An Appraisal of Budgeting as a Tool for Effective Control in Public Sector. A Case Study of Power Holding Company of Nigeria
CHAPTER ONE
OBJECTIVE OF THE STUDY
The objective of this study is to assess the role of Resources management on organizational development. The specific objectives are:
- To identify the need of developing employee programme in an organization.
- To identify the impact of material resource management on organizational development.
- To identify Identifying the causes of inadequacies in financial resource management
- To identify and ascertain some of the problems poised by materials management in an organziation
- To examine the problem of developing employee productivity for efficiency.
CHAPTER TWO
LITERATURE REVIEW
OVERVIEW OF HUMAN RESOURCE MANAGEMENT
Armstrong (2004) defined Human Resource Management as a strategic and coherent approach to the management of an organization most valued asset. The people working there who individually and collectively contribute to the achievement of it objectives. He further outlined the main features of HRM as follows.
- An emphasis on the strategic management of people (The Human capital) of the organization, which achieves integration between the business and the HR strategy.
- Comprehensive and coherent approach to the provision of mutually supporting employment policies and practices.
- The importance placed on gaining commitment to the organization mission and values.
- The treatment of people as assets rather than costs.
In addition to the above definition given by Armstrong Human Resource management as defined by Boxall (1996) said Human Resource Management has to do with the attraction and retention of skilled, competent, committed and motivated workforce needed by an organization.
This according to Boxall is aimed at helping in the creation of firms which are more intelligent than their competitors through the hiring and development of talented staff.
Armstrong (2004) asserts that the organizational success depends on the talents of the employees which include superior performance, productivity, flexibility, innovation and ability to develop high level of customer service, he further stated that people is the key resource in an organization and organizational performance largely depends on them.
In order to Buttress the above definitions, human Resource management is the back-bone on which the growth and development of every organization lies and without a proper and strategic Human Resource Management the success of any organization is at stake. Therefore human should be considered as a vital Resource in every organization.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter discusses the method of collecting the relevant information for this project. This embraces the particular method technique, system, tools and procedures by which the research is intended to be carried out. The research methods employed in any study is highly important for the success of the project.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
INTRODUCTION
This chapter deals with the analysis of data collected. The data was analyzed according to statistical techniques for clarity. Techniques such as table percentage and frequency count is used as a yard stick for the interpretation of data collected from the questionnaire. Twenty five (25) questionnaires were administered and only twenty-two were filled and returned.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
INTRODUCTION
The researcher in this chapter gives the summary, conclusion and recommendation of the study.
SUMMARY
The effect budgeting as a control tool in public sector cannot be under estimated. The reasons it is used to control future expenditure. this In chapter one, concerted efforts are made to introduce the subject matter, highlights some of the general problems and objectives as well as significance of the study and also the historical background of the study are a plus, a statement of hypothesis and definition of terms as opposed to dictionary meaning, together with some limitation of the study.
Chapter two deals with the opinion of authors, professionals and renown scholars on the subject maters with consideration on other important discussion, intended to throw more light on the research study as, purpose and objectives of budgeting, types of budget, the functions budget committee, and benefit of budgeting. Chapter three deals with the research methodology used in the gathering or collection of necessary data required to enrich the study questionnaires and documentary.
Chapter four the collected data are presented and analyzed with a proof of the stated hypothesis where the alternative hypothesis (H1) is accepted, while the null hypothesis (H0) is rejected based on the available data for the research findings.
Finally chapter five, comprises of entire summary of the research work, conclusion arrived at and recommendations proffered on the objectives and comprehensive appreciation of the research study.
CONCLUSION
The focus of this study is budgeting as a tool for planning and control. Budgeting has been described as a plan quantified in monetary terms, prepared and approved prior to a defined period of time.
The ministry in order to enhance smooth performance and subsequently the realization of the objectives. Hence the researcher suggests budgeting and planning to facilitate control of the future expenditure.
The writer undertook the research of the organization to find out whether the Ministry applies budgeting and planning procedures to its operations and in particular the control of its future expenditure. Moreover, if it had done that, how had it being done and to what extent as well as finding out the efficiency and effectiveness of the system on the Ministry. To this end the researcher set two basic assumptions or (hypothesis as a bases for the research study which conclude that; The Ministry embarked on long term strategic planning and budgeting techniques to minimize its expenditure. There was effective budgeting and planning procedure in the state and in terms of control, the strategic plan of the Ministry proved beyond reasonable doubt that budgeting and planning are suitable for controlling future expenditure.
Based on the finding the researcher identifies that various problems and difficulties usually associated with budgeting and Budgetary control. Among these are:
However, the researcher is not claiming mastering of these problems.
Budgeting develops around the existing organizational structure and departments which may be in appropriate underlying economics realities. The every existence of well documented planning and budgeting may cause lack of flexibility in adapting to change. There is managerial problems in selecting the level of attainment to be included in budgeting and standards.
Variances are frequent due to changes in circumstance, poor forecasting, and general uncertainties. The budgetary system, perhaps because of undue pressure or poor human relations may caused antagonism and decrease motivation.
RECOMMENDATIONS
- The researcher is of the opinion that budgeting and planning of the Ministry should be maintained and pursued until fully realized.
- The Ministry should employ competent and intelligent staff with a lot of experience to facilitate the planning, organizing and implementation of the budgets and plans which will go a long way in controlling the future expenditure of the ministry.
- To support the above recommendations, training of staff in the ministry should be encourage as well as registration with professional bodies.
- To ensure that budgets are realistically established and coordinated satisfactorily, functional heads are to present their budget to the committee for approval
Furthermore, budgets and plans should be reviewed on a continuous basis to ensure that they are operated effectively and efficiently to facilitate the realization of the goal which is the control of future expenditure of the ministry.
BIBLIOGRAPHY
- Argysi, C. (1985) Human problems with Budgeting Pitman Publishers London. 2nd Edition, pp. 59-63
- Beyer R. (1999): Profitability Accounting for Planning and Control, London Ronald Press
- Burmaro H.S. (1997): Business Budgeting controllership, New York Foundation Inc.
- Heikoff, J.M (1980) Planning and Budgeting Municipal Heiman Publishers 7th Edition P 85
- Illersk, A.R (1980) Statistics Macmillan Publishing Company London 4th Edition PP. 100 – 135
- Luck and Rubin (1992) Marketing Research Prentice Hall of India private Ltd. M- 97 Comarglet 7th Edition PP. 8 – 15
- Lucy, T. (1989) Cost Accounting Heiman Publishers London 3rd Edition P. 33
