previous systems of
payment. The clients also appreciated the system as easy to use and understand as they
could use their current basic computer skills to access and use the service.
Given the above conclusions, frequent orientation meetings should be held to update staff
on the system and for the continued improvement of BS payment service. The payment
system should extend to all staff even those who don‟t receive or make payments.
Currently the BS system is used for payment of per diem, the same service should be
extended to all operations in the organization, including payment to vendors. In addition,
more digital equipment namely the finger printing gadgets that are able to sense all
fingers not only on thumb, need to be provided.
vi
TABLE OF CONTENTS
STUDENTS DECLARATION ........................................................................................ ii
DEDICATION ................................................................................................................. iii
ACKNOWLEDGEMENT ...............................................................................................iv
ABSTRACT........................................................................................................................ v
LIST OF TABLES ............................................................................................................ix
LIST OF FIGURES ........................................................................................................... x
LIST OF ABBREVIATIONS ..........................................................................................xi
CHAPTER ONE ................................................................................................................ 1
1.0
INTRODUCTION ............................................................................................................ 1
1.1 Background of the Study............................................................................................. 1
1.2
Statement of the Problem ................................................................................................. 3
1.3
Purpose of the Study......................................................................................................... 4
1.4
Research Questions .......................................................................................................... 4
1.5
Importance /Significance of the Study ............................................................................. 4
1.6
Scope and limitation of the study ..................................................................................... 5
1.7
Definition of Terms .......................................................................................................... 5
1.8
Chapter summary.............................................................................................................. 6
CHAPTER TWO ............................................................................................................... 7
2.0
LITERATURE REVIEW ................................................................................................. 7
2.1
Introduction ...................................................................................................................... 7
2.2
Per-diem Payment Operational Issues and Employee Perception .................................... 7
2.3
Staff Practices of Biometric System ...............................................................................12
2.4
Staff knowledge of the Biometric System ......................................................................17
2.5
Staff and Clients recommendations for the use of the biometric system........................21
2.6
Chapter Summary ...........................................................................................................24
CHAPTER THREE ......................................................................................................... 25
3.0
RESEARCH METHODOLOGY ................................................................. 25
3.1
Introduction ....................................................................................................................25
3.2
Research Design .............................................................................................................25
3.3
Population and Sampling................................................................................................25
3.4
Data Collection ...............................................................................................................28
3.5
Research Procedure ........................................................................................................28
3.6
Data Analysis .................................................................................................................29
vii
3.7
Chapter summary............................................................................................................29
CHAPTER FOUR ........................................................................................................... 30
4.0 RESULTS AND FINDINGS ..................................................................................... 30
4.1 Introduction ..........................................................................................................................30
4.2
Demographic information ..............................................................................................30
4.3
Per diem Payment Operational Issues and Employee Perception ..................................33
4.4: Staff Practices Using Biometric System ................................................................. 35
4.5
Staff perception ..............................................................................................................38
4.6
Staff poor knowledge of computer technology ..............................................................42
4.7
Ways in which the biometric system has worked...........................................................44
4.8
Staff and clients recommendations for the use of the biometric system ........................44
4.9
Chapter Summary ...........................................................................................................45
5.0 DISCUSSION, CONCLUSION AND RECOMMENDATIONS ........................................46
5.1 Introduction ..........................................................................................................................46
5.2 Summary ..............................................................................................................................46
5. 3 Discussions ..........................................................................................................................47
5.4 Conclusion ............................................................................................................................50
5.5 Recommendation ..................................................................................................................51
REFERENCES ................................................................................................................ 53
APPENDICES .................................................................................................................. 57
APPENDIX 1: RESEARCH QUESTIONNAIRE ........................................................ 57
APPENDIX 2: FOCUS GROUP DISCUSSION GUIDE ............................................. 61
APPENDIX 3: BUDGET ................................................................................................ 63
viii
LIST OF TABLES
Table 3.1: Distribution Table ............................................................................................ 27
Table 4.1: Age of respondents ........................................................................................... 30
Table 4.2: Gender of respondents ...................................................................................... 31
Table 4.3: Respondents marital status ............................................................................... 31
Table 4.4: Workstation respondents .................................................................................. 32
Table 4.5: Respondents department ................................................................................... 32
Table 4.6: Respondents length of employment.................................................................. 33
ix
LIST OF FIGURES
Fig 4.1: BVR has made per diem payment paperless ........................................................ 33
Fig 4.2: Reduced cash handling ......................................................................................... 34
Fig 4.3: Minimized fraud ................................................................................................... 34
Fig 4.4: Timely reconciliation of advances........................................................................ 35
Fig 4.5: Link financial payment to with program targets .................................................. 36
Fig 4.6: More employees and clients acquired phones for Mpesa ..................................... 36
Fig 4.7: Reduced untimely receipt of per diem payment by staff and clients ................... 37
Fig 4.8: Made payment easy .............................................................................................. 38
Fig 4.9: Communication done well .................................................................................... 38
Fig 4.10: Current computer skills enabled access and use of system ................................ 39
Fig 4.11: Feedback mechanism already in place ............................................................... 40
Fig 4.12: Alternative payment in place .............................................................................. 40
Fig 4.13: Employees supported and assisted promptly...................................................... 41
Fig 4.14: Employees perceive system as excellent compared to previous ........................ 42
Fig 4.15: Users trained and competent .............................................................................. 42
Fig 4.16: All staff competent and using the system ........................................................... 43
Fig 4.17: Manual already in place...................................................................................... 43
x
LIST OF ABBREVIATIONS
AIDS-
Acquired Immune Deficiency Syndrome
BBL-
Brown Bag Lunches
BS-
Biometric System
BVR-
Biometric Verification System
CHW-
Community Health Worker
HIV-
Human immunodeficiency Virus (HIV)
IBM-
International Business Machines
ICT-
Information, Communication and Technology
ID-
Identification Card
IT-
Information Technology
NGO-
Non Governmental Organization
SPSS-
Statistical Package for Social Sciences
xi
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
Biometrics is defined as the use of physical characteristics of a person in order to identify
them (Garza & Ricter, 2011). A positive identification proves that the person is who they
say they are. A false identification can demonstrate that this person is not who they say
they are. This can be for commercial or criminal matters.‟ The Biometrics was invented in
1800 and used for body measurement called Bertillonage (named after an anthropologist
and police desk clerk, Alphonse Bertillon).
The term Biometrics has two words, Bio means life and metrics means measure. Thakral
et al (2012) eludes that in verification system the biometric information of person
presented compares with what already exists in the database for each entry. The person
then gives the system, some sort of biometric information. The system then decides,
whether a match can be made corresponding to a stored information on the data base.
Thakral, Rai & Thakral (2012) submits that „Biometrics‟ is a technology used to measure
and analyze both physiological and behavioral characteristics of a person. These
characteristics include finger print, voice patterns, hand measurements and iris. These are
used to identify the authenticity of a person. The biometrics is tightly connected to an
individual. It cannot be forgotten, stolen or hacked easily (Thakral, et al 2012).
Finger biometric is a fingers scanning technology. It is oldest time tested technology. It is
highly accurate biometric technology. The patterns and presentation of fingerprints are
different for each individual. They are unchanged with the growth of the body as defined
by Thakral, et al (2012). The fingerprint patterns are hereditary. They never change
throughout your lifetime. FBI has reported that no more than 8 common minutes can be
shared by two individuals. Typical finger print system extracts between 30 to 40 minutiae
points
from
a
single
captured
fingerprint.
Accuracy
level
of
fingerprint
verification/identification biometric system is very high. They are secure, fast, reliable
and easy to use. However, their use for access security requires special input devices.
In Africa, this system has widely been used to conduct elections and clinical studies. A
case in point is the Centre for the AIDS Programme of Research in South Africa
1
(CAPRISA) study conducted in South Africa in 2008 for 185 women were in violation of
the HIV exclusion criteria. In this study the Biometric Co-enrolment Prevention System
(BCEPS) through digital finger printing was used to prevent co-enrolment in multiple
clinical sites. The co-enrolment would present challenges of double reporting. “..In using
the BCEPS, we performed real-time „flagging‟ of women who were already enrolled in
another study as they entered a trial at an HPRU site and, where necessary, excluded them
from participation on site. This system has promise in reducing co-enrolment in clinical
trials and represents a valuable tool for future implementation by all groups conducting
trials. The MRC is currently coordinating this effort with clinical trial sites nationally”
(Harichund, Harispersad, & Ramjee, 2013)
Despite the system success there were gaps identified, for example in the CAPRISA study
for the system to recognize an individual you have to present an identity card number and
there are times when fake IDs are presented. The study was not an exception; in this case
the database was unable to recognise these kinds of study participants. There is also
mention of shared IDs in the case of identical twins, hence data being recognized as one
instead of two. Lastly, the database could not provide real time updates on participant
information including bio data which was crucial for the study.
The Biometric system has also been used by the banking sector for identity
authentication. This technology measures and analysis human physical and behavioural
characteristics for authentication purposes (Pooe & Labuschagne, 2011).
E-voting has been introduced in Nigeria and Kenya for its national political elections. The
e-voting using the Biometric Verification System‟s has been used to identify and
authenticate a voter. Automating an election process is costly and requires highly skilled
staff and equipment (computers) to ensure smooth running of the process (Okwong,
2012). In this study Okwong (2012), provides recommendations for the Nigeria
government to adopt the e-voting system to address the myriad of challenges this country
had encountered over the years in the electoral process.
The challenges experienced included among others a system failure on the day of the
elections, the system rejecting some valid voters, hacked central data base, among other
complaints. The accuracy and correctness of the e-voting system was jeopardized by
some voters casting their votes twice. The positive side was that the system provided „real
time‟ numbers of votes cast and minimized the time for counting votes.
2
The above examples show how the Biometric system has been utilized by various
countries and organizations for different purposes.
The organization decided to try out using technology in addressing verification gap when
making payments, hence the introduction of Biometrics System for payment of per diems.
The adoption of this system has been both positive and negative. The BS has been able to
address speedy per diem payments due to: lack of Identification Card for verification or
authentic purposes. Illiterate clients fall under this category as they cannot write and sign
documents, the Program officers are now able to avoid double payments, finance
reconciliation is immediate as what is paid is linked to the database
There have been challenges to the system: Culture issues have hampered its quick
utilization. Older workers are likely not to embrace technology in the workplace, for the
„fear‟ of technology (Koning & Gelderblom, 2004).High level of computer illiteracy
among the staff and clients is deterrent to usage. Lack of internet connectivity in the rural
areas making it difficult to clients in the rural areas.
