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  • Staff

    Module 4: Discussion

    What budgeting methods does MHT use? Why do you think they have chosen these particular methods?

    I
    2 Replies
  • they have chosen the top down strategy and incremental budgeting. this method will save them some time because they only allow 3 months to get the budget ready. Also the programs don't change from year to another. And since they have many different programs, the program managers should be the one making their own budget which they will share to the financial director.

    M
    1 Reply
  • Course Facilitator

    @AnneLaure_C said in Module 4: Discussion:

    they have chosen the top down strategy and incremental budgeting. this method will save them some time because they only allow 3 months to get the budget ready. Also the programs don't change from year to another. And since they have many different programs, the program managers should be the one making their own budget which they will share to the financial director.

    They have used incremental budgeting process through using top down approach though on the same point there are element of zero base budgeting through consulting experts on water infrastructure which define mixed approach. The have chosen that method because of the nature of their organization

  • @Course_Operations said in Module 4: Discussion:

    What budgeting methods does MHT use? Why do you think they have chosen these particular methods?

    MHT is most likely located in India and they have chosen a top - down approach when managing there budget , this is evident because once the top managers have a clear expectations on the KPIs for the company the finance manager then speaks with the program managers. However, it is also clear that they have chosen to pursue incremental budgeting since their organization has been functioning for a number of years now. They have most likely chosen this method because they have a big organization and for time and trust reason it therefore makes sense to use a Top-down approach.

  • Course Facilitator

    MHT does use the top-down budgeting methods in creating their budget, they starting with identifying tasks.

    I think they have chosen these particular methods according to their programs and financial year of their donors.

  • MHT uses the zero-budgeting approach leveraging a top-bottom strategy while involving critical members of the organisation. The MHT employs this approach because of the strategic focus of the organisation. the tpl level people analyse how much income to expect in the next year and how it will be distributed. These vital information provide the guidelines for developing the budget. It allows for accuracy, time saving and consistency.

  • The organisation have used the incremental budget approach though using the bottom- up approach, They have so many projects running and as such same activities because it is a large organization. The senior management team have been able to put guidelines in place to able to monitor the various departments since their budgeting year starts in April. And at one time they had huge capital cost that they need the assistance of a consultant for cost analysis thereby getting a zero - budget, with this I think they use mixed budgeting.

  • We have top down approach

    J
    1 Reply
  • MHT uses the incremental budgeting method with the bottom-up approach and I think it uses this method because most of its programs are old projects that organize almost the same activities. So i would say they don't need to make any big changes to what they usually do

  • @DeavenCrosswelldelMundo said in Module 4: Discussion:

    We have top down approach

    Well stated sir. But why do you think that it is a top-down method?

  • The MHT use Management strategy methods which is a misture of top-down budgeting and Bottom-up budgeting, although the budgeting involve Incremental budgeting in the budgeting process (our programs have existed for several years and so have some good data on unit costs). I said this because MHT budgeting team involves the individual program managers , with the finance manager to estimate expenditures. Based on these cost, program managers creat budgets that focus on costs while the finance team reviews, revises, and combines the budgets. The finance team figures out how much income to expect in the next year and how it will be distributed. Program managers, was involved in creating the expenditures cost but he and finance team did not review, revise, and collate these drafts into a budget for the organization-so one can not say MHT use bottom-up alone. Neither would one say that MHT used top-down because the majority of the budgeting happened at the senior management level.

  • Income expenditure budget

  • MHT uses the incremental budgeting method with the bottom-up approach and I think it uses this method because most of its programs are old projects that organize almost the same activities. So i would say they don't need to make any big changes to what they usually do
    MHT uses the incremental budgeting method with the bottom-up approach and I think it uses this method because most of its programs are old projects that organize almost the same activities. So i would say they don't need to make any big changes to what they usually do

  • MHT is most likely located in India and they have chosen a top - down approach when managing there budget , this is evident because once the top managers have a clear expectations on the KPIs for the company the finance manager then speaks with the program managers. However, it is also clear that they have chosen to pursue incremental budgeting since their organization has been functioning for a number of years now. They have most likely chosen this method because they have a big organization and for time and trust reason it therefore makes sense to use a Top-down approach.

  • Maria could a multi draft policy to narrow down the various cost estimates she is getting from her staff. The policy could ask for 3 budgets, one replicating last years, one with a 5% expenditure increase and 5% expenditure decrease. That way there is a point of reference that keep the numbers relevant to the activities, and not just based on what the staff requested.
    In Francisca's case, it would show the fiscal difference between her need versus her ambitious want. With Paolo, this policy keeps expectations realistic

  • @Course_Operations said in Module 4: Discussion:

    What budgeting methods does MHT use? Why do you think they have chosen these particular methods?

    MHT uses bottom-up budgeting method. Their programs are manage by individual program managers. These program managers list the activities they are to under take in the financial year. The activities are put together by the finance team and presented to the top management. That is why it is better to use the bottom-up method.

  • They use incremental budgeting methods using a top down approach. They use these methods because the program managers have a clear understanding of the costs and because income is restricted, the management team needs to control the budgets to confirm it is allocated in the appropriate manner.

  • Mahila Housing sewage trust organization used incremental budgeting method because they refer to the last budgeting year. With restricted income, because the individual program meet the financial manager for estimating expendires. unrestricted income illustrated by this phrases,if they need an estimate for a new expenditure, we find a subject matter expert to talk to. To invite some organisation's, I think is get guidelines, because they supposed everyone understood what to do. So why I think of the bottom-up because is the program team which has the good information and details of understanding budgets program so that they have meet financial manager who has to estimate expenditures and submit theirbudgets to the the the director to approval

  • MTH adopts Bottom-up budgeting approach that is Centralized management is the organizational structure where a small handful of individuals make most of the decisions in a company .
    For example, budgets for development works are created and managed in a centralized manner.
    These budgets are often not accessible to citizens and are difficult to interpret .
    Similarly, urban planning procedures like ‘Development Plans’, ‘Town Planning Schemes’ and ‘Zoning Regulations’ are also difficult for common people to perceive and not communicated to citizens.

  • MHT use Top-Down and incremental budgeting method, because it seems their time is limited only three month to work out their budget,in the same process revisit their last years budget and review where development or changes can be made in the set budget than starting over. However, at some extent there's also little application of zero-based budgeting method aspects applied in, individual program managers meet with the finance manager and on some subject matters experts were approached.

  • MHT uses a Top-Down approach with an incremental budgeting, this is evident in the statement above where the program managers are invited by the finance depertment to dicussion cost of what each program will cost as referenced in there other progrmmes previous year.
    Its has also be seen that MHT need to use both incremental budgeting and Zero-based budgeting they it was necessary to incorporate new project cost into the budget by inviting an expert to help estimate cost.

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