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TITLE PAGE

THE IMPACT OF PARTICIPATION IN BUDGETING ON WORK MOTIVATION: A STUDY OF NIGERIAN BREWERIES PLC, GUINNESS

PLC AND UNIVERSITY OF NIGERIA, NSUKKA

BY

TIVDE JOEL KANYI

PG/MBA/09/54168

BEING

A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTANCY, FACULTY OF BUSINESS ADMINISTRATION,

UNIVERSITY OF NIGERIA, ENUGU CAMPUS

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWORD OF MASTERS OF BUSINESS ADMINISTRATION (MBA) IN

ACCOUNTANCY

SEPTEMBER, 2011

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CERTIFICATION

This is to certify that this project work is written by Mr. Tivde Joel Kanyi, A Post

Graduate Student of Department of Accountancy, Faculty of Business

Administration, University of Nigeria, Enugu Campus and it has been read and

approved.

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APPROVAL PAGE

This research project has been carefully read and approved having satisfied

the requirements for research project in partial fulfillment of requirements for the

award of Masters of Business Administration (MBA) in Accountancy

============= Date================

Mr. R. O. Ugwoke Project Supervisor ============= Date================= Mr. R.O. Ugwoke Head of Department ============ Date================== External Examiner

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DEDICATION

This research project is a special dedicated to the Almighty God

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ACKNOWLEDGEMENT

I humbly express my profound appreciation with much joy and gratitude to

Almighty God for His protection over my life particularly during the course of this

programme.

Also, there is a particular adage that “no one is an island” I cannot claim that all

the ideas used in this work are solely mine. Therefore, I owe a debt of gratitude

and appreciation to a multitude of people particularly those scholars whose works

provide me a rich reservoir of reference.

I must not forget to appreciate R. O. Ugwoke, my lecturer and supervisor for his

keen interest in this work in this research work which spurred him to ensure that, it

is correctly written. My appreciation also extends to all my lecturers for imparting

knowledge in me. All my course mates are not left out.

Deep inside of me, I acknowledge my parents, Rev. Jonathan T. Igbughul and

Atese Mbalamen Tivde. All my siblings Tertsegha, Terna, Faeren, Dooyum,

Verem and Nguavese are not left out. I so much appreciate my elder brother

Tertsegha who initiated an idea of this programme and stood beside me to ensure

that the programme is successfully completed. You are indeed a wonderful brother.

Also, the contributons of Mr.and Mrs. Terkura Igba and Mrs. Ankeli Majorie O.

are fully acknowledged. All my friends who supported me during the course of this

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programme are appreciated, Mr. and Mrs. Aondoakaa Annyon, Mr. and Mrs.

Donald Terwase Fegher. I cannot be able to mention all. This appreciation will be

incomplete if my friend Mr. Obed Ugwu is not left out. In fact you are a friend

indeed. Thanks a lot for your financial support during this programme.

My sincere appreciation also goes to the family of Dr. James Iorav. I so much

appreciate your care and concern during the course of this programme, especially

Miss. Joy who stood by my side spiritually, socially, psychologically, and other

wise.

May God reward all of you bountifully and grant you your heart desires.

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ABSTRACT

The main objective of this study therefore is to examine the impact of participation in budgeting on work motivation in Nigerian organizations. To achieve this, staff of Nigerian Breweries plc, Guinness plc and UNN were selected to provide primary data required. Primary data was collected through the use of questionnaires and oral interview. The researcher also used secondary data which was obtained from various documents and publications, textbooks, internet and journals. He also used tables to record data collected for easy identification and understanding. With the help of chi-square ( X2) and simple percentage method, the researcher found out that, the adoption of participative budgeting in these organizations have a great influence on workers moral; Employees are more challenged with participatory budget when goals are not achieved than when imposed budget system is practiced; Performance increases when employees are motivated. However, the adoption of participative budgeting system by these organizations does not mean all is completely well with participatory budgeting method. It has some problems such as budget padding, lack of active cooperation, too much participation and discussion can lead to vacillation and delay. To appreciate the uses of participative budget as a tool for motivating employees and enhancing performance in Nigerian organizations, problem areas were formulated and investigated to help draw conclusions and recommendations were made on how organizations in Nigeria can apply the concept of participatory budgeting system in enhancing motivation which eventually lead to increase performances to ensure that organizational objectives are achieved.

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TABLE OF CONTENTS

Title page - - - - - - - - - - - i

Certification - - - - - - - - - ii

Approval Page - - - - - - - - - iii

Dedication - - - - - - - - - - iv

Acknowledgment - - - - - - - - - v

Abstract - - - - - - - - - - vi

Table of content - - - - - - - - - vii

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study - - - - - - - 1

1.2 Statement of the problem - - - - - - - 3

1.3 Objectives of the Study - - - - - - - 4

1.4 Research Questions - - - - - - - - 5

1.5 Research Hypothesis - - - - - - - - 5

1.6 Significance of the study - - - - - - - 6

1.7 Scope and Limitation of the Study - - - - - 7

1.8 Definition of Terms - - - - - - - - 7

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction - - - - - - - - - 10

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2.2 Historical Background of Nigerian Breweries plc,

Guinness plc and UNN - - - - - - - 11

2.3 Conceptual Framework of Budget - - - - - - 16

2.4 Types of Budget- - - - - - - - - 18

2.5 Purposes of Budget - - - - - - - - 22

2.6 Stages in Budgeting Process - - - - - - - 23

2.7 Benefits of Budgeting - - - - - - - 23

2.8 Limitations of Budgeting - - - - - - - 24

2.9 Participation in Budgeting - - - - - - - 25

2.10 Advantages of Participation in Budgeting - - - - 26

2.11 Disadvantages of Participative Budgeting - - - - 27

2.12 Theories of Motivation - - - - - - - 28

2.13 Work Motivation - - - - - - - - 33

2.14 The Effect of Participation in Budgeting - - - - 34

2.15 Summary - - - - - - - - - 35

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction - - - - - - - - - 41

3.2 Research Design - - - - - - - - 41

3.3 Population and Sampling Plan - - - - - - 42

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3.4 Sampling Technique - - - - - - - - 43

3.5 Sources of Data Collection - - - - - - - 43

3.6 Techniques of Data Processing and Analysis - - - - 44

3.7 Weaknesses of the Methodology - - - - - - 45

3.8 Summary - - - - - - - - - 46

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND RESULT

4.1 Introduction - - - - - - - - - 48

4.2 Data Presentation/Analysis - - - - - - - 48

4.3 Test of Hypothesis 64

4.4 Results/Findings 73

4.5 Summary 75

CHAPTER FIVE: SUMMARY, CONCLUSION

AND RECOMMENDATION

5.1 Summary - - - - - - - - - 76

5.2 Conclusion - - - - - - - - - 77

4.5 Recommendation - - - - - - - - 78

5.4 Further Research Path - - - - - - - 81

Bibliography - - - - - - - - - 82

Letter of Introduction - - - - - - - - 86

Questionnaires - - - - - - - - - 89

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

In every organization, establishment of goals is an essential pre-requisite of

the planning process. All the three components of the economy (public sector,

private sector and individuals) need to plan for their future. They need an

instrument like budget that will assist them to effectively and efficiently achieve

their set goals. Finance, time, materials, men and other resources need to be

budgeted for in view of the fact that they are scarce in every sector of the economy.

The Institute of Cost and Management Accountants (ICMA) defined budget

as “a plan quantified in monetary terms, prepared and approved prior to a defined

period of time, usually showing planned incomes to be generated/or expenditures

to be incurred during that period, and the capital to be employed to attain a given

objective”. Budget could also be defined as an exercise in communication by

which the expectations of management about levels of performances of

subordinates are communicated to the subordinates. For the future plan(s) to be

effectively achieved there is need for managers and subordinates as well as other

employees to participate in the preparation of budgets especially when it is

discovered that the desired outcome is not being achieved.

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In many organizations, it has been observed that goals are not attained due to

lack of participation of superiors and subordinates managers, and other key

personnel in the budgeting process. Budget can be used by management to

motivate managers and other employees. If managers participate in the planning

process, they are likely to be more committed towards achieving the set objectives

and goals. In other words, participation in budgeting can be a useful device for

influencing managerial behaviour and motivating managers to perform in line with

the overall goals of the organization. As the result of this, the research work on the

topic “The impact of participation in budgeting on work motivation: study of

Nigerian Breweries Plc, Guinness Plc, and UNN” is determine to see the effects of

involving budgetees in the preparation of budget on work motivation towards

achieving organizational objectives.

Generally, organizational goals and objectives are achieved by getting things

done through people. Therefore, organizations can attain the set standards by

encouraging both superior and subordinates’ participation in the formulation and

implementation of the budgetary system. Since budget estimates represent the

summation of the various views gathered from each responsible operating

manager, their participation in the formulation of budget system must be total.

There should be no pseudo participation to counter production.

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The purpose of budgeting is to motivate employees and to co-ordinate

efforts. When employees are motivated, they exert more effort towards achieving

the task or goals set. Hence, participation in budgeting leads to motivation, and to

better attitudes and improved performance.

1.2 STATEMENT OF THE PROBLEM

In as much as participation in budgeting has been advocated by many writers

as a means of motivation, making task or job more challenging and giving

individuals a greater sense of belonging and responsibility, it is still a problem in

today’s competitive business environment.

Participatory budgeting system can be very effective in an organization if

properly applied, failure to motivate workforce can create some problems such as:

¬ Budget padding

¬ When people involved in the budgeting process disagree in significant and

irreconcilable ways, the process of participation can accentuate those

differences thereby leading to de-motivation of workers.

