CHAPTER I

Introduction

Assessment of implementation of budget at xyz corp.

Or evaluation
Readiness
Di pwede impact kasi wala pang budget

This chapter contains the background of the study, statement of the problem, theoretical

framework, conceptual framework, significance of the study, objectives of the study, scope and

limitations of the study and the definition of key terms.

Put what is budgeting, ano ang trend bakit may budgeting ang company, simple intro about
budgeting, or kung may problem sa iba, kuha sa rrl

Background of the study

Budgeting is a basic and essential process that allows businesses to attain many goals in

one course of action. (put this in intro)

Ipakita yung company na successful sa budgeting – serve as basis

Nabrought up ni mam yung problem

There are several goals that many businesses seek to achieve or should be trying to work

forward when they create and implement a budget. These goals include control and evaluation,

planning, communication, and motivation (Lucey, 2004). (Kariuki, 2010), suggests that

budgeting is a process of planning the financial operations of a business. Budgeting as a

management tool helps to organize and formulize managements planning of activities. Budgeting

as a financial tool is useful for both evaluation and control of organizations for the planning of

future activities. Application of these tools can greatly impact the performance of a company

(Larson, 1999).

Iakyat yung iba sa intro

The budget acts as financial management tool in every business to measure the actual and

forecast against the budget throughout the planning process, it also assist in monitoring and

controlling of current performance by providing early warning of deviations from the plans and

analyses the anticipated versus actual results. Various types of budgets exist.

According to (Larson, 1999), application of control tools can greatly impact the

performance of a company. Budgeting as a tool of financial management regularly prepares

performance plans and budgets request that describes the performance goals, measures of output

in various activities levels aimed at achieving business objectives.

The success of the business depends on how the organization employed their budgeting

which has a huge impact on the performance of the organization. According to (Horngren, 1990)

Budgeting helps the management in planning and forecasting in order to reduce costs and

unnecessary spending and also to increase profits so that the company may fulfill its corporate

vision and mission and also to enable the company to fulfill its debts if any and to ensure the

company`s long term technical and financial viability.

The major objectives of budgeting are to ensure efficient and effective utilization of

funds and for the realization of the objectives of the organization, however, in the absence of
budgeting will result into poor performance in financial management of the organization and

there may be no goals and objective to be achieved and which can lead to unsatisfactory

outcomes of the management. Preparing budget involves the actual formation that should include

all target activities to be accomplished/achieved within the specified period of time.

According to (Adeniyi, 2008) defined a budget as a plan qualified in monetary terms

prepared and approved prior to define periods of time usually showing planned income to be

generated and/or expenditure to be incurred during that period and the capital to be employed to

attain a given objective(s). (Terry, 2009) also defined a budget as a quantitative expression of a

plan of action prepared in advance of the period to which it relates. Budgets may be prepared for

the business as a whole, for department, for function such as sales and production and for

financial and resource items such as capital expenditure, cash, manpower, purchases etc. the

process of preparing and agreeing budgets is a means of translating the overall objectives of the

organization into detailed, feasible plans of actions.

Furthermore, a budget is a future plan of action formulated by management for the whole

organization or section thereof which is expressed in monetary terms. It also relates to the

estimation of revenue, expenditure, assets acquisition and capital sourcing for the budget year.

One should be reminded on the fact that budget is a short term financial plan does not mean that

it should be focus on only today’s problem but it should be a continuation of a long rate plan.
 Statement of the Problem

This study aims to address the following research questions:

a) How will budgeting impact the performance of the company? – change, hindi masasagot

ng questionnaires – change about awareness

What is the level of awareness of the employees of xyz corporation about budgeting?

b) What will be the effect of budgeting towards the decision making of the company? –

change,

What would be the impressions/assumption of the employees about budgeting towards

the decision making of the company?

What is the perception of budgeting

c) To what extent does the budget contribute to the organizational goals achievement,

mission/vision? – change - what is the extent of knowledge of the employees of xyz

corporation when it comes to varying items?

 Theoretical Framework

Budgeting is an essential part of every business. Budgeting is defined as the estimation of

revenue and expenses over a particular set or period of time. It is commonly, on a periodic basis,

is re-assessed and compiled. Budgeting means the preparation of income and expenditure. The

government, businesses, and individuals utilize this. – part pa rin ng intro – patibayin ng mga

study about budgeting – importance – good outcomes from budgeting

Budgeting is a process of planning the financial operations of a business (Kariuki, 2010).

Budgeting serves as a management tool that helps formulate and establish the organization’s

planning of activities. Budgeting assists the decision makers in meeting up with the company

goals, to act and decide within the stated amount. This helps the business have definite costs to

spend and portion the revenues accordingly. According to (Laryea, 2016), budgeting puts an

organization’s activities in a logical way which gives benefit to the business.

