Analysis of the Effectiveness of Budgetary Control Techniques on Organizational Performance at DaraSalaam Bank Headquarters in Hargeisa Somaliland
Mohamed, Ifrah Ahmed
Tirimba, Ondabu Ibrahim
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This study examined how budgetary control can impact on the performance of Dara-salaam Bank. The objectives were to find out how responsibility accounting influences organizational performance, to determine whether variance cost analysis affects organizational performance and to establish how zero based budgeting affects organizational performance. The study reviewed the theory of budgeting, budgeting control theory and accounting theory. Empirical literature was guided by the objectives. The study utilized descriptive and retrospective research designs. Both primary and secondary data were used. Primary data was collected by use of questioners, while secondary data was collected from published materials. The researcher carried out a census study of the 70 staff of Dara-salaam Bank in Hargeisa Somaliland. Ethical considerations of this study were ensured Confidentiality on the part of respondents and to set clear researchers purpose to all respondents. Data entered into excel was presented by the use of frequency tables. Data was analyzed by statistical packages for social scientists (SPSS) were presented in form of frequency Tables and charts. Findings on effectiveness of budgetary control techniques showed that responsibility accounting, Variance analysis and Zero Based Budgeting enhances Budget Control and improves efficiency and productively. Further it was established that Variance cost analysis alone may not affect performance of an organization but it will influence decision making which will in turn affect organizational performance. The study recommended that organizational staff needs to be trained on the existing budgetary control techniques to enhance business decision making and improve efficiency and productivity. The study recommends further research on budget planning and organizational Performance and also the relationship between budget implementation and organizational performance.