¬ Lack of confidence: Managers that lack confidence are likely to find that

participation in budgeting can only serve to increase their feeling of stress

and tension due to uncertainty.

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¬ In congruence between the level of participation and job difficulty,

performance will not be high when the amount of participation is

disproportionate to the level of job difficulty.

¬ Lack of active cooperation among workforce: Budgetees may also use the

opportunity to affect their budgets in ways that may not always be in the best

interest of the organization, they may also distort information by claiming

that they are not as efficient or effective at what they do as they appear,

thereby attempting to lower management expectations of their performances.

Therefore, this research seeks to address the problems of participatory

budgeting method highlighted above as regard having a strong influence on

workers moral with respect to employees’ motivation to enhance high performance

thereby ensuring that organizational objectives are achieved.

1.3 OBJECTIVES OF THE STUDY

The main objective of this research work is to examine the effect of

participation in budgeting on work motivation, hence other objectives include:

i. To find out whether employees are more challenged with participatory

budget when goals are not achieved than when imposed budget system is

practiced.

ii. To find out whether performance increases when employees are motivated.

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iii. To establish whether participatory budgeting system helps organizations to

achieve their set goals.

1.4 RESEARCH QUESTIONS

The purpose of this work has necessitated for certain questions to be asked

which serves as a yardstick towards successfully proffering solutions to the

problems highlighted above. The following questions are hereby posed;

i. Does participatory budgeting method have a strong positive influence on

workers moral?

ii. Does employees’ motivation enhance high performance?

iii. Does participatory budgeting method by organizations has a significant and

positive effect on market power and profitability?

1.5 RESEARCH HYPOTHESES

Ho: Participatory budgeting method has no strong positive influence on workers

morale.

H1: Participatory Budgeting method by organizations has a strong positive

influence on workers morale.

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Ho: Employees motivation has no positive effect on organisation’s operating

performance.

H1: Employees motivation has positive effect on organisation’s operating

performance.

Ho: Participatory budgeting method by organization does not have a significant

and positive effect on market power and profitability.

H1: Participatory Budgeting method by organization have a significant and

positive effect on market power and profitability.

1.6 SIGNIFICANCE OF THE STUDY

The research into participation in budgeting can be appreciated in the

following ways:

i) To help management appreciate the impact of participation in budgeting

on work motivation.

ii) The various views of workers will help the top management to adjust the

budget on important areas that enhance profit maximization.

iii) To the workers, the study will help them to understand the process of

budgeting and see participatory budgeting method as a form of

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motivation to them. With this, the problem of budget padding will no

longer be experienced in the organisations.

iv) It will contribute to the enrichment of the literature on participatory

budgeting and work motivation.

v) It will throw more light on the relationship between participatory

budgeting method and work motivation.

1.7 SCOPE AND LIMITATION OF STUDY

This research work centered on the impact of participation in budgeting on

work motivation in organization. The researcher’s aim is to find out the impact of

participation in budgeting on work motivation in organizations. Owing to the fact

that there are several organizations around the world, it will be burdensome to

study many organizations; therefore Nigerian Breweries Plc, Ama; Guinness Plc,

Benin City; and University of Nigeria Nsukka are selected as sample to cover all

the sectors of the economy.

The range of data to be used for this study is limited from 2006 to 2010. This

is to enable the researcher access the most current information on the issue under

consideration.

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1.8 DEFINITION OF TERMS

Budget: A budget is defined as a plan quantified in monetary terms, prepared and

approved prior to a defined period of time, usually showing planned incomes to be

generated and/or expenditures to be incurred during the period, and the capital to

be employed to attain a given objective.

Participation: The act of taking part in an event or activity.

Budgeting: Motivation is a set of forces that initiate behaviour and determine its

form, direction, intensity and duration. In other words, motivation is a set of

activities that induce or encourage the workers to put in their best efforts towards

the attainment of the goals of the organization.

Work: This is also refers to as job or task, it is to do something that involves

physical or mental efforts especially as part of job.

Budgettess: These are individuals who contribute in the formulation and

implementation of budget.

Budgeting padding: This means overestimating cost and underestimating

revenue.

Subordinate: A person who has a position with less authority and power than

somebody else in an organization.

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Superior: A person of higher rank, status or position in an organization.

Profit: The advantage that you get from doing something.

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REFERENCES

Adeniyi, A. (2008); Management Accounting. Lagos. El-toda ventures ltd.

Agburu, J.T. (2001); Modern Research Methodology, Makurdi. Solid Printing and Publication.

Atkinson, Banker (2001); Management Accounting. New York. Printice Hall.

Cole, G.A. (1996); Management Theory and Practice. New York. Martins Ltd.

Drury, C. (2004); Management and Cost Accounting. Thompson elf.

Garraison and Moreen, (1997); Managerial Accounting. New York. Mc-Graw Hill.

Horngren, Datar and Foster, (2005); Cost Accounting: A Managerial Emphasis. India. Pearson Prentice Hall.

ICAN (2006); Intermediate Cost Accounting. Lagos. VI Publishing.

Kodjo, S.N. (2009); Decision Accounting for Managers (2nd ed). Nigeria. De-Adroit Innovation

Nongo, S. (2005); Fundamentals of Management. Makurdi, Aboki Publishers.

Oxford advanced Learner’s Dictionery, New 8th Edition

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CHAPTER TWO

LITERATURE REVIEW

2.1 INTRODUCTION

Budgeting remains an important tool for effective and efficient management

of an organization, especially where employees are allowed to participate in

budgeting process. It is the primary responsibility of every management to

establish and maintain an adequate budgeting process appropriate to the size and

nature of the business of the entity. This will enhance motivation of employees

towards achieving organizational goals.

This chapter dwells on the professionals’ views and theories about budgeting

and motivation. It reviews relevant literature about the research topic from

textbooks, seminar papers, journals, and lecture notes, with the view of broadening

the knowledge not only of the researcher and readers but also any person who is

interested in carrying further research on this topic.

The chapter reviews the conceptual framework of budget, historical

background of NB Plc, G Plc and UNN; types of budget in manufacturing firms,

purpose of budget, stages in budgeting process; benefits of budgeting, limitations

of budgeting, participation in budgeting; limitations of budgeting, participation in

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budgeting, advantages and disadvantages of participation in budgeting; effects of

participation in budgeting; theories of motivation; and work motivation.

2.2 HISTORICAL BACKGROUND OF NIGERIAN BREWERIES PLC,

GUINNESS PLC AND UNN

Background of Nigerian Breweries plc

Nigerian Breweries Plc, the pioneer and largest brewing company in Nigeria, was

incorporated in 1946 and recorded a landmark when the first bottle of STAR Lager

beer rolled off the bottling lines in its Lagos Brewery in June 1949. This was

followed by Aba Brewery which was commissioned in 1957, Kaduna Brewery in

1963 and Ibadan Brewery in 1982. In September 1993, the company acquired its

fifth brewery in Enugu while in October 2003, a sixth brewery, sited at Ama in

Enugu state was commissioned. Ama Brewery is the biggest brewery in Nigeria

and the most modern in the world. Operations in Enugu brewery was discontinued

in 2004.

Thus, from its humble beginning in 1946, the company now has five operational

breweries from which its high quality products are distributed to all parts of this

great country.

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RESEARCH AND DEVELOPMENT

Nigerian Breweries Plc keeps pace with key international developments, thus

ensuring that its systems, processes and operational procedures are always in

conformity with world-class standards. It is in line with this policy that the

company established a Research and Development Centre in 1987 to enhance its

research activities on all aspects of brewing operations.

SOCIAL RESPONSIBILITY

Nigerian Breweries Plc is a socially responsible corporate citizen with a very good

record of corporate philanthropy in the areas of education, the environment (water)

and sports, among others. The company in 1994 established an Education Trust

Fund of N100 million to take more active part in the funding of educational and

research facilities in higher institutions, all in an effort to provide and encourage

academic excellence in Nigeria. This is in addition to its secondary and university

scholarship programme for children of its employees.

Nigerian Breweries Plc is the foremost sponsor of sports by variety in the country

with sponsorship covering Football, Athletics, Tennis, Cycling, Chess, Golf,

Badminton, Dart, Boat Racing and Ayo. The aim is to develop Nigerian sportsmen

and women to participate in national and international sports, and boost the sports

profile of the country.

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The company is also involved in the development of musical and movie talents,

through various programmes.

ANCILLARY INDUSTIRES

As a major brewing concern, the company encourages the establishment of

ancillary businesses. Many of these organizations and individuals depend largely

on the company for their means of livelihood. These include manufacturers of

Bottles, Crown Corks, Labels, Cartons, Plastic Crates and such services as

Hotels/Clubs and our Key Distributors.

EQUITY

With about 129,000 shareholders as at 31st December, 2008, the authorized share

capital of Nigerian Breweries Plc is N4 billion, divided into 8 billion shares of 50

kobo each. The issued share capital as at 31st December, 2008 stood at

N3,781,281,170 divided into 7,562,562,340 ordinary shares. The Heineken N.V.

Group has a majority share holding of 54.10% while 45.90% is held by Nigerian

and foreign individuals and associations.

The Company’s Turnover for the financial year ended 31st December, 2008 was

N145.5 billion. The Operating Profit was N36.8 billion and it paid out a total

dividend of N25.7 billion, that is, 340 kobo per 50 kobo share.

