Role of budgeting process in achieving organizational goals as a strategic planning tool

Abstract

Budgeting is the key element of strategic planning in corporate goal achievement as it guides and guides the organization to work out within restrictions and limitations. An excellent budget directs the organizational resources to reach a higher growth through achieving objectives in this most dynamic environment. However, it is rare to find researches conducted to investigate the contribution of budgeting process in goal achievement in manufacturing organizations and the study was conducted to examine the role of budgeting process in achieving organizational goals in reference of Harischandra Mills Pic using case study approach. The study purpose is to investigate the contribution of budgeting process as a strategic planning tool on company's corporate goal achievement. Data was collected for the study using depth interviews and discussions with the top and middle level managers and other relevant officers in the company, focusing the study model. Additionally Annual reports and budget reports were used. Collected data was analyzed specially using qualitative approach, and for further clarification and verification variance analysis, ratios and trend analysis were also used. The study results found that the company's budgeting process makes considerable positive influence on achieving organizational goals, though— the company have not a properly designed strategic planning process. Further the findings suggested to pay special attention on strategic planning process, and integration of strategic planning and budgeting for better achievement of corporate goals