Budgetary management and organizational performance

Abstract

The study examines the effect of Budgetary Management on Organizational Performance using a Case of Finn Church Aid Uganda on three research objectives namely; To examine the effect of budget planning on the performance of FCA Uganda; ii) To establish the effect of budget implementation on the Performance of FCA Uganda; iii) To examine the effect of budget monitoring and control on the performance of FCA. The study utilized a descriptive survey design that combined both qualitative and quantitative research approaches on a sample of 103 respondents who are respective staff members at FCA in various capacities selected by employing probabilistic sampling techniques achieving a response rate of 77.7%. The study findings reveal that all the tenets used to define budgetary management in the study have a strong positive significant relationship with organizational performance with correlation coefficients of 0.535; 0.566 and 0.514 between budget planning, budget implementation and budget monitoring and control on organizational performance respectively. Further still, the regression results reveal that on overall, the examined tenets of budgetary management in the study explain 37.7% of the variation in organizational performance at FCA. Specifically, regression coefficients indicate that all the three dimensions of budgetary management positively contribute to organizational performance though budget implementation has the highest contribution of 28.1% followed by budget planning with 26.4% while budget monitoring and control comes third contributing 19.8% towards organizational performance. The study recommends that for an organization to perform effectively and efficiently, there should be congruence amongst all the budget functions of planning, implementation and control as this will see the organization achieve its performance objectives.