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Background of Guinness Nigeria plc

Guinness Nigeria, is a subsidiary of the prestigious Diageo Plc of the United

Kingdom, was incorporated in 1962 with the building of a brewery in Ikeja, the

heart of Lagos. The brewery was the first outside of Ireland and Great Britain.

Other breweries have been opened over time – Benin City brewery in 1974 and

Ogba brewery in 1982.

Guinness Nigeria produces the following brands – Foreign Extra Stout (1962),

Guinness Extra Smooth (2005) Malta Guinness (1990), Harp Lager Beer (1974),

Gordon’s Spark (2001), Smirnoff Ice (2006), Satzenbrau (2006)

Guinness Nigeria Plc is a company that believes in enriching its communities. This

it has achieved by embarking on laudable Corporate Social Responsibility projects

in several communities in Nigeria. These projects are Water of Life initiative,

which currently provides potable water to over 500,000 Nigerians spread across

several rural communities, from Northern to Southern Nigeria; scholarship and

Guinness Eye Hospitals in three cities in Nigeria.

Nigerian Guinness is said to be twice as strong as Irish Guinness. In the 1800's, the

Irish brewed the Guinness twice as strong, due to a fear of evaporation on the long

voyage to Nigeria. However, the alcohol did not evaporate, and to this day

Nigerians brew their Guinness twice as strong.

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Background of University of Nigeria, Nsukka

A law to establish the University of Nigeria was passed by the then Eastern

Nigerian legislature in 1955. As a first step towards the implementation of the

commitment, the Eastern Nigeria Government invited both the United States of

America and the United Kingdom to send advisers to undertake the planning of the

physical and the academic programmes of the proposed University. Under the joint

auspices of the inter-university Council for Higher Education Overseas and the

Internal Co-operation Administration (now the University Council for Higher

Education Overseas and the International Co-operation (now the United States

Agency for International Development), Mr. J.W. Cook, Vice-Chancellor of the

University of Exeter, Dr. John A. Hannah, President of Michigan State University

and Dr. Glen L. Taggart, Dean of International Programmes at the same University

came to Nigeria in 1958.

On 30th November, 1958 the result of the survey and extensive

investigations conducted by the team was published in a white paper by the Nigeria

Government. In April 1959, a provisional Council was appointed and vested with

the financial and administrative powers necessary to build the University. The

University was formally opened on 7th October, 1960, while the Federation of

Nigeria was celebrating the attainment, on 1st October of that year, of her full

sovereignty. Her Royal Highness, Princess Alexandra of Kent, representing Her

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Majesty, Queen Elizabeth II at the Nigerian Independence Celebration, performed

the opening ceremonies and laid the foundation stone of one of the University’s

early buildings. On 16th December, 1961, Dr. Nnamdi Azikiwe, then Governor

General of the Federation of Nigeria and Chairman of the Provisional Council was

installed the first Chancellor of the University. The University conferred its first

honorary degrees on the occasion, in December of the same year; the University of

Nigeria Law (1961) was passed. The law dissolved the provisional Council and

established a council.

During the first few years of its establishment, the University concentrated

its efforts on building a solid foundation for undergraduate courses and

infrastructural facilities.

As part of the efforts at reconstruction after the war, a sub-committee on

postgraduate studies and research was established in May 1970 by the Planning

and Management Committee (PMC) of the University. On 30th May, 1979, senate

approved the recommendation of its Postgraduate Studies Committee that a school

of postgraduate studies be established.

2.3 CONCEPTUAL FRAMEWORK OF BUDGET

Budget has been defined by different scholars, with diverse approaches.

However, these definitions are expressed in the direction of the purpose of its

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existence. Additionally, many reputable institutions have bared remarkable

definitions. As earlier stated in chapter one, the Chartered Institute of Management

Accountants (CIMA) in Adeniyi (2008) defines budget as “a plan quantified in

monetary terms, prepared and approved prior to a defined period of time, usually

showing planned income to be generated and or expenditure to be incurred during

that period and the capital to be employed to attain a given objectives”. In a similar

vein, Garrison and Noreem (1997) views budget as “a detailed plan for t he

acquisition, and use of financial and other resources over a specified time period”.

Deduced from the above, budget can be viewed as the plan of the dominant

individuals in an organization expressed in monetary terms, and subject to the

constrain imposed by other participants and the environment indicating how t he

available resources may be utilized to achieve whatever the dominant individuals

agree to be the organizations priorities

Wildavsky in Omokhimwa (2000) advocates that, because a budget serves

diverse purposes, it can mean different things to different people. Among the

various possible interpretations given by him include:

i. A plan of work

ii. A prediction

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iii. A link between financial resources and human behaviour to accomplish

policy objectives

iv. A mechanism for making choices among alternative expenditures

v. In the government, a record of preferences that have prevailed in the

determination of national policy.

However, whatever the different ways of looking at the budget, there is always

the need for choice to be made by the leadership of the organization on what to

do because it is not everything that the individuals within the organization want

that can be achieved since resources are limited. Thus, the choice to be made is

not based on the majority decision of all the individuals in the organization but

rather that of the dominant individuals among the leadership of the

organization.

Therefore, employees should be motivated by participating in budgeting

process (i.e. all the steps involved in putting the budget of an organization in

place).

2.4 TYPES OF BUDGET

Different terminologies exist, each trying to describe a peculiar reasoning

behind the methods used to prepare particular budget. Below are the types of

budget outlined by Lucy (2002) supported by Horngren (2005) and Kodjo (2009):

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i. Fixed or Static Budget: This is a budget which is not adjusted to the actual

volume of output or level of activity attained in a period, which will

probably be different from the level of activity originally planned.

Revisions to the budget may however be made if the situation warrants and

in the assessment of performance the revised budget would be used as if it

were the original budget.

ii. Flexible Budget: A flexible budget is “a budget which, by recognizing the

differences in behaviour between fixed and variable costs in relation to

fluctuations in output, turnover or other variable factors such as number of

employees, is designed to change appropriately with such fluctuations”

(CIMA). It could therefore be held to be the name given to that process

whereby a series of budgets are prepared each relating to a different set of

conditions.

iii. Zero-Based Budgeting: Zero-based budgeting is defined as a method of

budgeting whereby all activities are re-valuated each time a budget is

formulated. Each functional budget starts with the assumption that the

function does not exist and it is at zero cost. Increment of costs are compared

with increment of benefits, culminating in the planning of maximum benefits

for a given budgeted cost.

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iv. Incremental Budget: This refers to a situation where cost levels are

determined by what was spent last year or period plus a percentage for

inflation.

v. Rolling Budgets: These are sometimes called continuous budgets because

they are prepared several times each year say once a quarter. The aim is to

give management chance to revise its plans, and make more accurate

forecasts and plans for the next few months.

TYPES OF BUDGET IN MANUFACTURING COMPANIES

In most manufacturing companies, the following budgets are prepared as

highlighted by Drury (2004):

i. Sales Budget: The sales budget shows the quantities of each product that the

company plans to sell and the intended selling price. It provides the

predictions of total revenue from which cash receipts from customers will be

estimated. It is the foundation of other budgets.

ii. Production Budget: Production budget is expressed in qualities only and is

the responsibility of production manager. The objective is to ensure that

production is sufficient to meet sales demand and that economic stocks are

maintained.

iii. Direct Materials Usage Budget: This is the budget that prepare estimate of

the materials which are required to meet the production budget.

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iv. Direct Materials Purchase Budget: This is the budget that prepares the

materials to be purchased at the right time, the right quality and at the

planned purchase price.

v. Direct Labour Budget: This is the budget that prepares estimate of the

department’s labour hours required to meet the planned production.

vi. Factory Overhead Budget: This is the budget that takes care of the total

over head which depend on the behaviour of the costs of the individual

overhead items in relation to the anticipated level of production. In other

words, factory overhead budget provides a schedule of all cost of production

other than direct materials and direct labour.

vii. Selling and Administrative Budget: This is the budget that takes care of

selling and administrative expenses, or it lists the budgeted expenses for

areas other than manufacturing.

viii. Departmental Budget: This is the combination of direct labour budget,

material usage budget and factory overhead budget into separate

departmental budget.

ix. Master Budget: Master budget is a summary of quantitative expectations

regarding future cash flow, net profit and financial status of an organisation

after reflecting the feasible objectives of all the sub-units like sales,

production and distribution. It normally takes the form of cash budget, a

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budgeted profit and loss account and balance sheet as at a given date for the

organization as whole.

2.5 PURPOSES OF BUDGET

Budgets have several purposes. They are designed to carry out a variety of

functions such as: planning, evaluating performance, coordinating activities,

implementing plans, communicating, motivating and authorizing actions

(Horngren 1999).

The main purposes or uses of budgets could be summarized as follows:

i. Compel Planning: Planning forces management to look ahead, set targets,

anticipate problems and give the organization purpose and direction.

ii. Communicate Management Plans to the Entire Workforce. These plans

include the units to be produced, the methods and machines to be used,

the materials to be purchased and used and the selling prices of the

output.

iii. Provide top management with summarized picture of the results to be

expected from a proposed plan of operations.

iv. Coordinate the activities of different departments or sub-units of the

organization.

v. Establish a system of control by having a plan against which actual

results can be progressively compared.

34

vi. Motivate employees to improve their performance. With the right

atmosphere the budget process can be a powerful force in motivating

managers and the entire workforce to work towards the goals of the

overall organization.