(John, 1996) states that it was during the 1960s that companies began to use budgets to dictate

what people needed to do. In the early 70s, the performance improvement of manufacturing

companies was focused on meeting financial targets rather than effectiveness. Companies then

faced problems during the early 80s and 90s when they were not willing to spend money on

innovations in order to stay with the rigid budgets. They paid little or no concern on how their

customers were being treated only meeting sales targets become essential.
 A well-designed and implemented financial management is expected to contribute

positively to the creation of a firm’s value, (Padachi, 2006). Budgets can be used to plan, to

communicate, to control, to motivate and to monitor, stated (Miraji, 2017).

A survey by Libby and Lindsay 2010 confirms that the budget does not facilitate the

adaption of changes in the unpredictable environments, hence spending time on forecasting and

planning the future can even be completely useless because research shows that firms tend to

adjust and improve the budget processes and targets when meeting new challenges.

Budgeting forces firms management to do better forecasting than vague generalizations

about the future, (Muayenin, 2019). (Tumwine et al, 2014), it is proofed that budgeting is as

urgent as money itself and any burglary, waste, excessive use or stock out could lead to poor

performance of any organization.

(Wijewardena and De Zoysa, 2001) argue that the impact of budget planning and budgetary

control on performance may vary from firm to firm depending on the extent of its use. The

greater extent of the formal budgeting process should have a positive impact on the performance

of SMEs. Furthermore, (Fonseka and Perera, 2004) also studied the relationship between the

budgeting process and performance in Sri Lanka’s SMEs. The findings are consistent with the

previous findings, which show that those firms engaged in more formal budgeting planning and

control processes have achieved higher growth rate in sales.

 Conceptual Framework

INPUT PROCESS OUTPUT

How will budgeting  Survey  Effective

impact the Management
performance of the Questionnaire Policy -
company establish the
 Analysis of level of
awareness…
Data  Budget
What are the effects of Evaluation –
budgeting towards the  Interpretation establish
perception and
decision making of the of Data knowledge on
company? budgeting of the
employees
 Effectiveness of
To what extent does
Implementation
the budget contribute – readiness to
budget
to the organizational
implementation
goals achievement?

FEEDBACK
 Significance of the Study

The study aims to benefit the following from the outcome of this research:

Students. This output of this research will be beneficial to the students for this will be guide on

taking similar studies.

Teachers. This study will give them awareness regarding the research outcome. This can also

help them give insights or for their future students.

School Administrators. This research will give school administrators additional information in

relation to this matter.

Researchers. This study also intends to facilitate the researchers acquired skills on how to

conduct research findings and generate solutions to business problems encountered in business

performance.
Future Researchers. This output will serves as a resource material for future researchers

whose interested in the subject matter as a basis for further research that seeks to know the

budgeting and business performance.

Companies. This study is intended to impart knowledge to companies who will be implementing

budgets for the first time know the performance of companies to assist managers improve their

operational efficiency. - remoeve

Objectives of the study

The objectives of the study of this research answer the main content of the research

problem. This study aims to meet its objectives on:

1. To determine the impact of budgeting to the performance of the company.

2. To determine the effects of budgeting towards the decision making of the company.

3. To determine the extent contribution of budgeting to the organizational goals of the

company. Change all

Scope and Limitation of the Study

This study is primarily focused on the assessment of the readiness of the employees in te

budget implementation and the performance budgeting and the performance of Laguna Holy

Family Hospital Incorporated XYZ Corporation. The information that maybe gathered in this

study will help the researcher to determine the impact of budgeting to the company’s

performance.
 The stidy is primarily focuse on the evaluation and assessmenet of the readiness of the

employees of xyz corp. in the budget implementation to achieve company’s goal that can relate

to the level of performance of the company….. copy kay mam

Dadagan ng limitation, san lang kinonduct research, ano limitation, bakit ito lang

questionnaires, nakaron ng problema sa survey gawa ng pandemic, 2 to 3 sentences, specify

location. Ano ang considerations, kinonsider ang sti kaso hindi pwede kulang respondents

The research was conducted on 48 employees of xyz corp located at Sta. cruz laguna.

Definition of Terms

Budgeting. It is a process of creating plan to spend your money.

Cash. It used to exchange goods or services.

Communication. It is act of transferring information from one person to another.

Expenses. It is the cost of operations that a company incurs to generate revenue.

Financial. It is engaged in dealing with money.

Forecast. It is a prediction of what will happen in the future.

Funds. It is an amount of money that is available to be spent.

Goals. It is an idea that a person or group plan and commit to achieve.

Management tool. It is a system or applications used by organization to be able to cope with

changing markets.

