Perceptions of Nigerian Supervisors on Budgeting in Nigeria Based on Questionnaire Survey

By Osiegbu, Professor Patrick I.; Onuorah, Anastasia C. | Journal of Financial Management & Analysis, January 1, 2018 | Go to article overview

Perceptions of Nigerian Supervisors on Budgeting in Nigeria Based on Questionnaire Survey


Osiegbu, Professor Patrick I., Onuorah, Anastasia C., Journal of Financial Management & Analysis


Introduction

Budgeting is an essential element, which is vital to management accounting techniques, which can benefit all aspects of business if it is understood a properly used. A budget is a financial and quantitative interpretation of events prior to a defined period of time of a policy to be pursued in order to attain a given objective. Top management has used budget figures to determine viability of a unit in the organization when it lays emphasis on meeting budget requirements. Most of the past studies had projected the views of top management with little or no emphasis on its subordinates. We had been indoctrinated with the budget preparers' viewpoint but how about the budget operators?

The above views in mind have necessitated this study. The theoretical framework of the study is to determine the perception of Nigeria supervisors towards budget pressure. When the views of the supervisors are known, top management can use some of the findings for future planning and decision making. This research is limited because it focuses on manufacturing firms in big cities without due consideration to rural manufacturing firms. The various industry groupings are not considered thereby the research cannot be conclusive. Budget related literature were reviewed which has indicated that there are various behavior among the supervisors. The issue of goal congruence, motivation and deviant behavior avoidance are some of the objectives of budget preparation. Some reactions are supposed to emerge from supervisors who are pressured to meet the budget figures. These behaviors are manipulation of the budget reports, emphasis on the short-run budget and poor communication to top management on the budget variance,

The review looked into the critical areas in the budgeting process. These critical areas focus on the interactive goals setting in the areas of Research and Development Marketing Strategy and Financial Strategy. The preparer of the budget must design some possible assumptions to support the budget, which can be classified as external and internal assumptions. In viewing a budget, management should be able to determine if sales revenue is inflationary oriented or business growth. Furthermore, some tools like break even analysis, cash-flow analysis and asset management should be incorporated into the budget system. The study identifies the various weak budgeting processes, which are classified into symptoms and possible causes. This analysis of symptoms and causes are essential ingredient in the performance evaluation.

Methodology Used

The research methodology was designed to gather information from broad range of manufacturing firms in Nigeria. Questionnaires were sent to randomly selected manufacturing company's supervisors in Nigeria. The names were picked from Daily Times Trade and Industry Directory and Industry Directory of Ministry of Labour of various issues. Two hundred (200) questionnaires were sent to big cities in Nigeria while fifty (50) were distributed in Port-Harcourt. Two hundred and twenty-five responses were received which represents 90 per cent response rate. The respondents were grouped into groups 2-4 for effective analysis.

Statistically, the percentage analysis method was used to determine the relationships between the groups of supervisors with regard to the twentythree independent variables. The polarization approach was used to compare the two immediate groups while the extreme group was excluded from the analysis.

The findings of the study have revealed that the behavior of supervisors change as the emphasis put on the budget variances increase, we found that there is no significant difference between the two groups of supervisors in the frequency of certain budget related activities like participating in budget preparations using budget to plan and having to transfer fund relating to operations in other to reduce budget variance. From the responses, we can conclude that the more the control established over budgets the more defensive the supervisors become. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Perceptions of Nigerian Supervisors on Budgeting in Nigeria Based on Questionnaire Survey
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.