The Effect of Budgeting Process on Organizational Effectiveness: A Case Study in Hadiya Zone Selected Government Finance Organization

Abstract

Background: The budgeting process is increasingly recognized as the key tool for organizational effectiveness. It is nevertheless also recognized that a country can have a sound budget and financial system and still fail to achieve its intended targets. This suggests that the rules by which the budget is formulated and implemented are important and that they influence organizational outcomes. This study assesses effect of budgeting process on organizational effectiveness in the government finance organization of Hadiya zone. The study has a targeted 262 staff employee from 5 selected woredas .Those woredas were selected purposely from the 12 woreds due to their establishments’ priorities. The study employed a descriptive survey research design targeting the staff in the government finance organization of Hadiya zone. A sample of 150 staff members was selected by using mulit-stage sampling system and, which were stratified and at last, simple random sampling systems were applied in the study. The researcher was mainly employed a structured questionnaire, unstructured interview’s and secondary source of data used for triangulation purpose for primary data. Data was analyzed in form of descriptive and multiple linear regression models. Data was analyzed using Statistical computer software Package. Results: The findings were presented in form of tables, figures and discussions there. The study established that effect of budgeting process capacity had a strong positive significant relationship with the organizational effectiveness.Conclusion: Result indicates that Governmental Finance Organization should enhance its organizational capacity in the budget process in order to improve its organizational effectiveness.

Keywords: Budgeting process, Hadiya Zone Government Finance, Organizational effectiveness.

DOI: 10.7176/RJFA/11-5-04

Publication date:March 31^st 2020