Abstract:
The main purpose of this study was to investigate the effect of budgeting process on the
organizational effectiveness in Addis Ababa City Administration Finance and Economic
Development Bureau. The target population of the study is staffs that do have direct and
practical to budgeting process within main bureau and 11 sub-cities. The total sample
was 154 were selected by two Stage Sampling method. First stage used purposively and
Second Stage random sampling method used to collected questionnaire. Out of the total
returned 149(i.e. 97 %) respondents were used to participated in the study. The SPSS
version 24 was used to analyze the data using descriptive statistics, including mean,
standard deviation and regression. The findings of the study indicated that there was a
direct relation between the effects of Budget planning, Budget preparation, Budget
implementation and Budget controlling with the organizational effectiveness on Addis
Ababa City Administration Finance and Economic Development Bureau. Finally,
recommendations such as an improvement in budget planning, improving the execution
of budget implementation, advised give serious attention for budget monitoring and
control to improve budget implementation so that effectiveness of the organization is
enhanced and establishing budget control system for Employees to Improve
Organizational Effectiveness in Finance Sectors, enhancing organizational capacity in
the budget process were forwarded to overcome organizational effectiveness..
