THE EFFECTS OF BUDGETING AND CONTROL ON PRODUCTIVITY
DOWNLOAD THE COMPLETE PROJECT MATERIAL
ABSTRACT
This study investigated the effect of budget planning and control on NOCACO’s production. This study aims to shed light on the need for effective and efficient budget planning and management and to determine how and to what extent budgeting may be used as a way of planning and control to boost productivity. The study employs the survey method, the data gathering method is questionnaire and personal interview, and the data analysis method is likert scale based on the mean statistic. Based on the data presented and analyzed, the researcher was able to determine that budgeting planning and control techniques are used to increase productivity in dynamic profit-making and non-profit organizations, which is the subject of this research, and that a good budgeting system will assist any organization in increasing its productivity level. The researcher concludes that planning must precede control of productivity. Without planning, the operation has been decided and the expenditure cost has been analyzed in order to determine the contribution’s feasibility to the project’s objectives. The researcher concluded by recommending that the corporation choose competent and knowledgeable employees with a great deal of expertise to facilitate planning, which goes a long way toward regulating productivity in the organization.
DOWNLOAD THE COMPLETE PROJECT MATERIAL
FIRST PART
INTRODUCTION
1.1 INTRODUCTION TO THE STUDY
For any organization to work effectively, there must be a clear direction of where it is heading or what it is seeking to achieve, as well as a method for monitoring deviations from the standard. These factors can only be addressed by budgeting, planning, and management.
A budget is a quantitative plan, typically expressed in monetary terms, for the upcoming fiscal year of the ensuing time. Budgeting planning/short term planning is the process of producing specific, short-term (often one year) plans for the function, activities, and departments of an organization, thereby transforming the long-range cooperate strategy into an annual action plan. Budgeting services as a very significant instrument for planning and control growth in productivity, in the sense that budgeting facilitates future planning, if services as a control function through management by exception, which is the evaluation of performance for controlling purposes. It aids in the coordination of work management in order to coordinate the organization’s activities.
1.2 DESCRIPTION OF THE PROBLEM
Whether a business is engaged in manufacturing or providing a service, efficient planning is generally essential to increase production. As a tool for planning and management, budgeting does boost productivity. This is the problem of qualified employees required for the planning, implementation, and execution of budgeting; management will determine areas of responsibility; budgetary pressure is also a concern. The focus of the study will therefore be on whether or not budgeting increases organizational productivity.
1.3 OBJECTIVES OF THE STUDY
In light of the glaring issues outlined above, the primary objective of this study is to examine the budgeting system in depth. This will allow the researcher to uncover and expose any loopholes and omissions that may contribute in little ways to the aggregate private sector problem. Therefore, the following are the aims of the study:
i. Examine the system of budgeting, planning, and management in order to assess production adequacy.
ii. To determine the extent to which budgeting aids in planning and enhancing production.
iii. To investigate the organization’s and its operation’s facts in relation to productivity.
iv. To identify the operational details and mode of operation.
1.4 Importance of the Research
The significance of this study is based mostly on its contribution and usefulness to the individual and the organization. This study will serve as a significant reference for the organization’s senior executive who wishes to attain production efficiency. It will also be useful for students who wish to conduct more research in the subject of study. Secondly, the findings of this study will be valuable to both the organization and other comparable organizations, as well as the general public in the field, as they illustrate the nature of budgeting problems in this region of the country. This study will also include the general public as a condition for the awarding of a higher national diploma.
1.5 RESEARCH QUESTIONS
The following questions were developed to serve as a metric for measuring the previously mentioned purpose.
i. How effective is the budgeting, planning, and control system in determining the productivity level?
How does budgeting aid in planning and productivity enhancement?
iii. What are the facts regarding NOCACO’s operation and manner of operation in terms of productivity?
What are the specifics of the operation and its manner of operation?
1.6 SCOPE OF THE STUDY
The scope of the study is limited to the private sector, and it proposes solutions and recommendations on the topic of discussion, budgeting as an effective planning and control tool for enhancing productivity.
1.7 LIMITATION OF THE STUDY
As with any other research, there are limits to this study, which focuses on the impact of budget planning and management on productivity at the Northern Cable processing manufacturing company in Kaduna. Among the challenges encountered in conducting the study are:
a) The researcher’s inability to get sufficient and pertinent information from the organization. Especially concerning delicate economic matters that organizations keep secret.
The researcher has been unable to go about and collect the necessary data and materials for the study due to insufficient funding.
c) Due to a lack of proper record keeping and well-stocked libraries, materials such as formal corporate records that pertain to the organization’s operations and procedures are inadequate.
d) The uncompromising nature of the majority of responses, particularly with regard to surveys and verbal questions.
g) Lack of time to conduct the persona observation of the business operations effectively.
f) The statistical method employed for data analysis may not always be the best available.
1.8 DEFINITION OF TERMS
Budget: A budget is a quantitative plan, typically in monetary terms, for the upcoming accounting year or the subsequent time.
Budgeting: Budgeting planning is the process of producing a detailed short-term (often one-year) plan for the function activities and department of an organization, so translating the long-term corporate strategy into yearly action.
Zero Base Budgeting (ZBB): Is formally described by the (Chartered Institute of Management and Accounting) CIMA as a system of budgeting in which each time a budget is set, all activities are reevaluated.
Programme Planning and Budgeting System (PPBS): Is a revolutionary approach to budgeting-based programs that group activities with similar goals.
Budget Manual The budgeting document is an important tool for communication and an educational information manual; it is not a list of the agreed-upon financial budget.
Flexible Budgeting: A flexible budget is one that is designed to adapt the expense level of the budget to the actual level of activities attained.
Planning: Planning can be defined as the establishment of activities and the formulation, evaluation, and selection of the politico-strategic, tactic, and action measures necessary to achieve the desired objectives.
Strategic Planning: The design, appraisal, and selection of strategies for the preparation of a long-term plan to achieve goals.
Tactical Planning: The process of producing detailed short-term (often one-year) plans for the roles, operations, and departments of a company, thereby putting the long-term corporate strategy into action.
Control: Control is concerned with the varied use of resources to achieve a previously-determined goal or collection of goals within a plan’s productivity (total factor basis).
Productivity: Productivity can be stated either on a total factor basis or on a partial factor basis.
THE EFFECTS OF BUDGETING AND CONTROL ON PRODUCTIVITY
DOWNLOAD THE COMPLETE PROJECT MATERIAL
Need help with a related project topic or New topic? Send Us Your Topic