Budgetary Control And Its Effect On Financial Performance Of Ethiotelecom:A Case Study On Centeral West Region-Ambo Town

Abstract

This study aimed to assess the contribution of budgetary control to the financial performance of ethiotelecom organization. The main objectives of the study was to identify the challenges in the preparation, control and monitoring, and utilization of the budget, to identify the relationship exists among budgetary control, monitor, planning, utilization and performance of ethiotelecom, an explanatory research design with regression analysis method was used and to examine whether the established relationship between budgetary control on performance is confirmed by the actual budgetary practice in ethiotelecom and to examine any variance for the budgeted amount and actual performance of the ethiotelecom and the reason for variance between the budget and actual one. The study was conducted on budgetary control and its effect on performance of Ethiotelecom, Central West Region (CWR)-Ambo town. In this study, the researcher selects the target population who was appropriate for the study. Sampling helps to select the respondent according to the purpose of the study. All groups involved in the budgetary control and its performance represented by the sample. The sample consists of five main groups whose are regional managers, regional supervisors, regional specialists, regional coordinators and regional finance staffs. Since the number of respondents according to the sample is eighty five (85), census method was used, and this method is helpful because it is free from sampling error also ensures completeness and accuracy. To achieve the objective of the study the researcher was used two types of data. Those are primary and secondary data sources. Primary data from sample respondents and secondary data is from magazine, manual, internet and annual report of the organization. We adopted an explanatory research design with data gathered through questionnaire administered to respondents. Hypotheses are tested and analyzed on a 5% level of significance using correlation analysis and it will revealed that budgeting is a useful tool that guides firms to evaluate whether their goals and objectives are actualized, was show its implication to the proposed problem, and was recommend constructive idea to minimize the problem. This study was help the organization to mitigate budgetary control problem and will used for future researchers as a reference