The Effect of Budgetary Control on Financial Performance of Kigali Serena Hotel in Rwanda.
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The present research on ” The Effect of Budgetary Control on the Financial Performance of Hotels in Rwanda”: Case Study of Kigali Serena Hotel undertaken within a period of 2010 – 2015 had objective of analysing the effect of budgetary control on the financial performance of hotels in Rwanda. The study used both primary and secondary data and intered into SPSS and then analyzed using descriptive statistics for variance analysis. A structured questionnaire were given to a sample of 25 employees drawn from a total population of 52 employees. Basing on data, The study revealed that, there is a strong positive relationship between budgetary control technique and financial performance with correlation coefficient, r = 0.752 and p = 0.01. Since r > 0.1, therefore, financial performance as measured by ROA is strongly influenced by budgetary control techniques. The respondents argued that the process of budgeting depends on past performance while organizational performance now days depends on the availability of recourses and how customers view the customer service in place, quality of service, delivery and distribution, competitors in the same industry and finally communication to the clients. Budgetary controls are seen as important tool in planning and control of resources to enhance performance in many organizations.
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