1.2 Statement of the Problem
NGOs supporting the public sector are grappling with challenges of mode of paying per
diems to public sector staff. The fear of fraud has been seen as the bigger impediment to
financial handling and payments which has often led to an organization being de-funded
or de-registered. As the journal of accountancy defines it, fraud is (Lawrence & Wells,
2004) a means which human ingenuity can devise, and which are resorted to by one
individual to get an advantage over another by false suggestions or suppression of the
truth. Fraud manifests its ways in many forms for example it includes tricks, cunning or
dissembling, and any unfair way which another is cheated.
An NGO staff implements program activities outside the work station, meaning that
travels to the field are frequent. The nature of the field work includes supporting public
sector training activities and workshops. The participants who attend workshops need to
be facilitated to receive per diem and these payments are made in cash meaning that the
NGO program staff has to travel to the field or workshop site to make the payments. At
times human error can lead to the staff making double payments to a participant. It is
therefore against this background that the organization introduced a biometric payment
system to streamline efficiency in cash transactions.
3
This study intention was to demonstrate, confirm or rule out the above mentioned benefits
and challenges. The recommendations of this study will assist inform strategy on the way
forward for the use of the Biometric system.
1.3 Purpose of the Study
The purpose of the study was to determine usage, knowledge and practice of using the
Biometric Verification System for payment of per diems
1.4 Research Questions
1.4.1 What are the current per diem payments operational issues?
1.4.2 What are the staff practices of Biometric system?
1.4.3 What is the staff knowledge of Biometric system?
1.4.4 What are the staff and clients recommendations for the new payment system?
1.5 Importance /Significance of the Study
This study plays an important role in identifying workable payment mechanism that will
be used by development organizations working with the public sector and clients in the
rural areas. The beneficiaries are:
1.5.1 International Non-Government Organizations or development partners
The study will inform NGOs and other development partners on how best to facilitate per
diem payment to organizations and Ministry of health staff. It will also cut down on
number of staff required to manage payment process. In addition, using the payment data
base will provide real time program targets, for example it will be easy to determine
training numbers. By using biometric finger printing, personal identification is sent
directly to the database capturing training information.
1.5.2 Public sector
The findings will promote the use of biometric payment among the NGOs supporting the
Ministry of Health. It will also alleviate double payments and wrong participants
attending training activities. The public sector will get accurate information on number of
4
people trained and improve on monitoring. Using biometric will alleviate delays in per
diem payments to the recipients who are mainly MOH staff.
1.5.3 Community Health Workers
The study will provide a mechanism to provide per diem payment to the community
health workers in the rural areas. Currently, they receive cash directly from program staff.
At times the community Health workers do not have documentation like identification
card to authenticate them and hence making it difficult in verification.
1.6 Scope and limitation of the study
The scope of the study will comprise the organizations headquarter staff and clients in
Nairobi slum area. The study will use strata methodology where Policy makers, program
staff and Ministry of Health service providers and community workers will be
interviewed. Both female and male respondents will be included in the study.
1.7 Definition of Terms
1.7.1 Biometrics
Bio means life and metrics means measures. This is technology used to measure and
analyses both physiological and behavioral characteristics of a person.(International
Journal of applied engineering research; Vol.7,No.11, 2012).
1.7.2 Verification
Verification is the comparison of biometric information of the person to one specific
entry on a database that corresponds to the person (Thakral, Rai, & Thakral, 2012).
1.7.3 Authenticity or Biometric recognition
It refers to the automated recognition of individuals based on their biological and
behavioral traits. The traits include finger prints, face, Iris, retina, voice, signature etc.
(Jain, 2013).
1.7.4 Per Diem
The term per diem means „daily‟. In a business setting, the term has come to mean the
daily rates employees use for expenses incurred while traveling on business-related
activities. These rates are likely to differ based on whether the employee travels in his or
5
her home area, away from home, or internationally. The per diem allowance is the
amount given to a traveler to cover expenses such as lodging, meals, and entertainment in
connection with the performance of service duties for a company (Encyclopedia of small
business, 2007).
1.7.5 Real time
Real time refers to the quick and immediate feedback on electronic participant
identification and verification numbers for example for the CAPRISA HIV study, real
time is referred as…to prevent co-enrolment and to ensure a unique and secure
mechanism of identification that provided „real time‟ updates. (Harichund, Harispersad,
& Ramjee, 2013).
1.8 Chapter summary
This Chapter gave a brief background of the biometric system usage in various spheres to
include electoral voting, banking and registration. The chapter highlighted the challenges
the organization is facing in handling its per diem payment issues. The purpose of the
study determines the Knowledge Attitude and Practice towards the use of Biometric
system for payment of per diems. The three research questions that will be used to
investigate the problem were outlined as well as the importance of the study. The scope of
the study will comprise the organizations headquarter staff and clients in Nairobi slum
area.
The next chapter will discuss the existing literature pertaining to the research questions.
The research questions are; the current per diem payments operational issues; Staff
practices of Biometric system; Staff knowledge of Biometric system, Staff and clients
recommendations for the new payment system.
Chapter three will detail the research methodology that was used for the study and this
relates to research design, population and sampling design, data collection methods,
research procedures and data analysis methods. Chapter four will focus on results and
findings of the study. Finally, chapter five will have the discussion, conclusions and
recommendations based on results and findings of the study.
6
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
This chapter will provide a literature review pertaining to studies done by scholars on
biometric system in relation to financial payments and the implications of use. The
chapter will explore use of the Biometric system and specifically dwelling mostly on the
operational issues as pertaining to financial payments. The operational issues are divided
as follows; Per-diem payment operational issues and employee perception, Staff practices
of biometric system, Staff knowledge of the biometric system and Staff and Clients
recommendations for the use of the biometric system. Each of these operational issues
have been broken down to several issues that influences biometric financial payments.
2.2 Per-diem Payment Operational Issues and Employee Perception
2.2.1 Paper Based Handling of Per Diem Payment
The current operating procedure is that transfer of cash from the payee to the recipient is
authenticated through signature endorsements on paper. Paper has become the mode of
confirmation that payments took place. Due to pressure of work, the current practice is
that when these payments are done in a workshop setting, the coordinator of the activity
circulates a form to all participants where they are expected to fill in individual‟s bio data
details including: full names, work station and phone number. The coordinator then uses
this list to make payments. Depending on the number of participants lots of paper is
required for this is transaction. Separate sheets of paper will be required for: Meals and
incidental cost, transport expenses (valid public transport receipts only), lodging cost and
miscellaneous costs like photocopying costs (Jhpiego, 2013).
The banking sector is way ahead in reforming the way financial transactions are handled
from in the earlier days through paper based to full automation. The purpose here is to
7
reduce the time and amount of paper generated to handle these payments. The experience
from banking has revolutionized the financial payments to more technology oriented,
which less costly in terms of maintenance, low number of labour required to manage the
process, hence reducing the wage budget. (Ian et al 2013)
Biometric technology can provide a higher degree of security compared to traditional
authentication methods. According to Chirilo (2003) biometrics is preferred over
traditional methods for many reasons which include the fact that the physical presence of
the authorized person is required at the point of identification.
2.2.2 Minimization of the Amount of Cash to be handled at a Given Time
Cashless transaction reduces time in administering cash and time spent managing cash
and related security costs. Hammett (2009) agrees with this view, when Squid (a payment
system using biometric system) was introduced in United Kingdom (UK) as a mode of
payment in education institutions or colleges using biometric systems tremendous notable
gains were achieved. Cash was totally eliminated from school environment areas and
schools rushed to adopt this system” unanimous decision to reinforce this cashless
system.
Carrying lots of cash at a given time has its own limitations in that it provides a security
risk to staff. Using the biometric system minimizes the risk for staff being a robbery
target. With the Biometric system payment is immediate; cash is received with the touch
of the biometric equipment with one‟s finger. Kumar et a l(2009), alludes to the benefits
of this system by indicating that by using biometric system to make payments, drivers in a
Shell gasoline station can make payments by a touch of a finger.
Biometric payment system is much safe and secure and very easy to use and even without
using any password or secret codes to remember as compare with previous system like
credit card payment system, wireless system and mobile system (Kumar & Ryu, 2009).
Cases of security firms vehicles carrying cash being hijacked is on the increase in Kenya.
Hence the need for precautionary measures to curb the menace.
The organization core business is provision of in-service and pre-service training courses
for MOH doctors, clinical officer and nurses.
8
Therefore, numerous trainings are
conducted per year (approximately 18 trainings per year). One training event can have a
total of 30 participants and the courses range from 4-6 weeks. The total advance required
for payment in one training ranges from Kshs. 1-3 million. These are huge sums of cash
to be carrying around.
2.2.3 Theft and Fraud Minimization
Fraud is defined as an act or course of deception, an intentional concealment, omission, or
perversion of truth, to (1) gain unlawful or unfair advantage, (2) induce another to part
with some valuable item or surrender a legal right, or (3) inflict injury in some manner.
Wilful fraud is a criminal offense which calls for severe penalties, and its prosecution and
punishment (like that of a murder) is not bound by the statute of limitations. However
incompetence or negligence in managing a business or even a reckless waste of firm's
assets (by speculating on the stock market, for example) does not normally constitute a
fraud. In such cases, the aggrieved party (creditors or stockholders/shareholders) must
prove that at some point they were intentionally deceived on a material fact(Online
business dictionary, 2013).
Many organizations will introduce biometric systems for authentication while it could
decrease losses because of fraud (Prim, 2006). Biometrics authentication system can
assist to avoid illegal e-transactions and identity theft. According to Jain (2013) many
financial institutions use biometrics methods to secure their services such the United
Banker's Bank (UBB), Affinity plus Federal Credit Union, California Commerce Bank,
LendingTools.com, Dutch bank ING, and Banco Azteca Mexico.
The current practice in the organization is that for the last two years there has been
increase of staff being dismissed from fraud. This organization already has an existing
policy in its HR policy and clearly stated that it is an offence for staff to be involved in
Fraud. Zero tolerance has been instituted where if found then summary dismissal is
invoked. Mathews (2002), acknowledges that “Simply inform employees during
employee orientation, training programs, memorandums, or other communication that
fraud is not tolerated and let employees know what to do if they suspect fraud. Also, be
sure to inform employees of the actions the company will take if it suspects or determines
fraud has been committed.
9
2.2.4 Staff Perception
According to Thamer & Drew (2010) staff perception and attitudes are key determinants
for the acceptance of the new payment system. To better underscore the importance of
these two behavioral components. The findings of this study propose the need to take
cultural background and disposition into consideration when applying biometrics
technology.
