Impact of Budgetary Control on Organisational Performance

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The study is the impact of budgetary control on organisational performance

Background to the Study

The resources of an organization should be managed effectively and efficiently to achieve its purpose. This implies that the organization should be able to achieve its objectives by minimizing cost. Thus managing implies co-ordination and control of the efforts of the organization for achieving organizational objectives. The process of managing is facilitated when management charts its future course of certain objectives in advance, and takes decision in a professional manner, utilizing the individual and group efforts in a coordinated rational manner. One systematic approach for attaining effective management performance is budgeting. Budgets are monetized expressions of target to be accomplished in a given year by an individual, organization or nation. It is a deliberate attempt to achieve superior targets over time with available and expected resources. Such targets are influenced by the experiences of the past and expectation of the future.


 A budget has been defined by Chartered Institute of Management Accountants (CIMA), as “a financial or qualitative statement prepared and approved prior to a defined period of time for the purpose of attaining a given objective. It may include income, expenditure and the employment of capital”. CIMA also defined budgetary control as “the establishment of budgets relating the responsibilities of executives to the requirements of a policy and the continuous comparisons of actual with budgeted results, either to secure by individual action the objectives of that policy or to provide a basis for its revision. Horngreen (2010) defined a budget as “a quantitative expression of a plan of action and an aid to coordination and implementation”. 


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APA

Ekechukwu, K. (2018). Impact of Budgetary Control on Organisational Performance. Afribary. Retrieved from https://afribary.com/works/impact-of-budgetary-control-on-organisational-performance

MLA 8th

Ekechukwu, Kennedy "Impact of Budgetary Control on Organisational Performance" Afribary. Afribary, 19 Mar. 2018, https://afribary.com/works/impact-of-budgetary-control-on-organisational-performance. Accessed 04 Mar. 2024.

MLA7

Ekechukwu, Kennedy . "Impact of Budgetary Control on Organisational Performance". Afribary, Afribary, 19 Mar. 2018. Web. 04 Mar. 2024. < https://afribary.com/works/impact-of-budgetary-control-on-organisational-performance >.

Chicago

Ekechukwu, Kennedy . "Impact of Budgetary Control on Organisational Performance" Afribary (2018). Accessed March 04, 2024. https://afribary.com/works/impact-of-budgetary-control-on-organisational-performance