Participatory Budgeting: An Effective Control Tool for Attaining Managerial Functions and Organizational Corporate Goals

Description

– Participatory Budgeting: An Effective Control Tool for Attaining Managerial Functions and Organizational Corporate Goals –

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Abstract

The need for participation by staff or subordinate managers in the budgetary processes and the use of budgeting as an effective control tool in any organization cannot be over emphasized.

This topic was chosen because of the need for increased participation in budgetary processes in order to nip in the bud the continued adverse budget variance and non implementation of budget figures.

Obviously, full participation by users and implementers of budget details aid in speeding and actualizing management functions and organizational goals.

Regrettably, this very important tool is not effectively put to use by some line managers and departmental heads, thereby jeopardizing the cumulative impact of budget, threatening good performance which lead to decline in liquidity of cash budgets in most Nigerian organization.

This study investigated whether both companies apply participatory budgetary procedures in their operations, that is, whether process of democratic deliberation and decision-making, in which not only line managers and departmental heads.

Introduction

1.1 Background of the Study

The need for continuity and hitting break even point have made modern business organization face with unimaginable competition surrounded with precarious decision which threaten the going concern concept of the business.

These have made it possible for the need to build in the comedy of system concept; where synergy is advocated and participation of sub units remain primeval in planning or budgeting.

To this end, business managers in the private, public, profit and non-profit making concerns, including the households now indicate sources of available materials and allocate through budgeting, the most efficient way of meeting a future needs.

A budget may be prepared for an organization as a whole or for its sub units. A budget that represents or embraces the entire organization is termed as master budget.

A budget is that futuristic action/ profit plan stated in quantitative terms within a time frame. Budgets express the degree of efficiency and effectiveness which management, putting all available scarce resources to best use, intends to attain, in pursuit of corporate goals Nzelibe (1990),

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