ABSTRACT
The research on problem of
budgetary control as a management tool for planning and control. Its source is
mainly concentrated at Asaba capital city of Delta as a result of the lack o
implementation of budget and management of budget in he financial industries
and organizations. The objective is to identify the cause of poor performance
in an organization also to examine the problem of inadequate allocation of
resources to meet organizational goals, standard for prediction of past and
present budget for future reference. The researcher examines this work by using
primary and secondary data, personal interviews and questionnaire, the yaro yemen’s
formula (n=N/ 1+n (e)2) was used. In the chapter four, the data was
analysed by percentage and the findings were properly discussed. From the
findings, he researcher observed that forecasting should be used in predicting
the future budget, also lack of management of fund causes inadequate allocation
of resources and equal relationship exist within the organization in conclusion.
The research recommended that there should be equal relationship within an
organization and forecasting should be used in prediction of future budget and
finally, management auditors should be called in from time to time to make
enquiry in reducing the stress and constrain involved in effective management.
TABLE OF CONTENTS
Cover page
Title page
Approval
page........................................................................................i
Dedication ............................................................................................ii
Acknowledgement...............................................................................iii
Abstract................................................................................................iv
Table of
contents...................................................................................v
CHAPTER ONE:
1.0 Introduction
................................................................................1
1.1
Background of the study
............................................................1
1.2
Statement of
problem..................................................................4
1.3
Purpose of the
study....................................................................5
1.4
Research
questions......................................................................5
1.5
Significance of the
study............................................................6
1.6
Scope of the
study.......................................................................7
1.7
Definition of
terms......................................................................8
CHAPTER TWO
2.0
Literature Review
....................................................................11
2.1
General Concepts Genesis of Budget ......................................11
2.2
Models and Theories Relevant to the Research
Question........13
2.2.1
Meaning of
Budget...................................................................13
2.2.2
Classification of
budget............................................................14
2.2.3
Method of
budget......................................................................17
2.2.4
Manner of budget preparation
.................................................19
2.2.5
Preparation of a typical
budget.................................................21
2.3 Current
Literature Relevant to the research questions ...........23
2.4 Summary
of Literature review..................................................25
CHAPTER THREE:
Research
methodology .............................................................27
3.0
Introduction
..............................................................................27
3.1
Research designed. ..................................................................27
3.2
Area of the
study.......................................................................28
3.3
Population of the
study.............................................................28
3.4
Sampling
techniques.................................................................29
3.5
Source of data collection
.........................................................30
3.6
Instrument for data collection
..................................................31
3.7
Reliability and validity of the
instrument.................................32
3.8
Distribution and Retrieval of the instrument for
data collection ............32
3.9
Method of data
analysis............................................................32
CHAPTER FOUR:
Data presentation and analysis of
Data ..............................................34
4.1
Introduction
..............................................................................34
4.2
Analysis of
data........................................................................37
4.3
Findings....................................................................................41
4.4
Discussion of findings
.............................................................43
CHAPTER FIVE:
Summary of findings, conclusions
and Recommendation
5.1
Summary of findings.
..............................................................44
5.2
Research
conclusions................................................................46
5.3
Recommendation
.....................................................................47
5.4
Limitations of the study...........................................................48
5.5
Suggestions for further
research...............................................49
References................................................................................51
Appendix A
..............................................................................53
Questionnaire
...........................................................................54
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY:
Fundamentally, management is the
coordination of human effort that is art of accomplishment of goods by
utilizing the effort of other people. The management process may be varied as
the total management effort operating in a particular endeavor that include
decision making, the application of selected techniques and producers and the
motivation of individual and groups to accomplish specified objective. One of
the most important approaches that have been developed for facilitating
effective performance of management process is budget and budgetary control. As
consequence, the concept has found wide acceptance in recent years in the better
managed companies / organizations. A budget, according to Horgen et al
(2013:59), as a qualitative expression of a plan of action and, an aid to
coordination and implementation.
Every organization has an implicit and
explicit objective, it hopes to achieve in a given period of time such
objective is translated into plan through the formulation of policies and
selections of programmes in other to check derivation from it, hence most
organization normally use budget as an action plan, a budget is therefore a
parameter, which measures actual achievement, Budgetary control as sample used
to institute control for the plan, this is because budgetary control takes
target of desired performance as its standard than systematically collected
information relating to actual performance and identifies variance between targets
and actual performance. Budgetary control is more than an administrative
technique which aims to ensure the managerial function are in fact carried out
a well organized and coordinated fashion hence budgetary control apart from
being a longer system which involves
setting objectives concerning alternative programmes and incorporating them
into the formulating authorization and implementation of budget, accounting per
and reviewing of findings to check deviation from actual plan in order for corrective
measures to be taken on time.
