Effect of Budgetary Processes on Organizational Performance: A Case of Marine State Agencies, Kenya

Robert Keng’Ara,Ibrahim Makina

doi:10.13189/ujaf.2020.080404

Abstract

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

Highlights

This paper attempts to look into the budgetary processes in the public sector and link the same to organizational performance
Budgetary process is critical in performance of any organization
From the reviewed literature most of the studies showed a positive relationship between budgetary processes and organization performance

Summary

Introduction

This paper attempts to look into the budgetary processes in the public sector and link the same to organizational performance. The performance of various sectors of the Kenyan economy has not met the threshold in terms of public expectation in terms of goods and services offered. This has led to hue and cry from the tax payers who feel cheated and take advantage of by the Government whose core mandate is service provision. The legal framework that governs the budget process is as provided for in the Constitution of Kenya 2010 whereby Government raising of revenues and allocation of public resources across all economic and social sectors as contained in Part V.

Objectives

Methods

Conclusion