2.6 STAGES IN BUDGETING PROCESS

The following are the stages in budgeting process as outlined by Lucy

(2002):

i. Communicating details of budget policy and guidelines to those

people responsible for the preparation of budgets.

ii. Determining the factors that restrict performance or output

iii. Preparation of sales budget

iv. Initial preparation of various budgets

v. Coordination and review of budget

vi. Final acceptance of budget

vii. Ongoing review of budgets

2.7 BENEFITS OF BUDGETING

Budgeting as a process of preparing budgets has various benefits to

individuals and organizations. Below are some of these benefits highlighted by

Adeniji (2004):

35

¬ It helps to promote coalition of interest and to increase motivation

¬ It is a medium of communication for organizational plans and objectives and

the progress towards meeting those objectives.

¬ It compels all members of management to participate in establishment of

goals and plans

¬ It helps to achieve coordination between various departments and functions

of the organization.

¬ It serves as a useful performance monitoring tool.

¬ It ensures sound organization structure

¬ It pinpoints efficiency and inefficiency

2.8 LIMITATIONS OF BUDGETING

In as much as budgeting is of benefits to the organizations, several

limitations are outlined below:

¬ Lack of adequate and realistic data for proper budgeting

¬ It could lead to de-motivation if not properly done.

¬ Persistent increases in the level of inflation

¬ Level of political instability within the economy

¬ It encourages inter-departmental conflict.

¬ It may involve considerable costs

36

¬ It places a great demand on management time (Adeniji, 2004)

2.9 PARTICIPATION IN BUDGETING

According to Drury (2004), participation relates to the extent to which

subordinates or budgetees are able to influence the figures that are incorporated in

their budgets or target. Participation in budgeting sometimes referred to as bottom-

up budget setting.

Blocher, et al (2005) maintains that a participative budgeting process is a

bottom-up approach that involves the people affected by the budget including

lower-level employees, in the budget preparation process.

Garrison and Noreen (1997) states that, participative budget is a budget that

is prepared with the full cooperation and participation of managers at all levels.

In a similar vein, the Institute of Chartered Accountants of Nigeria (ICAN

2004) in the study pack states that “a participatory budget is a situation in which

upper management elicits the subordinates’ inputs before the approval of budgets

is favoured”

Ronald W. (2005) opines that, the idea of participative budgeting is to

involve employees throughout on organization in the budgetary process. Such

37

participation can give employees the feeling that “this is our budget” rather than

the all-too-common feeling that “this is the budget you imposed on us”.

Horngren, et al (1999) in a similar vein opines that, participative budgeting

is budgets formulated with the active participation of all affected employees. That

is the effectiveness of any budgeting system depends directly on whether affected

managers and employees understand and accept the budget.

According to Chartered Institute of Management Accountants (CIMA) in

Lucy (2002), participation in budgeting is defined as “a budgeting system in which

all budget holders are given the opportunity to participate in setting their own

budgets”.

Alkinson, et al (2001), participative budgeting is a method of budget setting

that uses a joint decision-making process in which all parties agree about setting

the budget targets.

2.10 ADVANTAGES OF PARTICIPATIVE BUDGETING

Allowing individuals to participate in setting of performance target has

several advantages. Below are some of the advantages

¬ Individuals are more likely to accept the targets and be committed to

achieving them if they have been involved in the target setting process.

38

¬ Participation can reduce the information asymmetry gap that applies when

standards are imposed from above

¬ The person in direct contact with an activity is in the best position to make

budget estimates. Estimates prepared by such person tends to be more

accurate and reliable

¬ Individuals at all levels of the organization are recognized as members of the

team whose views and judgments are valued by top management.

¬ The process of preparing a budget (participative budget) gives to

management a better grasp of the problems their employees faced and

provides the employees a better understanding of the dilemmas that top

management deals with.

2.11 DISADVANTAGES OF PARTICIPATIVE BUDGETING

As participative budgeting can be very effective, it also has shortcomings,

some of these are:

¬ Too much participation and discussion can lead to vacillation and delay

¬ When those involved in the budgeting process disagree in significant and

irreconcilable ways, the process of participation can accentuate those

differences (problem of how to secure active cooperation among budgetees)

¬ The problem of budget padding unless incentives for accurate projections

are provided.

39

¬ Lack of confidence: Managers that lack confidence are likely to find that

participation only serve to increase their feeling of stress and tension due to

uncertainty.

¬ In congruency between the level of participation and job difficulty,

performance will not be high when the amount of participation is

disproportionate to the level of job difficulty.

2.12 THEORIES OF MOTIVATION

Of all preconditions for effective management of an organization, the most

vital is the human resource. The success of any organization is predicated upon the

human beings that make up the organization (Okwoli 2005). This is primarily

because human beings take decisions, provide knowledge, energy and cooperation

through which organizational objectives are achieved. Other resources have to be

coordinated and managed by people for the achievement of organizational

objectives. Each individual at work has his or her own set of values, drives,

perceptions, fears, goals and experiences that inform his or her behaviour at work

place. Motivation is a general term applying to the entire class of drives, desires,

needs wishes and similar forces (Heinz wechrich and Harold koonts 1993)

In a similar vein, cole (1996) views motivation as the term used to describe

those processes, both instinctive and rational, by which people seek to satisfy the

basic drives, perceived needs and personal goals, which trigger human behaviour.

40

To say that managers motivate their subordinates is to say that they do

things which they hope will satisfy these drives and desires and induce the

subordinate to act on a desired manner.

Furthermore, Nongo (2005) looks at motivation as a set of activities that

induce or encourage the workers to put in their best efforts towards the attainment

of the goals of the organization. A worker with ability has the capacity to perform,

but performance is the function of abilities and motivations, without motivation,

the most capable worker performs poorly. Management is faced with the enormous

task of motivating a diverse and in much respect, unpredictable group of people.

To predict behaviour with any accuracy, managers must know something about

employees’ goals and about the actions that employees has taken to achieve them.

Motivation theories attempt general explanation of the forces within an individual

and how the forces can be harnessed for the attainment of organizational goals.

These theories include:

Abraham Maslew: Hierarchy of Needs Theory of Motivation

Maslew (1943) was one of the first behavioural scientists to study human

needs. He classified needs into a hierarchical order. According to him, individuals

are motivated to engage in behaviours that fulfill their needs, once a particular

need is satisfied it ceases to be motivating factor. The satisfaction of such a need

41

gives rise to the emergence of a higher-order need. In practice, a particular need

does not have to be satisfied hundred percent before switching to the next need.

The degree to which a particular need is satisfied before attention is changed to the

next hierarchy will vary from individual to individual. When needs are satisfied,

the individual exhibits a number of behavioural patterns which are themselves

defensive in nature such as:

¬ Withdrawal: Here, the individual avoids situation by leaving the scene

¬ Aggression: Hence, the individual directs attack on the source

¬ Displacement: Here, the individual transfers aggression to innocent person.

For example his wife or her husband

¬ Compensation: Here, the individual tries to make up for deficiencies by

exhibiting strange behavior. For example, a lady getting so involved with

children after being jittered

¬ Rationalization: The individual presents a reason for the behaviour that is

false. Here he could attribute his poor performance to bad state of machine

or hatred for boss.

Herzberg: The Two Factor Theory of Motivation

Herzbery et al (1959) propounded a theory about motivation called ‘Two-

Factor Theory’, they divided the factors in the work situation into those they

42

classified as hygiene factors and those termed satisfier. In the hygiene factors, they

placed such factors as salaries, job security, the attitude of the supervisor, and

working conditions. They noted that the absence of these hygiene factors will

cause dissatisfaction but their presence will not cause motivation or satisfaction.

Factors whose presence lead to satisfaction are called satisfiers or motivation

factors. These factors can produce high levels of motivation when they are present.

The factors are achievement, recognition, advancement, authority attached to the

job and responsibility of the job.

The theory emphasizes that the absence of the hygiene factors will cause

dissatisfaction but its presence will not result to satisfaction. Removal of

dissatisfaction is not equivalent to satisfaction or motivation. However, the

hygiene factors must be present before the satisfier factors can cause or induce

motivation.

Vroom: Expectancy Theory of Motivation

Vroom (1964) similarly propounded expectancy theory of motivation. This

theory describes the process people use to evaluate the likelihood that their effort

and expenditure will yield the desired outcome and how much they want the

outcome. The theory is based on three factors that determine the degree of efforts

43

to put forth. The three factors are outlined by Nongu (2005) as expectancy, valence

and instrumentality.

¬ Expectancy is the individual’s assessment or expectation that effort will lead

to desired results. Eboh (1999) also supports that expectancy of outcome

relates to the probability the individual attaches to the attainment of his

personal goals while achieving the organizational goals. If the probitity or

outcome is considered positive, then the individual would be motivated to

work towards the attainment of the organization’s goals.

¬ Valence is the values of the outcome to the individual which is rewards,

desirable rewards encourage effort, and undesirable rewards discourage

effort. The valence is the relative weight or measure of importance work of

the outcome or reward which the individual expects. (Eboh 1999)

¬ Instrumentality is the employee’s assessment of how instrumental or likely

it is that successful task performance will be rewarded. It is the measure of

the correlation between performance and rewards.

This theory is primarily about the expectations of a person and how the

expectations influence behaviour. The theory views behaviour as the product of

what employees believe will happen in the future. The theory implies that

employees will allocate their behaviour based on anticipated consequences of

actions. Manager can use the theory in developing motivation programs.

44

Locke (1968) in Adepoju (2003) in a similar manner comes out with a goal

setting theory of motivation which sees an individual’s conscious goals and

intentions as the primary determinants of behaviour. Where goals are set, can be

measured and sustained, more efforts are directed towards achieving the goals.

