| dc.description.abstract | Budgeting process is a key activity in the life of any organisation which should be
accorded the seriousness it deserves as it guides the activities of the organization. Proper
planning, preparation, adherence and control are some of the major processes that should
be followed as laid down in the estimates. Budget systems need to be transparent and
participatory thus organisations need to have budgetary policies that are clear and well
understood by all staff at different levels.
The study sought to establish the managerial perception on the usefulness of Zero Based
Budgeting among nongovernmental organizations in Kenya. This study adopted a
descriptive survey design. The population of the study constituted all Non- governmental
Organizations (NGOs). A sample of 300 Non-Governmental Organizations (NGOs) was
drawn from the NGOs based in Nairobi using stratified sampling method. The study
collected data using a questionnaire. The data was analyzed by generating descriptive
statistics.
From the findings, the study concludes that zero based budgeting is very useful in Non
Governmental Organizations in Kenya given that it has flexibility, communicate
corporate goals, cost minimization and knowledge sharing. The study revealed the bases
of budgeting was the most important factor that affects the managements’ perception and
effectiveness of Zero Based Budgeting in NGOs followed by organization structure and
then frequency of budgeting.
The study recommends that in order to enhance the effectiveness of Zero based budgeting
in the NGOs, the management should put in place measures to solve the Zero Based
budgeting problems such as enhancing better understanding of zero based budgeting
behaviour and institutional dynamics among the staff, developing strong financial
integration with performance management and quarterly revision of financial plan to
redirect resources at frequent intervals. | en |
