THE IMPACT OF BUDGET IMPLEMENTATION IN AN ORGANIZATION (A CASE STUDY OF MINISTRY OF WORKS AND HOUSING AWKA)
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THE IMPACT OF
BUDGET IMPLEMENTATION IN AN ORGANIZATION (A CASE STUDY OF
MINISTRY OF
WORKS AND
HOUSING AWKA)
TABLE OF CONTENT
TITLE PAGE i
APPROVAL PAGE ii
DEDICATION iii
ACKNOWLEDGEMENT iv
TABLE OF CONTENT vi
ABSTRACT 10
CHAPTER ONE
1.0
INTRODUCTION 1
1.1 HISTORICAL
BACKGROUND OF THE
CASE STUDY 2
1.2 STATEMENT
OF THE PROBLEM 5
1.3 PURPOSE
OF THE STUDY 6
1.4 SIGNIFICANCE
OF THE STUDY 7
1.5 RESEARCH
QUESTION/HYPOTHESIS 8
1.6 SCOPE
OF THE STUDY 9
1.7 DEFINITIONS
OF TERMS/ACRONYMS 9
CHAPTER TWO
2.0
LITERATURE REVIEW 10
2.1 CONCEPT
AND DEFINITION OF BUDGET 10
2.2 ORIGIN
OF BUDGET 13
2.3 PRINCIPLES
OF BUDGET 14
2.4 TECHNIQUES
AND TOOLS FOR BUDGET 16
2.5 THE
BUDGET CYCLE 22
2.6 GOVERNMENT REVENUE AND EXPENDITURE 26
2.7 SUMMARY
OF LITERATURE REVIEW 29
CHAPTER THREE
3.0
METHODOLOGY
3.1
BRIEF OUTLINE OF THE STUDY 31
3.2
DESIGN OF THE STUDY 31
3.3
AREA OF THE STUDY 32
3.4
THE POPULATION OF THE STUDY 32
3.5
SAMPLE AND SAMPLING TECHNIQUES 33
3.6
INSTRUMENT FOR DATA COLLECTION 34
3.7
VALIDATION OF THE INSTRUMENT 35
3.8
DISTRIBUTION AND RETRIEVAL OF THE INSTRUMENT 37
3.9
METHOD OF DATA ANALYSIS 39
CHAPTER
FOUR
4.0 DATA
PRESENTATION AND ANALYSIS 40
4.1 FINDINGS
52
CHAPTER
FIVE
5.0 SUMMARY
OF THE FINDINGS 54
5.1 RECOMMENDATIONS 56
5.2 CONCLUSION 57
5.3 LIMITATION
OF THE STUDY 58
5.4 SUGGESTION
FOR FURTHER STUDY 59
REFERENCES
60
APPENDIX
A 63
QUESTIONNAIRE 64
ABSTRACT
IT
IS A KNOWN FACT THAT BUDGETING PLAYS INVALUABLE ROLE IN OUR PUBLIC
INSTITUTIONS. HOWEVER, INSTITUTIONS, WHICH HAS THWARTED IN THEIR ORGANIZATIONAL
ACHIEVEMENTS, HAVE HARDLY USED THIS ADMINISTRATIVE TOOL IN THIS STUDY, THE
RESEARCHER USED BOTH PRIMARY AND SECONDARY DATA SOURCES. THE PRIMARY DATA
SOURCE INCLUDES THE USE OF QUESTIONNAIRE, OBSERVATION AND INTERVIEW. THE
SECONDARY SOURCES OF DATA COLLECTION (LITERATURE REVIEW) ENABLES THE RESEARCHER
READ AS MUCH MATERIALS THAT HAVE BEEN WRITTEN ON THE SUBJECT MATTERS IT ALSO
ENABLES THE RESEARCHER DRAW UP THE RESEARCH QUESTIONS ETC. FINDINGS WERE MADE
WHICH INCLUDES THAT THE MINISTRY OF WORKS AND HOUSING AWKA CARRIES OUT ROUTINE
YEARLY BUDGETING EXERCISE, WHICH WERE NOT FULLY IMPLEMENTED. ALSO KNOTTED IS
THAT FREQUENT CHANGE OF ADMINISTRATORS AFFECT BUDGET ADVERSELY. BASED ON THESE
FINDINGS, RECOMMENDATION WERE ACCORDINGLY MADE THAT BUDGETING SHOULD NOT BE MERLY
YEARLY EXERCISE, THAT ADMINISTRATORS SHOULD NOT BE CHANGED TOO OFTEN, THAT
PUBLIC INFLUENCE SHOULD BE ENCOURAGED AND THAT IMPLEMENTATION OF BUDGET MUST BE
BASED THOROUGHLY ON ITS PRINCIPLES SO AS TO ENABLE ORGANIZATIONAL DESIRED CHANGES
AND GOALS.
