Budgetary Participation and Managerial Performance in Public Sector Organisations: A Study from Nigeria

Abstract

This study investigated the impact of budgetary participation on managerial performance in the public sector organisations in Nigeria. A questionnaire was used to obtain the opinion of 174 managers (unit and departmental heads) in five public sector organisations located in Abuja, Nigeria Federal Capital. Results from statistical analysis (descriptive, factor analysis, Kruskal-Wallis tests, correlation and regression) show that there is high level of budgetary participation by managers in public sector organisations in Nigeria. Although budgetary participation was observed to positively and significantly influence managerial functions such as planning, investigating, co-ordinating, supervising, evaluating, and staffing, it exerts the most on planning. The impact of budgetary participation on managerial performance appears to be moderate. Whilst it is desirable for public sector organisations to adopt sophisticated budgeting techniques, the study advocates for employees’ motivation and deeper involvement in budget matters as a way out of the traditional budgeting quagmire that public sector organisations are characteristically bedevilled with