Relationship between budgeting practices and performance in Nairobi Oil Corporation (NOC)
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Date
2009-11Author
Mungai, Martin M
Type
ThesisLanguage
enMetadata
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This is a study on the relationship between budgeting practices at Nairobi Oil
Corporation. Budgets occupy a leading place among the special tools of management
employed to direct and control the affairs of large and multifarious organizations.
This is a case study aimed at getting detailed information regarding the budgetary
practices at the Nairobi Oil Corporation of Kenya (NOC) and their relationship with the
firm's performance. Primary data was collected from the company staff by use of
interview guides. The interview guide comprised of open ended questions to allow for a
greater depth of response. Secondary data sources were also be used to provide additional
information. These were obtained from already documented materials such as in-house
publications, in-house training materials and periodic performance reviews.
The study concludes that a good budgetary practice is crucial for the success of an
organization since it is important in bringing management discipline and organization
control as well as enhancing accountability in different management function and more
specifically, the practice ensures that, proper performance is met and issues that would
make the organization not meet the budget are addressed and resourced well in advance.
The study further concludes that budgetary process helps in monitoring efficacy of
resource utilization and the productivity borne out of the use of the resource which is then
used in the performance process through target setting and evaluation. In addition the
practices enable a company to manage its expenditure. Proper budgetary practices, thus
aid in the resource optimization, cost containment, budgetary projections, corporation for
control, accountability and communication of company's financial and non-financial
information over a specific period.
The study conceals the real name of the entity studied at the request of the management.
This is due to the sensitivity of the subject within the oil industry. Nairobi Oil
Corporation has been adopted as the alternative name.
Citation
Masters of Business Administration, University of Nairobi (2009)Publisher
University of Nairobi School of Business