Operation. It is an activity that businesses engage in on a daily basis to earn profit.

Performance. It is a process of accomplishing a task.

Planning. It is a process of making a plan to achieve desired goals.

Production. It is method of turning raw materials into finished goods.

Revenue. It is an income generated from normal business operations.

Sales. It’s an activities related to selling or the number of goods sold in a given targeted time

period. – remove

Put heavier words, yung mas complicated, palawakin pa ang definitions at words

Employees - it pertains to all individual working in the corp, represented by junior

CHAPTER II

REVIEW OF RELATED LITERATURE – ichecheck pa

Include – budgeting is part of managerial accounting, it help in decision making

 Clustering ng budgeting (managerial) could be in intro or rrl – will help the management

in decision making

Introduction

This part gives the theoretical base of the study and explains what has already been done and

found by other researchers in the similar field. It specifically reviews literature concerning the

performance of different organizations in relation to budgeting.

Budget is perhaps the most chosen course of action or in action by the management and

staff across all sectors. Management at all levels within the public, private and third sector have

used the budget as their shield or excuse when confronted or challenged about any decisions.

As stated by (Onduso, 2013), the general characteristics, the study indicated that

majorities are males and most of them have worked in their respectful firms between 5-10 years.

The findings indicated that CPA III is the highest professional qualification of accountants and

mostly revenue budget are the one prepared semi-annually and that matter are relevant. The

study further revealed that overwhelm majority indicated that fixed/static budget is prepared

whereby the process starts from managerial level in semi-annually basis. On the extent internal

staff expertise used to prepare budgets, it was clearly revealed that it is to a large extent and

mostly these manufacturing firms outsource the services of a consultant to assist in budget

preparation. The study further emerged out to reveal that the budget prepared was effective and

mostly evaluation variance report was done by top management. Most participants strongly

agreed that indeed budget is used in decision making and it is a management tool. On relating the

effectiveness of budgets, it was also observed that majority related it as good. The researcher

further determined on extent of using budget in decision making by asking the participants to

indicate if budgeting affects the financial performance of companies. Indeed, overwhelm

majority said yes by indicating that to a great extent budgeting affect financial performance of

manufacturing firms. Further, the study indicated that most respondents strongly agreed that

operational managers are involved in the budget planning process and it improves financial

growth so it should be embraced in all quotas. The study also revealed and on oversight, review

and communication majority strongly agreed that indeed it bring into realization of obstacles,

barrier of financial performance which are worked so that to improve general performance of

manufacturing firms.

As mentioned by (Muayenin, 2019), the effect of budgetary control on the financial

performance of Manufacturing Companies case study of Bamenda, as established in the

framework, the financial performance was measured by profitability acting as the dependent

variable with the independent variables; planning, monitoring, participative budgeting and

motivation. The regression analysis denoted a significant relationship between these variables

and profitability with a positive correlation between them (Mukah, 2018). This implied that more

inclusive planning of activities by manufacturing companies will lead to a positive yield. Also,

monitoring of the planned activities plays an important role. When the planned activities are

monitored from time to time, deviations can be easily noted and corrected (Frankwood, 1988).

The study also revealed that the role of participative budgeting cannot be left out in measuring

the financial performance of manufacturing companies in terms of profitability.

According (Alex, 2019), The findings showed that Pride microfinance limited practices

budgeting on whatever transaction they were making, it was therefore summarized that Improved

communication, budgeting, Financial control of inputs, Planning and coordination were the roles

played by budgeting. Increased profits, reduces a stage of resources were the other roles played

by budgeting in MFIs.
 The study revealed that budgeting was a tool used to measure financial performance of

MFIs. He descriptive measures included: total liabilities, owner’s equity and total assets. It was

therefore summarized that budgeting is a tool to measurer financial performance of MFIs in

Uganda. It was further revealed that Working capital, Profitability, Investor ratio and Repayment

capacity were the other measures of financial performance of MFIs.

It was summarized that there is a relationship between budgeting and financial

performance of MFIs, this is because few respondents denied that this relationship never existed.

The findings revealed that ensuring proper accountability, improved communication and

coordination in the organization, financial control of inputs, ensure proper budgeting in the

organization, and therefore, it was summarized that there is a relationship between budgeting and

financial performance of MFIs.

According to (Agbenyo, Danquah, Shuangshuang, 2018), the study revealed that

budgeting plays the following vital roles; it helps integrate the organization's strategic planning

with budgets and processes of cost control, budgeting helps identify financial skills required for

better decision making, it enables management to identify key financial indicators for the

business and how and when to monitor them, budgeting also economizes management time by

using the management by exceptional principle, the budget provides the benchmarks against

which to judge success or failure in reaching goals and facilities timely corrective measures. This

affirmation was based on the 5% significance level. This finding is in line with a recent study

conducted by (Harelimana, 2016) on “The Effect of Budgetary Control on the Financial

Performance of Hotels in Rwanda”: Case Study of Kigali Serena hotel. The study revealed that

budgetary controls are viewed as imperative instrument in arranging and control of assets to

upgrade execution in numerous associations.