The findings obtainable in this study are expected to present practical insights for
organizations tackling difficulties in security within e-commerce applications in the Saudi
market. It is significant to appreciate that education level can significantly impact the
biometrics technology acceptance in Saudi Arabia. These results, hence, present a
valuable baseline for organizations to build proficient segmentation strategies based on
the significant individual moderating factors such as age, gender and education level,
which is fitting in the Saudi cultural and economic context (Thamer & Drew, 2010).
According to Davies (1989) concepts of perceived ease of use is defined as the extent to
which a person believes that using a particular system is free of effort. Over the most
recent decade, significant evidence has emerged from widespread research on the
perceived ease of use leading to usage intentions and behavioral intentions. This means
users are more likely to adopt Internet banking if it is easy to use.
According to Lee et al (2003) the biometrics acceptance model in which the traditional
technology acceptance models (Davies, 1989)concepts of „perceived usefulness‟ and
„perceived ease of use‟ are modified to better fit what they deem to be the particularities
of biometric systems (Lee 2003). Based on a reading of the literature, they identify a
number of theoretical factors that could potentially contribute to perceptions of usefulness
of ease.
One of the principal aims of these analyses of biometrics acceptance is to understand user
resistance in order to overcome it, it often through better marketing and information
campaigns to “educate “informed consumers about the benefits of biometrics (Chau &
Turner, 2004). There is a normativity to many of these studies, which view resistance to
biometrics as a problem or as irrational –the result of misunderstanding about the
technology that ought to be corrected accept and use biometrics, others note ongoing
reluctance and potential resistance(Moody, 2004). Some try to confront the unclear and
10
contradictory nature of public opinion regarding these issues ((Heckle, 2007), noting that
understanding context and how exactly biometrics will be used by organizations is
important.
However, the instrumental view of public acceptance, perceptions, and understanding
adopted in these studies, which tend to treat context as an abstract variable rather than an
inextricable part of the technologies and the attendant processes and practices, leaves one
wanting. These typically one-off studies seek to understand views about biometrics at a
certain point in time, without considering how such views emerge from, and are
influenced by, recent events, political dynamics, and other contextual factors. Some of
these studies also acknowledge that many people are simply unaware of the term and
concept of biometrics, but they do not explore philosophically what this lack of awareness
means in terms of public acceptance. Whereas most studies of biometrics have failed to
engage with the richness of the contexts into which biometrics are being deployed, this
study will directly and deeply engage the context-based public discourses that led up to
and accompanied proposals for a national biometric identity program in the UK(Martin,
2011).
2.2.5 Concerns about the use of Biometric Technology
Biometric technology provides a range of automated methods which can used to measure
and analyze a person‟s physiological and behavioral characteristics (Wayman, 2005).
Physiological biometrics includes fingerprint recognition, iris recognition, facial
recognition, and hand recognition. Behavioral biometrics contains voice patterns and
signatures, which are usually taken for identification and verification purposes. Basic
authentication is usually based on something somebody knows, like a pin or a password,
or something somebody has, like a key, passport or driver‟s license. The limitations of
these authentication measures in some application areas have led to Thamer and Drew
(2010) development and adoption of biometric technology which is now used to identify
individual behaviors and characteristics (Wayman, 2005). Biometric technology usually
involves a scanning device and related software which can be used to gather information
that has been recorded in digital form (Bolle, 2004)
While biometrics can provide a high level of authentication through identifying people by
their physiological and behavioural characteristics, there are also several negative aspects.
11
Biometrics can sometimes be ineffective when using the various styles of identification.
For instance, fingerprints can be saturated, faint, or hard to be processed with some of
devices, particularly if the skin is wet or dry. Hand recognition can sometimes be
ineffective when the hand is damaged, thereby no results will be obtained to match with
the images already in the database. Few facilities have databases or hardware to employ
iris recognition, which makes the upfront investment too high to initiate a worldwide iris
ID system. Biometric technology has also been criticized for its potential harm to civil
liberties. This is because people have been denied access to the various regions and
countries simply because they do not have the correct identities for those places.
Moreover, there is potential for people‟s privacy to be violated with this new technology
(Bolle, 2004).
People have different perceptions of what the biometrics device would be used for. The
fundamental obstacle or problem with biometrics is the lack of clear understanding of
Its capabilities and limitations (Pato & Millet, 2010)the international concern of
biometrics increased globally and rapidly on the government level especially after
September11, 2001
2.3 Staff Practices of Biometric System
2.3.1 Untimely Reconciliation of Advances by Staff
When staff receives per diems, the organization policy is that by the end of the activity
duration, the staff is expected to file an expense report. The current problem is that a staff
does not observe this rule and the finance staff spend more time conducting follow ups
and at times the funds are not recovered. Strict measures have been put in place for
recovery purposes in case of default. The measures include direct deduction from salary
or if staff is notorious with this then dismissal takes effect.
The staff are therefore the custodian of these donor funds intended to improve the lives of
Kenyans but contrary to this is that such funds are always abused for personal gain. In a
shocking revelation in Kenya three years ago, Warah (2011) indicated that MPs have
raided money set aside for relief operations and other national emergencies to settle their
tax arrears; this is a clear example of how donor dependency encourages corruption.
By introducing payments through the Biometric System, the advance reconciliation and
other expenses is done on line leaving little room for manipulation and delays. Other
12
measures have been introduced for example that no cash will be received if one has an
outstanding payment.
2.3.2 Matching per diem Payments with Program Targets
The current practice in the organization is that participant registration in trainings is done
manually. The challenge with this is that some participants leave the workshop without
registering but ensure that they receive their per diems. The forms for the two activities
are different and at times do not tally. This presents a situation where the training budget
does not match the numbers trained.
To avoid a situation where those attending training sessions are double paid or double
trained. The biometric systems will ensure that you only attend one training at a given
time, hence acted as registration to avoid co-enrolment in the CAPRISA study
(Harichund, Harispersad, & Ramjee, 2013). In using the Biometric Co-enrolment
Prevention System (BCEPS), women who were already enrolled were detected in the
database and were excluded them from participation on site. Linking financial payments
with monitoring and evaluation activities strengthens reporting issues and target
achievements.
2.3.3 Unavailability of Phones for MPESA Service
Mobile technology has been used for other purposes globally using the biometric system.
One such study was done in India, for student attendance verification. According to satija
& Semester (2013), an application software is installed in the instructors‟ mobile phone
and it enables it to query students' mobile telephone via Bluetooth connection and,
through transfer of students' mobile telephones using Media Access Control (MAC)
technology, it links with the instructor's mobile telephone and this confirms student
attendance. Moreover, detailed record of a student's attendance can also be generated for
printing and filing. Its accuracy is unmatched.
Digital money has significant benefits for financial institutions, banks and merchants
(Fiallos & Wu, 2005). Digital Money is an electronic payment technology, which can
provide anonymous flexible electronic payment, like paper cash, but with added security
requirements needed for internet transactions. In a related work by Lee (2003) a secure
electronic cash system can guarantee anonymity of legitimate users but also provides
13
traceability about illegally issued cash or laundered money. If illegal activity did take
place, it can cancel anonymity of the digital cash in order to protect the bank added that
since digital money can trace double spending, and double spending protects content by
exposing the double spender‟s identity, digital cash is a fool proof way of guarding
against illegal redistribution of intellectual property and materials (Lee, Oh, & Lee, 2004)
Digital Money can also be used to deter illegal content copying and distribution by
inserting tracing content factors into the digital cash payment scheme that prevents users
from individual replication activity ( (Lee, Oh, & Lee, 2004). By using this function,
legal, anonymous purchasers can spread contents to other paying anonymous users while
abiding by copyright laws.
Using digital money in industries like digital entertainment can increase the demand for
products through easier and safer dissemination channels. Digital Money can trace who is
illegally reproducing and distributing copyrighted intellectual material, therefore
increasing security for authors and at the same time deterring lost revenue and sales for
digital media entertainment companies (Lee, Oh, & Lee, 2004).
Digital Media entertainment, as well as intellectual property providers and distributors,
can also implement this technology and its safety features in order to ensure greater
copyright compliance between consumers Fiallos & Wu (2005). By adopting such a
method of payment and distribution, software and intellectual property piracy can be
halted and eventually eliminated. Digital Money can provide financial institutions with
decentralized structures, faster transaction and decision making processes, and more cost
effective ways of doing business (Fiallos & Wu, 2005). Electronic Payments as argued by
Cobb (2004) have a significant number of economic benefits apart from their convenience
and safety. These benefits when maximized can go a long way in contributing immensely
to economic development of a nation.
Automated electronic payments help deepen bank deposits thereby increasing funds
available for commercial loans –a driver of all of overall economic activity. According to
(Cobb, 2004), efficient safe and convenient electronic payments carry with them a
significant range of macro-economic benefits. “The impact of introducing electronic
payments is akin to using the gears on a bicycle. Add an efficient electronic payments
14
system to an economy, and you kick it into a higher gear. Add better-controlled consumer
and business credit, and you notch up economic velocity even further. “While the high
level of cash transactions creates an opportunity for the electronic payment industry, it
also imposes a cost on local economies (Cobb, 2004). Cash has to be minted, securely
transported, counted and reconciled, kept secure and maintained for re-use time and time
again. The per-payment cost is high, and will always remain high whereas the costs of
electronic system are fixed. Once the infrastructure has been built, the costs pertransaction is very low” (Cobb, 2004).
The organization is currently using the Safaricom phone service to make per diem
payments to clients, using finger printing biometric payment system. The technology is
designed in such a way that once a client puts the finger on the biometric verification
device it sends a message to the main databases that advice on payment. The payment is
then done directly to the phone (Donovan, 2012).The service in Kenya is known as MPESA. M-means Mobile and PESA is a Swahili word for money. According to the
definition provided by safaricom, M-PESA is an innovative mobile transfer solution that
enables customers to transfer money. It is aimed at mobile customers who do not have a
bank account, either by choice, because they do not have access to a bank or because they
do not have sufficient income to justify a bank account (Safaricom, 2013). The challenge
using mobile technology is that the recipient must have a cell phone for it to work, some
of the clients that the organization serve do not have phones, hence making it difficult to
make the payments.
2.3.4 Untimely receipt of Per Diem payment by staff and clients
Per Diem payment is the provision of lodging, meals, incidental and at times
miscellaneous cost to travelers for their upkeep outside their station. US business law and
taxes legislation defines it as “per diem (from the Latin "by day") is a daily allowance for
travel expenses. The U.S. per diem rate includes two components: for lodging, and for
meals and incidentals…. In the U.S. the General Services Administration (GSA) sets the
per diem rate for each U.S. city and state and for foreign travel” (US business law/Taxes,
2013).
15
The Kenya revenue Authority defines per diem as payments in respect of subsistence,
travelling, entertainment and other allowances made by an employer to his employee
while the employee is on official duties outside his usual station of work (Kenya Revenue
Authority, 2013).
