Top Down Budgeting Strategy Writing Assignment (Other (Not Listed) Sample)
Foundation of the Study
(FOR PROPOSAL & DBA DOCTORAL STUDY DOCUMENTS)
(1.14) Review of the Professional and Academic Literature
A. Literature Review Opening Narrative
i. Contains a brief discussion of the content of the literature that includes a critical analysis and synthesis of various sources/content of the literature (journals, reports, and scholarly seminal books, etc.) to convince readers of depth of inquiry.
ii. Explains the organization of the review.
iii. Explains the strategy for searching the literature.
iv. The majority of references should be from peer-reviewed sources. (Consider 85% of the total sources should be peer-reviewed.)
v. The majority of references should be current. (As you consider your references, it is recommended that in business around 85% should be within the past 5 years).
Top-Down Budgeting Strategy
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According to researchers Chiu and Russell (2011), the recent years of complex project management has seen project managers debate heavily on the effectiveness of top-down budgeting for project management as compared to the bottom-up approach. Chiu and Russell (2011) define the top-down budgetary approach for complex project management and effective resource management as an approach with more feasibility as to what is expected during a project than the bottom-up approach. Top-down budgetary approach considers and concentrates on the use of magnitudes in rough order that offer little to no explanation on the actual estimate of resource needs for a particular project. That notwithstanding, the researchers find that this approach is much more feasible as far as effectively managing resources in within a project is concerned when compared to the other type of budgetary approach.
Further research evidence agrees with the above espoused position and adds that while top-down budgetary approach does not openly provide an actual estimation of the expected resource input for a project, the fact that it is involved in a project from the early stages of the project ensures that it captures most if not all the needs and requirements of a project and puts them into consideration (Alketbi and Gardiner, 2014). Thanks to the above, Alketbi and Gardiner therefore inform that the top-down budgetary approach is able to provide scaffolding for the desired qualities that are responsible for the success of a project as far as producing high returns of the initial investment is concerned. The researchers therefore openly advice that in order for a company or any running project to maximize and attain a balance between the resources and efforts inputs and the economic outcomes attained, it is primary that the top-down budgetary approach is implemented. The ability of the top-down approach to guarantee higher returns for the input resources is no doubt one of the reasons why it has in the recent years become an important consideration for projects that require heavy investment.
Kramer and Hartman (2014) in a study of over a hundred middle-sized German companies and their managers reach the findings that the top-down budgetary approach is important in attaining economical gains as compared to the bottom-up approach which mostly attains social gains. This position is concurrent with the previous researcher's position that the top-down budgeting approach promotes more returns on the invested resources when assessing a project lifecycle. Kramer and Hartman's hypothesis is that the top-down budgetary approach in the subsequent stages of the budgetary process is important in improving the manager's economic exchange with the other project players. This consequently contributes to the sufficient and efficient management of resources to the effect that the returns gained during and after the project are impressive to the managers. The overall finding from the research is that German firms have in the recent years adopted the top-down budgetary approach owing to the fact that it offers more returns from a feasibility perspective when compared to the bottom-up budgetary approach.
The International Monetary Fund white paper on the top-down budgetary policy best helps in understanding this new and highly favored budgeting approach. According to the white paper, the top-down budgetary approach is an approach that was conceived by the capitalists and the investors as an approach that provides them with surety and security for their money (Ljungman, 2009). In that case therefore, the investors using this approach become more confident that their investment will be protected by the managers of the funds owing to the fact that there are a number of layers through which the funds are managed for implementation into a project. According to the white paper, it further brought to the understanding of the reader that with a top-down budgeting model for any project, the sequence of decision are taken based on a number of factors and these provisions provides for the fiscal discipline in projects which goes a long way in convincing investors to lend monies to projects. While promoting fiscal discipline, the structure utilized in a normal top-down approach which involves the delegation of funds for a specific aspect of the project to different line managers ensures the prioritization of the project aspects, proper coordination of the projects and strict adherence to set policies for the project delivery. This according to Ljungman (2009) is important in ensuring that more returns are met from the resources invested in a project and as far as protecting the invested funds is concerned; the structures ensure that the money is properly delegated for the eff
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