Individuals are allowed to participate in goal setting and generally the more

difficult the goal is, the higher the level of performance especially if the goals are

thought of being attainable.

This theory helps in identifying and clarifying the goals of organizations,

and also assists in soliciting efforts to achieve the goals. The application of the

theory by managers will exert higher performance from employees, as all efforts

will be aimed at the accomplishment of the task or goal. The theories also help to

explain in details the impact of motivation on employees and job performance.

2.13 WORK MOTIVATION

Motivating employees is important to organization because motivated

employees strive to find the best way to perform their work or jobs and are

interested in producing high quality products and in addition they tend to be

productive. In this case of participative budgeting, managers and subordinates

(Budgetees) that involve in preparing budget of organization may improve

performance or work more intensely to avoid failure if they are motivated. This

motivation is through a variety of rewards tied to the achievement of these goals.

45

The rewards can be monetary (such as cash, shares of company stock, use of

company car and membership in a club) or non monetary (such as power or pride

in working for a successful company). As budgetees get closer to a goal, they work

harder to achieve it, for this reason, management may like to set challenging but

achievable goals for employees

Similarly the level of performance (work)) will be increased if budgetees are

motivated through the reward-penalty system of an organization such as

promotions, salary increase, bonuses, and job security. Another way of motivating

budgetees to participate actively to achieve organizational goals is to set highly

achievable goals (budgets), since it increases levels of commitment and

aspirations. But over ambitious and unachievable budgets increases anxiety

without motivation, that is individuals see little chance of avoiding failure.

To achieve organizational goals, management must understand what

motivates people to work harder, what a person wants or need from work and so

design a reward system that will satisfy these needs.

2.14 THE EFFECT OF PARTICIPATION IN BUDGETING

Allowing employees to participate in budgeting has positive effect on work

motivation in the following ways:

46

¬ It improves information system in the organization: This means that

subordinates have more information than their superiors on the relationship

between output and inputs and the constraints that exist at the operating level

whereas the superiors have a broader view of the organization as a whole

and the resource constraints that apply. This information sharing process

enables more effective targets to be set that attempt to deal with both

operational and organizational constraints. Hence, budgetees feel motivated

to work to achieve the set goals since they all know what is to be done.

¬ It increases acceptance and motivation: This means that budgetees agree

with the budgets or the goals set and feel motivated to work harder to

achieve the target.

¬ Budget participation makes the budgetees to a greater extent feel responsible

for the organization’s goals because it internalizes the goals. Once budgetees

feel responsible for the goals of the organization, they become serious and

motivated to work harder to avoided failure.

2.15 SUMMARY

The operating philosophy of any organization is to ensure efficient and

effective utilization of resources to achieve its goals. The organizations selected for

study (Nigerian Breweries plc, Guinness Plc and UNN) are not left out. To achieve

the budget of organizations, superiors and subordinates (budgetees) who

47

participated actively in the preparation of budgets should be motivated to work

harder to achieve the set goals (budgets).

In as much as participatory budgeting system bring about work motivation,

care must be taken because of its shortcomings highlighted in this chapter, other

wise its primary aim will not be achieved.

48

REFERENCES

Abanobi, O.C. (2009), Guidelines for Project Reports, Thesis, and Disertations,

Owerri: Ugoma printing press & co.

Adeniyi, A. (2008), Management Accounting, Lagos El-Toda Venture Limited

Adepoju, A. (2003), Management Concepts and Applications, Lagos: Concept Publication Limited.

Adeyemi, B. and A. Arowomole ((2004), The Impact of Leadership Style on Managerial Budget Performance, ICAN-Students Journal April/May 2004. vol. 9, no 2, Lagos: Academy Press Plc.

Alkinson, Banker, (2001), Management Accounting, New Jersey-UK: Prentice Hall

Allen, G. (1998), www.telecollege.dcee.edu/mgnt.

Amstrong, M. (2003), A Hand Book of Human Resource Management Practice. (9th edition) London: Kogan Page Company.

Amstrong, M. (2009), Human Resource Management Practice. (11th edition) London: Kogan Page Company.

Awoken, A.J. (2004), Practical Research Methodology: Design, Analysis and Reporting.(2end edition) Port Harcourt: Unicampus Tutorial Services.

Bailey, K.D. (1994), Methods of Social Research: (4th edition) New York: The Free Press.

Banjoko, S.A. (1996), Human Resource Management: An Expository Approach, Saban Publishers.

Blocher, E.J.; K.H. Chen; G. Cokins; and T. Lin (2005), Cost Management: A Strategic Emphasis, New York: Mc Graw Hill.

Bordens, K.S. and B.B. Abboh (2008), Research Design and Methods: A process Approach (7th edition); New York: McGraw-Hill Companies.inc.

Buchaman, M. and R.B. Reich (2004), Organisational Behaviour, Spain: Graficas Estella publishing co.

Cole, G.A. (1996), Management Theory and Practice, New York: Martins Ltd.

49

Cole, G.A. (2004), Management: Theory and Practice, London: Thompson Learning.

Drury C. (2004), Management and Cost Accounting, Thomson ELST.

Eboh, F.E. (1999), Public Sector Management, Enugu: Skinno Prints.

Ezigbo, C.A. (2011), Advanced Management: Theory and Applications, (3rd edition) Enugu: Immaculate Publications Limited

Flippo, E.B. (1980), Personnel Management, (5th edition) Tokyo: Mc Graw-Hill, Kogakusha ltd.

Garrison and Noreen (1997), Management Accounting, New York: Mc Graw Hill

Heinz, w. and Koontz, H (1993), Management: A Global Perspective, New York: Mc Graw-Hill Company Inc

Hilton, R.W. (2005), Management Accounting, New York: Mc Graw-Hill

Horngreen, C.T; G.L. Sundem; W.O. Stratton (1999), Introduction to Management Accounting, Upper Saddle River-New Jersey: Prentice Hall

Horngreen C.T.; M. Srikant; Datar and F. George (2003), Cost Accounting: A Managerial Emphasis, Upper Saddle River-New Jersey: Prentice Hall

http:/en/Wikipedia.org/wiki/organizational culture.

[http://www.guinness-nigeria.com Guinness Nigeria official website]

[http://www.guinness.com Guinness official site]

[http://www.ratebeer.com/beer/guinness-foreign-extra-stout-(nigerian)/19432/ Tasting notes for Foreign Extra Stout]

50

[http://www.easykobo.com/Getquotes.aspx?s=GUINNESS Latest quote and news

of Guinness Nigeria plc]

[http://www.alacrastore.com/company-snapshot/Guinness_Nigeria_Plc-2510328

Guinness Nigerial plc at Alacrastore]

[http://finance.google.com/finance?q=guinness+nigeria Guinness Nigeria at

Google finance]

[http://www.nigerianstockexchange.com/quoted_company.jsp?symbol=GUINNES

S Guinness Nigeria at Nigerian Stock Exchange]

http://nbplc.com/investor_relations.html

http://firstregistrarnigeria.com official website of nigerian breweries plc

Imaga, E.U.L. (2001), Elements of Management and Culture in Organisational Behaviour, Enugu: Phyce kerex publishers.

Imaga, E.U.L. (1996), A Manual of Corporate Planning and Strategic Business Policy, Enugu: Phyce kerex printers and pulishing.

Mc Namara, C. (2006), Employees Training and Development: Reasons and Benefits, www,managementhelp.org.

Kodjo, S.N. (2009), Decision Accounting for Managers. (2nd), Nigeria: De-Adroit Innovation

Lucy, T. (2002), Costing, London: YHT Ltd.

51

Nongo, S. (2005), Fundamentals of Management, Makurdi: Aboki Publishers

Okwoli, A.A. (2005), Motivation and Job Performance Among Auditors: A Paper Presented At a 4 Day National Seminar of the Institute of Chartered Accountants of Nigeria, Lagos: Lazjen and Associates.

Omolehinwa, E. (2000), Coping With Cost Accounting, Lagos: Pumak Nigeria Limited Hilton

Uduji, J.T. and J.O. Nanabuko (2008), Strategic Sales Force Management, Nigeria: New Generation Ventures Limited.

52

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 INTRODUCTION

A research methodology is the plan a researcher uses to carry out his

research work by selecting the necessary and adequate methods in order to carry on

a suitable and effective study for the best conclusion (Agburu, 2001). Since data

collection and analysis is very relevant in research, there is need to provide a

careful selection of adequate methods by which data can be collected and analyzed

in this chapter.

This chapter aims at finding out whether employee’s participation in the

formulation of budget can influence their behaviour or attitude towards achieving

set standards. As the result of this, this chapter states the research design,

population and sampling plan, instruments of data collection, procedure of data

collection, techniques of data processing and analysis and weaknesses of

methodology.

3.2 RESEARCH DESIGN

Research design according to Onwumere (2009) “is a format which the

researcher employs in order to systematically apply the scientific method in the

investigation of problems. As Nachmias and Nachmias (1985) observed, it is

blueprint crafted to address problems of scientific inquiry. The research into the

53

impact of participation in budgeting on work motivation is conducted by the use of

descriptive research design model. The collection of data and information for

analysis and interpretation was based on the use of questionnaires.

The researcher also used secondary data which was obtained from various

documents, publications of Nigerian Breweries Plc, Guinness Plc and UNN; and

also from uniform resource locator via internet. Other research approaches include

text books, journals and relevant information from publications by the government.

