The Role of Budgetary in Managerial Planning and Control, A Case Study of Guinness Negeria Plc

ABSTRACT This study is on the Role of Budgeting in Managerial Planning and Control: A case study of Guinness Nigeria Plc. Benin, Edo State and Nigerian Breweries Plc. Ama, Enugu State. This is with a view to identifying some of the factors that has hindered management plans. Budgeting both at managerial level and operational level looks at the future and lay down what is to be achieved. Control checks whether or not the plans are realized and puts into effect corrective measures where deviation or shortfall is occurring. The methodology adopted involves the use of primary data, through structured questionnaire collected from samples of 126 respondents, randomly selected and determined through Bowley's rule. The data obtained were analyzed using the descriptive method to express the relationship among variables. The data were further subjected to chi-square statistical tool in testing the hypotheses from which the position of the research study was established. The result obtained showed that there exists an inseparable relationship between budgeting and managerial planning and control-in both Breweries. The study concludes that budgeting is an important tool in managerial planning and control. In view of this, the researcher recommend that managers and business operators should pay more attention to budgeting because it aids good managerial planning and control.

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The world is getting more exposed. Recently, people have started seeing the need to start planning. Some draw plans on how to meet some of their goals in the future. Corproate bodies are not left out. The first process in management and handling problem is to draw a proper plan on how to tackle such a problem. Thus a budget is actually a management plan of action expressed quantitatively, mostly but not exclusively in financial terms (Kodjo, 2009). Globalization has influenced the plans that organizations make in that information required to drawing up such plans are at managers door steps. Now we talk about management information system with the use of software packages like the ERP, so that managerial planning are just very timely and relevant in decision making which is the primary function/responsibility facing every manager at all managerial levels.