2.3.4.1The importance of providing per Diem to Travellers
Employment contracts in most cases will indicate that when a staff is assigned work
outside the designated work station then that staff is entitled to per diem payments. The
same applies top when the agency or the International Non-governmental l organization
involves other clients like the Ministry of Health in its activities in the field (outside of
the workstation) then that staff is entitled to per diem. Per Diem payments vary in terms
of the amounts to be paid. Payment of per diems by organizations has been a challenge
especially in regard to financial compliance issues. Andrew (2011) did a study to
minimize payment security compliance issues in Heartland Payment Systems –UK. The
purpose is to prevent the use of non-secure payment applications that store.
In this organization, the process of getting per diem for staff is that once you have
identified a need for travel (based on the project work plan), and the staff can request for
a travel advance (Jhpiego, 2013). Based on the finance department workload, it can take
up to two weeks to process the funds. These delays at times cause delay in program
implementation, hence not able to achieve targets. The delays are caused by the
bureaucracy surrounding paper work review process. There are situations where the
clients receive the per diems after the activity has ended. The program staff that makes
these payments to clients are subjected to immense psychological torture with these
delays. The staff have to explain to the clients why the delays have occurred. They at
times forced to use their resources to pay the clients. It is anticipated that the biometric
system will reduce the delays and fast track the amount of time required to process this
payment (Fiallos & Wu, 2005).
2.3.5 Lack of Identity Cards making Payments Impossible
The national Identity card is a card issued by the government of Kenya to confirm ones
citizenship. The card is also widely used for payment authentication. Every citizen of
16
Kenya is expected therefore to have this card as stipulated in the laws of Kenya. The
Kenya Human rights commission defines a National Identity Card as a representation of
„proof‟ of Kenyan citizenship without which an individual cannot vote, purchase
property, access higher education or even obtain employment; further, those without the
document find themselves victims of arrest and extortion by the police on spurious
grounds. According to Kenya Human Rights Commission (2007), hindrance to easy
access to critical documents like the Identity Card which enhance the enjoyment of rights
and freedoms of citizen simples violation of these very rights.
Most Kenyans, in the rural areas do not have these cards and hence cannot enjoy the
benefits mentioned above. Payment of per diem therefore can only be received by a
recipient based upon production of this card to verify the identity. In addition most of
these clients are illiterate, meaning they cannot read or write. The use of biometric
fingerprinting would be used to verify the client. Studies done in India (Thakral, Rai, &
Thakral, 2012) indicate that fingerprinting biometric would be the efficient in these
situations. It is highly accurate biometric technology. The patterns and geometry of finger
prints are different for each individual. They are unchanged with the growth of the body.
The classifications of fingerprints are based on minute points. The fingerprint patterns are
hereditary. They never change throughout your lifetime. FBI has reported that no more
than 8 common minutes can be shared by two individuals. Typical finger print system
extracts between 30 to 40 minutiae points from a single captured fingerprint. Accuracy
level of fingerprint verification/identification biometric system is very high. They are
secure, fast, reliable and easy to use.
2.4 Staff knowledge of the Biometric System
2.4.1 Staff knowledge of Computer Technology
One of the recruitment requirements in this organization is that for one to qualify you
must be computer literate as stipulated in Jhpiego Human Resource Policy manual(2012).
Computer literacy is mandatory; however there are times when this rule may be faulted
during staff recruitment.
To enable staff operate the biometric system one needs to be computer literate. The
majority of the staff fall into the bracket of middle to old age, meaning that there will be
17
need for re-orientation to basic computer skills and to the system. There is also need to
de-mystify technology as useful to the organization hence no need to fear and the
importance of staff embracing the technology culture instead of resisting it.
Information technology has evolved since the early 90s and has created an intimate
interdependence between humans and technology. Though chip implantation this fusion
has been characterized in a form of biometric system in a form of biometric identification
using such technologies as fingerprints, hand geometry and retina scanning. In essence
some applications of biometric identification technology now cost-effective, reliable and
highly accurate. As a result, biometric systems are being developed in many countries for
such purposes as social security entitlement, payments, and immigration control and
election management. Recent studies that use of biometry system delivers on its promise
of high-quality identification, it will imperil individual autonomy. It is paramount that the
widespread application of the technologies would conflict with contemporary values, and
result in a class of outcasts (Janahi & Mellor, 2013). This in reference to staff who would
feel out of place due to knowledge gap and fear.
For effective operationalization of this payment system, the staff in this organization will
be required to attain certain skills and knowledge. A study was done by Thamer&
Drew(2010)on Employees‟ Perceptions of Biometric Technology Adoption in EGovernment. The results of this study indicate a significant digital and cultural gap
between the technological awareness of employees and the preferred authentication
solutions promoted by management. A lack of trust in technology, it‟s potential for
misuse and management motives reflect the managers‟ need to consider their
responsibilities for narrowing these gaps. It was apparent that overcoming employees‟
resistance is an essential issue facing biometric implementation. Based on the research the
authors recommend that an awareness and orientation process about biometrics should
take place before the technology is introduced into the organization.
2.4.2 Competency of Staff to use the New System
Staff competency in the use of the biometric system is key in fostering productivity and
excellence. Competence is defined as a cluster of related abilities, commitments,
18
knowledge and skills that enable a person or an organization to act effectively in a job
situation (Online business dictionary, 2014).
Most of the staff in this organization are computer literate as this is a requirement during
recruitment. The confidence level of older staff are low, hence hampering the uptake of
the new system. Use of biometric system for payment being an innovative technology has
the potential to foster sustainable competitive advantage that can be assessed in terms of
their potential impact on customer experience, as well as the extent to which their
implementation involves significant business process reconfigurations that are hard to
imitate by competition. (Heracleous & Jochen, 2006). Other NGO partners in this field
have not embraced this technology and so this NGO has a comparative advantage over
others in this field.
To facilitate the process of competency enhancement, a coaching training approach has
been introduced. Each department has identified a champion known as biometric system
champion to continuous assist staff achieve a higher level of skill proficiency. Coaching
is defined as a method of directing, instructing and training a person or group of people,
with the aim to achieve some goal or develop specific skills. There are many ways to
coach, types of coaching and methods to coaching. Direction may include motivational
speaking and training may include seminars, workshops, and supervised practice (Garvey,
2009).
Staff view use of technology has job replacement (Thamer & Drew, 2010). The
introduction of the biometric system in the organization has led some of the program staff
being laid off as physical contact is no longer a prerequisite to facilitate payment (Lee,
Oh, & Lee, 2004). Fear has affected the staff morale hence the feeling of not being
competent. This has drastically affected the overall roll out of the system.
To ensure staff make an effort to continuously update their knowledge on biometric
system through the user manual, the organization has included this in staff performance
appraisal system. Performance appraisal is defined as the process by which a supervisor
or manager examines and evaluates an employee work behavior or performance by
comparing it with set standards (Fletcher, 2001). Each staff has this objective
(competency in use of biometric system) as one of the annual appraisal objectives.
19
Performance is therefore measured based on knowledge gain, user efficiency and
effectiveness.
2.4.3 Manuals for reference
Training materials are a set of materials used to train or update knowledge. Reference
material refers to the sources of information well established for use in answering
questions and inquiries. A user guide or user's guide, also commonly known as a manual,
is a technical communication document intended to give assistance to people using a
particular system (Jhpiego, 2013). In this document the guidelines for information and
communication technology (ICT) applications which are already established in
manufacturing. These guidelines include recommendations such as: alignment of ICT
applications with biometric payment systems and monitoring. The purpose of the research
reported in this paper is to investigate the relevance of information and communication
design to applications of advanced ICTs used in the instruction of manual skills. (Fox,
2010).
The originality of the research reported in this paper is that it goes beyond further
investigation of established guidelines for ICT applications. The value of this paper is that
it draws attention to the potential of information and communication design to improve
ICTs implementations. It also draws attention to the need for balanced comparisons in the
assessment of all staff knowledge on ICT prior to their implementation.
User manuals with information on finger print reader are crucial in the use of the
biometric system. The payment system uses the finger print gadget to identify and
authenticate a person. Fingerprint scanning identifies a person based on the unique
patterns and ridges found in a fingerprint. A Biometric finger print reader is usually
equipped with software that stores unique fingerprint data into a database which later on
is checked when validating the identity of a finger print. The biometric finger print reader
can be seen in vaults, office entrances, car doors, and even portable computers to identify
authorized people and deny unauthorized access from unidentified persons (Fox, 2010).
The biometric finger print reader is very important to secure a lot of things. Passwords
can be exposed or forgotten, keys can be stolen and duplicated but fingerprints are hard to
20
duplicate. This is the reason why banks, government agencies and several private firms
have been utilizing these to protect their facilities (Fox, 2010).
It is important to use biometric finger print reader along with other security access
devices such as digital pin code locked entrances and unique keys. These methods will
enhance protection and reduce security breach. The biometric finger print reader is not
limited for office usage but also for home protection (Fox, 2010). It is important that user
manuals on how to operate the biometric system software and how to use it for payment
are in place, for successful implementation of this innovation in the organization.
2.5 Staff and Clients recommendations for the use of the biometric system
Based on the operational challenges highlighted in this study, the recommendations
should address the operational constraints that are faced by staff and clients in receiving
per diems using the Biometric payment system.
The study should suggest ways to improve on transparency in the payment of allowances
and per diems (Jhpiego, 2013). The recommendations from this study will assist to inform
strategy on the way forward for the use of Biometric payment system in the organization.
The study should also inform on the cost effectiveness of the system versus paper based
system (Chirillo, 2003).
There is need for the staff and clients to embrace change so that the system
implementation can be successful and hence they can be in a position to recommend it,
own it, as well as work on and with the system. Somewhat predictably, the information
systems literature on biometrics is dominated by research on user acceptance and surveys
of public perceptions of biometrics (Heckle, 2007).
The acceptance of biometric systems by targeted user groups or all stakeholders is
considered by many authors to be an important requirement for “successful” systems. It is
believed that without user acceptance, perfectly functioning systems are doomed to fail.
As technology acceptance is one of the more well-established streams of research within
information systems, many projects have sought to identify these enablers and barriers to
user acceptance. Of the few studies within the field that do not focus on end-user
acceptance work by Scott & (2005) explores the applicability and potential future use of
biometrics for e-government services is particularly relevant to the study.
