Feasibility of implementation of operational budgeting in Islamic Azad University, Shahrari branch

Number of pages: 114 File Format: Not Specified File Code: 29294
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    Dissertation for receiving a Master's degree ( M.A)

    Trend: Finance 

    Summer 2013

    Abstract:

    This research was carried out with the aim of feasibility of implementation of operational budgeting in Islamic Azad University of Shahrari branch in 2013. For this purpose, based on the sheh model, the triple classification of ability (ability to evaluate performance, manpower ability, and technical ability), the amount of authority (organizational authority, legal authority, and procedural authority) and the acceptance rate (political acceptance, managerial acceptance, and motivational acceptance) were investigated in the Islamic Azad University of Shahrari branch. The research was applied in terms of purpose and descriptive-survey in terms of method. The statistical population included all university vice-chancellors, presidents. There were 78 faculty members and accounting and budgeting experts of the Islamic Azad University, who were studied with a researcher-made questionnaire. Cronbach's alpha coefficient was used for the level of operational budgeting ability, 0.77, and the level of acceptance of operational budgeting in the Islamic Azad University, 0.81. The results of the one-group t test showed that (at a significance level of 0.01>p­) There is an operational budget in the Islamic Azad University. Also, based on the findings of Friedman's test, among the studied factors; Managerial acceptance, manpower ability and technical ability are among the most important factors in the establishment of operational budgeting in this unit. Key words: operational budgeting, shah model, Islamic Azad University, Shahrari branch. he­ay  in  The field of   financial supervision   of   organizations, almost   in   all countries of the world   to  The eye eats     These pressures   are caused by   limited   resources,   increased sensitivities of society and the tendency of politicians   to satisfy   people   to   Providing  performance  positive   in the   direction   to   gain   popularity, legitimacy and accountability in the direction of   improving   management   on   financial   resources  was  is  . Many of the developed and developing countries of the world are trying to improve their budgeting system in a process of improvement or change to a performance-oriented or operational system in which the relationship between  Credits  Budget and performance of transparent and comprehensible devices, make them closer. And from   this   through   the support of   authentic information  and able to reliably provide a budget for decisions (Hasanabadi and Najarsaraf, 2017). In fact, operational budgeting is a useful management tool that is used to produce and exchange current and future information based on performance indicators and standards.  The purpose of setting the budget is necessary to estimate and measure the performance of organizations.

    Universities and higher education institutions are also responsible for the discovery of and dissemination of knowledge and provision of training and excellent learning for the training of specialized human resources and help in the development of communities, as a system they are composed of several sub-systems, the most basic management system of which is The   system is financial (Sakti and Saidi, 2016). The establishment of the operational budgeting system in the financial system of the universities brings the effectiveness and saving factors to  dimensions  traditional budget    additional  

    The importance of the above issue shows the reasons for the attention and recent reforms in the budget system of the country's universities and the move towards an operational budget.So that in the law of the fourth development plan, universities not only have to change their budgeting system from program budgeting to operational budgeting, but also (in the implementation of paragraph a of article 49 of this law), higher education institutions are required to prepare operating budgets in order to achieve the cost of educational and research activities and determine the per capita cost of students in various fields in order to provide financial resources. The government will be allocated to them based on the cost price, and due to the comprehensive development of higher education institutions in the country, the need to improve the methods of controlling and managing financial resources is felt more. This can cause universities to focus more on the efficiency and effectiveness of financial resources. The only way to achieve these goals is to establish an operational budgeting system in higher education institutions. The characteristic and distinguishing feature of this system from the existing budgeting system is the emphasis on the goals, results and product of each cost item and increasing the accountability of the universities. Islamic Azad University, as one of the higher education institutions, is not exempt from this, and the change in the budgeting system of this university, like other universities in the country, is seen as necessary. Based on this, The research aims to determine several factors such as the level of knowledge and knowledge of managers and experts regarding this system and other human and behavioral factors related to the establishment of operational budgets as well as problems and obstacles and the capacities of  available for the establishment of operational budgeting.

    According to the theoretical studies and existing conditions in higher education institutions of the country, the stability of operational budgeting can be divided into three factors: acceptance, ability and authority. The acceptance factor includes political acceptance, managerial acceptance and motivational acceptance. The ability factor consists of three groups: technical ability, performance evaluation ability, and human ability. Also, the authority factor includes legal authority, procedural authority and organizational authority. Therefore, in this research, Islamic Azad University Shahrari unit was selected among the units of Islamic Azad University in order to study the possibility of establishing operational budgeting in this university. 1-2) Importance of the research topic: In the discussion of budgeting, operational budgeting considers three main goals of managing resources and funds, which includes establishing financial discipline, allocating resources. It is good for priorities and executive management.

    By using operational budgeting, it is expected that the above considered goals will be achieved in the Islamic Azad University of Shahrari Branch, and by implementing this budgeting method, the degree of achievement of the goals and deviations from its implementation can be determined. Officials of the executive bodies will be based on the criteria of their activities' achievements. More than 60% of the country's annual budget is allocated to government companies and institutions, which has caused a lot of their annual spending, which is expected to be reduced to the minimum possible by setting an operational and transparent budget. budget‌ Operational planning in the Islamic Azad University of the city branch.

    2- Providing solutions in order to enable the implementation of operational budgeting in the Islamic Azad University of the city branch.

     

    1-4) Assumptions or research questions:

     (1): Acceptance has an effect on the establishment of operational budgeting in the Islamic Azad University of the city branch. 

