The role of budgeting management practices on financial performance of mining industries in Uganda. Case study: Uganda Clays Limited Mbale branch

Abstract

The study was set to examine the effect of budgeting management practices on organizational performance, a case study on Uganda Clays Limited. The study was guided by three objectives that is: to establish the effect for budget planning in on financial performance, to establish the effects of participatory budgeting on the financial performance and to establish the effect of budget implementation on the financial performance of the companies in Uganda Clays, Mbale branch. A case study research design was used where both quantitative and qualitative methods of data collection and analysis was also used. Purposive and simple random sampling was used to get a representative sample fifty. Thematic content analysis was used as the main analysis strategy. Key findings were transformed into themes for analysis and presentation of data. The study found out that there are number of roles for budgeting management practices in the Companies including; planning, evaluation of performance, for control purpose, continuous comparison of actual results against budgets to form a basis of standards and creation of responsibility centers in organizations. That budgeting contributions on the workers performance in terms of time management in a way of proper time planning, even distribute the time resources of the employees in the organization, help companies to make profits in time, as well as provides direction to the future progress. The researcher concluded that, budgeting management practices contributes greatly on the financial performance of companies whereby through budgeting management practices, costs are managed and controlled, can realize when costs are high and make some adjustments and that the companies can set targets to meet through budgeting management and that by doing this cost is managed and controlled for increased financial performance. The researcher recommended that Companies should employ workers who are qualified for improved financial performance and that since budgeting management practices serves as performance indicator, model of communication, measure of control, means of motivation, it is recommended that Companies in developing countries in Uganda particular to always perform budgeting management practices process. The study further recommends that human resource to conceive and adhere to budgeting management practices in a positive way as it is drafted and follow its contents in the day to day running of the companies’ activities. By doing this, negative attitude of the human resource in such Companies will be reduced that will result into proper allocation of resources and companies should operate on.