Effect of Bank Fail Effective Budgetary Control as an Instrument for Organizational Survival in Nigeria Economy
Chapter One
OBJECTIVE OF THE STUDY
The objective associate with this study include:
To determine whether budgeting is an effective management tool in organizations
To determine whether budgetary control has contributed to the success and survival of most set ups.
To determine whether some organization would still have achieved success without effective budgetary control
To determine whether participatory budgeting aids effective budgetary control
To determine the impact of deviation from established budgets
To assess the relevance of management principles on budgetary control
To make recommendation on how to improve performance in organizations.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
DEFINITION OF BUDGET MANUAL
According to Drury (2000), a budget manual should be prepared by the accountant. It will describe the objectives and procedures involved in the budgeting process and will provide a useful reference source for managers responsible for budget preparation. In addition, the manual may include a time table specifying the order in which the budgets should be prepared and the dates when they should be presented to the budget committee. The manual should be circulated to all individuals who are responsible for preparing budgets. Lucey (2002) stated that one of the objectives of budgeting is to improve communications. It is important that a manual is produced so that everyone in the organisation can refer to the manual for guidance and information about the budgetary process. The budget manual does not contain the actual budgets for ensuring period. It is more of instructional or information manual about the way budgeting operates in the particular organisation and the reasons for having budgeting. According to Nweze (2011), it is advisable to develop a budget manual which sets forth
The objectives of the business
The part which budgeting control plays in the accomplishment of the budgets
The specific procedures to be followed in the preparation of budget
How reports comparing budgeted and actual performance should be prepared and
The functions of the budget officer and budget committee and their relationship with the various levels of management in the development of the system of budgetary control
REASONS FOR BUDGETING
According to Lucey (2002), every business manufacturing concerns do as well plan the budgets adequately for the following reasons being listed below: An adequate budget planning can allow the organization control their resources while venturing in the business world A good budget planning enables such an organization to adequately plan their future profit unlike making use of the rule thumb The major advantages of budgeting are:
To state the firms expectation (goals) in a clear, formed terms
To communicate expectations to all conceived with the management of the firm so that they are understood, supported and implemented
To provide a detailed plan of action for reducing and uncertainty and for proper direction of individual and groups efforts to achieve those goals
To co-ordinate the activities and efforts in such a way that the use of resource is maximized
To provide a means of measuring and contributing to the performances of individuals and units and to supply information on the basis of which the necessary corrective action can be taken Budgeting increases the morale and thus the productivity of the employees by seeking their meaningful participation in the formulation of plans and policies bringing a harmony between individuals goals and enterprise more effectively Budgeting permits to focus management attention on significant matters through budgetary reports Budgeting develops an atmosphere of profit consciousness and cost consciousness Budgeting measures efficiently and inefficiency permits management self-evaluation and indicates the progress in attaining the enterprise objectives.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine effect of bank fail effective budgetary control as an instrument for organizational survival in Nigeria economy. United African company Plc forms the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain effect of bank fail effective budgetary control as instrument for organization survival in Nigeria economy. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of bank fail effective budgetary control as instrument for organization survival in Nigeria economy
Summary
This study was on effect of bank fail effective budgetary control as instrument for organization survival in Nigeria economy. Five objectives were raised which included: To determine whether budgeting is an effective management tool in organizations, to determine whether budgetary control has contributed to the success and survival of most set ups, to determine whether some organization would still have achieved success without effective budgetary control, to determine whether participatory budgeting aids effective budgetary control, to determine the impact of deviation from established budgets, to assess the relevance of management principles on budgetary control and to make recommendation on how to improve performance in organizations. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from united bank for Africa. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
As we pass through the various economic cycles from recession to stagnation, from stagnation to doom. Hoping to enter an economic boom, the researcher delved into this research project topic; budgeting as an instrument of internal control in any manufacturing organization in Nigeria with a view of proffering suggestions on how our economy can be turned from doom to boom of manufacturing concerns are the bedrock of any nations economy depression into a prosperous economy. Manufacturing industries are the bedrock of all developing countries like Nigeria, its needs to consider first before any other thing because without manufacturing industries in countries those countries will never develop. It is the manufacturing business that contributes the largest amount of money towards government revenue expenditure through taxation collected from most manufacturing business in the country. They also help in the development of the country by developing the location of their industry such as roads, electricity, buildings, employment and scholarships. Because of that reason, the Nigerian government should keep their eyes open towards the activities of this manufacturing business in Nigeria. After carrying out consultations and verifications of some findings; we now designed a method for eliciting information or data collected were presented and analyzed accordingly from the analysis the researcher now concluded as follows: Manufacturing concerns actually do plan their profit such that losses are unnecessarily large in relation to budget estimate Manufacturing business organizations do control their levels of profit making and the means used to achieve it. The types of budgeting in some manufacturing business concern in Nigeria is efficient That manufacturing concerns follow the laid down procedure of their organization That manufacturing concerns in Nigeria do investigate the variance and the actual cause(s) if the situation That manufacturing concerns in Nigeria do have budgeting committee established by the company
Recommendation
That government should establish a board concerning budget planning of manufacturing business in Nigeria and make sure that manufacturing industries follow their budget plan
They should map the procedures that all the manufacturing business in Nigeria should follow in budgeting planning Because of the importance of the job of a budget controller in any manufacturing concern, it then becomes necessary to employ a qualified accountant to take responsibility of this area of the job of a controller
All the organizations should make sure that budgets are made within the procedures set out for the planning of a budget
Budget plan should be approved and authorized by the officer responsible for each section
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