21
They examine the attitudes of management personnel within the Irish Department of
Communications, Marine, and Natural Resources, who are responsible for making policy
decisions about biometrics. In particular study, Scott & Arun(2005) focused on
managerial attitudes towards the feasibility of using biometrics to deliver e-government
services. They find that officials consider the accuracy, strength, effectiveness, and
usability of biometrics, as well as privacy, trust, and international developments, as
important factors influencing their possible deployment. Scott et al (2005) calls for
further research on citizen acceptability and citizen trust in biometrics, noting that such
studies would significantly enhance current public debates.
2.5.1 The Essence of Change
The essence of change resides in the fact that humans are involved in a learning process
while developing their environment to provide in consumer needs. Their constant search
for improvement motivates the occurrence of change with the intention of enhancing
work processes. Huysemen (2002) characterises organisational change as beliefs and
value systems that reside within the individual. These beliefs and value systems urge the
need for innovation to attain goals as set within the Republic of South Africa (RSA)
context. Barker (2007) explains that change management is required to manage the
humane side of the change process and that for change to succeed the implementers of
change should ownership against beliefs and value systems. Auster et al (2005)recognizes
the ever presence of change. He identifies the ability of human beings to adapt and evolve
successfully in terms of the scope, depth and complexity of the organization to deliver a
certain service. Osborne & Brown (2005)recognize change in a broader sense by focusing
on the growth and development of the organization.
2.5.2 The Nature of Change
In order to discuss the nature of change Bellingham (2001) highlights the urgency and
need towards change. He supports the satisfaction and driving forces statement made by
Kurt Lewin in the mid-century. According to Bellingham (2001)opportunities before,
during and after change require clarification to validate and identify grounds for any
transformation.
22
With fingerprint authentication technology, it is easier to track employee's time and
attendance with the touch of a finger. Biometric fingerprint authentication is the most
accurate way to collect employee's time and attendance information. It verifies an
employee‟s identity based on the characteristics of their fingerprint Bio Electronix Inc,
(2012). The American Payroll Association (APA) estimates that time theft, tardy arrivals,
buddy punching, lollygagging (wasting time getting to the work area), extended breaks
and early departures costs businesses 1.5 to 5 percent of gross payroll, amounting to
hundreds of billions of dollars every year. Industry studies support these estimates and in
recent APA. Surveys, employees were reported to be stealing an average of 4.5 hours
each week, equivalent to a six-week paid vacation per year. However, technological
advances in biometrics have now made this surprisingly affordable and popular. The
Biometric Fingerprint reading sensor scans any fingerprint in under one second; this in
turn will make clocking in and out much faster for your employees and at the same time
saving your company time and money by paying your employees for the exact time they
work. Your company will also reduce costly payroll and data entry errors caused by the
old time card system (Bio Electronix Inc, 2012).
Employees may have a divided opinion while recommending a new biometric system at
times they may feel that the system is meant to track and monitor their moves hence there
is need to train employees on change management so that they may embrace change
positively. The employees in this organization are used making or receiving payments
manually. The change expected will necessitate a general overhaul of the organization
financial operational system. There will be need for a culture change that will influence
individual behaviour and attitude.
The employees of this organization will also be required to provide activity budgets
online for payments to be effected. Onsite registration of participants attending a
workshop and training has to be done prior to the start of the activity. This participants
list confirms the validity of the activity and will then lead to payments being made. The
list is also evidence to the donor that an activity occurred and funding spent. These are
some of the changes the employees will experience in implementing this payment system.
23
2.6 Chapter Summary
The studies have indicated the importance the scholars have given to this topic. The
global trend is geared towards using technology for financial payments to fasten
accessibility to services and reduce cases of fraud and financial mismanagement. Use of
mobile technology for payments and class registrations continues to broaden the
biometric use. Perspectives and attitudes are the core impediment to acceptance of
technology in the workplace. Cultural aspects and computer illiteracy have been clearly
identified as barriers to this service. Matching use of BVS with program targets are some
of the highlights.
24
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction
This chapter provides details of the overall methodology used in the study. It describes
the research design, population and sampling design, data collection methods, research
procedures and lastly data analysis methods used in the study.
3.2 Research Design
Research design is a plan outlining how information is to be gathered for an assessment
or evaluation that includes identifying the data gathering method(s), the instruments to be
used/created, how the instruments were administered, and how the information were
organized and analyzed . This research adopted a descriptive research design.
According to Cooper & Schindler (2011), if the research is concerned with finding out
who, what, where, when, or how much, then the study is descriptive. A descriptive survey
is primarily concerned with addressing the particular characteristics of a specific
population of subjects, either at a fixed point in time or at varying times for comparative
purposes.
Descriptive research is a multifaceted research approach. It can include quantitative data
such as the use of empirical information, or can depict qualitative sources such as patterns
of disease. Descriptive research requires gathering data that will describe an event and
presenting the information in an organized, and often visual, manner. Description is used
to explain the answer to "what is" and to depict patterns that emerge during a study
through a variety of research techniques (Victor, 2008).
3.3 Population and Sampling
3.3.1 Population
Population refers to total collection of elements whereby references have to be made
(Saunders, 2003). The total population for this study was 100 and included 35
organization staff, 50 Ministry of Health service providers, 10 Community Health
workers and 5 organization management team.
25
3.3.2 Sampling design
A research sampling is a research plan that shows how respondents were selected for the
study (Saunders, 2003). It also spells out the procedure to be followed to identify the
study‟s sample.
3.3.2.1 Sampling frame
Sampling frame is defined as a set of information used to identify a sample population for
statistical purposes (Saunders, 2003).
The sampling frame involved staff from all
sampling units (Nachmias, 1996). In this study staff registered used to confirm the staff
randomly selected. Three sets of staff category involved namely program officers,
program managers and clients (community Health workers). For community Health
workers, the payment registers which is kept with the organization‟s finance manager.
The register will assisted identify the workers who are still in the service.
The program managers will be responsible for ensuring that Biometric System works.
They are expected to provide leadership and ensure that the tools for this support or
service are readily available. Part of their roles is to train staff
The organization has four field offices and each office have several program officers. The
program officer‟s role is to provide administrative support to projects. Payment of per
diems is one of the dockets. They are also the users of the biometric verification system.
The community health workers are the recipient of the service. The program officers will
facilitate per diem payments through their mobile phones using the biometric verification
system.
All of the above mentioned sample are crucial in determine the usability of the biometric
verification system. The community Health workers are based in the rural areas or in
project sites. Their role is to disseminate information, including counselling women on
the importance of being delivered by skilled birth attendants at health facility. This is a
very important cohort for the study.
26
3.3.2.2 Sampling Technique
Sampling techniques provides an array of methods to enable a researcher maximize on
amount of data needed by considering data from a unit or a sub-group rather than the
whole possible elements due to time, access and cost factors (Saunders, 2003).
Random sampling was used to identify the target population sample for this study.
Definition of random sampling is any method of sampling that uses some form of random
selection, that is, one that ensured that all units in the population have an equal
probability or chance of being selected (Davidson, 2006). In random sampling, the
respondents for this study will be given an equal probability to participate.
An email was sent to all staff within the departments requesting for their participation and
those will respond will therefore be involved in the study. But ensured that the target
population size is achieved.
3.3.2.3 Sampling Size
Sample size is defined as the smallest number of entities or observations required in each
test sample to ensure that any variation between the characteristics of the test sample and
those of the entire associated group are due only to chance.
The sample size included total population of 80 respondents. Therefore a total of 70
program staff and 10 community health workers participated.
Table 3.1: Distribution Table
Type
Nairobi
Korogocho
Quantitative Questionnaire
65 program officers
10 community health
workers
Focus Group Discussion
None
1 group comprising 10
respondents
Random interviews
5 program managers
None
TOTAL
70
10
27
3.4 Data Collection
Two instruments were developed for this study namely: Structured Questionnaires for the
staff (respondents), Clients and Community Health workers, Focus Group discussion
guide, and Program and Finance management respondents.
The questionnaires were divided into various sections; Background/ introduction. (This
section will indicate purpose of activity), General Demographics to include work station,
biodata (close ended questions), perceptions and attitude (open ended questions), areas of
improvement and recommendations (open ended questions).
3.5 Research Procedure
The study was based in Nairobi among the organization staff and clients based in
Korogocho slum. The study instruments were developed and sent to staff by post to the
staff in Korogocho.
The tools were pilot tested with one of the non-participatory
programs within the organization.
The Nairobi respondents were received the questionnaires by hand delivery.
Mailed/delivered questionnaires are less intrusive than telephone or face-to-face surveys.
When a respondent receives a questionnaire in the mail or by hand, the respondent is free
to complete the questionnaire on his own time. Unlike other research methods, the
respondent is not pressured by the research methodology to provide immediate answers
and is able to read through the questions without interruption.
The second procedure involved gathering ad hoc information that might not be collected
using the questionnaire. This was a good way to gather information on staff attitude and
perceptions towards the Biometric payment system. No structured questionnaire or guide
will be administered for this. While using this method I am cognizant of the fact that its
validity can be challenged.
A focus group was also used for the respondents in Nairobi to explore people‟s ideas and
attitudes. One group of a maximum of 10 respondents will participate and a discussion
guide was developed to guide the activity.
Personal interviews with the program and finance managers were conducted to get indepth and comprehensive information regarding the BVS system. Questions will be asked
from a written questionnaire and information recorded directly.
28
3.6 Data Analysis
Data was collected in three forms namely: Quantitative, Qualitative and desk review. For
Quantitative information a program template was developed to extrapolate the
information collected. The filled up questionnaires were then be entered into the software
data base. Data analysis was done using the SPSS software package. This section
responded to research question on the demographic information, operational issues and
employee perception, staff practices and knowledge using the BVS system. The
information from the FGD was transcribed and the answers analyzed.
Thirdly, through secondary data review of the existing finance and operation policies was
done in correlation with the quantitative analysis, to answer the research question on
current per diem payments operation issues
A report from the above information was put together and a first draft created for review
and comments from reviewers was incorporated into the final report.
3.7 Chapter summary
The chapter has summarized the major methods that will be used to carry out the study.
Using the action research design combined with descriptive and focus group technique;
the study reviewed the per diem payments operational issues and staff perception, staff
practices of biometric system and staff knowledge of computer technology, staff and
clients recommendations for the use of the biometric system. The population of the study
was 100 employees comprising of 65 program staff, 5 managers and 10 community health
workers. A sample size of 80 respondents were selected randomly. Primary data was
collected using the structured questionnaire, which was pretested on a group of 20 and 10
clients to ensure the tool was exhaustive and clear. Secondary data was collected from the
supervision and policy documents within the organization from the years 2010 to 2013.
Data analysis was done using the SPSS software package. Chapter four, will present the
results and findings of the study.