3.3 POPULATION AND SAMPLING PLAN

For the purpose of this research work, the population which is infinite covers

all the organizations in Nigeria. However, it is not possible for the researcher to

study all the organizations in Nigeria, therefore he randomly selected sixty (60)

staff of Nigerian Breweries Plc, Ama; fourty (40) staff of Guinness Plc, Benin

City; and one hundred and fifty (150) staff of UNN, Nsukka Campus to form

sample size of the study. Elements in this sample size were determined using

stratified sampling technique.

An overall sample of 250 staff of the above named organizations was

adopted for this research. As expected, each of these samples was randomly

selected from their total number of staff employed. Each sample comprised 10

percent management staff, 40 percent senior staff/middle level managers and the

54

remaining for junior staff/workers of the above mentioned organizations. The

reason behind having them in this order derives from the preliminary investigation

which reveals that the junior staff in each of these organizations have the highest

population, followed by middle level managers/ senior staff and management staff

in that order.

3.4 SAMPLING TECHNIQUE

The technique for gathering primary data was the simple random sampling

technique. The relevant respondents from each of the groups (Junior, middle level

managers/ Senior and Management Staff) were obtained using the stratified

random sampling method.

3.5 SOURCES OF DATA COLLECTION

Data for the purpose of this research was both primary and secondary. For

the primary data, sources were the questionnaire and personal interview.

Secondary data were obtained from published materials such as annual reports,

half year reports, and quarterly reports etc. of the relevant organizations; various

literature gathered and recorded by other scholars (Text books, journals,

newspapers) and other relevant materials that are helpful for this research work.

55

3.6 TECHNIQUES OF DATA PROCESSING AND ANALYSIS

In this research work, the data collected using questionnaires was recorded

in contingency tables for easy understanding and identification. Simple percentage

method was used to analyze tabulated data. Equally important to be considered

along the techniques of data analysis was the chi-square (X2) which is the

procedure necessary to carry out hypothesis testing. The formula for chi-square

which was used to test the exactness of the analysis is shown below:

( )FE

FEFOX

2

2 ∑ −=

Where

X2 = Chi-Square

FO = Observed value of the sample

FE = Expected value of the sample

� = Summation

The test will be carried out at 95% degree of confidence level, where the

level of significance or the critical value will be at 5%.

The Degree of Freedom (D.F) is calculated thus: DF = (R – 1) (C – 1).

Where

56

DF = Degree of Freedom

R = Number of Rows

C = Number of Columns.

Decision Rule: According to Agburu (2002), the null hypothesis (Ho) will be

accepted if the value of chi-square calculated (X2C) is less than the critical value of

the chi-square tabulated (X2t), otherwise, it will be rejected and the alternative

hypothesis (H1) will be accepted.

3.7 WEAKNESSES OF METHODOLOGY

The design of an appropriate data collection technique can hardly be

undertaken without recording shortcomings for the methodology. One of the

problems of the research methodology as noticed by the researcher is that,

structured questionnaires could have been misunderstood in some areas of enquiry.

Also, due to the structured nature of the questions, the mind and personal feelings

of the respondents would be missed. This impairs the information seeking needs of

the researcher.

Also illiterate or semi-literate respondents may not give enough time and

thought to questions.

57

Furthermore, the interviewee may be unobjective and bias in answering

questions.

However, the researcher was able to randomly administer the questionnaire

effectively using random sampling techniques to ensure the reliability and validity

of the information collected for the research work.

3.8 SUMMARY

This chapter portrays how the researcher designed his research work and

ways through which data for this research work are sourced from both Primary and

Secondary Sources. Suffice it to say that, it has given insight in how the data

collected will be analyzed and weaknesses of the research work are outlined.

58

REFERENCES

Agburu J.I. (2001) Modern Research Methodology. Makurdi: Solid Printing and

Publication Company

Onwumere J.U.J. (2009) Business and Economic Research Methods (2nd ed.)

Enugu: Vougasen Limited

Nachimias, D& C. Nachimias (1976), Research Methods in the Social Sciences.

New York: St Martins Press.

59

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND RESULT

4.1 INTRODUCTION

This chapter deals with the presentation and analysis of data collected from

the respondents through the use of questionnaires. The chapter is design

particularly to analyse and interpret the data collected in order to provide a better

and adequate picture of the subject matter of this study.

4.2 DATA PRESENTATION/ANALYSIS

The data presented and analyzed here are those obtained from the

respondents through the use of questionnaires administered. Data obtained through

oral interview provides a good back up to that which is obtained through the use of

questionnaire during the course of analysis.

The tables (table 1 and 2) presented below show the total number of

questionnaires administered to the respondents and the number filled and returned

by the respondents. Other tables below show the outcome of the data obtained

from the field.

60

Table 1: questionnaires administered

Respondents Questionnaires issued Percentage (%)

25 10

Senior staff/middle level

managers

100 40

Junior staff/workers 125 50

Total 250 100

Source: Field survey 2011.

61

Table 2: questionnaires returned

Respondents Questionnaires

returned

Percentage (%)

Top management 25 11.1

Senior staff/middle level

managers

90 40.0

Junior staff/workers 110 48.9

Total 225 100

Source: Field survey 2011.

Research Question 1: Does participatory budgeting method have a strong positive

influence on workers morale?

To answer the above research question, the following questionnaires (number 1 to

4) were used and the responses of the respondents were transferred in to figures

and recorded in the tables below.

62

Table 3: To know whether participatory budgeting system exists in the

organizations under study.

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 25 90 102 217 96.4

No 0 0 8 8 3.6

Total 25 90 110 225 100

Source: Field survey 2011.

Analysis: This table shows that, participatory budgeting system exist in Nigerian

Breweries plc, Guinness plc and UNN. This is because, 96.4% of respondents

agreed that they are involved in budgeting process in their organizations.

63

Table 4: To know whether participatory budgeting system has a strong

positive influence on workers moral.

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 22 77 68 167 74.22

No 3 13 42 58 25.78

Total 25 90 110 225 100

Source: Field survey 2011.

The table above depicts that, the total number of 167 respondents out of 225 agreed

that participatory budgeting method have a strong positive influence on workers

moral. The remaining 58 respondents disagreed. The decision is represented by

74.22% leaving the remaining 25.78% respondents who disagreed.

Analysis: The above result shows that the practice of participatory budgeting

system in an organization can influence workers behavior thereby enhancing their

motivation.

64

Table 5: To know whether every employee give total commitment or support

during implementation of participative budget.

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 21 67 76 164 72.89

No 4 23 34 61 27.11

Total 25 90 110 225 100

Source: Field survey 2011.

The table above shows that, 164 respondents agreed that employees give their

maximum support during the implementation of participative budget, while 61

disagreed.

Analysis: The result above indicate that, majority of the workers (72.89%) give

their maximum support while other participants (27.11%) in goal setting view

participative budget as a form of pressure on employees.

65

Table 6: To know whether imposed budgeting method is more preferable to

participative budgeting method

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 6 27 42 75 33.33

No 19 63 68 150 66.67

Total 25 90 110 225 100

Source: Field survey 2011.

This table shows that 75 (33.33%) respondents agreed that imposed budget is more

preferable to participative budgeting method, while 150 (66.67%) disagreed with

this view.

Analysis: The numerous benefits of participatory budgeting method both to the

management and employees make them prefer participatory budgeting method

than imposed budgeting method.

66

Research question 2: Does employees’ motivation enhance high performance?

To answer this question, the researcher designed questions five to eight to help

throw more light on this problem. The responses obtained from the questionnaire

are analysed below.

Table 7: To know whether employees’ motivation enhance high performance

of jobs/tasks

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 18 56 96 170 75.56

No 7 34 14 55 25.78

Total 25 90 110 225 100

Source: Field survey 2011.

The table above shows that 167 (74.22%) respondents agreed that employees’

motivation enhance high performance of tasks/job by employees, while 58

(25.78%) disagreed.

67

Analysis: The result from the above table indicates that, employees put in more

efforts towards achieving organizational objectives particularly when they are

motivated. But less efforts can be employed if they are not motivated thereby

reducing the level of achievement. The result indicates that, employees are

motivated by way of increase in salary and wages, bonuses, promotion and other

motivational packages. As a result of this they perform their functions more than

before.

Table 8: To know whether employees feel challenged when goals of the

organization are not achieved

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 14 61 68 143 63.56

No 11 29 42 82 36.44

Total 25 90 110 225 100

Source: Field survey 2011.

68

The table above shows that 143 (63.56%) agreed that employees feel challenged

when goals of an organization are not achieved particularly where participatory

budgeting system is practiced, while 83 (36.44%) disagreed.

Analysis: For any organization to achieve its target or set objectives there must be

a proper plan on ground including the implementation process set by employees. If

they fail to achieve the standard set by them, they feel challenged.

Table 9: To know whether every worker performs better when he/ she is

motivated

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 23 64 102 189 84

No 2 26 8 36 16

Total 25 90 110 225 100

Source: Field survey 2011

This table shows that 187 (84%) respondents agreed that workers perform better

when they are motivated, while 36 (16%) respondents disagreed.

69

Analysis: The result of the table above shows that, every worker needs to be

motivated or encouraged to discharge his responsibilities. Management should note

that a motivated workforce is a competitive advantage. Therefore the design of

motivational package for employees encourages them to put more efforts towards

the attainment of organizational goals.

Table 10: To know whether the amount of motivation given to staff/workers is

commensurate to the efforts they exerted.

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 23 51 64 137 61.33

No 2 39 46 87 38.67

Total 25 90 110 225 100

Source: Field survey 2011

The table above shows that 137 (61.33%) agreed with the view that the amount of

motivation given to staff/workers is commensurate to the efforts they exerted,

while 87 (38.67%) disagreed.

