Abstract:
The budgeting process is increasingly recognized as the key tool for organizational
effectiveness. It is nevertheless also recognized that a country can have a sound budget
and financial system and still fail to achieve its intended targets. This suggests that the
rules by which the budget is formulated and implemented are important and that they
influence organizational outcomes. This study assesses effect of budgeting process on
organizational effectiveness in the government finance organization of hadiya zone. The
study has a targeted 262 staff employee from 5 selected woreda .Those woreda were
selected purposely from the 12 word’s due to their establishments’ priorities. The study
employed a descriptive survey research design targeting the staff in the government
finance organization of hadiya zone. A sample of 150 staff members was selected by
using mulit-stage sampling system and, which were stratified and at last, simple random
sampling systems were applied in the study. The researcher was mainly employed a
structured questionnaire, unstructured interview’s and secondary source of data used for
triangulation purpose for primary data. Data was analyzed in form of descriptive and
multiple linear regression models (OLS). Data was analyzed using Statistical computer
software Package. The findings were presented in form of tables, figures and discussions
there. The study established that effect of budgeting process capacity had a strong
positive significant relationship with the organizational effectiveness. It was
recommended that the Hadiya Zone Government Finance Organization should enhance
its organizational capacity in the budget process in order to improve its organizational
effectiveness.
