The Effect of Budgetary Controls on the Performance of an Organization

Abstract

The discussion of budgeting has been a subject of debate over recent years. Although ZDF adopt budgeting controls, there have been no comprehensive studies on budgeting which has been conducted at ZDF in Zimbabwe. In Zimbabwe budgeting control adoption has not been complete without the active engagement of various stakeholders at ZDF. At ZDF it is not known on how budgeting is conducted, whether budgetary controls in ZDF compare well with benchmarks, if control systems are effective in relation to performance of the organization. It is against this background that this study investigated how budgeting is conducted in the ZDF, establish whether the budgetary controls in ZDF compare well with benchmarks, examine the effectiveness of the control system in relation to performance of the organization, identify challenges to effective budgeting in ZDF and suggest improvements to the control systems. The literature on budgeting showed that the following areas have not been explored: the meaning attached to budgeting by ZDF is currently not known, the impact of budgeting in Zimbabwe is currently not known. Data for this study was collected through 65 questionnaires. The systematic random sampling method was adopted to select respondents for quantitative research while the purposive method was used to select respondents for qualitative research. The SPSS version 21.0 was used to analyze quantitative data while the reduction method was adopted for qualitative data.