Do Modern Organizations Still Need Traditional Budgeting?

          Presented in fulfilment for the requirements of the course:

Research Methods BS4S07-V1

Submitted to:

Dr EvangelosTsoukatos

Group 1 Members:

Adamjee Dr.Ebrahim-R1608D1798846

Ametorwogo Juliana-R1510D1033358

Farrell Joann-R1605D1513576                                                                                                  

Hassan Farid-R1606D1595240

Johnson Richard-R1602D1304061  

Submitted: ..........., 2017

TABLE OF CONTENTS                                                                                Page

List of Figures and Tables…………………………………………………………………………3        

Acknowledgements……………………………………………………………………………......4

Abstract……………………………………………………………………………………………4

Introduction..................................................................................................................................5-6

Defining the problem, context of the research and its objectives………………………............6-7

Scope and Significance of the Study……………………………………………………………...7

Literature Review ………………………………….………………………………………...8 – 12

Research Design, Methodology, Samples and Sampling Technique...................................... 12-13

Method of Data Collection and Method of Data Analysis.....................................................…...13

Goal of the research.......................................................................................................................13

Time Dimension and Triangulation………………………………….………………………......14

Limitations and Findings……………. …………………………………………………....... 15-21

Recommendations …………….…………………………. ……………………………………..22

Conclusions ……………. …………………………………………………………………….…22

References ......................................................................................................................…...23 – 24

Appendix ……………. …………………………………………………………………….2

LIST OF FIGURES AND TABLES

Table 1 – Profile of Sample………………………………………………………………….…..19

Table 2 – ANOVA…………… …………………………. ……………………………………..20

Chart 1 – Level of Managers…………….…………………………………………………...…20

Chart 2 – Participation in Strategic Management Issues………………………………….……..21

Table 3 – Best Practices in the 21st Century……………………………………………………..22

Chart 3 – Relationship between Strategic Management and Performance……………….……...23

1.1Acknowledgement

What 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.