29
CHAPTER FOUR
4.0 RESULTS AND FINDINGS
4.1 Introduction
The chapter presents the results findings from the data collected from the respondents
sampled for the study. The data is presented using frequency distribution tables and
percentages. 80 questionnaires were administered with 79 (99%) being fully filled.
4.2 Demographic information
4.2.1 Age of respondents
Respondents were asked about their age which was grouped in the following categories:
18 - 25, 26 - 30, 31 - 35, 36 – 40, and 40 – 60. 46% of the respondents were 40 – 60
years, 19% were 31 – 35 years, 20% were 36 – 40 years, 9% of the respondents were
between 18 – 30 years and 6% were between 26-30 years. This is shown in table 4.1.
Table 4.1: Age of respondents
Age
Frequency
Percent
18-25
7
9
26-30
5
6
31-35
15
19
36-40
16
20
40-60
37
46
Total
80
100
4.2.2 Gender of respondents
From the study findings, 78% of the respondents were female and 22% of the respondents
were male. This is shown in table 4.2.
30
Table 4.2: Gender of respondents
Gender
Frequency
Percent
Female
62
78
Male
17
22
Total
79
100
4.2.3
Respondents marital status
Respondents were asked what their marital status was. As shown in table 4.2, 62% were
married, 30% were single, 3% of the respondents were divorced and 5% were widowed.
This is shown in table 4.3 below.
Table 4.3: Respondents marital status
Marital Status
Frequency
Percent
Single
24
30
Married
49
62
Divorced
2
3
Widowed
4
5
Total
79
100
4.2.4 Respondents workstation
From the analysis, 70% of the respondents said their workstation was “other” though they
did not elaborate further, 21% was from Nairobi office and 9% from Korogocho site
office. This is shown in table 4-4.
31
Table 4.4: Workstation respondents
Work Station
Frequency
Percent
Nairobi Office
17
21
Korogocho Site Office
7
9
Other
55
70
Total
79
100
4.2.5
Respondents department
The study also looked into the various departments respondents work in, the subsets of
which include; Human resource, ICT, Programs, Administration, Finance, MER and
Communications. 44% were from Communications, 37% of the respondents were from
the Programs department, 7% were from the Human resource department, 5% were from
MER, 3% were from Administration, 2% were from Finance and a further 2% from ICT.
This is shown in table 4.5 below.
Table 4.5: Respondents department
Department
Frequency
Percent
Human Resource
4
7
ICT
1
2
Programs
22
37
Administration
2
3
Finance
1
2
MER
3
5
Communication
26
44
Total
59
100
4.2.6 Respondents length of employment
Study results show that 63% of the respondents said they have worked for the
organization for a period of between 1Month-3years, 24% for a period of 4-6years, 9%
32
for a period of 13-15years, 2% for a period of 7-9years, and 2% for a period of 10-12
years. This is shown in the table 4.6 below.
Table 4.6: Respondents length of employment
Length of employment
Frequency
Percent
1month-3Yrs
42
63
4-6yrs
17
24%
7-9yrs
1
2%
10-12yrs
1
2%
13-15yrys
6
9%
Total
67
100%
4.3 Per diem Payment Operational Issues and Employee Perception
4.3.1
BVR has made per diem payment paperless
The findings show that 47% of the respondents agree with the fact that BVR has made
payment of per Diem paperless, 44% strongly agree, 8% strongly disagree and 1%
disagree. This is shown in the chart below.
Made Per diem payment paperless Strongly
disagree
8%
Disagree
1%
Strongly
agree
44%
Agree
47%
Fig 4.1: BS has made per diem payment paperless
33
4.3.2 Payment of per diem to clients using BVR has reduced cash handling
Study results show that 55% of the respondents strongly agree that payment of per diem
to clients using BVR has reduced cash handling, 38% agree, 6% strongly disagree and 1%
disagree. This is shown in the chart below.
Strongly Reduced Cash Handling
disagree
Disagree
6%
1%
Agree
38%
Strongly
agree
55%
Fig 4.2: Reduced cash handling
4.3.3 Fraud has Been Minimized Drastically
Study findings show that 39% of the respondents agree that use of BVR has reduced
fraud drastically, 48% strongly agree, 7% disagree and 6% strongly disagree. This is
shown in graph below.
Minimized Fraud
% responses
60.0
48%
50.0
39%
40.0
30.0
20.0
10.0
6%
7%
Strongly disagree
Disagree
0.0
Agree
Fig 4.3: Minimized fraud
34
Strongly agree
4.4: Staff Practices Using Biometric System
4.4.1 Employees are now providing timely reconciliation of advances paid to
clients
Study findings show that 45% of the respondents agree that use of BVR has enhanced
timely reconciliation of advances paid to clients by employees, 25 % strongly agree, 15%
disagree and 15% strongly disagree. This is shown in graph below.
Enhanced Timely reconcilliation of advances by employees
25%
Strongly agree
45%
Agree
Disagree
15%
Strongly disagree
15%
0.0
10.0
20.0
30.0
40.0
50.0
Fig 4.4: Timely reconciliation of advances
4.4.2 The program officers are able to link financial payments with program
targets
Findings show that 52% of the respondents agree that the program officers are able to link
financial payments with program targets with the user of the BVR system, 28% strongly
agree, 10% disagree, and 10% strongly disagree. This is shown in the chart below.
35
Enable program officers link financial payment to program Strongly
disagree
targets
10%
Disagree
10%
Strongly
agree
28%
Agree
52%
Fig 4.5: Link financial payment to with program targets
4.4.3
Since the introduction of the systems more clients and employees have
acquired phones for MPESA service
The study findings show that 52% of the respondents strongly agree that since the
introduction of the BVR system more clients and employees have acquired phones for
MPESA service, 36% agree, 4% disagree and a further 8% strongly disagree. This is
shown in graph below.
More employees and clients have acquired phones for Mpesa
52%
Strongly agree
36%
Agree
4%
Disagree
8%
Strongly disagree
0.0
10.0
20.0
30.0
40.0
50.0
Fig 4.6: More employees and clients acquired phones for Mpesa
36
60.0
4.4.4 The BVR has reduced untimely receipt of per diem payment by staff and
clients
Study findings show that 47% of the respondents agree that the BVR system has reduced
untimely receipt of per diems by staff and clients, 36% strongly agree, 10% disagree and
7% strongly disagree. This is shown in the chart below.
Reduced Untimely receipt of per diem by employees and
clients
Strongly
disagree
7%
Disagree
10%
Strongly
agree
36%
Agree
47%
Fig 4.7: Reduced untimely receipt of per diem payment by staff and clients
4.4.5
Use of fingerprinting in BVR has made payments easy; identification cards
are no longer required for validation
From the study results, 50% of the respondents strongly agree that the use of finger
printing in BVR has made payments easy since identification cards are no longer required
to validate payments, 35% agree, 7% disagree and 8% strongly disagree. This is as shown
in the table below.
37
Use of Finger printing in BVR has made payments easy
Strongly
disagree
8%
Disagree
7%
Strongly
agree
50%
Agree
35%
Fig 4.8: Made payment easy
4.5 Staff perception
4.5.1
Communication regarding the new system was done well to all staff
Findings show that 49% of the respondents strongly agree that communication regarding
the new system was done well to all staff, 38% agree, 7% disagree, 5% were neutral
about it and 1% strongly disagree. This is shown in the chart below.
Strongly
Disagree
1%
Communication was done well
Neutral
5%
Strongly
Agree
49%
Agree
38%
Fig 4.9: Communication done well
38
Disagree
7%
4.5.2
My current computer skills enable me to access and use this service
From the study findings 35% of the respondents strongly agree that their current
computer skills have enabled them to access and use the BVR service, 35% agree, 16%
neutral, 10% disagree and 4% strongly disagree. This is shown in graph below.
My current computer skills have enabled me access and use the
system
Strongly Agree
35%
Agree
35%
16%
Neutral
10%
Disagree
4%
Strongly Disagree
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Fig 4.10: Current computer skills enabled access and use of system
4.5.3 A mechanism is already in place to provide feedback on the usage
30% of the respondents were neutral about the fact that a mechanism is already in place to
provide feedback on the usage of the BVR system, 28% agree, 23% strongly agree, 11%
disagree and 8% strongly disagree about it. This is as shown in graph below.
39
Feedback mechanism already in place
35.0
30%
30.0
28%
23%
25.0
20.0
15.0
10.0
11%
8%
5.0
0.0
Strongly
Disagree
Disagree
Neutral
Agree
Strongly Agree
Fig 4.11: Feedback mechanism already in place
4.5.4 An alternative payment in place in case the system fails due to internet
connectivity
Findings show that 38% of the respondents agree that an alternative payment system is in
place in case the system fails due to internet connectivity, 22% strongly agree, 16%
disagree, 16% were neutral, and 8% strongly disagree. This is shown in graph below.
Alternative system in place incase BVR fails
22%
Strongly Agree
38%
Agree
Neutral
16%
Disagree
16%
8%
Strongly Disagree
0.0
5.0
10.0
15.0
Fig 4.12: Alternative payment in place
40
20.0
25.0
30.0
35.0
40.0
4.5.5 The employees are supported and assisted promptly when the systems is slow
Study findings indicate that 24% of the respondents were neutral about the fact that
employees are supported and assisted promptly when the system is slow, 34% agree, 26%
strongly agree, 13% disagree and 3% strongly disagree about it. This is shown in chart
below.
Employees supported and assisted promptly when the system
is slow
Strongly
Disagree
3%
Disagree
13%
Strongly
Agree
26%
Neutral
24%
Agree
34%
Fig 4.13: Employees supported and assisted promptly
4.5.6 The employees perceive this system as excellent compared to the previous
system of payment
Findings show that 46% of the respondents strongly agree that the employees perceive
this system as excellent compared to the previous system of payment, 32% agree, 16%
Neutral, 4% strongly disagree and 2% disagree. This is shown in the chart below.
41
Employees perceive system as excellent compared to
Strongly previous
Disagree Disagree
4%
2%
Strongly
Agree
46%
Neutral
16%
Agree
32%
Fig 4.14: Employees perceive system as excellent compared to previous
4.6 Staff poor knowledge of computer technology
4.6.1 The users of the new BVR payment system are trained and competent to use
the system
Regarding the fact that the users of the new BVR system are trained and competent to use
the system, study findings show that 43% of the respondents strongly agree, 32% agree,
15% were neutral, 4% disagree and 6% strongly disagree about it. This is as shown in
chart below.
Users trained and competent
Neutral
15%
Strongly
Agree
43%
Agree
32%
Fig 4.15: Users trained and competent
42
Strongly
Disagree
6%
Disagree
4%
4.6.2
All staff are competent and are using the system
From the findings, 35% of the respondents strongly agree that all staff are competent and
are using the system, 35% agree, 13% disagree, 11% were neutral and 6% strongly
disagree. This is shown in the chart below.
