Effect of Budgeting and Planning Control Process on Multinational Organization in Nigeria

Abstract

The study assessed budgeting planning and control process in multinational organization in Nigeria. The study adopted descriptive survey design; while structured questionnaires were administered to 54 respondents to generate data meant for the empirical analysis. These data where analyzed using multiple regression analysis; while the hypotheses raised for the study where tested using t-values obtained in the regression results. Findings from the study showed that budget planning has a significant impact on multinational organization performance. In addition, monitoring and control have a positive and significant influence on multinational organization performance. Above all, findings from the study revealed that participative budgeting has a significant impact on multinational organization performance. Based on the findings, the study recommends that budgets/ budgetary control should be made the sole tool and mechanism for resource allocation and control to ensure multinational organizational growth. Lower level managers and staffs who are directly involved in the implementation of the budget should be co-opted into the budget setting process to make it more participatory in nature. This will help the organization meet its target and thereby eliminating undue variances. There is the need to adopt a budgetary system that enhances adequate planning with strict adherence to implementation, which cuts across the finance, production, administration and marketing.