Using the GCU Library locate a journal article about budgeting. In the subject line of your post, include the name of the article that you read.
Topic 3 DQ 1
Using the GCU Library locate a journal article about budgeting. In the subject line of your post, include the name of the article that you read. Then, in your initial post, provide a link to the article and a summary followed by your reaction to the article. The summary should be approximately 250 words and the reaction should be approximately 150 words. The summary should describe the major points of the article, and the reaction should demonstrate your interpretation of the article and how you can apply that knowledge.
Do not choose an article that one of your classmates has already posted. To participate in follow-up discussion, choose one of the articles that a classmate has posted and provide your own reaction to it. Note: It may be challenging to find a relevant article if you do not use the library.
Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.
Expert Answer and Explanation
The journal article about budgeting located from the GCU Library
Article Title: “Budgeting and Financial Techniques used by SMEs during Crisis”
Article Analysis and Reaction
Jacques Hendieh, in the piece “Budgeting and Financial Techniques used by SMEs during Crisis,” investigated budgeting and financial strategies to navigate economic crises effectively. Specifically, the article evaluated the risks SMEs experienced during that period because of their access to credit and small financial capacities. The article touched on diverse crucial points. The leading point concerned challenges faced by SMEs in crises. The article indicated that SMEs experience constrained liquidity, reduced revenue streams, and heightened uncertainty, pushing them to adopt innovative approaches to survive.
The other critical feature of the article concerned the importance of budgeting, especially during crises. According to Hendieh (2023), SMEs require flexible and dynamic budgeting helpful in navigating challenging circumstances. Furthermore, the study also introduced the concept of cash flow management to address budgeting uncertainties for SMEs. The management of cash inflows and cash outflows remains the biggest problem for most SMEs in their efforts to make functional budgets. Additionally, the article evaluated the role of the financial support mechanism in assisting SMEs during crises.
According to the article, SMEs utilize options such as government relief programs, loans, and subsidies during crises. These organizations also engage in internal restructuring efforts, such as debt restructuring, to address their budgets. Additionally, Hendieh (2023) explored the concept of planning for recovery by SMEs. Budgeting is crucial in assisting organizations to plan for future crises. Proper budgeting prevents additional mishaps, especially when the crisis reoccurs. The article by Hendieh (2023) is critical in budgeting, adaptive financial techniques, and strategic foresight in addressing SMEs during crises.
Article Reaction
My interpretation of the article by Hendieh (2023) revolves around dynamic budgeting and cash flow management for SMEs during the crisis period. I find the article’s concept of balancing cost-cutting measures with long-term competitiveness enjoyable. This assertion is because reducing budgets to accommodate the existing financial scenario stifles innovations, which is critical in helping SMEs survive difficult moments. The primary knowledge gathered from Hendieh in the article is that for SMEs to survive a torrid event, investing and cost-cutting measures are essential for optimization.
Besides, taking advantage of external financing to boost their operations is another critical feature of the article concerning SMEs. I noted that these organizations could utilize government relief programs and debt restructuring. The article noted that SMEs utilize these options blindly, which results in poor budgeting and other financial strains. This article introduced me to the realities of the availability of financing options, which do not assist SMEs in addressing their financial difficulties.
Using the knowledge gathered during the article reaction, I will introduce a flexible budget for any SME I manage to maintain reserves and forecast purposes. Additionally, I will adopt financial training to assist the finance department in understanding the benefits of effectively utilizing funding programs.
References
Hendieh, J. (2023). Budgeting and Financial Techniques Used by SMEs during Crisis. Journal of Commerce and Accounting Research, 12(3), 1-11. https://lopes.idm.oclc.org/login?url=https://www.proquest.com/scholarly-journals/budgeting-financial-techniques-used-smes-during/docview/2833746567/se-2
Topic 3 DQ 2
Review Case 5.37 in your textbook. Using the questions provided as a guide, explain how you think the budget presented may impact the company. Please review the posts of your classmates before responding to Case 5.37 and provide responses that are different than what your classmates’ have posted and suggested.
To participate in follow up discussion, ask questions and post comments regarding classmates’ posts or respond to follow-up questions posted by the instructor.
Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.
Expert Answer and Explanation
The sudden tightening of standards could generate several counterproductive behaviors from managers and line workers. A sudden tightening of standards could result in reduced morale and job satisfaction, especially when untenable. According to Çıvak et al. (2024), workers might find the new stringent standards unachievable and unfair, contributing to their slow-down. Consequently, reducing morale could contribute to absenteeism and high turnover rates for overwhelmed workers. Besides, Kate Daniel’s efforts risk resistance, especially when not all stakeholders are consulted.
Workers are likely to lack commitment to execute the revised procedures, which could impede organizational operations. The other significant risks associated with the sudden change in standards are gaming behaviors and resource hoarding. Employees likely engage in unethical behaviors to meet new standards. At the same time, managers would likely engage in budgetary slack, where they will over-direct resources to certain areas while starving other departments.
Kate has the opportunity to mitigate the above problems associated with the abrupt tightening of standards. The leading solution is a participatory approach, where all stakeholders will be involved in the need to introduce strict standards (. The full engagement of these stakeholders in the decision-making process will eliminate the perception of unfairness and lack of consultation. Kate should also consider the phased implementation of new standards. The new controller should train workers and managers about the latest standards and gradually introduce new systems.
The approach will reduce resistance to change that emerges with the sudden introduction of the new system. Furthermore, it is prudent that Kate prioritizes clear and transparent communication regarding the rationale for the changes. Regular feedback and an open-door policy for addressing grievances are crucial in limiting disgruntlement and building trust. Lastly, for Kate to address the risks of workers failing to implement the strict standards, she must introduce non-monetary recognition to boost morale and the desire of workers and managers to implement revised changes.
Despite the negatives surrounding the revised tight standards, they can contribute positively toward Miller Manufacturing outcomes when implemented correctly. First, the new standard signals a culture of continuous improvement. With tighter standards, an organization increases the chances of innovativeness and efficiency. Typically, workers will develop discipline and greater accountability, which boosts organizational processes. Furthermore, tighter standards instill some sense of achievement and pride among employees, who are challenged to meet new goals. This work will help meet personal and organizational goals.
The core participants in the standard-setting process must be departmental managers and line workers. Managers have knowledge about operational capabilities and constraints, which is critical when introducing an alternative system is needed. Conversely, line workers can provide valuable feedback on the feasibility of proposed changes. Including these stakeholders makes new standards realistic and fair, reducing resistance and increasing adherence. The participation of these stakeholders would reduce resistance to change and foster a culture of communication in Miller Manufacturing.
References
Çıvak, B., Besler, S., & Sezerel, H. (2024). ‘The door is there!’: The exploitation, domination, consent, and resistance experiences of hotel employees. European Journal of Tourism Research, 38, 3814-3814. https://doi.org/10.54055/ejtr.v38i.3563
Zingraff-Hamed, A., Hüesker, F., Lupp, G., Begg, C., Huang, J., Oen, A., … & Pauleit, S. (2020). Stakeholder mapping to co-create nature-based solutions: who is on board?. Sustainability, 12(20), 8625. https://doi.org/10.3390/su12208625
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