Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/83033
Title: The behavioural aspects of budgeting as a management accounting control tool within a local 5-star hotel : managers' views
Authors: Mercieca, Myvanwy (2008)
Keywords: Managerial accounting -- Malta
Budget -- Malta
Hospitality industry -- Malta
Issue Date: 2008
Citation: Mercieca, M. (2008). The behavioural aspects of budgeting as a management accounting control tool within a local 5-star hotel : managers' views (Bachelor’s dissertation).
Abstract: A key role for management accountants is to establish control systems to achieve organizational goals and minimize risks. Budgeting is the most widely visible control tool serving a number of conflicting purposes in an organisation. On the one hand, attaching significantly valued rewards to budget attainment highly motivate managers to achieve targets, on the other rigidly applying budgetary controls may in fact result in dysfunctional behaviour. This study sets to investigate the behavioural aspect of budgetary control by analysing its application within a local 5-star hotel. Much as the hotel's dynamic environment renders budgeting an indispensable tool, managers' behaviour is fundamental in determining both current and future profitability. Hence, through the use of interviews the researcher obtains information regarding the current budgeting system, while questionnaires are specifically designed to elicit managers' views of the steps involved in budgetary control namely target setting, the measuring of performance and the use of results. Results suggest that budgets are accepted as means of both controlling and motivating employees and in general managers elicit quite positive behaviour. They are allowed to participate in setting targets which, although high, are achieved most of the times. Measurement of performance is sufficiently frequent and the process is regarded as fair, covering company-wide variables and not simply financial performance. Rewards are tied to budget achievement holding managers conscious that only good performance will get rewarded. Recommendations for improvement are proposed by managers and these are included with those suggested by the researcher at the end of the study.
Description: B.ACCTY.(HONS)
URI: https://www.um.edu.mt/library/oar/handle/123456789/83033
Appears in Collections:Dissertations - FacEma - 1959-2008
Dissertations - FacEMAAcc - 1983-2008

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