Amount: ₦5,000.00 |

Format: Ms Word |

1-5 chapters |



1.1. Background of the study

Following the uncertainties prevailing in the Nigerian business environment today, managers and stakeholders must be poised and prepared to compete favourably under these rapidly shifting conditions. In order to survive under these environmental complexities and vagueness managers and stakeholders of both private and public sectors need sharp tools, proven management techniques to forecast the major changes which are likely to affect the business while they choose future direction and dimension of resources needed to attain selected goals.

Budgetary control as a proven management tool helps organization management, and enhances improved performance of any economy in different ways. It’s primary function is to serve as a guide in financial planning operators; it also establishes limits for departmental excesses. It helps administrative officials to make careful analysis of all existing operations, thereby justifying expanding, eliminating or restricting present practice. Budgeting and control entails a distinct pattern of decisions in an organization which is capable of determining its objectives, purposes or goals and how these goals are achieved by establishing principal policies and plans. However the inability to recognize the problem concerned and fixing a boundary off investigation creates an obstacle for the successful implementation of budgeting and control. Some organizations only look for narrow ranges of alternatives which they arrive at from their past expenses and present situation, other management levels even avoid long-term planning and budgeting in favour of today’s problems thereby making the problems of tomorrow more severe. The foregoing reflects on the need for organizations to set up a formal mechanism for scanning its environment for opportunities and give early signs of future problems, this course of action will improve the system of budgeting and control, resulting in an appropriate expectation of improved performance, in the manufacturing sector as seen in this study.

Various researches on budgets and budgetary controls have clearly shown that organizations need to pay serious attention to budgetary processes, budgets, and budgetary controls. In light of these various issues facing organizations as a result of poor/mismanaged budgetary control systems/budgets, the researcher went ahead to research more on the topic and came out with various recommendations and findings to help curb the problems organizations have with their various budgetary control systems.

Interviews and casual discussions with managers, employees, government agencies etc, formed the initial and informal stages of this study. When enough materials were gotten and reviewed by the researcher, it later developed into a full and complete academic research. Various issues affecting budgetary processes, budgets and budgetary control are fully addressed in this study.

This study was mainly undertaken to help organizations in Nigeria to grow, thereby also helping the economy of Nigeria to grow, because when enterprises and businesses do well, the economy will definitely do well.


1.2.  Statement of the problem

In recent times, companies have performed poorly due, to the fact that they lack effective and efficient budgets, and budgetary control systems to adequately and judiciously allocate resources to meet organizational goals, and maximize performance. A study conducted by Boquist (2001) observed that companies continue to blunder and fail because they have flawed budgetary planning and control systems, which they apparently fail to recognize. Some firms sense weakness of their budgetary analysis but viewed them as individual problems rather than systematic deficiencies. They misdirect efforts and produce greater frustration. As a result, corporate strategy and capital allocation become misaligned and remain so, despite disapproving financial performance.

Some business organizations do not even know the link between budgetary control and performance, and this affects their performances negatively. Various organizations ranging from small scale businesses to large scale businesses, fail to recognize the power of budgets and budgetary control over performance outcomes. These organizations go ahead without paying more attention to improving their performances through their budgets.


1.3. Objectives of the study

The main objective of the study is to harness on the impact of budgetary controls on performance of an organization. However for the successful completion of the study, the following sub objectives were put forward by the researcher:

(i)To identify the link/relationship between budgetary control and organizational performance.

(ii)To identify the problems associated with budgets and budgetary control in an organization.

(iii)To identify ways to improve organizational performance through budgetary control measures.

(iv)To examine the relationship between budgetary controls and the performance of an organization.


  • Research question

For the successful completion of the study, the following research questions were formulated:

(i)What relationship exists between budgetary control and organizational performance?

(ii)What are the problems associated with budgets and budgetary controls in an organization?

(iii)How can organizational performance be improved through the use of budgetary control measures?

(iv)What is the relationship between budgetary controls and the performance of an organization?


1.5 Research hypotheses

H0: There is no significant impact of budgetary controls on the performance of an organization.

HA: There is a significant impact of budgetary controls on the performance of an organization.

H0: There is no significant relationship between budgetary controls and organizational performance.

HA: There is a significant relationship between budgetary controls and organizational performance.


1.6 Significance of the study

The addition of knowledge is basically the aim of every research and this research work seeks to achieve just that. More importantly, this research is necessary in understanding how the budgetary control is established and also how it affects organizational performance.

It is a tool which measures managerial performance of an organization and promotes good morale and harmony in the organization. It enable the organization verify whether or not the plans of the organization are understood by all members and put into effect corrective measures where deviation or under deviation is occurring.

Since budget is a tool for planning and financial planning is of almost significance to a business man, it enables the organization project the future consequences of present decisions in order to avoid surprises and understand the link between present and future decision.


1.7 Scope and limitation of the study

The scope of the study is a study on the impact of budgetary controls on the performance of an organization.                                                                                                However, the study has some constrained and limitations which are:

(a)Availability of research material: The research material available to the researcher is insufficient, thereby limiting the study.

(b)Time: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

(c)Finance: The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover.


  • Definition of terms


To have a strong effect on someone or something.



The money that is available to a person or an organization and a plan of how it would be spent over a period of time.



The power to influence or direct people’s behaviour or the course of events.


The action or process of performing a task or function.



It is a group of people who form a business, club etc. together in other to achieve a particular aim.


A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.


  • Brief history of Fidelity Bank plc

Fidelity Bank Plc was incorporated in November 1987 as Fidelity Union Merchant Bank Limited and converted to a commercial bank in July 1999. A universal banking license was obtained in February 2001. Fidelity merged with FSB International Bank Plc (FSB) and Manny Bank Plc (Manny Bank) in 2005 in order to meet the N25bn minimum capital required by Central Bank of Nigeria (CBN). The bank offers a range of banking services through 85 branch offices, strategically located across the country and has increasingly diversified its product offering in line with its strategic shift from its merchant banking orientation to that of universal banking. A major part of this strategy has been an increased emphasis on liability generation from individuals. Fidelity is divided into 4 key sectors, namely Business Banking (encompassing Consumer Banking, Corporate Banking and Treasury functions of the bank), Investment Banking & Public Sector, Shared Services and Risk Management. The Shared Services sector coordinates all the internal support and administration functions such as Human Resources, Transactions Support, Corporate Services and Training & Development, while the Risk Management sector is functionally structured into five departments namely: Credit Review, Credit Administration, Market Risk, Operational Risk and Recoveries. Other support functions include Legal/Company Secretariat, Marketing Communications, Inspection & Audit and Finance & Strategy that report directly to the Managing Director/ CEO.


This material content is developed to serve as a GUIDE for students to conduct academic research



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