The Impacts of Budget Control overall Financial Performance of Hospitality Companies
Table of Contents TOC o “1-3” h z u Introduction PAGEREF _Toc535165407 h 31.2 Problem Statement PAGEREF _Toc535165408 h 61.3 Research Aim and Objectives PAGEREF _Toc535165409 h 61.3.1 Research Aim PAGEREF _Toc535165410 h 61.3.2 Research Objectives PAGEREF _Toc535165411 h 61.4 Research Questions PAGEREF _Toc535165412 h 61.5 Significance of the Study PAGEREF _Toc535165413 h 72.0 Literature Review PAGEREF _Toc535165414 h 72.2 Review of Theories PAGEREF _Toc535165415 h 72.2.1 Perspectives of Organizations on Budgets PAGEREF _Toc535165416 h 72.2.3 Goal Setting Theory PAGEREF _Toc535165417 h 102.2.4 Cognitive Evaluation Theory PAGEREF _Toc535165418 h 102.3 Review of the Empirical Studies PAGEREF _Toc535165419 h 112.4 Concepts and History of Budget Making Process PAGEREF _Toc535165420 h 142.4 Budget Making Process PAGEREF _Toc535165421 h 142.4 Conceptual Framework PAGEREF _Toc535165422 h 152.5 Summary of Literature Review PAGEREF _Toc535165423 h 153.0 Research Methodology PAGEREF _Toc535165424 h 153.1 Introduction PAGEREF _Toc535165425 h 153.2 The Research Design. PAGEREF _Toc535165426 h 163.3 Samples and Sampling Techniques PAGEREF _Toc535165427 h 164.0 Empirical Basis PAGEREF _Toc535165428 h 195.0 Significance and Conclusion PAGEREF _Toc535165429 h 20References PAGEREF _Toc535165430 h 21
The research aims at investigating the effects of budget controls on the performance of Hospitality companies. Business budgeting forms avital process, whichenables them to achieve their set goals in the course of carrying out their processes. Otley, (2016 defines budgeting as a process that entails planning the financial activities of any business. It is used as a management tool to assist the organizations in planning their financial operations. The manner in which companies apply the budgeting tool has great impacts on the performance of any business unit. For hospitality companies budgeting process incorporates having policies for financial welfare ArjaliŠs, & Mundy, 2013). The welfare will determine how the money will be distributed to the key departments, which helps organizations in reducing costs that are associated with unnecessary spending an aspect that increases the profit of the organizations.
From Schick (2014) definition on a budget is a financial administration tool used by firms to determine the actual forecast against the planned one during the planning process. It aids in monitoring, production as well as controlling the performance of the firm and offering the right warnings when there are deviations. Besides, it can be utilized for analyzing the anticipated results versus the actual ones. There are different types of budgets, which include project budget, marketing budget, sales budget, and Revenue budget (Qi, 2010).Each is applicable in diverse situations depending on the kind of business a company is involved.