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JS Myburgh Orcid.Org 0000-0002-1689-354X Investigating the impact of postgraduate student drop-out rates at a higher education institute JS Myburgh orcid.org 0000-0002-1689-354X Mini-dissertation accepted in partial fulfilment of the requirements for the degree Master of Business Administration at the North-West University Supervisor: Prof AM Smit Graduation: May 2020 Student number: 20412312 ABSTRACT Universities in South Africa are obliged to adhere to the South African National Planning Commission’s National Development Plan (NDP) by assisting students financially in order to complete their studies. Despite complying, universities experience high volumes of students who drop out at postgraduate level of studies after receiving university-funded bursaries. The objective of this study is on evaluating the financial impact caused by postgraduate students who drop out after receiving university-funded bursaries. Several variables are evaluated in order to understand the impact of these student dropouts. A literature study was conducted to obtain insight into the South African higher education environment, and to highlight the challenges faced by both universities and students. The empirical study conducted focused on the financial impact caused by the postgraduate student dropout rate notwithstanding their receiving university-funded bursaries. It also addresses the variances per demography and the relation to the allocation of these university bursaries. The findings from the empirical study show that a large sum of university-funded bursary money is lost due to students that drop out after receiving bursaries. In conclusion, universities need to address the recovery processes of bursary money from dropout student as well as the poor completion rates on postgraduate level. Key terms: bursary, dropout, higher education institution, postgraduate i ACKNOWLEDGEMENTS In acknowledgement, I wish to thank God for granting me the privilege and perseverance to complete my studies. I also wish to thank the following people: My husband Louis Myburgh for his continuous love, understanding and support to develop my career; My children Johan, Anrea, Michelle and Micheal for their love and care. Specifically, Michelle for her assistance with the statistical analysis of data; My mother Ria Bosch for her constant encouragement and inspiration, and my late father Piet Bosch for always believing in me; My extended family for their motivation and support; Marelize de Lange, my manager, for her encouragement and direction through the years; My study leader, Prof. Anet Smit of the North-West University for her assistance, guidance and advice; and Diana Coetzee for assisting me with the language editing of this research. ii CONTENTS ABSTRACT .......................................................................................................................... i ACKNOWLEDGEMENTS ................................................................................................... ii LIST OF APPENDICES ....................................................................................................... v LIST OF FIGURES ............................................................................................................. vi LIST OF TABLES .............................................................................................................. vii LIST OF ABBREVIATIONS ............................................................................................. viii CHAPTER 1: NATURE AND SCOPE OF THE STUDY ................................................... 1 1.1 INTRODUCTION ..................................................................................................... 1 1.2 BACKGROUND TO THE STUDY ........................................................................... 2 1.3 PROBLEM STATEMENT ........................................................................................ 5 1.4 OBJECTIVES OF THE STUDY ............................................................................... 6 1.4.2 Primary objective ........................................................................................ 6 1.4.3 Secondary objectives ................................................................................. 7 1.5 RESEARCH METHODOLOGY ............................................................................... 7 1.5.1 Literature review ......................................................................................... 8 1.5.2 Empirical study ........................................................................................... 8 1.6 LAYOUT OF THIS STUDY...................................................................................... 9 1.7 LIMITATIONS OF THE STUDY .............................................................................. 9 1.8 CONCLUSION ...................................................................................................... 10 CHAPTER 2: LITERATURE STUDY .......................................................................... 11 2.1 INTRODUCTION ................................................................................................... 11 2.2 THE ROLE OF INTEGRATED REPORTING ........................................................ 13 2.3 HIGHER EDUCATION IN SOUTH AFRICA .......................................................... 15 2.4 ENROLMENT AND GRADUATION RATES IN SOUTH AFRICA ......................... 17 2.4.1 Enrolment rates ........................................................................................ 18 2.4.2 Graduation rates ....................................................................................... 20 2.5 CHALLENGES AND TRENDS IN HIGHER EDUCATION .................................... 23 2.5.1 Challenges encountered by students ....................................................... 23 2.5.2 Challenges encountered by universities ................................................... 24 2.6 RECENT TRENDS AND CHALLENGES .............................................................. 26 2.7 SIGNIFICANCE OF DROPOUTS ......................................................................... 28 iii 2.8 CONCLUSION ...................................................................................................... 29 CHAPTER 3: EMPIRICAL STUDY ............................................................................. 31 3.1 INTRODUCTION ................................................................................................... 31 3.2 OVERVIEW OF THE ORGANISATION ................................................................ 32 3.3 GATHERING OF DATA ........................................................................................ 34 3.4 RESEARCH METHODOLOGY ............................................................................. 35 3.5 TARGET POPULATION ....................................................................................... 35 3.6 SAMPLING............................................................................................................ 36 3.7 UNIT OF ANALYSIS ............................................................................................. 37 3.8 RESULTS AND DISCUSSION .............................................................................. 38 3.8.1 Gender ..................................................................................................... 39 3.8.2 Race ......................................................................................................... 39 3.8.3 Geographic location .................................................................................. 41 3.8.4 Faculty ...................................................................................................... 42 3.9 SUMMARY ............................................................................................................ 45 CHAPTER 4: CONCLUSIONS AND RECOMMENDATIONS ..................................... 47 4.1 INTRODUCTION ................................................................................................... 47 4.2 MAIN FINDINGS ................................................................................................... 47 4.2.1 Primary objective ...................................................................................... 47 4.2.2 Secondary objectives ............................................................................... 48 4.3 RECOMMENDATIONS ......................................................................................... 49 4.4 ACHIEVEMENT OF THE OBJECTIVES OF THE STUDY .................................... 49 4.5 RECOMMENDATIONS FOR FUTURE RESEARCH ............................................ 51 4.6 CONCLUSION ...................................................................................................... 51 5. REFERENCE LIST ................................................................................................... 53 iv LIST OF APPENDICES Appendix A: Solemn Declaration and Permission to submit 59 Appendix B: Declaration of editing of mini dissertation 60 v LIST OF FIGURES Figure 2.1: Non-completer respondents’ socio-economic status, by race 28 Figure 3.1: Process flow diagram 34 vi LIST OF TABLES Table 2.1: National Qualification Framework levels for universities 16 Table 2.2: South African universities listed by category, 2018 16 Table 2.3: Percentage of students enrolled at public universities by nationality 18 Table 2.4: Number of foreign students enrolled in public HEIs by country, attendance mode and qualification type, 2017 19 Table 2.5:
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