     

     (2): Ability has an effect on the establishment of operational budgeting in Islamic Azad University of the city branch. 

     

     (3): Authority has an effect on the establishment of operational budgeting in the Islamic Azad University of the city branch. 

     

     (4): There is a significant difference between the opinions of male and female managers and experts in connection with the implementation of operational budgeting in the Islamic Azad University of the city branch.

     

     

    1-5) Theoretical framework:

    Theoretical framework is a model based on which the researcher comments on the relationships between the factors that have been identified as important in creating the problem.

  • Contents & References of Feasibility of implementation of operational budgeting in Islamic Azad University, Shahrari branch

    Chapter One: General Research

    1-1) Statement of Research Problem

    2

    1-2) Importance of Research Subject

    4

    1-3) Research Objectives

    4

    1-4) Questions and Hypotheses Research

    4

    1-5) Research theoretical framework

    1-6) Research model

    1-7) Operational definition of variables and key words

    1-8) Research method

    1-9) Research scope

    1-10) Statistical population under study and sample size

    Chapter Two: Theoretical foundations and research background

    Part I: Theoretical foundations of research

    21

    2-1) Budget history

    2-1-1) Budget definitions

    2-1-2) Budget definitions from a legal perspective

    2-1-3) Budgeting stages in Iran

    2-1-3-1) Budget preparation, adjustment and proposal stage

    2-1-3-2) Budget approval stage

    2-1-3-3) Budget implementation stage

    2-1-3-4) Budget monitoring stage

    2-1-4) Program budgeting

    2-1-5) Goal-based management budgeting system

    2-1-5-1) Goal-based management budgeting system in America

    2-1-6) Zero-based budgeting system

    2-1-7) Advantages of zero-based budgeting compared to traditional budgeting

    2-1-8) Zero-based budgeting system in America

    2-1-9) Incremental budgeting system

    2-1-10) Advantages and disadvantages of incremental budgeting

    38

    2-2) Operational budgeting

    39

    2-2-1) Definition of operational budgeting

    39

    2-2-2) Definition of operational budget from the perspective of the Hoover Commission

    40

    2-2-3) Types of budgeting Operational

    40

    2-2-4) Legal basis of operational budgeting

    41

    2-2-5) Implementation of operational budget

    45

    2-2-5-1) Cost accounting

    46

    2-2-5-2) Work measurement method

    2-2-6) Implementation of budgeting Operational

    47

    48

    2-2-7) Objectives of operational budgeting

    49

    2-2-8) Features of operational budgeting

    50

    2-2-9) Principles and concepts of product costing

    51

    2-2-10) Benefits of operational budgeting

    54

    2-2-11) operational budgeting requirements

    55

    2-2-11-1) obtaining the agreement and commitment of the main actors

    55

    2-2-11-2) setting a schedule for implementation

    55

    2-2-11-3) providing necessary training

    56

    2-2-11-4) review and development of strategic plans

    57

    2-2-11-5) creation of cost price accounting and information system

    58

    2-2-11-6) performance evaluation and results report

    59

    2-2-11-7) providing management grounds

    60

    2-2-11-8) Final measures

    2-2-12) Obstacles to operational budgeting

    2-2-13) Operational budgeting in higher education institutions

    2-2-14) Calculation of the total cost of activities of higher education institutions

    2-2-15) Operational budgeting problems in higher education institutions

    60

    62

    63

    64

    67

    Table of Contents

    Title

    Page

    Part Two: Research Background

    70

    2-3-1) First Research

    70

    2-3-2) Second Research

    71

    2-3-3) Third Research

    72

    2-3-4) Fourth Research

    73

    Chapter Three: Research Methodology

    3-1) Type of study

    76

    3-2) Research method

    76

    3-3) Study population and sample size

    76

    3-4) Research assumptions

    77

    3-5) Tools Gathering information

    77

    3-5-1) study of library documents

    77

    3-5-2) Questionnaire

    78

    3-6) validity and reliability measurement of research tools

    79

    3-7) Data analysis methods

    80

    3-7-1) Descriptive statistics

    80

    3-7-2) Inferential statistics

    80

    Chapter four: data analysis

    4-1) Introduction

    82

    4-2) Demographic description of respondents

    82

    4-2-1) Frequency distribution and percentage of research participants

    82

    4-2-2) Age of respondents of research participants

    83

    4-2-3) Gender of the company­ Participants in the research

    83

    4-2-4) Level of education of the respondents

    84

    4-2-5) Work experience of the participants in the research

    84

    4-3) Examining variables related to operational budgeting

    84

    4-3-1) Examining the frequency distribution of responses related to operational budgeting ability

    84

    4-3-2) Examining the frequency distribution of responses related to operational budgeting powers

    85

    Table of Contents

    Title

    Page

    4-3-3) Examining the frequency distribution of responses Related to the acceptance of operational budgeting

    87

    4-3-4) statistical examination of variables related to operational budgeting

    88

    4-4) research hypothesis test

    90

    4-4-1) one-sample t-test

    90

    4-4-2) Friedman test

    Chapter 5: Conclusions, Discussions and Suggestions Operational

    101

    5-5) Findings from inferential statistics

    102

    5-6) Discussion of research results

    104

    5-7) Suggestions

    106

    List of sources

    110

Feasibility of implementation of operational budgeting in Islamic Azad University, Shahrari branch