All staff Competent and using the system
Strongly
Disagree
6%
Disagree
13%
Strongly Agree
35%
Neutral
11%
Agree
35%
Fig 4.16: All staff competent and using the system
4.6.3 A manual is already in place for employees to refer
Study findings show that 27% of the respondents agree that a manual is already in place
for employees to refer, 23% were neutral, 21%strongly agree, 16% disagree and 13%
strongly disagree. This is as shown in the graph below.
Manual already in place
30.0
25.0
20.0
15.0
10.0
5.0
0.0
23%
13%
Strongly
Disagree
27%
21%
16%
Disagree
Neutral
Fig 4.17: Manual already in place
43
Agree
Strongly Agree
4.7 Ways in which the biometric system has worked
In terms of operations the respondents felt that the biometric system has enhanced
appropriate budgeting and enhanced credibility in their work. As this has minimized
errors when preparing the budgets. In addition the staff do not need to carry huge sums of
cash since the transactions are now done electronic and secondly has made payments
easier.
As for practice, the use of this system has reduced the paper work involved in the former
system, hence making the whole process paperless. Since there is no handling of cash, the
respondents felt that the new system has minimized on fraud, making the process safe and
secure.
As regards authentication, the respondents felt that the new system has alleviated the need
for an identification card to access payment. Finger printing has replaced card
identification, hence making or receiving payments faster.
The respondents felt that this payment system has enhanced timely and easy
reconciliation of advances paid to clients. Once payment data is entered into the data
base, reconciliations of advances is immediate.
4.8 Staff and clients recommendations for the use of the biometric system
4.8.1 Per diem payment operational issues and employee perception
There is need to address money delays. Ensure prompt processing of payments for
participants to be paid in time and money should be paid in full. There is need for a
mechanism to provide feedback on usage of the system
The respondents felt that there is need to procure more digital equipment for finger
printing purposes and each staff should be provided with one. Constant delays have been
experienced due to sharing of these equipment‟s especially during workshops and
conferences.
44
4.8.2 Staff practices of biometric system
The biometric system need to improve to enable it detect all finger prints not only the
thumb. In addition, this payment system should extend to other financial payments, for
example to vendors or suppliers.
4.8.3 Staff Knowledge of biometric system
The respondents felt that frequent updates on this system should be done to staff and this
can be done through lunch time meetings, for example BBL for continued improvement
of the system. The BS champions identified in each department should be proactive to
facilitate these trainings and updates.
4.9 Chapter Summary
The findings indicate the introduction of the new per diem payment system using
biometric system has impacted greatly on the payment operations of this organization.
The system has enhanced appropriate budgeting, it is safe and secure, and one does not
need to carry large amounts of liquid cash. Has minimized fraud and enhanced easy cash
handling. The payments are effective and quick, hence no delays. It has reduced the paper
work involved in the former payment system.
It has enhanced timely and easy reconciliation of advances paid to clients. Chapter five
provides the findings of the research as compared with the literature review based on the
research questions.
45
CHAPTER FIVE
5.0 DISCUSSION, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
This chapter addresses the results and findings from the implication of using Biometric
System on payment operations of an organization using a case study of one nongovernmental organization. The findings are outlined according to the study questions.
This will be based on responses received from the filled questionnaires and the
information gathered from focus group discussions. A discussion of the findings will be
provided as compared to earlier studies as cited in the literature review based on the
research questions.
5.2 Summary
This purpose of the study was to determine usage, knowledge and practice of using the
Biometric Verification System for payment of per diems. The research was guided by the
following questions: What are the current per diem payments operational issues? What
are the staff practices of Biometric system? What is the staff knowledge of Biometric
system? What are the staff and clients recommendations for the new payment system?
The research adopted descriptive research design. The total population included 100 staff
and the sample size comprised of 80 respondents based simple random sampling in the
organizations Nairobi office. The clients came from the Ministry of Health and the
questionnaire was administered during training activities. Questionnaires were used to get
information from respondents. A focus group discussion was administered to 10
community health workers based in the Korogocho slum for the purpose of getting
information on client‟s perception regarding the new payment system. Pilot test was done
to 20 respondents outside the study site in Kakamega to determine the tool effectiveness
and usability. The filled up questionnaires were analysed using the IBM SPSS Statistics
software.
Though the employees were trained and said to be competent there is need for a manual
to guide the staff members on different technical areas and the findings indicate that 27%
of the respondents agree that a manual is already in place to refer to while 21% strongly
disagree that a manual is already in place hence the organization as well as the staff
46
members need to enlighten the clients about the manual in case they may also require
more knowledge about the system or incase staff are faced with technical difficulties that
may need the use the manual.
From the findings the 60% of the clients are of the opinion that the employees are doing
their best to make sure that they support them and in case the system is slow. The
employees also perceive the new biometric payment system to be excellent compared to
previous systems of payment .The organization has put a mechanism in place to provide
feedback on the usage, however majority of the clients are not aware of the fact that a
mechanism is already in place to provide feedback on the use of the BVR system since
only 23% strongly agree on the information.
5. 3 Discussions
5.3.1 Per diem payment operational issues and employee perception
The findings indicate that 47% of the respondents agree with the fact that BVR has made
payment of per diem paperless. This shows that this mode of payment is preferred and has
made work lighter for the program officers who previously relied on signature
endorsement by the recipients to validate payments. According to Alterman (2003) he
agrees that visual comparison of signatures or photo ID‟s, validates biometric
identification.
This finding is also in agreement in earlier studies done in the banking sector (Clacher,
Doriye, Mohamed, & Satta, 2006).The study alludes that the banking sector the is way
ahead in reforming the way financial transactions are handled from paper based to full
automation. The purpose here is to reduce the time and amount of paper generated to
handle these payments. The experience from banking has revolutionized the financial
payments to more technology oriented, which is less costly in terms of maintenance,
human resource required to manage the process and thus reducing the wage budget
(Clacher, Doriye, Mohamed, & Satta, 2006)
Study results show that 55% of the respondents strongly agree that payment of per diem
to clients using BVR has reduced cash handling. In the wake of recent spate of insecurity
in regards to handling of huge amount of cash, this finding clearly indicate that staff are
sensitive to this issue. They prefer the use of BVR to alleviate the problem. In reference
47
to previous study in the UK (Hamett, 2009), the importance of this mode of payment is
highlighted.
Three quarters either agreed or strongly agreed that use of BVR has helped reduce fraud
drastically. This finding indicate that the reduction of cash handling has meant that staff
are not exposed to cash. The per diem is paid through BVR on daily bases and has
reduced the amount of cash an individual can handle at a given time. Many researchers
have alluded the use of BVR in payment specifically for authentication and to minimize
fraud. A case in point is a study done in India (Prim, 2006).
According to the demographics 40% of staff in this organization are over 40 years, these
findings has contradicted earlier studies (Thamer & Drew, 2010) linking perceptions on
technology to age.
5.3.2 Staff practices of biometric systems
Nearly one third of staff agreed that use of the system has fastened the reconciliation of
advances. Staff are now accessing per diem on „real time‟ basis, unlike the previous
delays caused by paper processing and bureaucracy. This confirms earlier studies
findings, this case is highlighted strongly in the caprisa study (Harichund, Harispersad, &
Ramjee, 2013).
The findings show that the program officers are able to link financial payments with
program targets. 52% of the respondents agree that the program officers are able to link
financial payments with program targets with the use of the BS system. Once finger
printing is done the information is sent directly to the BS data base. This enables the
system to generate a list of participants for program activities. The target achievement is
core to the operations of the organization as the number of participants is a requirement to
justify funding spent. The list is then forwarded to the donor.
The findings show that 52% of the respondents strongly agree that since the introduction
of the BVR system more clients and employees have acquired phones for MPESA
service. This mode of payment is easy, faster and accessible to every Kenyan in wherever
part of the country. 50% of the respondents also indicated that the use of finger printing in
BVR has made payments easy since identification cards are no longer required to validate
payments. Payment through MPESA has alleviated the problem of authentication as most
clients in the rural areas do not have identification cards especially the community health
workers. Half of the respondents therefore agree that this is the best mode of payment.
48
This confirms earlier studies done by Thakral et al (2012) regarding the accuracy and
authenticity of this system when used for payment
The study shows that the BS has reduced untimely receipt of per diem payment by staff
and clients, 47% of the respondents agree that the biometric system has reduced untimely
receipt of per diems by staff. Staff cannot travel to the project sites without per diem.
This was an inhibiting factor causing delays in program implementation, causing the
organization credibility issues in regard to target achievement. This concurs with the
earlier findings identified by Harichund et al (2013) in the CAPRISA study. The time
factor was eliminated by the use of the biometric system, clients were registered in „real
time‟. However, this finding has indicated that there are 53% of the respondents who feel
the payments are untimely. This is one area that the organization can explore and develop
mechanism for improvements.
5.3.3 Staff knowledge of Biometric system
A majority of staff (79%) said there was proper communication regarding the new system
to all staff before it was launched. 29% of respondents said they have not seen a manual
on which they can make reference while slightly more than one quarter (16.3%) were not
sure whether such a manual exists. Only 57% of participants in the study felt they were
competent enough to comfortably use the system. This contradicts an earlier study done
by Janahi et al (2013) in Bahrain regarding other factors like trust contributing to a slow
uptake of service despite preparation in terms of training. The respondents felt they had
the skill but uncomfortable to use it. Nearly half (49%) said they are is no or were not
sure whether a feedback mechanism on the system was in place which could be used by
staff. Almost two-third of staff agreed that compared to the previous system, the BS was
excellent. These findings indicate that the staff were well prepared for the system and
they are competent to use it.
From the findings 35% of the respondents agreed that the staff were competent and
already using the system ,35% agreed while a total of 29%either disagreed, strongly
disagreed or were neutral the 35% being a bit lower than 50% means that there is need
for staff members to practice more on the use of the new biometric payment system so as
to become experts as well as increase efficiency contrasting this with earlier findings in a
study done by Thamer and Drew (2010) on Employees‟ Perceptions of Biometric
Technology Adoption in E-Government(Thamer & Drew, 2010). Based on the research
49
the authors recommend that an awareness and orientation process about biometrics should
take place before the technology is introduced into the organization. Hence we observe
some similarity in that staff members or the employees may take time to embrace change
as well as work on the system without errors and mistakes.
This study (Thamer & Drew, 2010) indicate a significant digital and cultural gap between
the technological awareness of employees and the preferred authentication solutions
encouraged by management. A lack of trust in technology can lead to misuse, hence it is
important for management to reemphasize on employee responsibility in managing this
change to narrow these gaps. It was apparent that overcoming employees‟ resistance is an
essential issue facing biometric implementation.
