Do Modern Organizations Still Need Traditional Budgeting?
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[pic 1]Do Modern Organizations still need traditional budgeting? Presented in fulfilment for the requirements of the course:Research Methods BS4S07-V1Submitted to:Dr EvangelosTsoukatosGroup 1 Members:Adamjee Dr.Ebrahim-R1608D1798846Ametorwogo Juliana-R1510D1033358Farrell Joann-R1605D1513576 Hassan Farid-R1606D1595240Johnson Richard-R1602D1304061 Submitted: …….., 2017TABLE OF CONTENTS PageList of Figures and Tables…………………………………………………………………………3 Acknowledgements…………………………………………………………………………………4Abstract……………………………………………………………………………………………4 Introduction………………………………………………………………………………………………………………….5-6 Defining the problem, context of the research and its objectives…………………………………6-7 Scope and Significance of the Study………………………………………………………………7Literature Review ………………………………….…………………………………………8 – 12Research Design, Methodology, Samples and Sampling Technique……………………………….. 12-13Method of Data Collection and Method of Data Analysis……………………………………………..……13Goal of the research………………………………………………………………………………………………………..13Time Dimension and Triangulation………………………………….……………………………14Limitations and Findings……………. ………………………………………………………. 15-21Recommendations …………….…………………………. ……………………………………..22Conclusions ……………. …………………………………………………………………….…22References ……………………………………………………………………………………………………….……23 – 24Appendix ……………. …………………………………………………………………….2LIST OF FIGURES AND TABLESTable 1 – Profile of Sample………………………………………………………………….…..19Table 2 – ANOVA…………… …………………………. ……………………………………..20Chart 1 – Level of Managers…………….………………………………………………………20Chart 2 – Participation in Strategic Management Issues………………………………….……..21
Table 3 – Best Practices in the 21st Century……………………………………………………..22Chart 3 – Relationship between Strategic Management and Performance……………….………231.1AcknowledgementWhat seemed like a mammoth task a month ago could not have been possible without the dedication and team spirit demonstrated by members of Group 1. Diving deep into the research topic opened our minds to the various aspects of budgeting and it is our hope that this work will be a valuable resource for students who wish to get a good understand on this area. Numerous people have been of immense help, the most noteworthy Ms Marilyn Browne, Mr Nigel Scott and Ms Paulette Williams. Above all we acknowledge the Almighty’s presence as without his blessing us with this wonderful life nothing would be possible.1.2 Abstract Budgeting is an integral part of running an organization as it helps to manage cash flow by projecting expenses to be incurred and also forecast future financial status of the organization. Though budgeting is very vital in running an organization, its complexity raises questions about whether or not to eradicate this tedious process or find other alternatives. The context of the research is geared towards providing evidence that traditional budgeting is long outdated as there are modernised methods of budgeting in place which can be implemented in order to harness better results. A sample approach was utilised using mainly the survey method through face to face interviews and the use of questionnaires. From the interviews it was realised that a lot of organizations do budgeting based on short and long term plans using spreadsheet and they employ a mixed method of budgeting which is reviewed a number of times throughout the year.Although there are a few organisations which still relies on traditional methods as denoted from the data more and more firms and companies are venturing into this area. Many of the reasons are related to the many advantages which can be attributed to its usage and to reiterate that were proposed in various sections of this research. We conducted interviews with 24 organizations to find out how they currently do their budgets and to also inquire if they were ready to adopt a new and modern way of running the budget of the organizations. We also sent out questionnaires to individuals to gather their thoughts on what they think about traditional budgeting. We concluded finally that a number of organizations are already exploring contemporary methods of budgeting and the few who are still going the traditional way are ready to adopt new and easier methods.