EFFECT OF BUDGET PARTICIPATION ON EMPLOYEES’ PERFORMANCE IN SELECTED FIRMS IN THE PRIVATE SECTOR IN NIGERIA

Gbadegesin Babatunde  ADEYEYE; Kehinde Bodunde  SODEHINDE; Adeyemi Mobolaji  ADEYEYE

Gbadegesin Babatunde ADEYEYE Department of Accounting, Faculty of Management Sciences, University of Lagos, Nigeria
Kehinde Bodunde SODEHINDE Department of Accounting, Faculty of Management Sciences, University of Lagos, Nigeria
Adeyemi Mobolaji ADEYEYE Department of Accounting, Faculty of Management Sciences, University of Lagos, Nigeria

Keywords: Budget, Budgeting, Budgetary Process, Participation, Preparation, Implementation, Motivation, Performance, Nigeria

Abstract

This study investigated how managers’ participation in budgets’ preparation and implementation and assessment could lead to improved employees’ performance in an organisation. The primary source of data collection was used through the aid of a structured questionnaire to seek the opinion of respondents involved in the budgetary process in some selected firms in the private sector in Lagos-State, Nigeria. In addition, the secondary source of data was used to obtain information on the manufacturing and service industries used for this study. The population of the study is 493, while convenience sampling technique was used to select the sample size of respondents from the two specified companies, i.e. First Bank of Nigeria Plc. and PZ Cussons Nigeria Plc. determined by the application of Taro Yamane's formula. Each of the research questions was analysed using Means and Standard Deviations, while each of the hypotheses was analysed and tested for significance at 0.05 level of significance using Multiple Econometric Regression method and t-test statistics. The results of the study suggest that allowing adequate participation of the employees in budget preparation, implementation and assessment will most likely lead to improved employees’ performance.