70

Analysis: Workforce needs to be highly motivated on regular basis, if they are

motivated the amount of efforts they will put towards attainment of organizational

objectives will be high. Management is getting things done through people;

therefore success of any organization is reached through the participation of

motivated workforce in target setting or budgeting process and implementation.

Research question 3: Does participatory budgeting method by organizations

increase profit?

To answer this question, the researcher designed questions nine to thirteen to

enable him know whether objectives of the above organizations are achieved

through participatory budgeting system and the extent to which they are achieved.

The objectives of Nigerian Breweries plc and Guinness plc are profit maximization

organizations, while that of UNN is to promote research and advancement of

science and learning at a minimal cost.

71

Table 11: To know whether participatory budgeting method leads to

increased profit/attainment of overall objectives of an organization.

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 17 78 71 166 73.78

No 8 12 39 59 26.22

Total 25 90 110 225 100

Source: Field survey 2011.

The above table shows that, 166 (73.78%) respondents agreed that, the objectives

of the organizations of study are achieved through participative budget, while 59

(26.22%) respondents disagreed.

Analysis: The result from the table above shows that, with the aid of contributions

of employees in the formulation and implementation of budget, Nigerian Breweries

plc, Guinness plc and UNN achieved their targets.

72

Table 12: To know whether employees’ motivation a major factor in the

impressive growth in operating profit.

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 13 48 59 120 53.33

No 12 42 51 105 46.67

Total 25 90 110 225 100

Source: Field survey 2011.

The table above shows that, 20 (53.33%) respondents agreed that, impressive

growth in operating profit of the organizations is as the result of proper motivation

strategies adopted (participative budget) by the organizations; while 105( 46.67%)

disagreed.

Analysis: The result from the table above shows that motivation of employees by

way of allowing them to contribute their quarter through participative budget go

along way in increasing performances which eventually lead to impressive growth

in profit.

73

Table13: To know whether participative budget can be achieved through

work motivation.

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 13 66 73 152 67.56

No 12 24 37 73 32.44

Total 25 90 110 225 100

Source: Field survey 2011.

The table above shows that, 152 (67.56%) respondents agreed that participative

budget can be achieved through work motivation, while 73 (32.44%) respondents

did not agree with the statement.

Analysis: The attainment of participative budget is due to how workforce is

encouraged to put in more efforts to perform difficult task/ job but achievable.

74

Table 14: To know whether the overall objectives of the organizations are

achieved.

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 22 71 86 179 79.56

No 3 19 24 46 20.44

Total 25 90 110 225 100

Source: Field survey 2011.

The table above shows that, 179 (79.56%) respondents agreed that overall

objectives of their organizations are achieved through participative budget, while

46(20.44%) disagreed.

Analysis: With the aid of contributions by the employees in the formulation and

implementation of budget, the overall objectives of Nigerian Breweries plc,

Guinness plc which is profit maximization and other associated objectives; and that

of UNN which is to promote research and advancement of science and learning at

a minimal cost are achieved. Many employees agreed that overall objectives of

75

their organization are achieved at a very high rate. Therefore, we can conclude that

organizations can achieve their targets without any problem if they properly

motivate their workers. And one of the ways of motivating workers is through

participation in budgeting which gives employees a sense of responsibility and

belonging that will spure them to put in their best.

4.3 TEST OF HYPOTHESIS

Hypothesis stated in chapter one of this research work is tested here using chi-

square technique as earlier stated in chapter three. The test is carried out at 95%

degree of confidence and the critical value is 5%, while the degree of freedom

(D.F.) is 2 calculated thus:

D.F. = (Row-1) (column-1)

= (2-1) (3-1)

= 2

Decision Rule: The null hypothesis (Ho) is accepted if the value of chi-square

calculated (X2C) is less than the critical value of the chi-square tabulated (X2t),

otherwise, it will be rejected and the alternative hypothesis (H1) will be accepted.

Recalled from chapter three, application of chi-square formula is highlighted

below:

76

( )FE

FEFOX

2

2 ∑ −=

Where

X2 = Chi-Square

FO = Observed value of the sample

FE = Expected value of the sample

� = Summation

Research Question1

Does participatory budgeting method have a strong positive influence on workers

morale?

Research Hypothesis 1

Ho: participatory budgeting method has no strong positive influence on workers

morale.

H1: Participatory Budgeting method by organizations has a strong positive

influence on workers morale.

77

Table 15: Table of response

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 22 (A) 77 (B) 68 ( C ) 167 74.22

No 3 (D) 13 (E) 42 (F) 58 25.78

Total 25 90 110 225 100

Source: Table 3

Calculation of expected frequency (FE)

A = 56.18225

16725 =×

B = 80.66225

16790 =×

C = 64.81225

167110 =×

D = 44.6225

5825 =×

78

E = 20.23225

5890 =×

F = 36.28225

58110 =×

Group FO FE FO-FE (FO-FE) 2 (FO-FE) 2

A 22 18.56 3.44 11.8336 0.638

B 77 66.80 10.20 104.04 1.557

C 68 81.64 -13.64 186.0496 2.279

D 3 6.44 -3.44 11.8336 1.838

E 13 23.20 -10.20 104.04 4.484

F 42 28.36 13.64 186.0496 6.560

X2 17.356

Chi-square calculated (X2C) = 17.356

Chi-square tabulated (X2t) = 5.99

Thus, X2C > X2t

79

Decision: Since X2C is greater than the X2t, we can reject the null hypothesis (Ho)

and accept the alternate hypothesis (H1) that, participatory budgeting method by

organizations has a strong positive influence on workers morale

Research Question 2: Does employees’ motivation enhance high performance?

Ho: Employees motivation has no positive effect on organisation’s operating

performance.

H1: Employees motivation has positive effect on organisation’s operating

performance.

Table 16: Table of response

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 18 (A) 56 (B) 96 (C) 170 75.56

No 7 (D) 34 (E) 14 (F) 55 24.44

Total 25 90 110 225 100

Source: Table 7

80

Calculation of expected frequency (FE)

A = 89.18225

17025 =×

B = 00.68225

17090 =×

C = 11.83225

170110 =×

D = 11.6225

5525 =×

E = 00.22225

5590 =×

F = 89.26225

55110 =×

81

Group FO FE FO-FE (FO-FE) 2 (FO-FE) 2

A 18 18.89 -0.89 0.7921 0.042

B 56 68.00 -12.00 144 2.118

C 96 83.11 12.89 166.1521 1.999

D 7 6.11 0.89 0.7921 0.130

E 34 22.00 12.00 144 6.545

F 14 26.89 -12.89 166.1521 6.179

X2 17.013

Chi-square calculated (X2C) = 17.013

Chi-square tabulated (X2t) = 5.99

Decision: Since X2C is greater than the X2t, we can reject the null hypothesis (Ho)

and accept the alternate hypothesis (H1) that, employees’ motivation enhances

high operating performance.

82

Research Question 3: Does participatory budgeting method by organizations have

a significant and positive effect on market power and profitability?

Research Hypothesis 3:

Ho: Participatory budgeting method by organizations does not have a significant

and positive effect on market power and profitability.

H1: Participatory Budgeting method by organizations have a significant and

positive effect on market power and profitability.

Table 17: Table of response

Response Top

management

Senior

staff/middle

level

managers

Junior

staff/workers

Total (%)

Yes 17 (A) 78 (B) 71 (C) 166 73.78

No 8 (D) 12 (E) 39 (F) 59 26.22

Total 25 90 110 225 100

Source: Table 11

Calculation of expected frequency (FE)

83

A = 44.18225

16625 =×

B = 40.66225

16690 =×

C = 16.81225

166110 =×

D = 56.6225

5925 =×

E = 60.23225

5990 =×

F = 84.28225

59110 =×

Group FO FE FO-FE (FO-FE) 2 (FO-FE) 2

A 17 18.44 -1.44 2.0736 0.112

B 78 66.40 11.60 134.56 2.027

C 71 81.16 -10.16 103.2256 1.272

D 8 6.56 1.44 2.0736 0.316

E 12 23.60 -11.60 134.56 5.702

F 39 28.84 10.16 103.2256 3.579

84

X2 13.008

Chi-square calculated (X2C) = 13.008

Chi-square tabulated (X2t) = 5.99

Decision: Since X2C is greater than the X2t, we can reject the null hypothesis Ho

and accept the alternate hypothesis H1 that, Participatory Budgeting method by

organization increases market shares, profitability and attainment of the overall

objectives of the organizations.

4.4 RESULTS/FINDINGS

The research into “The Impact of Participation in Budgeting on Work

Motivation: A Study of Nigerian Breweries plc, Guinness plc and UNN” was

extremely carried out. It is pertinent to state at this moment without any reservation

that, the impact of participative budget on the organizations cannot be

overemphasized for improved performances and work motivation. The results of

the study suggest that, the adoption of participatory budgeting method by these

organizations has eradicated the formal system of budgeting

(Authoritative/imposed budget) and adopted a participative form of budgeting.

85

The adoption of participative budgeting method by these organizations

contributed immensely for the attainment of their overall goals and objectives (i.e.

profit maximization and efficient service delivery). This agrees with the view of

Alkinson, et al (2001) as stated in chapter two that, “individuals are more likely to

accept the targets and be committed to achieving them if they have been involved

in the target setting process”. The increase in profit was also as the result of

adoption of participatory budgeting system. This was the views of majority of

respondents, because of the fact that executive and non – executive staff or

employees in general are highly motivated to work harder and improve

performance of their tasks/duties.

