dc.description.abstract |
The need for participation by staff or subordinate managers in the budgetary
processes and the use of budgeting as an effective control tool in any organization
cannot be over emphasized. This topic was chosen because of the need for
increased participation in budgetary processes in order to nip in the bud the
continued adverse budget variance and non implementation of budget figures .
Obviously, full participation by users and implementers of budget details aid in
speeding and actualizing management functions and organizational goals.
Regrettably , this very important tool is not effectively put to use by some line
managers and departmental heads, thereby jeopardizing the cumulative impact of
budget, threatening good performance which lead to decline in liquidity of cash
budgets inmost Nigerian organization. In view of the foregoing, this research work
investigated into the significant impact of participation in budgetary system and its
implementation in optimizing total product liquidity and attaining corporate goals
of Nigeria Bottling Company Plc Owerri and Emenite Ltd Enugu. This study
investigated whether both companies apply participatory budgetary procedures in
their operations, that is, whether process of democratic deliberation and decisionmaking, in which not only line managers and departmental heads but also senior staff and subordinate budget users contribute in the budgetary process of allocating
part of corporate organizational resources designed to achieve corporate goals and
if so, to what extent does this help in the planning, controlling, decision making
and attaining. In carrying out this task, the researcher had to carry out surveys
through the use of questionnaires and oral interview with two key officers of both
companies, also the use of product moment coefficient of correlation was used in
testing the formulated hypotheses and the use of frequency table for analyzing the
collected data. After carrying out the .research, the researcher arrived at some
findings. The major findings showed that, the Nigeria Bottling Company Plc
Owerri and Emenite Limited each installed a participatory budgetary system
among other managerial tools. Furthermore, it was discovered that the system in
both companies is laden with a number of errors like lack of cash budget, which
gave rise to most of the problems associated with the ineffective operations of the
company. In consideration of most of the findings, it was concluded that effective
participation in budgeting and its implementation is the key to optimizing product
quality, enshrining control and actualizing corporate goals of manufacturing
companies. Finally, the researcher observed that the Nigeria Bottling Company Plc
has a better budgetary process that is responsible for her efficient management,
However, the researcher recommends that there should be annual cash budget and
the involvement of supervisors and operatives in the budgetary process, while the
structural process of budget plans, deliberation and approval should be followed
before drawing the master budget. On Emenite Ltd, the researcher recommended
that there be continuous staff training on budgetary system, especially, on budget
implelnentation process; while adverse variances should be given 1110re
prominence, if the recommendations are carried out, participatory budgeting will
become on effective control tool for proactive management, |
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