CHAPTER I
INTRODUCTION
Following the uncertainties prevailing in the Ghanaian business environment today, managers and stakeholders must be poised and prepared to compete favourably under these rapidly shifting conditions. In order to survive under these environmental complexities and vagueness managers and stakeholders of both private and public sectors need sharp tools, proven management techniques to forecast the major changes which are likely to affect the business while they choose future direction and dimension of resources needed to attain selected goals.
Budgetary control as a proven management tool helps organization management, and enhances improved performance of any economy in different ways. Its primary function is to serve as a guide in financial planning operators; it also establishes limits for departmental excesses. It helps administrative officials to make careful analysis of all existing operations, thereby justifying expanding, eliminating or restricting present practice. Budgeting and control entails a distinct pattern of decisions in an organization which is capable of determining its objectives, purposes or goals, and how these goals are achieved by establishing principal policies and plans. However, the inability to recognize the problem concerned and fixing a boundary off investigation creates an obstacle for the successful implementation of budgeting and control. Some organizations only look for narrow ranges of alternatives which they arrive at from their past expenses and present situation, other management levels even avoid long-term planning and budgeting in favour of today’s problems thereby making the problems of tomorrow more severe. The foregoing reflects on the need for organizations to set up a formal mechanism for scanning its environment for opportunities and give early signs of future problems, this course of action will improve the system of budgeting and control, resulting in an appropriate expectation of improved performance, in the manufacturing sector as seen in this study.
1.1 BACKGROUND OF THE STUDY AND PROFILE OF THE ORGANIZATION
Various researches on budgets and budgetary controls have clearly shown that organizations need to pay serious attention to budgetary processes, budgets, and budgetary controls. In light of these various issues facing organizations as a result of poor/mismanaged budgetary control systems/budgets, the researcher went ahead to research more on the topic, and came out with various recommendations and findings to help curb the problems organizations have with their various budgetary control systems.
Interviews and casual discussions with managers, employees, government agencies etc, formed the initial and informal stages of this study. When enough materials were gotten and reviewed by the researcher, it later developed into a full and complete academic research. Various issues affecting budgetary processes, budgets and budgetary control are fully addressed in this study.
This study was mainly undertaken to help organizations in Ghana to grow, thereby also helping the economy of Ghana to grow, because when enterprises and businesses do well, the economy will definitely do well.
1.1.2 PROFILE OF THE ORGANIZATION
The Bank has two wholly owned specialised subsidiaries namely;
The MBG group also has the following additional specialist services tailored to meet its customers' needs:
The bank has taken advantage of the opportunities offered by the introduction of Universal Banking Business in Ghana and MBG has fully developed all three areas of universal banking namely; Retail, Corporate and Investment. The branch network of Merchant Bank currently stands at twenty-two (22).
Mission
As a universal Bank in Ghana, Merchant Bank (Ghana) limited is committed to providing quality financial products and services to our customers across our chosen market and maintaining our place as a leading and preferred financial institution in Ghana.
Vision
To become the leading, the most influential and best performing financial service provider in Ghana by 2012 and one of the leading banks in West Africa by 2015
Core Values
The bank has over its 30 years of existence achieved a lot, notable amongst which are:
1.3 STATEMENT OF THE PROBLEM
In recent times, companies have performed poorly due, to the fact that they lack effective and efficient budgets, and budgetary control systems to adequately and judiciously allocate resources to meet organizational goals, and maximize performance. A study conducted by Boquist (2001) observed that companies continue to blunder and fail because they have flawed budgetary planning and control systems, which they apparently fail to recognize. Some firms sense weakness of their budgetary analysis but viewed them as individual problems rather than systematic deficiencies. They misdirect efforts and produce greater frustration. As a result, corporate strategy and capital allocation become misaligned and remain so, despite disapproving financial performance.
Some business organizations do not even know the link between budgetary control and performance, and this affects their performances negatively. Various organizations ranging from small scale businesses to large scale businesses, fail to recognize the power of budgets and budgetary control over performance outcomes. These organizations go ahead without paying more attention to improving their performances through their budgets.
1.4 RESERCH OBJECTIVES
The objectives for this study are:
1.5 RESEARCH QUESTIONS
In order to achieve the above objectives the following research questions will be used:
NOT THE TOPIC YOU ARE LOOKING FOR?
Once payment is made, kindly send us your project topic, email address and payment name to +234 810 144 4147
Once payment is confirmed, Project materials will be sent to your email
The study aims to enhance human resource-related issues and, in the end, to be a document that aids in the development of YEA and public-sector policies.
The information asymmetries that exist between the managers of banks and their shareholders create a problem in how their ownership structure influences their dividend policy. In respect to the above assertion, the findings of this study will critica...
The pressure from globalization has made manufacturing organization moving towards three major competitive arenas: quality, cost, and responsiveness. The process of production planning and control is central to the success of any manufacturing compan...
Insurance companies are legal entities that cover the financial impact of it that derives from the occurrence of certain unexpected insured events affecting the insured. They offer this benefit in exchange for payment of a predetermined amount of mon...
The role of planning and forecasting in business organization is a topic chosen from the business administration and management field. The research was conducted mainly to examine the positive and negatives effects of not making good use of plan...
This research was embarked upon to gain institute into growth of indigenous firms in Nigeria. This is specifically an attempt to investigate the impart of indigenous firms among others. The objective are not only to acquaint equitable growth for ...
Historically, Nigeria’s experience of taxation predates the colonial period. The Hausas of Northern Nigeria were paying taxes, though in kind, to the Emir in return for security and common services. However, with the advent of the colonialists, dir...
Small scale business constitute an important component of the Nigerian industrial sector. The importance of this sector cannot be over emphasized, especially in a typical developing country like ours where the level of youth unemployment is rising be...
Historically, Nigeria’s experience of taxation predates the colonial period. The Hausas of Northern Nigeria were paying taxes, though in kind, to the Emir in return for security and common services. However, with the advent of the colonialists, dir...
The political, economic and social development of any country depends on the amount of revenue generated for the provision of infrastructure in that given country. Taxes have the characteristic of being a common source of revenue to all countries. It...
Message Us on WhatsApp »