CHAPTER ONE
INTRODUCTION
Budget, on indispensable tool of
administration, the financial strength of an organization and the scale of
organizational objectivity and transparently has generally been treated as just
merely yearly ritual. Due to this ill application of this administrative tool,
the research work in made to embark on this research work in ascertaining it’s
impact, effect and evaluation.
The issue of budgeting has a lot of
impact on the aspect of economy, finance, legal and socio-political
documentaries. To every day man, this administrative tool plays an invaluable
role to its activities and plans as well as its well keeping thus
conventionally arousing disturbing questions on the effects and impacts of the
said budget. All these motivate the research to study the evaluation and impact
of budget implementation in an organization using ministry of works and housing
as a cast study.
1.1 HISTORICAL BACKGROUND OF THE CASE STUDY
It must be knotted that most
organizations or management institutions as well as the government mostly blame
their setbacks and mal-administration to ill implementation of budget and yet
many see budget as just an avenue of securing fund from the approving
authority. This contrapuntal believe calls for truism in unraveling the nature,
importance and effect of budgeting as an administrative instrument using the
Anambra state ministry of works and housing as a yard stick for measuring it’s
enigma.
The ministry was established in 1918 and
was named Public Work Department (PWD). The aims were to carry out issues
relating to work, housing and transport divisions.
In 1950, the name was changed to
ministry of works. In subsequent years preceding 1950, the ministry of housing
and transport was created and joined to the existing ministry. Before the
creation of new state in 1991, the place was known as Area office and have many
department offices. Each department has one head that renders account on behalf
of the department performance. After the creation of states in 1991 which
Anambra was inclusive, the name was changed from area office to headquarter,
the headquarter was made up of area office or head camp. Each local government
rendered account on the works housing and transport to the ministry through
various head camp that works directly with the ministry. Former governors
separated the ministry into housing, transport, environment, surveyors,
highways and mechanical departments. Under Chris Ngige’s regime, he joined
these separated department s under one umbrella known as ministry of works and
housing which under it’s contest we are doing this our research work.
1.2 STATEMENT OF THE PROBLEMS
Budget has now been reduced to mere
yearly ritual with much noise made concerning it’s presentations and authorizations
while nothing is done an it’s implementation which is the ultimate resolution.
Sub
sit to this statement is the controversy witnessed in the 2010 appropriation
bill (Now 2010 budget). Much heat was raised on where the bill should be
presented and what protocols to be observed. This unnecessary supremacy and
power tussle amongs the senate and the house of representative shows that they
view budget as just yearly ritual with which they incure fund and enrich
themselves thus forgetting that it’s implementation has it’s administrative
proficiency and management.
It is now against this backdrop that
this study will readly look at the role of budgeting in organizations, public
institutions in particulars and the public at-large. It also tries to foster
solutions to the problems.
1.3 PURPOSE OF THE STUDY
This
research work has been designed to look into the role and impact of budgeting
and it’s evaluation in management of public institutions in Nigeria and the
Anambra state ministry of works and housing as a case study. Other objectives
thus includes: it seeks to determine whether the ministry carries out budget in
the organization. Again the research tries to look at budgeting as an
administrative tool for analyzing the performance of public institutions.
Further more, it intendeds to ascertain how budgeting aids public
administrators in achieving their goals on organizations.
1.4 SIGNIFICANCE OF THE STUDY
A
popular saying states that “a problem known is half solved”. In line with this
statement, this research work tries to identify those factors that causes
budget negligence and tries to proffer administrative solutions. This will
greatly help public institutions rectify it’s short comings, reach it’s desired
goals and maximize it’s productivity and proficiency. Again, it tries to
extemporate the invaluable nature of budgeting and it’s impact both on
meritious and consequential courses when judiciously or ill implemented
respectively.
1.5 RESEARCH QUESTIONS/ HYPOTHESIS
The following research questions have
been drawn as a guide to the study.
Does
the ministry of works and housing Awka prepare budget for use by the ministry?
Does
frequent change of administrators in the ministry affect the budgeting process?
Does
budget on it’s impact as an administrative tool capable of transforming Anambra
as a state?
Does
the ministry implement her budget in-order to meet peoples aspiration?
1.6 SCOPE OF THE STUDY
By
scope we mean an area of coverage and this research work covers the ministry of
works and housing Awka, members of all staff of all cadre. In the same way, all
units or sections of the ministry participated in the study. Descriptive
analysis was in the study.
1.7 DEFINITIONS OF TERMS/ACRONYMS
P.P.B.S:
Planning Programme Budgeting System is a budgeting technique or system where
main goals are on control, management and planning (Igwe, 2006) Z.B.B. Zero
Based Budget which is a technique of evaluating from time to time the continual
reference of on-going programmes.
Public Expenditure: It is the action on the
practice of laying out public money presumably in pursuit of public goals.
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