THE IMPACT OF PERFORMANCE-BASED BUDGETING ON ORGANIZATIONAL OUTCOMES
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THE IMPACT OF PERFORMANCE-BASED BUDGETING ON ORGANIZATIONAL OUTCOMES
This study aims to: (1) analyze the impact of performance-based budgeting (PBB) on organizational outcomes, (2) identify the key benefits of PBB, and (3) evaluate the challenges associated with implementing PBB. A survey design was employed to gather data from financial managers and performance analysts. Using Taro Yamane's formula, a sample size of 380 participants from educational institutions in Lagos was determined, ensuring comprehensive insights. The education sector was chosen for its structured performance metrics and potential for PBB. The reliability coefficient score of the survey was 0.88. Findings reveal that performance-based budgeting significantly improves organizational outcomes by aligning financial resources with performance goals, leading to enhanced efficiency, accountability, and financial health. Recommendations include adopting PBB practices, training managers on the benefits of PBB, and continuously monitoring and adjusting budgets to align with performance metrics.
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