From the study it‟s evident that the staff are well trained and competent as 43%of the
respondents strongly agree, 32%agree and 15% are neutral hence as discussed a
requirement to facilitate the process of competency enhancement, a coaching training
approach has been introduced. Each department has identified a champion known as
biometric system champion to continuously assist staff achieve a higher level of skill
proficiency. Coaching is defined as a method of directing, instructing and training a
person or group of people, with the aim to achieve some goal or develop specific skills.
There are many ways to coach, types of coaching and methods to coaching. Direction
may include motivational speaking and training may include seminars, workshops, and
supervised practice (Garvey, 2009).
5.4 Conclusion
5.4.1 Perdiem payment operational issues and employee perception
The findings indicate that the operational issues have become more efficient and the risk
involved is minimized, as well as achievement of technological advancement as the
organization is headed towards having paperless payments and transactions, this BVR
payment system has in turn saved on time and cost as well as flattened the organizational
structure since the client feel that there is reduction of bureaucracy and they can access
fast and efficient services. The employees also perceive this system as excellent
compared to previous systems of payment. The clients also appreciated the system as easy
to use and understand as they could use their current basic computer skills to access and
use the service.
50
5.4.2 Staff practices of biometric systems
The findings indicate that most of the clients have access to mobile phone, there are still a
few of them who have no access and this becomes a constraint since most of the
transactions are through the mobile phone technology Mpesa .The program officers are
also able to easily link financial payments with program targets and this makes the
monitoring and evaluation process easier and it can be supported by data as well as the
payments. The BS payment system has reduced untimely receipt of per diem payment of
staff and clients and in addition, fraud has also minimized drastically. From the finding
there is alternative payment method in place in case the system fails due to internet
connectivity.
5.4.3 Staff knowledge of biometric system
From the finding it was found that majority of the employees had knowledge about the
system and communication regarding the new system was done well to all staff, though
there were few minor system technical hinges. In case the system was slow the employees
supported and assisted promptly. A mechanism had also been put in place to provide
feedback on the usage.
5.5 Recommendation
5.5.1 Recommendations for the study
5.5.1.1 Perdiem payment operational issues and employee perception
From the findings since by the use of fingerprinting in BS has made payments easy and
the identification cards are no longer required for validation and hence the clients agree
that the use BS was more efficient since if one happened to forget their identification
cards they would still be served we can directly correlate that the clients are really
benefiting from use of the BS system of payment.
5.5.1.2 Staff practices of biometric systems
Most of the employees and clients have acquired phones for mpesa services. The phones
will not only be used for mpesa services from the organization only ,but also for other
such services including communication, accessing the internet among other services.
Mobile technology has been used for other purposes globally using the biometric system.
One such study was done in India, for student attendance verification. In this study
51
according to (Satija & Semester, 2013), an application software is installed in the
instructors mobile phone which enables it to query students' mobile telephone via
Bluetooth connection, it links with the instructor's mobile telephone and this confirms
student attendance. It also provides a detailed record of a student's attendance which can
be generated for printing and filing. The accuracy of this system is unmatched. This
promises a growing trend where more clients are expected to buy mobile phones to be
able to be in a position to access the biometric payment services.
Employees too are beneficiaries of the BS payment system since they are able to provide
timely reconciliation of advances paid to clients and hence there is reduction of backlog
in payments as well as delivery of goods and services.
5.5.1.3 Staff knowledge of Biometric System
The staff members are competent and well trained but since expertise and experience
becomes better with time. The client and the employees may take quite some time to
totally perfect their skills but eventually once they do, all reconciliations and payments
will be instant at the touch of the button using fingerprints.
5.5.1.4 The respondents who were asked about recommendations indicate the need to
address money delays and ensure prompt processing of payments for clients. Have
frequent orientation meetings, known in this organization as Brown Bag lunch (BBL)
meetings on the BVR system for continued improvement of the system. It was also
emphasized for the need to provide more digital equipment to ease work and quality
finger printing gadgets that are able to sense all fingers not only the thumb. Extend the
system to organization staff even those who don‟t pay or receive per diems. The staff
suggested that this service should be extended to all operations in the organization,
including payment of vendors
5.5.2 Recommendations for further study
This study focused on employees of the organization and hence missed out on the
ministry of clients who are the recipients of this service. This means that sample studied
may not be generalized so as to be representative of the entire population. A much
broader conclusive research should therefore take a sample of all employees irrespective
52
of their geographical location. The study found that there is still constant delays of
payments experienced, hence the need to investigate this further to identify the problem.
There is need to explore the root cause of the operational flaws using this system that is
causing delays for future improvement.
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APPENDICES
APPENDIX 1: RESEARCH QUESTIONNAIRE
This is a requirement for the partial fulfilment of the Executive Masters Organizational
development (EMOD) at the United States International University- Africa (USIU-A).
The Purpose of the study is to determine usage, knowledge and practice of using the
Biometric System for payment of per diems.
The results of the research will be used solely for academic purposes and the organization
will not be implicated or bound to the research findings.
SECTION A: BACKGROUND INFORMATION
(Please cross (X) in the boxes provided)
1. What is your gender?
F Female
Male
2. What is your Marital Status?
a) Single
( )
b) Married ( )
c) Divorced ( )
d) Widowed ( )
3. What is your age?
18-25 ( ) 26-30( ) 31-35( ) 36-40( ) 40-60( )
4. Work Station?
Nairobi Office
Korogocho office
Other
5. In which Department do you work in?
Human Resource
ICT
Programs
Administration
Finance
57
Monitoring, Evaluation and Research
Communications
6. How long have you worked in this organization?
1 month -3 years ( ) 4-6 years ( ) 7-9 years ( ) 10-12 years ( )
13-15 years ( )
SECTION B: OPERATIONAL ISSUES AND EMPLOYEE PERCEPTION
PART I: Operational issues hindering usage?
Please read the statement carefully and tick appropriately.
Strongly
Agree
1. BS has made per diem payment paperless
2. Payment of per diem to clients using BS has
reduced cash handling
3. Fraud has been minimized drastically
4. Employees
are
now
providing
timely
reconciliation of advances paid to clients
5. The program officers are able to links financial
payments with program targets
6. Since the introduction of the systems more clients
and employees have acquired phones for MPESA
service
7. The BS has reduced untimely receipt of Per Diem
payment by staff and clients
8. Use of fingerprinting in BS ,has alleviated made
payments easy; Identifications cards are no longer
required to validate payment
58
Agree
Disagree
Strongly
Disagree
PART II: Employees and clients knowledge, perception on per diem payments using
the Biometric system
Please tick the numeric value corresponding to your personal opinion for each statement.
STATEMENT
Strongly
Agree
Neutral
Disagree
Strongly
Disagree
a) Communication regarding the new 
system was done to all staff




b) My current computer skills enable 
me to access and use this service




c) A manual is already in place for 
employees to refer




d) The users of the new BVR payment 
system are trained and competent to
use the system?




e) All staff are competent and are using 
this system




f) A mechanism is already in place to 
provide feedback on the usage




g) The employees are supported and 
assisted promptly when the systems
is slow




h) An alternative payment in place in 
case the system fails due to internet
connectivity




d) The employees perceive this 
system as excellent compared to the
previous system of payment




Agree
59
List at least five ways in which the Biometric payment system has worked for you.
a) ………………………………………………………………………………………….
b) ………………………………………………………………………………………….
c) ………………………………………………………………………………………….
d) …………………………………………………………………………………………..
9. List at least two recommendations for the improvement of the Biometric payment system.
e) ………………………………………………………………………………………….
f) ………………………………………………………………………………………….
g) ………………………………………………………………………………………….
h) …………………………………………………………………………………………..
Thank you for taking your time to fill in this questionnaire
60
APPENDIX 2: FOCUS GROUP DISCUSSION GUIDE
This is a requirement for the partial fulfilment of the Executive Masters Organizational
Development (EMOD) at the United States International University- Africa (USIU-A).
This purpose of the study is to determine usage, knowledge and practice of using the
Biometric Verification System for payment of per diems.
The results of the research will be used solely for academic purposes and the organization
will not be implicated or bound to the research findings.
SECTION A: BACKGROUND INFORMATION
Group Location/Number
Site
Time
Started
Ended
Number of women
Number of men
Name of moderator
Name of note-taker
Note the group demographic information age, level of education and occupation
(Community Health Worker)
Participant
AGE
LEVEL OF EDUCATION
1
2
3
4
5
6
7
8
9
10
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OCCUPATION
SECTION B: OPERATIONAL ISSUES
(Probe for each category and maintain eye contact as you ask the questions)
1. What does your work entail? (The Community Health Workers should volunteer this
information. Probe for type of work and how they do it )
2. Do you have an Identification card?
3. Do you also have a phone? If yes what
4. When you were last paid using the BVR system? And by which organization?(If by
Jhpiego skip to the next question)
5. What was the process in receiving the payment through the system? ( explain)
6. How long did the process take?
SECTION C: CLIENTS KNOWLEDGE AND PERCEPTION
1. Did someone provide information prior or during the activity about the payment mode?
(Probe for more information on clarity)
2. Were you comfortable with the payment through this mode? Please explain?
3. Are there benefits and challenges you want share regarding this system? Please explain
4. Do you have any recommendations regarding the new payment system? If yes explain?
62
APPENDIX 3: BUDGET
Activity
Activity description
Amount in Kshs
1. Data Collection
a) Postage cost within Nairobi
Kshs.
120(courier)
X
2 240
envelops(questionnaires)X1event
2. Printing of questionnaires
a) Staff
and
Clients Kshs.
Questionnaire
3
per
page
X
50 600/=
respondents X 4 pages
b) 10 Focus Group Discussions Kshs. 3 per page X 10 FGDs X 2 60/=
(FGD)
pages
3. Research assistants
a) Research assistants fees ( Kshs 500 per person X 2 interns 5,000/=
use project interns)
b) Transport
cost:
X 5 days
To/from Kshs. 300 per day X 2 people X 5 3,000/=
Korogocho
4. Data analysis
days
The researcher will do the data
analysis using USIU-A facilities
5. Finalization of Report findings
a) Printing of report
Kshs. 3 per page X 50 pages X 2 300/=
copies
b) Formatting of report
Kshs. 300 per copy(book) X 2 600/=
copies
c) Binding of report
Kshs. 500 per book X 2 copies
Total Budget for the study
1000/=
Kshs. 10,800/=
63