THE ROLE OF BUDGETING PROCESS IN FINANCIAL PERFORMANCE: A CASE STUDY OF BUGISU COOPERATIVE UNION LTD MBALE, UGANDA
DOI:
https://doi.org/10.47672/ajf.224Keywords:
Budgeting Process, Financial Performance, Case study research design, Participation of Union staffsAbstract
Purpose: The study examined the relationship between the budgeting process and the financial performance of Bugisu Cooperative union Ltd.
Methodology: Case study research design was applied. The instruments used were given to two experts to comment on the ambiguity, difficulty and relevancy of questions to ensure construct content and face validity. Data was collected using self-administered questionnaires and analyzed using Statistical package for social sciences (SPSS Version 10). Population was selected using the Sloven's formula on 80 staff who actively participates in the budgeting process of Bugisu Cooperative Union Ltd. These were selected using a proportionate stratified and simple random and sampling technique and determined using the data from response to 67 questionnaires.
Results: From the results in the regression coefficient table it was observed that financial performance is influenced by budgeting process. This was indicated by (Beta of 0.268) and (Sig =0.033<0.05), meaning that financial performance is influenced by employee participation by 26.8%. This implies that other factors that affect financial performance are 73.2%.The results suggest that the budgeting process was appropriate, financial performance was acceptable and that there was a positive relationship between the budgeting process and the financial performance.
Unique contribution to theory, practice and policy: Basing on the findings the researcher recommended the following: the level of participation be upheld and strengthened, have regular and periodic meetings to provide feedback, budgeting process for the different units be conducted in a workshop/meeting to enhance participation, much emphasis to be put on the budgetary control and creation of a self-governance frame work that subdivides the hierarchical structure into smaller self-management units
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Copyright (c) 2017 Chris Masakala, Edwin Omol, Fred Wauyo, James Okumu
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