Effect of Budgeting Process on Organizational Effectiveness: A Case of Addis Ababa City Administration Finance and Economics Bureau

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..