Universal Journal of Accounting and Finance Vol. 8(4), pp. 115 - 130
DOI: 10.13189/ujaf.2020.080404
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Effect of Budgetary Processes on Organizational Performance: A Case of Marine State Agencies, Kenya

Robert Keng’ara ^*, Ibrahim Makina
Department of Human Resource & Strategic Management, School of Business Studies and Economics, Kisii University, Kenya

ABSTRACT

Government budgeting processes are always lengthy and elaborative; a system that provides detailed framework of how it has performed in the past and what it plans to execute in the current fiscal year. A budget is a tool which is utilized by the government of Kenya with the aim of achieving both operational and development activities in the short and long term especially with the aim of realizing vision 2030. The aim of this study was to assess the effect of budgetary processes and the performance of an organization in relation to non-commercial marine agencies, Kenya. Specific objectives were to determine the effect of budgetary planning on organizational performance, to establish the effect of budgetary control on organization performance and to determine the effect of implementation and evaluation on organization performance. The study utilized four theories: Budget cycle theory, Agency theory, institutional theory and stewardship theory. The study utilized descriptive research design. The study was conducted in Mombasa County in Kenya. Target population was Heads of Department in Financial, Procurement Audit and Monitoring and Evaluation in Marine sector and Chief executive officers. The sample size of the study was 70 respondents. Data collection tool was questionnaires that were distributed among 70 respondents. Both primary and secondary data were collected. Primary data were collected through questionnaires while secondary data were collected from the organization's archives because few respondents census was utilized. Content validity was utilized. Collected data was analyzed through multiple regression analysis to determine the relationship between the variables. Collected data was presented through tables. From the analyzed results it was revealed that there was a positive significant relationship between budgetary processes for intense budgetary planning, budgetary control and budgetary implementation, monitoring and evaluation on organization performance. The regression was 0.834a and R. square of 0.65. For the correlation there was a positive coefficient between budgetary processes and organization performance. The study recommended that organizations should embrace budgetary process in order to realize superior performance.

KEYWORDS
Budget, Organizational Performance, Budgetary Controls, Budgetary Planning

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Robert Keng’ara , Ibrahim Makina , "Effect of Budgetary Processes on Organizational Performance: A Case of Marine State Agencies, Kenya," Universal Journal of Accounting and Finance, Vol. 8, No. 4, pp. 115 - 130, 2020. DOI: 10.13189/ujaf.2020.080404.

(b). APA Format:
Robert Keng’ara , Ibrahim Makina (2020). Effect of Budgetary Processes on Organizational Performance: A Case of Marine State Agencies, Kenya. Universal Journal of Accounting and Finance, 8(4), 115 - 130. DOI: 10.13189/ujaf.2020.080404.