REVIEW OF RELATED LITERATURE
INTRODUCTION
This chapter
provides an overview of the previous literature on budgeting processes and
performance, this review aims at finding what the theoretical framework will be
as to linking budgeting and performance in organization.
EMPIRICAL REVIEW
Mzukisi
Harrington Kalashe (2007)
carried out a study on “An Evaluation of the Implementation of Budgetary
Control measures by the provincial treasury
with specific reference to the
province of the Eastern Cape Department of Education”
where he defined budget
control as “a process of financial monitoring to
ensure effective allocation collection and efficient utilizing of
public funds” . According to him, it is a process that is aimed at ensuring
the accomplishment of public policy objectives. To him, budget control is regulated
by financial legislation as well as regulations and procedures which guide public
financial administrators. He opined that continuous monitoring was needed
once appropriation was allowed by
parliament or provincial legislatures to ensure effective services rendering as
well as tax and user charges
collection.
The study investigated
the reported ineffective budget control measures implemented by the provincial
treasury in the Province of the Eastern Cape, particularly in the Eastern Cape
Department of Education. Ineffective budget control might be associated with
the implementation of unstable fiscal policy by the provincial treasury that
led to deficit spending in the department of education during the (2004/2005)
financial year (Geworge, 2004 in Mzukisi, 2007).
The
objective of the study was to show that the implementation of stable fiscal
policy instrument by the provincial treasury would lead to so many things.
Province of the
Eastern Cape Department of Education, Jan-Martin studies on the theory
budgeting and its practical application in German Independent Hotels and Kieran Conboy looked into project
failure en-mass: A study of loose budgetary control in ISD projects. The researcher is not aware of any scholar
who has done any work on budgetary control process and organizational
performance, hence, the need for this study.
THEORETICAL FRAMEWORK
The theoretical framework
that will guide this study is the contingency theory. The theory is an approach
to the study of organizational behavior.
The assumption underlying contingency theory is that no single type of organizational
structure is equally applicable to all organization. Rather, organizational effectiveness is dependent on a fit or matches between
the type of technology
environmental volatility, the size of the organization the features
of the organizational structure and its
informative system.
Contingency theories
were development from the sociological functionalists theories of
organizational studies by Reid and Smith (2000) Chenhall (2003) and Woods (2009). These studies postulated
that organization structure was contingent on contextual factors such as
technology, dimensions of task, environment and organizational size.
It will be
considered suitable for this study because the theory summarize an approach to
the study of organizational behavior in
which explanations are given as to how contingent factors influence organizational performance. This study shall equally make a
contribution to wards reviewing the contingent literature in relation to
budgetary control and organizational performance.