THE IMPACT OF BUDGETING PLANNING AND CONTROL ON PRODUCTIVITY IN NORTHERN CABLE PROCESSING MANUFACTURING COMPANY (NOCACO), KADUNA
This study examined the impact of budgeting planning and control on productivity in NOCACO. The objective of this study is to bring light to the need for effective and efficient budget plans and control, and to find out how and to which the extent budgeting serve as a means of planning and control to increase productivity. The methods used for the study is survey method, method of data collection is questionnaire and personal interview and the method of data analysis is likert scale is used based on mean statistic. The findings based on the data presented and analyzed, the researcher was able to identify that budgeting planning and control techniques are used for increase productivity in the dynamic profit and non profit making organization which is the study of this research work and its also observed that good budgeting system will help any organization to increase its productivity level. The researcher concludes that productivity must be planned before it can be controlled. Operation has been determined and analyze into expenditure cost so as to know how realistic would be contribution to project goals to make budget without planning. Lastly, the researcher recommended that the company should employ competent and intelligent staff which a lot of experience to facilitate the planning which go a long way in controlling productivity in the organization.
TABLE OF CONTENTS
Title page i
Approval Page iii
Table of Contents vii
CHAPTER ONE: INTRODUCTION
- Background of the Study 1
- Statement of the Problem 3
- Objective of the Study 4
- Significance of the Study 5
- Research Questions 5
- Scope of the Study 6
- Limitation of the Study
- Definition of Terms 6
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction 9
2.1 Objectives of Budgeting 10
2.2 Requirements of a Good Budgeting System 12
2.3 Stages in Budget Preparation 18
2.4 Flexible Budgeting 20
2.5 Zero Base Budgeting (ZBB) 21
2.6 Planning Programming Budgeting System (PPBS) 24
2.7 Summary of the Literature Review 27
CHAPTER THREE: METHODOLOGY
3.1 Introduction 28
3.2 Research Design 28
3.3 Area of Study 29
3.4 Population of the Study 29
3.5 Sample Size and Sampling Technique 29
3.6 Instrument of Data Collection 30
3.7 Validation of the Instrument 30
3.8 Reliability of Instrument 31
3.9 Method of Data Collection 31
3.10 Method of Data Analysis 32
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction 34
4.2 Characteristics of Respondents 34
4.3 Data Analysis 36
4.4 Summary of Findings 44
4.5 Discussion of Findings 45
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction 47
5.1 Summary 47
5.2 Conclusion 49
5.3 Recommendations 50
- Background of the Study
For any organization to operate meaningfully there has to be clear direction of where it is leading to or what it is aiming to achieve the standard of objectives and a means of monitoring derivatives from standard requires. These considerations can only be met through budgeting, planning as well as controlling.
A budget has been defined as a quantitative plan usually in monetary terms for the forth coming accounting year of the ensuring period. Budgeting planning/short term planning is the process of preparing detailed, short term (usually 1 year) plans for the function, activities and departments of the organization thus converting the long term co-operate plan into yearly action. Budgeting services as a very important tool for planning and control increase in productivity, in that budgeting aids planning for the future, if services as a control function through management by exception which is the assessment of performance for the purpose of controlling. It helps in co-coordinating of the work management in order to coordinate the activities of the organization.
- Statement of Problem
Generally, organization whether manufacturing or service, required good budgeting for increasing productivity. Budgeting as a tool for planning and controlling does increase productivity. This is the problem of qualified personnel that are required for the purpose of preparation implementation and execution of budgeting, areas of responsibility will be decided by management and also budgeting pressure is another problem. The study will therefore be focused on whether budgeting contribute towards increasing productivity in organization or not.
- Objectives of the Study
In view of the glaring problems as mentioned above the researchers main purpose of this study is to look carefully as the system of budgeting. This will enable the researcher to discover and bring to light any loop hole and lapses that may contribute on their little ways to aggregate private sector problem. Therefore, the objectives of the study are as follows:
- To examine the system of budgeting, planning and control in order to assess adequacy in productivity.
- To find out the extent budgeting serves in planning and increasing productivity.
- To examine facts about the organization and it mode of operation with regards to productivity.
- To identify the fact about operation and mode of operation.
- Significance of the Study
The significance of this study is essential on its benefit and contribution to individual and organization first and foremost. This study will serve as important objectives reference to top executive of organization who wants to achieve efficiency in production. It will also be significant to students who want to carry out further research on the area of study secondly, the finding of this study will be useful to both the organization and any other similar organization as well as general public in the field as it depicts the nature of problem associated with budgeting in this part of the country. Finally, this study will also cover the public as an essential requirement for the award of higher national diploma.
- Research Questions
The following questions were formulated to serve as parameter for the measurement of the objective earlier stated.
- How effective is budgeting, planning and control system in order to assess adequacy in productivity?
- What extent does budgeting serves in planning and increasing productivity?
- What are the fact about the operation and it mode of operation in NOCACO with regard to productivity?
- What are the facts about the operation and it mode of operation?
1.6 Scope of the Study
The study is restricted to cover the private sector, and suggest solution and recommendation on the topic of discussion which is budgeting as an effective tool for planning, control for increasing productivity.
1.7 Limitation of the Study
Like any other project, this study is not without limitations, the study emphasis being of the budgeting as an impact of budgeting planning and control on productivity in Northern Cable processing manufacturing company, Kaduna. Some of the difficulties encountered in carrying the study include:
- Inability of the researcher to obtain adequate and relevant data from the organization. Especially on sensitive economic issues that organization are secretive about.
- Financial constraint is another limitation, finance have bee inadequate such the researcher has been unable to move around and get data and material required for the study.
- Material such as company documents (official) which involves their operation and procedure of the organization activities have been inadequate due to lack of proper record keeping and equipped libraries.
- The uncompromising nature of most respondents especially to questionnaires and verbal question.
- Lack of time to carryout out the persona observation of the enterprise operations properly.
- Sometimes the statistical method used for data analysis might not be best available.