Responsibility accounting and performance in some selected banks in Nigeria

Abstract

The globalization of business environment recognizes responsibility accounting as an instrument that measures the performance of each operational section within an organization to achieve its stated goals and objectives. This study examined responsibility accounting and performance in some selected banks in Nigeria. Specifically, the objectives of the study were to examine the impact of responsibility accounting on performance, the effect of divisional managers’ participation in goal setting and the importance of organizational structure on performance in the banking industry. The study adopted a descriptive research method. Questionnaires were used as the primary source of data for this study. A random sampling method was used and questionnaires were administered in four major banks in the south-west geo-political zone of Nigeria across five States to address the objectives of the study. A total of 240 copies of questionnaire were administered and 230 copies were retrieved and used to address the objectives of the study. Also, the SPSS was used to analyse the data using Pearson Correlation and t-test. Results from the study revealed that there is a significant impact of responsibility accounting on performance with a correlation of 0.405. Furthermore, organizational structure was also found to affect performance with a correlation of 0.405. Meanwhile, the involvement of divisional managers in goal setting had a correlation of 0.144. On this basis, the study proffered that responsibility accounting is a major tool for divisionalization to reduce the difficulty in managing banking industry in Nigeria for maximum performance. So also, divisional managers should be encouraged in setting goals to help increase performance within the organization.