Budgetary planning and control as a tool for increasing productivity

Thesis Overview

<p> </p><p>INTRODUCTION</p><p>1.1 &nbsp; &nbsp; BACKGROUND OF THE STUDY</p><p>The growing complexity of the business environment and the ever-increasing competition among firms in the modern time, make planning/budgeting an invaluable tool for business success.</p><p>Successful management is no longer just a matter of flair, skill and determination, a conscious effort is needed to harness available resources towards the achievements of enterprise objectives. Therefore budgeting is one of the tools adopted by management for effective cost planning, control and increase productivity.</p><p>In this study, we are going to find out how budget and budgetary control enhance the management of a firm to increase productivity and reduce cost of production. Additionally, since budgeting is a formal expression of managerial plans n quantitative and financial terms encompassing different phases of assisting management in attaining the organizational objective, we are going to verify some limitations of problems associated with budget and budgetary control and how to tackle them and also how the management of Anamco Nigeria Ltd has utilize budget and budgetary control to achieve the organizational objective, increase productivity and reduce cost of production. In most case, some of the problems, which they encounter, includes that there is no efficient support and involvement of all level of management in decision-making. And also the organization is not able to develop meaningful forecast and plans especially the sales plan in making sales budget.</p><p>In addition to this they are unable to educate all individuals to be involved in the budgeting process and gaining their full participation. They cannot apply the budgeting system in a flexible manner, including that some organization cannot maintain effective follow up procedure and adapting the budgeting system when ever the circumstance changes. All the above mention facts are some problems to be discussed in this study and ways of solving them, it will also be discussed including suggestions for further researches in the same topic will also be highlighted.</p><p>1.2 &nbsp; &nbsp; STATEMENT OF PROBLEM</p><p>The study entitled budget and budgetary control a tool for increasing productivity attempt to determine the way by which some organization or firm especially Anamco Ltd Emene has utilize budget and budgetary control to increase their productivity.</p><p>Some of the problems, which they encounter, are as follows;</p><p>1. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Lack of support and involvement of all levels of management</p><p>2. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; . Inabilities to develop meaningful forecast and plans, especially the sales plan.</p><p>3. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Inability to educate all individuals to be involved in the budgeting process and gaining their full participation.</p><p>4. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Most organization or firms are unable to apply the budgeting system in a flexible manner.</p><p>1.3 &nbsp; &nbsp; PURPOSE/OBJECTIVE OF THE STUDY</p><p>The purposes of this study are as follows:-</p><p>1. &nbsp; &nbsp; &nbsp; To determine how lack of support and involvement of all levels &nbsp; &nbsp; &nbsp;of management distort budgeting.</p><p>2. &nbsp; &nbsp; To find out how inability to develop meaningful forecast and plans especially the sales brings about or prevents increase in productivity through budgeting.</p><p>3. &nbsp; &nbsp; To establish how inability to educate all individual to be involve in the budgeting process and gaining their full participation brings about problem in budgeting process.</p><p>4. &nbsp; &nbsp; To ascertain the extent by which most organization or firm are unable to apply the budgeting system in a flexible manner.</p> <br><p></p>