Budgeting Participation and Organizational Performance: A Case Study of World Food Programme (WFP) - Rwanda
This study was undertaken with the purpose to extend the participative budgetary literature, and specifically the budgetary participation literature that has examined the casual mechanisms linking participation to performance and the literature that has examined culture as an explanatory factor in budgeting participation/performance relationship. The research was carried out using a questionnaire survey, based upon a random sample of intergovernmental organization in the target population. The data were analysed using statistical package software. The findings of this study were that there was a correlation between level of budget participation and WFP performance. The findings also revealed that WFP faces funding conditions as major constraint during the whole budget life cycle. The findings also found that insufficient of financial resources of all planned activities leads to budget deviation. The findings can thereby be concluded that budgeting participation significantly influence organizational performance. This is because when employees participate in budgeting process, they get committed to their organizational budget goal and hence committed employee will register a high level performance. The study recommended a continuous involvement of staff when coming up with budget settings. The study also recommended a constant measuring of actual performance against panned performance from time to time and take remedial action on factors that causing unfavorable deviation.