Impact of Budgeting and Budgetary Control on Performance of Manufacturing Industry (a Case Study of Guinness Nigerian Plc.)
ABSTRACT
The slow space of organizational performance in Nigeria has been attributed in part to inadequacy in the process and implementation of budget and budgetary control. This study aims at filling the gap as a means of educating managers and operators of businesses who are capable of reversing the current low organizational performance to an improved one. This study examines how budget and budgetary control can impact on the performance of manufacturing industry with focus on Guinness Nigeria Plc.
Data used in the study were curled from the financial statement of the selected manufacturing firm for the period of 2008-2017 using Earning Per Share (EPS), Dividend Per Share (DPS) and Net Asset Per Share (NAS) as indicator or performance and Sales Turnover as indicator of budget. The data were analysed using regression analysis to establish the relationship between independent variable (budgeting and budgetary control) and dependent variable (EPS, DPS and NAS).
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Findings from the study revealed that turnover had a very weak relationship with EPS and DPS with (p-0.044<0.05) and (p-0.135<0.05) respectively. However, turnover have a strong relationship with NAS with (p=0.447>0.05). Finally, it was revealed that F-cal value of 0.545 is greater than F-tab 0.05, while the p-value (0.669) is greater than the critical value 5% which indicate that there was no significant relationship between budgeting and budgetary control on performance of Guinness Nigeria Plc.
It was concluded that budgeting and budgetary control has no significant impact on the performance of Guinness Nigeria plc. Hence, managers and business operators (not only in the manufacturing industry) should pay more attention to their budgetary control systems, while those without any should endeavour to ensure the set-up of a result-oriented system as it goes a long way in repositioning businesses and organizations from their creeping performance level to an improved and high capacity utilization point.
