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ABSTRACT
The study examined the benefit of budgeting as a managerial tool in an organization, which focus on Nigeria Bottling Company Plc. The survey method was extensively used together data for the study and a simple through questionnaire and oral interview and discussion conduct with some of the study participants. The study establish the benefit of budgeting as a management tool in an organization so that it can contributes to the realization of organization goal and objectives. They should conclude with useful recommendations that can help the Nigeria Bottling Company Plc to improve in their budgeting in an organization.
CHAPTER ONE:
- BACKGROUND TO THE STUDY
In Nigeria today, there is rapid growth experience in the area of industrialization. A lot of business has failed to recognize that budgeting as a management tool is effective enough to reposition the organization among their competitors.
In the opinion of many authors budgeting is a check necessary in an organization, the planning policy put in place will be defective.
The aim of managers is to effectively put up a budgeting policy as a means of making practical’s budgets in the organization. This is what has prompted this study, benefit of budgeting as a management tool in an organization.
1.2 STATEMENT OF THE PROBLEM
The aim of this research is to find solution to the following research problems.
- To examine the effect of budgeting policies as a tool in production level of the organization performance.
- To examine we their budgeting policies can cease a positive impact in production level of the organization.
- To examine if management monitor her budget to the point of implementation.
1.3 OBJECTIVES OF THE STUDY
This study aims to achieve the following objectives to see the extent to which organization budget before embarking on their operations.
To assist management in budgeting planning to effect a change bring that in the organization
To look at the problem that is associated with budget implantation mutation in the organization.
1.4 STATEMENT OF THE HYPOTHESIS
For the purpose of the study, the following hypotheses which are in their null form shall be tested.
- Budgeting is not a management tool in an organization.
- Budgeting implementation would not enhance productivity.
- Budgeting cannot enhance organization performance in actualizing co-operation goals.
1.5 SCOPE OF THE STUDY
This study is looking at budgeting generally, using the Nigeria bottling company Benin City, Edo State as a case study.
It will enable us look at benefit of budgeting as a management tool in an organization.
1.6 SIGNIFICANCE OF THE STUDY
It is important to know that the pursuit of this project will enable the management of an organization to know that budgets are useful and form an important part of planning and control process budgets also indicates the expenditure , revenue and profit planned for a given future time span. They are usually in monetary terms, providing a common ground for a variety of organization activities management can use budget to provide a major means for control and co-operation. It also helps to detect deviation easily.
1.7 LIMITATION OF STUDY
A number of factor imitated against this study, the first problem encountered by the research in the course of the study was the unfriendly altitude of the respondents, most of them were not really interest in the quest and deliberately refused to answer the question put forward.
Closely related to this problem is that some of the respondent s did not return the questionnaire administered to them.
1.8 DEFINITION OF TERMS
For easy in standing and use the following function had been defined as use. According to Adeniyi (2004)
- CIRCULAR: It is a noticed issue from the finance department to inform other department in preparing their budget estimates.
- BUDGET CENTRE: This is a unit inside the finance department which carry on involve all budget estimate from other department.
- THE BUDGET HOLDER: This is the head of department in change of budget preparation.
- BUDGET DURATION: According to Adeniyi (2004) this is the period in which the budget would be prepared and it should not be a tempt period.
- BUDGET MANUAL: This is an information manual about the way budget operation in a particular organization one been prepared and the reason for budgeting.
- THE BUDGET TIME TABLE: According to Adeniyi (2004) is a time of planning activities of a specifics time schedule established for initiating and completing certain phases for the budget planning process.
- BUDGET COMMITTEES: It is a committee given a responsible for the task of developing a co-coordinating budget.
- BUDGETING: This is the underlying activities tasks that must generally be carried out to attain maximum usefulness of a budget plan.
- BUDGET PREPARATION: This is the preparation of all various sub-budgets that made up the master budget in the organization e.g. sales budget and sales forecasts etc.
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