Also, the adoption of participatory budgeting method offers budgetees or

employees opportunity to use their ideas and input to accomplish highly achievable

targets. Also, incentives for appropriate projections were provided to avoid budget

padding. Majority of the respondents agreed that, motivation’s package or reward

system is designed adequately to enable employees work more effectively and

efficiently to achieve the defined target and objectives. This is in agreement with

the view of Lock (1968) in Adepoju (2003) that, “individual’s conscious goals and

intentions are the primary determinants of behavior. Where goals are set by

employees, measured and sustained, more efforts are directed towards achieving

86

them. Individuals are allowed to participate in goal setting and generally the more

difficult the goal, the higher the level of performance from employees”.

4.5 SUMMARY

This chapter deals with the analysis of data collected from the field through the use

of questionnaires. The test of hypothesis was also carried out and the findings were

clearly stated. From the analysis done in this chapter, the researcher found out that,

motivation itself is very difficult and complex to measure, define and apply in

organizations. As the result of this, many theories discussed in chapter two

attempted to explain the forces within an individual and how the forces can be

harnessed for the attainment of group goals. Hence, this study revealed that, one of

the ways of harnessing these forces is through participation in budgeting of an

organization by employee. This can go along way influencing employees to put in

their best during the course of discharging their duty.

87

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY

The main focus of this study has been on the impact of participation in budgeting

on work motivation. As the result of the difficulty in studying various

organizations in Nigeria, Nigerian Breweries plc, Guinness plc and UNN were

selected as focal points of the study.

In chapter one of this study, the researcher discussed the main objectives of the

study which is to examine the effect of participation in budgeting on work

motivation, to find out whether performance increases when employees are

motivated etc. In order to achieve these objectives, this chapter has been broken

into statement of the problem, research questions, research hypothesis, significance

of the study as well as scope of the study were discussed in this chapter.

Chapter two dwells on the professionals’ views and theories about budgeting

and motivation. It reviews relevant literature about the research topic from

textbooks, seminar papers, journals, and lecture notes, with the view of broadening

the knowledge not only of the researcher and readers but also any person who is

interested in carrying further research on this topic. The chapter reviews the

conceptual framework of budget, historical background of NB Plc, G Plc and

UNN; types of budget in manufacturing firms, purpose of budget, stages in

88

budgeting process; benefits of budgeting, limitations of budgeting, participation in

budgeting; limitations of budgeting, participation in budgeting, advantages and

disadvantages of participation in budgeting; effects of participation in budgeting;

theories of motivation; and work motivation.

Chapter three states the research design, population and sampling plan,

instruments of data collection, procedure of data collection, techniques of data

processing and analysis and weaknesses of methodology. All these were just to

find out whether employee’s participation in the formulation of budget can

influence their behaviour or attitude towards achieving set standards.

In order to accomplish the aim of this study, hypothesis stated in chapter 1,

and the data collected were analyzed, and tested in chapter four. Results/findings

of the work were outlined in this very chapter. The result in this chapter based on

the data collected and analyzed shows that, participation in budgeting affects work

motivation and motivation on the other hands leads to higher performance which

eventually result to achievement of organizational objectives.

5.2 CONCLUSION

Based on the outcome of the analysis made in chapter four using chi-square (X2)

and simple percentage method, the following conclusions had been drawn:

89

¬ That, participatory budgeting method by organizations has a strong positive

influence on workers morale, thereby enhancing their motivation.

¬ That, employees’ motivation enhances higher performance. The increase in

performances was as the result of adequate reward system design for the

employees of these organizations.

¬ It was discovered from the study that, Participatory Budgeting method by

organizations increases profit/ attainment of the overall objective of the

organizations. Furthermore, motivation of employees by way of allowing

them to contribute their quarter through participative budget go along way in

increasing performances which eventually lead to impressive growth in

profit.

¬ The study also revealed that, managers who lack confidence are likely to

find that participation in budgeting only serves to increase their feeling of

stress and tension due to uncertainty.

4.3 RECOMMENDATION

Generally, there is no system that is devoid of problems; hence, it becomes

pertinent to provide a diagnostic look at the problems associated with participatory

budgeting system. Some of these problems include; too much participation and

discussion can lead to vacillation and delay; problem of budget padding; When

90

those involved in the budgeting process disagree in significant and irreconcilable

ways, the process of participation can accentuate those differences thereby

resulting to problem of how to secure active cooperation among budgetees; In

congruency between the level of participation and job difficulty, performance will

not be high when the amount of participation is disproportionate to the level of job

difficulty etc.

However, the following recommendations may be of help in curbing these

problems if carefully applied.

¬ For any organization to carry out participative budgeting system effectively

and efficiently, it is necessary to identify those areas and situations where

there is evidence that participative methods are effective, rather than to

introduce universal applications into organizations. Participation must be

selectively used, if it is used in the right circumstances, it has an enormous

potential for encouraging the commitment of workers to organizational goals

and objectives, influencing attitudes towards the budgeting system and

subsequently increase performance.

¬ To ensure that, the objectives of an organization is achieve through

participation in budgeting, managers must understand that, each individual

at work has his or her own set of values, drives, perceptions, fears, goals and

experiences that inform his or her behaviour at work place. In order to

91

harness these drives, he must know what motivates workers to work hard.

What employees need from work could be salaries and wages, achievement,

recognition, advancement, authority attached to the job and responsibility of

the job etc. understanding of these derives will enable the manager to design

a reward system that can best satisfy these needs.

¬ To ensure total commitment and support during implementation of budget,

organizations must set high but achievable targets so that amount of

participation will be proportional to the level of tasks or job difficulty. That

is, participation in budgeting as a tool for achieving corporate objectives

encourages employees to increase their level of commitment and

performance.

¬ For budgetees or employees to overcome the challenges of participative

budget, they must work harder right from the formulation process to the

execution stage. And on the side of the organization, management must not

budget what is too high or difficult to achieve so that employees feel

motivated to carry out their responsibilities and enhance high performance in

order to achieve the standards

¬ The success of any organization depends on the availability of qualified

managers as well as skilled labour. Therefore, there should be thorough

recruitment of personnel in order to employ employees who are competent,

92

focused, determined and confident in what they are doing, so as to avoid

unusual feelings of stress and tension as regard participation in budgeting.

Furthermore, for an organization to feel the positive impact of participation in

budgeting on work motivation, it is necessary to apply the participatory method of

budgeting selectively and in the right circumstances to encourage commitment to

achieve the organizational budgets.

5.4 FURTHER RESEARCH PATH

For those who may be interested in carrying out further research on this topic, they

should consider the aspects below since this work did not exhaustively cover all

the areas of budgeting. The suggested topics are:

¬ The challenges of participation in budgeting on managerial performance.

¬ The relationship of participation in budget setting to industrial supervisors’

performance and attitudes.

93

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Faculty of Business Administration

University of Nigeria Enugu Campus 23rd May, 2011.

Dear Respondents,

I am a postgraduate student of the above named institution, in department of Accounting conducting a research work on the topic: “The Impact of Participation in Budgeting on Work Motivation” Study of Nigerian Breweries, Guinness plc and UNN.

As a contribution to the body of knowledge, you are kindly requested to provide answers to the attached questions. All the information requested are strictly for academic purpose.

Thanks for your anticipated cooperation.

Yours faithfully Tivde Joel Kanyi PG/MBA/09/54168

98

QUESTIONNAIRE INSTRUCTION Indicate your responses by ticking in the appropriate box the option that best describes your opinion against each question and also make suggestions in the spaces provided. SECTION A PERSONAL DATA OF RESPONDENTS

1. Sex: (a) Male (b) Female 2. Age group (a) 18-25 (b) 26-35 (c) 36-45

(d) Above 45 3. Educational qualification (a) FSLC (b) SSCE

(c) Diploma (d) B.Sc./BA/HND (e) Above “d”

4. What is your designation in your organization? (a) Top Manager (b) Middle Manager/ Senior Staff (c) Ordinary/ Junior Staff

SECTION B 1. Have you been ever involved in budgeting process in your organization?

(a) Yes (b) No 2. Does participatory budgeting method have a strong positive influence on

workers morale? (a) Yes (b) No 3. Does every employee gives total commitment or support during

implementation of participative budget? (a) Yes (b) No 4. Is imposed budgeting method more preferable to participative budgeting

method? (a) Yes (b) No 5. Does employees’ motivation enhance higher performance of jobs/tasks?

(a) Yes (b) No 6. Does employees feel challenged when goals of the organization are not

achieved? (a) Yes (b) No 7. Does every worker performs better when he/ she is motivated?

(a) Yes (b) No

99

8. Is the amount of motivation given to staff/workers commensurate to the efforts they exerted? (a) Yes (b) No

9. Does participatory budgeting method leads to increased profit? (a) Yes (b) No

10. Does employees motivation a major factor in the impressive growth in operating profit? (a) Yes (b) No

11. Can participative budget be achieved through work motivation? (a) Yes (b) No

12. Are the overall objectives of your organization achieved? (a) Yes (b) No

13. To what extent are they achieved, please indicate ………………………………………………………………………………………………………………………………………………………………………………………………

14. What are the challenges, (if any) faced by your organization during implementation of participative budgeting method (a)…………………………………………………….. (b) ……………………………………………………. (c) ……………………………………………………. (d) …………………………………………………….

15. Indicate , if any, way(s) you would suggest may solve the problems of participative budgeting method, and further motivate employees (a) ………………………………………………… (b) ………………………………………………… (c) ………………………………………………… (d) …………………………………………………

100