Budget which is required to achieve
different aims within an organization starts with the setting out of the
objective of the organization by the management for the budgeted year according
to government fiscal and monetary policies, guidelines and the approval of the
management centered in carrying out the plans which are contained in each
budget.
In conclusion, for management to provide
adequate control over the budget of an organization, it could coordinate all
the collaborated responsible parties in achieving the actual result with the
budget to establish the variance, hence
budget is therefore a primary tools for planning while the process of budgetary
control is both planning and control device.
1.2
STATEMENT OF THE PROBLEM
The main focus of the problem is based on problem of
poor performance in an organization due to lack of effective and efficient
budgets and budgetary control system.
Also problem of inadequate allocation of
resources to meet organizational goals and maximize performance.
Further
more studies on problem of reflecting data of the past and present and how to
enable predictions and forecasts to be made out in the future.
The
study also term to discover how banking industries in Nigeria can make use of prepared
budget to achieve efficient result.
Also,
looking into numerous pressures in the job may impose constrains upon managers
which affect the qualities of information they collected in the organization.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to know how
budget and budgetary control serve as a managerial tool for planning and
controlling specifically, the study aimed at achieving the following objective:
-
To identify the
case of poor performance in an organization.
-
To examine the
problem of inadequate allocation of resources to meet organizational goals.
-
To provide
standard on the past and present budgets in forecasting and predicting the
future.
-
To identify how
prepared budget can be used in achieving efficient result.
-
To under stand
numerous pressure in job contraries on managers in budget preparation.
1.4 RESEARCH QUESTION
* What relationship exists between
budgetary control and organizational performance?
* What are the cause of inadequate
allocation of resources in an organization?
* How can an organization use past and
present budget in predicting the future?
* Does prepared budget has any impact in
achieving organizational goals / result?
* Does numerous pressure in job constrain
on managers affect budget preparations?
1.5 SIGNIFICANCE
OF THE STUDY
The addition of knowledge is basically
the aim of every research and this research work seeks to achieve more
importantly, this research is necessary in understanding how the budgetary
control affect organizational performance.
Also it is a tool which measures
managerial performance of an organization in bring solution in allocation of
resources and promote good morale and harmony in the organization.
The
research apart from explaining the concept of budget and budgetary control
looks into the comparison between the past and present budget in future
prediction.
It will contribute immensely to the existing
knowledge on the concept on how banking industry in Nigeria
can part take in budget preparation in Nigeria in order to achieve an
organizational goal.
In conclusion, numerous pressure that
are mounted in job constrain to manager are reduced and more measures are taken
in dressing the issues.
1.6 SCOPE OF THE STUDY
Element
of a successful budget plan the success of the budgetary process in an
organization depends on the following essential element on accurate forecasting
of business activities and communicating the budget acceptance and cooperation reasonable
flexibility. All in reference on first Bank Nigeria
Plc Asaba
Delta State.
1.7 DEFINITION OF TERMS
Budget: Budget is a plan that is
usually expressed in monetary terms approved before the period of use and it usually
covers one year.
Budgetary
control: According to the chartered
institute of management accountants (CIMA) Budgetary control is the
establishment of budget relating to responsibilities of executive to the
requirements of a policy and the continuous comparism of actual with budgeted
results, either to secure by individual action of the objective of that policy
or provided a basis for its revision.
Savings: This is an account
opened by individuals who wants to save small account of regular basis and
income after expenditure / expenses.
Current
Expenditure: Is the expenditure that are repealed yearly, example salary of
cookers, road repairs and other similar expenditure of reoccurring nature.
Capital
Expenditure: This is incurred when a business spends money either to buy fixed
assets or to add to the value of an existing fixed asset with a useful life
extending beyond the taxable year. In the national budget is the expenditure of
permanent nature, the expenses are on project that will last for more years example
school, roads, hospitals bridges etc.
Investment: Is an acquiring in share,
stock debenture of other companies, investment can be acquired by an individual
on company by or investing other company.
Budget Balance: This means that planned government
expenditure is equal to estimated government revenue.
Budget surplus: This means that proposed government
expenditure is less than the estimated government revenue during a financial
year.
Budget Deficit: It means that government planned expenditure
is greater than its estimated revenue for one year.
Planning: This is he process of
thinking about an organizing the activities required to achieve on objective. A
process of making arrangements for in advance.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment