Extent of Using Budgets in Planning, Control and Decision Making in the Jordanian Pharmaceutical Public Shareholding Companies

Waleed Z. Siyam


This study is intended to determine how far budgets are used in planning, control and decision making in the Jordanian pharmaceutical public shareholding companies, through identifying the extent of contribution by the budgets in assisting management in performing its administrative functions and studying how such budgets are used in reality. It is also intended to find out how far the companies’ management are aware of the importance of using these budgets along with the obstacles (constraints) facing the optimal use.

To attain these objectives, a questionnaire was designed and handed out to the financial managers, finance and accounting department personnel of seven Jordanian pharmaceutical public shareholding companies listed at the Amman Stock Exchange (Amman Bourse) at the beginning of the year 2007. Seventy questionnaires were distributed out of which 62 questionnaires were approved for analysis and research purposes, i.e. nearly 89% of the distributed questionnaires.

Results of the study showed that budgets are helpful in terms of assisting management in carrying out its administrative tasks and that companies' managements are largely aware of the importance of using such budgets in planning, control and decision making operations notwithstanding the average use of these budgets in reality. It was also found that there are numerous constraints facing the optimal use of budgets, mainly the unreliability of figures predicted and used in the budgets.


Budgets, Planning, Control, Decision Making, Pharmaceutical Companies

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