IMPACT OF BUDGET VARIANCE, EVALUATION AND REWARDS ON MANAGERIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN LAGOS STATE
The major crisis in the Nigerian banking sector during the past regime can be traced to wrong applications of budgeting by the management of the affected banks. Notwithstanding, budgeting has contributed in diverse ways to the success of many organizations. This study investigated the effect of budget variance, evaluation and reward on managerial performance of commercial banks (now referred to as deposit money banks-DMBs) in Lagos state. The population of the study consisted of all deposit money banks in Lagos state. The sample size was determined using purposive sampling technique. The study used primary data and the data was collected through questionnaires. The data was analyzed using descriptive statistics and regression analysis. Findings indicated that only reward has significant positive effect on managerial performance (β=0.810, p<0.05), while the effect of evaluation and budget variance on managerial performance is not significant (β=0.245, p<0.05) and (β=0.069, p<0.05) respectively. It is thereby, recommended that budget variance, as this could discourage managers and negatively affect their productivity. It is also adverse variance, as this could discourage managers and negativity affect their productivity. It is also recommended that more emphases should be placed on budget reward for good performance.
