THE IMPACT OF BUDGETING PLANNING AND CONTROL ON PRODUCTIVITY

THE IMPACT OF BUDGETING PLANNING AND CONTROL ON PRODUCTIVITY

ABSTRACT

This study looked at the effect of budgeting planning and control on NOCACO productivity. The purpose of this research is to shed light on the importance of effective and efficient budget planning and control, as well as to determine how and to what extent budgeting can be used for planning and control in order to increase productivity. The survey method was used for the study, the data collection method was a questionnaire and personal interview, and the data analysis method was a likert scale based on a mean statistic. The researcher was able to identify that budgeting planning and control techniques are used to increase productivity in dynamic profit and non-profit organizations based on the data presented and analyzed. According to the researcher, productivity must be planned before it can be controlled. The operation has been determined and the expenditure cost has been analyzed in order to determine how realistic it would be to contribute to project goals without planning. Finally, the researcher suggested that the company hire competent and intelligent employees with extensive experience to help with planning, which will go a long way toward controlling productivity in the organization.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

For any organization to function meaningfully, there must be a clear direction of where it is heading or what it is aiming to achieve the standard of objectives, as well as a method of monitoring deviations from the standard. These considerations can only be addressed through budgeting, planning, and controlling.

A budget is defined as a quantitative plan, usually in monetary terms, for the next fiscal year of the ensuring period. Budgeting planning/short term planning is the process of developing detailed, short-term (usually one year) plans for the organization’s functions, activities, and departments, thereby converting the long-term cooperative plan into yearly action. Budgeting services are an important tool for planning and controlling productivity increases.

1.2  STATEMENT OF THE PROBLEM

In general, whether manufacturing or service, organizations needed good budgeting to increase productivity. Budgeting, as a planning and controlling tool, does increase productivity. This is the issue of qualified personnel needed for budget preparation, implementation, and execution; areas of responsibility will be determined by management; and budgeting pressure is another issue. The study will thus focus on whether budgeting contributes to increased organizational productivity or not.

1.3 OBJECTIVES OF THE STUDY

Given the obvious problems mentioned above, the researchers’ main goal for this study is to carefully examine the budgeting system. This will allow the researcher to identify and highlight any loopholes and lapses that may contribute in small ways to the aggregate private sector problem. As a result, the following are the study’s objectives:

i. Examine the budgeting, planning, and control system to determine productivity sufficiency.

ii. Determine the extent to which budgeting aids in planning and increasing productivity.

iii. To investigate facts about the organization and its mode of operation in terms of productivity.

iv. Recognize the fact about operation and mode of operation.

1.4   SIGNIFICANCE OF THE STUDY

The importance of this study is based primarily on its benefit and contribution to individuals and organizations. This study will serve as important objectives reference to top executive of organization who wants to achieve efficiency in production. It will also be useful to students who want to conduct additional research in the field of study. Second, the study’s findings will be useful to both the organization and any other similar organization, as well as the general public in the field, because they depict the nature of the budgeting problem in this part of the country. Finally, this study will include the general public as a mandatory requirement for the award of a higher national diploma.

1.5   RESEARCH QUESTIONS

The following questions were developed to serve as a parameter for measuring the previously stated objective.

i. How effective is the budgeting, planning, and control system in assessing productivity adequacy?

ii. What extent does budgeting serves in planning and increasing productivity?

iii. What are the facts about NOCACO’s operation and mode of operation in terms of productivity?

iv. What are the facts about the operation and how it operates?

1.6    SCOPE OF THE STUDY

The study is limited to the private sector and suggests solutions and recommendations on the topic of discussion, which is budgeting as an effective tool for planning and control in order to increase productivity.

1.7  LIMITATION OF THE STUDY

This study, like any other, has limitations, with the study’s emphasis on budgeting as an impact of budgeting planning and control on productivity in Northern Cable Processing Manufacturing Company, Kaduna. The following are some of the difficulties encountered while conducting the study:

a) The researcher’s inability to obtain adequate and relevant data from the organization. Especially on sensitive economic issues that organization are secretive about.

b) Another limitation is a lack of funds, which has prevented the researcher from moving around and gathering the necessary data and materials for the study.

c) Materials such as company documents (official) relating to their operation and procedures of the organization’s activities have been insufficient due to a lack of proper record keeping and equipment.

1.8   DEFINITION OF TERMS

Budget: A budget is defined as a quantitative plan, usually in monetary terms, for the upcoming fiscal year or period.

Budgeting: Budgeting planning is the process of preparing detailed short term (usually one year) plans for the organization’s function activities and departments, thereby converting the long term corporate plan into yearly action.

Zero Base Budgeting (ZBB): Is a method of budgeting that is formal defined by the (Chartered Institute of Management and Accounting) CIMA as revaluing all activities each time a budget is set.

Programme Planning and Budgeting System (PPBS): A radical approach to budgeting-based programs that group activities with common goals.

Budget Manual: The budgeting manual is a communication and instructional information manual, not a list of agreed-upon financial budgets.

A flexible budget is one that is designed to dynast the budget cost level to suit the level of activities actually attained.

Planning can be defined as the establishment of activities as well as the formulation, evaluation, and selection of the policies, tactics, and actions required to achieve these objectives.

Strategic planning is the formulation, evaluation, and selection of strategies for the purpose of developing a long-term plan to achieve goals.

Tactical planning is the process of developing detailed short-term (usually one-year) plans for the organization’s functions, activities, and departments, thereby converting the long-term corporation plan.