 CHAPTER III
RESEARCH METHODOLOGY
Look at mam research methodology, terms, process, mga qualitative/quantitative
Introduction – remove na
This chapter covers the research methodology and description of the methods and
techniques that used in the collection of data. This chapter provides details about the research
methods and techniques that were used in data collection and data analysis for the study. Umulit
According to Leedy and Ormoed (2001) research methodology refers to “the general
approach the researcher takes in carrying out a research project”. On the other side, Kothari,
(2004) defines research methodology as a scientific and objective understanding of how research
is conducted too much reference. Through it; various steps are employed in studying a research
problem along with the logic behind them – other words for this. This chapter have six
subsections, namely; introductions, research design, population selection, data collection,
research instrument and statistical treatment. – remove na
Ano ang research methodology, define ang methods – elaborate
Bawasan reference – construct your own

Research Design
Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims at combining relevance to the research purpose with economy in procedure
(Kothari, 2004). There are three (3) types of research design namely causal, correlational and
experimental.
Causal research is also known as explanatory research which is
performed in order to identify the extent and nature of cause-and-effect
relationships. Causal research can be conducted in order to evaluate impacts of

specific changes on existing norms, various processes etc.

Experimental research is where one or more independent variables are

manipulated and applied to one or more dependent variables to measure their
effect on the latter. The effect of the independent variables on the dependent
variables is usually observed and recorded over a period, to help researchers in
making a reasonable conclusion regarding the relationship between these 2
variable types. On the hand, correlational research is the main interest to determine
whether two (or more) variables covary and, if so, to establish the directions, magnitudes, and
forms of the observed relationships. The strategy involves developing measures of the variables
of interest and collecting data. Correlational research involves observing the values of two (2) or
more variables and determining what relationships exist between them. In correlational research,
variables are not manipulated but it is observed as is.
This study used causal type of research. The design will help the researchers to draw
decisions and answers regarding the study. This will examine the cause-and-effect relationship of
the budgeting towards the company. Whether the company needs and is prepared for the formal
budgeting system.
Discuss what is causal, correlational, ect. Then relate
Kung anong pinili iaapply, bakit correlational bakit causal – aactionan ng management,
ready naman base sa questionnaires – ito magtitrigger

Population Selection
The population selected depends on the number of employees working in specific
departments where the study was conducted at a hospital composed with 40 employees from
purchasing department, marketing department, Information Technology, Laboratory, facility
management, inventory control management, radiology department, HR department, Pharmacy
Department, business office, dietary, infection control, HR department, nursing, medical social
services, and admission.

Data Collection
Remove references
Define na lang
Vinalidate natin ques - Tinignan mga content – inadminister, dinistribute sa different
departments
 Krishnaswima ana Ranganatham (2005) define data “are facts, and other relevant
materials, past and present, serving as base for study and analyses”. In addition, according to
Polit and Hungler (1999) data means the information obtained in a course of a study.
The researchers used primary data which is to collect information by the use of a questionnaires.
It was validated and formulated in order to attain answers according to the objectives of the
study. Contents were verified to ensure that it will help in the success of the research and in order
to know the readiness of the employees to the budgeting implementation. Questionnaires were
distributed or provided to the selected departments of the hospital. This enabled the researchers
to get sufficient and reliable information from respondents.

Research Instrument
This study will use survey questionnaires to validate the research. The questionnaires are
answerable by YES or NO and has been validated by our professor. Upon approval of the
questionnaires, it will be distributed to the selected respondents of the company. The researcher
will observe confidentiality with the data of the respondents.
Mam will give the total population of the employees to know 100%

Statistical Treatment

The respondents made by the employees describing the socio-demographic profile and
department. For instance, age and number of years in the company. In providing overall picture
of the socio-demographic profile and department as well as the number of years, summary
presentations will be presented as:

Age:
20-30
31-40
41-50
51 and above
Department:
Medical Department
 Dietary
 Infection control
 Nursing
 Medical Social Services
 Admission
 Laboratory
 Radiology Department
Non-medical Department
 Purchasing department
 Marketing department
 Facility management
 Inventory control management
 Business office
 Information Technology
Number of Years in the Company
0 – 11 months
1 year – 5 years
6 years – 10 years
11 years – 15 years
16 years and above

Ano ang title, mga ililipat, dagdagan ang research methodology gawin basis yung kay mam

Ano ang test na kailangan gawin – isa isa