Budgetary Controls and Performance of Selected Construction Companies in Kampala, Uganda

ABSTRACT 

The study investigated budgetary controls and performance of selected construction companies in Kampala, Uganda, it was guided by the following objectives which included determining the effect of monitoring on performance, to identify the effect of evaluation on performance, and to establish the effect of Planning on performance. The study used a cross-sectional research design and a descriptive correlational design. The researcher used a study population of 259 respondents are chosen from the leadership structure and directly mandated to manage budgetary controls in the selected construction companies in Uganda Due to limited time and resources, a sample size of (157 respondents) were selected from the study population of (259) respondents. The sample size was determined using the Slovene’s formula; the study made the following findings monitoring structure has a significant effect on performance since the p-value 0.04 was less than the significance level (0.05) and the correlation coefficient was notably high (0.76) rendering the effect between monitoring structure and performance to be a strong one. The findings above revealed that budgetary control s has a significant effect on performance since the p-value 0.04 was less than the significance level (0.05) and the correlation coefficient was notably high (0.76) rendering the effect between budgetary and performance to be a strong one. Therefore “budgetary controls have a significant effect on performance in selected construction companies in Uganda.” The study made the following conclusions Budgetary control is a system which uses budgets as means of planning and controlling all aspects of producing/or selling commodities and services. Budgetary control of sales and costs is obtained through executive action, guided by the monthly comparisons of actual and the planned results. Budgeting is merely a part of budgetary control which involves the preparation of budgets. There was poor adherence to proper physical planning and development control and service standards; poor mobilization; consultation; mobilization and sustainability; poor decisions making; weak laws are among things that affect effective and efficiency performance of monitoring in selected construction companies in Uganda. The study made the following recommendations the importance of budgetary control can never be over emphasized. Thus, for survival of any organization, management viii needs to embark on budget to effect proper planning and control. Seek information mainly from key officers involved in the preparation of the organizations budget. Planning is an important role of budgeting for attaining the expected quality and standards in planning control and leadership and staffing.

TABLE OF CONTENT

DECLARATION...........................................................................................................i

APPROVAL................................................................................................................ii

TABLE OF CONTENT ................................................................................................ iii

LIST OF TABLES ...................................................................................................... vi

ABSTRACT.............................................................................................................. vii

CHAPTER ONE ................................................................................................... 1

INTRODUCTION................................................................................................ 1

1.0 Introduction ...................................................................................................1

1.1 Background to the study ..................................................................................1

1.1.1 Historical perspectives...................................................................................1

1.1.2 Theoretical perspective .................................................................................4

1.1.3 Conceptual perspective ................................................................................8

1.1.4 Contextual perspective..................................................................................9

1.2 Problem statement.........................................................................................10

1.3 Purpose of the study.....................................................................................11

1.4 Study objectives ............................................................................................11

1.5 Research questions ........................................................................................12

1.6 Research Hypothesis ...................................................................................12

1.7 Scope of the study.........................................................................................13

1.7.1 Geographical Scope ....................................................................................13

1.7.2 Content scope ............................................................................................13

1.7.3 Theoretical scope........................................................................................13

1.7.4 Time Scope ................................................................................................13

1.8 Significance of the study ................................................................................13

CHAPTER TWO ................................................................................................ 15

LITERATURE REVIEW ..................................................................................... 15

2.0 Introduction .................................................................................................15

2.1 Theoretical review .........................................................................................15

2.2 The conceptual framework .............................................................................17

2.3 Related literature ..........................................................................................18

2.3.1 Planning ......................................................................................................20

2.3.2 Evaluation.....................................................................................................21

2.4 Monitoring and Control...................................................................................23

2.4. 1 Monitoring..................................................................................................23

2.4.2.2 Control ....................................................................................................23

2.5 Performance..................................................................................................24

2.5.1 Performance Measurement..........................................................................25

2.5.1 Performance Indicators ..............................................................................25

2.6 Research gaps ...............................................................................................27

2.7 Summary ......................................................................................................28

CHAPTER THREE ............................................................................................. 29

METHODOLOGY............................................................................................... 29

3.0 Introduction ..................................................................................................29

3.1 Research Design............................................................................................29

3.2 Study Population............................................................................................29

3.3 Sample size ...................................................................................................30

3.4.1 Simple Random Sampling ..........................................................................31

3.5 Data collection methods .................................................................................32

3.6 Data collection instruments ............................................................................33

3.6.1 Self-Administered Questionnaires.................................................................33

3.7 Validity and Reliability of the instruments ........................................................33

3.7.1 Validity .....................................................................................................33

3.7.2 Reliability of the instruments .......................................................................34

3.8 Data Collection Procedures ............................................................................35

3.9 Data Analysis..........................................................................................35

3.10 Ethical Considerations ....................................................................................36

CHAPTER FOUR............................................................................................... 37

PRESENTATION, ANALYSIS AND INTERRPRETATION OF DATA .................... 37

4.0 Introduction ..................................................................................................37

4.1 Background information .................................................................................37

4.2 level of budgetary control in the selected construction companies in Kampala ...38

4.3 Level of performance of the selected construction companies in Uganda ..............44

4.4.1 Effect of Budget planning on Performance....................................................46

4.4.2 Effect of Budget evaluation on Performance .................................................47

4.4.3 Effect of Budget Monitoring and control on Performance ...............................49

CHAPTER FIVE ................................................................................................ 51

DISCUSSION OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ...... 51

5.0 Introduction ..................................................................................................51

5.1 Discussion of Findings ....................................................................................51

5.1.1 Effect of Effect of Budget planning on Performance ..................................51

5.1.2 Effect of Budget evaluation on Performance .................................................51

5.1.3 Effect of Budget monitoring and control on Performance...............................52

5.2 Conclusions ...................................................................................................52

5.3 Recommendations .........................................................................................53

5.4 Areas of further research................................................................................53

REFERENCES ..........................................................................................................54

APPENDICES........................................................................................................62

APPENDIX I: QUESTIONNAIRE ...............................................................................62