Background of the study
Following the uncertainties prevailing in the Nigerian business environment today, managers and stakeholders must be poised and prepared to compete favourably under these rapidly shifting conditions. In order to survive under these environmental complexities and vagueness managers and stakeholders of both private and public sectors need sharp tools, proven management techniques to forecast the major changes which are likely to affect the business while they choose future direction and dimension of resources needed to attain selected goals.
Budgetary control as a proven management tool helps organization management, and enhances improved performance of any economy in different ways. It’s primary function is to serve as a guide in financial planning operators; it also establishes limits for departmental excesses. It helps administrative officials to make careful analysis of all existing operations, thereby justifying expanding, eliminating or restricting present practice. Budgeting and control entails a distinct pattern of decisions in an organization which is capable of determining its objectives, purposes or goals and how these goals are achieved by establishing principal policies and plans. However the inability to recognize the problem concerned and fixing a boundary off investigation creates an obstacle for the successful implementation of budgeting and control. Some organizations only look for narrow ranges of alternatives which they arrive at from their past expenses and present situation, other management levels even avoid long-term planning and budgeting in favour of today’s problems thereby making the problems of tomorrow more severe. The foregoing reflects on the need for organizations to set up a formal mechanism for scanning its environment for opportunities and give early signs of future problems, this course of action will improve the system of budgeting and control, resulting in an appropriate expectation of improved performance, in the manufacturing sector as seen in this study.
Various researches on budgets and budgetary controls have clearly shown that organizations need to pay serious attention to budgetary processes, budgets, and budgetary controls. In light of these various issues facing organizations as a result of poor/mismanaged budgetary control systems/budgets, the researcher went ahead to research more on the topic and came out with various recommendations and findings to help curb the problems organizations have with their various budgetary control systems.
Interviews and casual discussions with managers, employees, government agencies etc, formed the initial and informal stages of this study. When enough materials were gotten and reviewed by the researcher, it later developed into a full and complete academic research. Various issues affecting budgetary processes, budgets and budgetary control are fully addressed in this study.
This study was mainly undertaken to help organizations in Nigeria to grow, thereby also helping the economy of Nigeria to grow, because when enterprises and businesses do well, the economy will definitely do well.
1.2. Statement of the problem
In recent times, companies have performed poorly due, to the fact that they lack effective and efficient budgets, and budgetary control systems to adequately and judiciously allocate resources to meet organizational goals, and maximize performance. A study conducted by Boquist (2001) observed that companies continue to blunder and fail because they have flawed budgetary planning and control systems, which they apparently fail to recognize. Some firms sense weakness of their budgetary analysis but viewed them as individual problems rather than systematic deficiencies. They misdirect efforts and produce greater frustration. As a result, corporate strategy and capital allocation become misaligned and remain so, despite disapproving financial performance.
Some business organizations do not even know the link between budgetary control and performance, and this affects their performances negatively. Various organizations ranging from small scale businesses to large scale businesses, fail to recognize the power of budgets and budgetary control over performance outcomes. These organizations go ahead without paying more attention to improving their perfo
ABSTRACT
Al Maslahah al mursala is a Maslahah which is neither acknowledged nor rejected by the Law Giver. It is called (Mursalah) that i...
ABSTRACT
The purpose of this research work is to investigate the effect of class size in effective teaching and lear...
Abstract
Banks play a very important role in development of the Nigerian economy. The...
Background of the study
The history of radio news commentary in Nigeria dated back to the 1930’s...
Background of the Study
A man can be born again; the springs of life can be cleansed instantly…if this is true of...
ABSTRACT
Soybean is a very important leguminous seed crop; known for its highly valued proteinandoilowingto its use in food, feed and ind...
Excerpt from the Study
This study has presented the development of a brightness enhancement technique for video frame pi...
Background to the Study
Like most other pre-modern human societies, the traditional societies in the territories later to be amalgamated...
Abstract
Internal audit system plays a key role in the assurance chain towards accountability and control. therefore the purpose of...
ABSTRACT
This study was carried out to examine Britain and Nigeria's independence in 1960...