BUDGETARY CONTROL PROCESSES AND ORGANIZATIONAL PERFORMANCE: A STUDY OF SELECTED FIRMS IN ENUGU AND EBONYI STATE


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.
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