Employees Attitudes Towards Budgeting Process Among Large Manufacturing Firms in Nairobi
Abstract
This study sought to establish the extent of behavioural influence of employees in the budgeting process in large manufacturing firms and the challenges faced by them in the budgeting process. Data was gathered from a sample of 30 large manufacturing firms using a structured questionnaire.
It was found out that, the most influencing behavioural aspect in the budgeting process was group pressure. Similarly, executive legislature, interdepartmental disputes and a perception that the budget process was a socialization mechanism were of profound effect.
Evidence gathered from the data analysis suggests that, to a very large extent was the budget perceived as a socialization process. It is specifically a mechanism through which participants raise their preferred information. The level of information sharing depends on the attitudes of the employees towards the budget. Insufficient skills by employees hinder the budget process as well as the budget process perception.
This study concluded that, budgets as a managerial tool of control and coordination as well as planning requires the inputs of employees from the different parts of the organization. As such, their participation increases their motivation and overcomes the negative attitudes to the budgeting process.
Finally, the findings of this research should be understood and evaluated in light of the limitations of the study, which were mainly two fold. First, the study was limited in scope to only manufacturing firms in Nairobi. Secondly, the size of the sample couldn’t generate adequate generalization.
Publisher
University of Nairobi, School of Business
Description
MBA Thesis