An evaluation on the effectiveness of cost control techniques on performance in a distressed economy, a case study of Bata Shoe Co Ltd Zimbabwe
- Author
- Nyamukoho, Oscar A.
- Title
- An evaluation on the effectiveness of cost control techniques on performance in a distressed economy, a case study of Bata Shoe Co Ltd Zimbabwe
- Abstract
-
This study sought to investigate the effectiveness of cost control techniques on performance of Bata shoe co Ltd Zimbabwe. The objectives of the study were, to investigate cost drives in an organisation, to cost control techniques employed by Bata ltd, other approaches that can be engaged which can result in efficient control technique, the cost control techniques employed by Bata ltd effective, the effects of weak control techniques employed, cost control techniques that influence managerial decision making, whether cost control techniques enhance management and subordinate motivation and which best practice can be employed to improve performance at Bata. Chapter two reviewed the conceptual framework on working capital practices for cost cutting measures. Chapter three focused on research methodology, research design, the target population, sampling methods, research instruments and how data was going to be analyzed. A case study research design was used for this study focusing mainly on the quantitative aspect of the survey. The research instrument used in this case study was a questionnaire, with which data was extracted from the targeted 220 respondents. The sample size comprised of 22 Bata shoe company employees. Chapter four presented the findings on the study which were as follows, there are effective cost control implementation guidelines and the cost control policy is well defined. Management reviews the cost control implementation guidelines from time to time so as to assess if policies are being implemented the correct way. There is no committee set up to implement cost control policies. Management at Bata Ltd use the top-down approach for policy implementations. This has led to resistance of change which affects operational performance. It is established that this fuels employee resistance. Finally, there is adequate personnel employed in departments that monitor costs and a significant number of intern students and graduate trainees are employed. The organisation does not offer training and development programs so as to enhance skills of employees in cost control practices. The following recommendations are made, Bata Ltd should involve employees in policy formulation so as to motivate employees. Management should implement Just in time as a management technique such that they produce the right quantities so as to avoid stocking it waiting for potential customers. A costs aware culture ought to be implemented by all employees of Bata Ltd so as to achieve desired level of costs optimization. Bata management should consider implementing lean six sigma as it merges two techniques that work for improving production processes. There is need for management to effectively make use of cost control reports for activities at the Ltd so as to help them identify operations that are not performing as intended. This research was investigating the evaluation of cost control techniques on operational performance and further research can be done on the impacts of employee training in line with cost control policy implementation.
- Date
- 2023
- Publisher
- BUSE
- Keywords
- Cost Control Techniques
- Distressed economy
- Supervisor
- Mr. Masinire
- Item sets
- Department of Accountancy