ABSTRACT
The need for participation by staff or subordinate managers in the budgetary
processes and the use of budgeting as an effective control tool in any organization
cannot be over emphasized. This topic was chosen because of the need for
increased participation in budgetary processes in order to nip in the bud the
continued adverse budget variance and non implementation of budget figures.
Obviously, full participation by users and implementers of budget details aid in
speeding and actualizing management functions and organizational goals.
Regrettably, this very important tool is not effectively put to use by some line
managers and departmental heads, thereby jeopardizing the cumulative impact of
budget, threatening good performance which lead to decline in liquidity of cash
budgets in most Nigerian organization. In view of the foregoing, this research work
investigated into the significant impact of participation in budgetary system and its
implementation in optimizing total product liquidity and attaining corporate goals
of Nigeria Bottling Company Plc Owerri and Emenite Ltd Enugu.
This study investigated whether both companies apply participatory budgetary
procedures in their operations, that is, whether process of democratic deliberation
and decision-making, in which not only line managers and departmental heads but
also senior staff and subordinate budget users contribute in the budgetary process
of allocating part of corporate organizational resources designed to achieve
corporate goals and if so, to what extent does this help in the planning, controlling,
decision making and attaining. In carrying out this task, the researcher had to carry
out surveys through the use of questionnaires and oral interview with two key
officers of both companies, also the use of product moment coefficient of
correlation was used in testing the formulated hypotheses and the use of frequency
table for analyzing the collected data. After carrying out the research, the
researcher arrived at some findings.
The major findings showed that, the Nigeria
Bottling Company Plc Owerri and Emenite Limited each installed a participatory
budgetary system among other managerial tools. Furthermore, it was discovered
that the system in both companies is laden with a number of errors like lack of cash
budget, which gave rise to most of the problems associated with the ineffective
operations of the company. In consideration of most of the findings, it was
concluded that effective participation in budgeting and its implementation is the
key to optimizing product quality, enshrining control and actualizing corporate
goals of manufacturing companies. Finally, the researcher observed that the
Nigeria Bottling Company Plc has a better budgetary process that is responsible for
her efficient management. However, the researcher recommends that there should
be annual cash budget and the involvement of supervisors and operatives in the
budgetary process, while the structural process of budget plans, deliberation and
