Analyzing Performance-Based Budgeting in Abu Dhabi Government Sectors

This document presents a research proposal focused on the impact of performance-based budgeting (PBB) on organizational performance within the government sectors of Abu Dhabi, UAE. The proposal outlines the research's aim to analyze this impact through an analytical review. It includes an introduction detailing the problem statement, which highlights issues with PBB such as fluctuating political agendas and data manipulation. The literature review examines the benefits and challenges of PBB, along with factors affecting organizational performance. The proposed methodology outlines an interpretivism philosophy, a deductive approach, and an exploratory research design. Data collection and analysis techniques are described, along with ethical considerations, assumed outcomes, and implications. The proposal is structured into chapters covering introduction, literature review, methodology, and expected timescale, aiming to provide a comprehensive understanding of PBB's effects on the Abu Dhabi government sectors.

Running head: PROPOSAL
The Impact of Performance-based Budgeting on the Organization Performance: An Analytical
Review of the Government Sectors in Abu Dhabi, UAE
Name of the Student:
Name of the University:
Author’s Note:

1PROPOSAL
Table of Contents
Chapter 1: Introduction....................................................................................................................3
Overview......................................................................................................................................3
Problem statement.......................................................................................................................3
Research aim................................................................................................................................4
Research objectives.....................................................................................................................4
Research questions.......................................................................................................................4
Research rationale........................................................................................................................5
Structure of the dissertation.........................................................................................................5
Summary......................................................................................................................................5
Chapter 2: Literature review............................................................................................................7
Performance based budgeting......................................................................................................7
Benefits of performance based budgeting...................................................................................7
Challenges of performance based budgeting...............................................................................8
Organizational performance........................................................................................................8
Factors affecting organizational performance.............................................................................9
Benefits of improved organizational performance......................................................................9
Impact of performance based budgeting on organizational performance of government sectors
in Abu Dhabi in UAE................................................................................................................10

2PROPOSAL
Chapter 3: Proposed research methodology..................................................................................11
Research philosophy..................................................................................................................11
Research approach.....................................................................................................................11
Research design.........................................................................................................................11
Research strategy.......................................................................................................................12
Data collection process..............................................................................................................12
Data analysis technique.............................................................................................................13
Ethical considerations................................................................................................................13
Assumed outcomes....................................................................................................................14
Implications...............................................................................................................................14
Expected Timescale...................................................................................................................14
References......................................................................................................................................16

3PROPOSAL
Chapter 1: Introduction
Overview
The performance of the business organizations or the sectors largely influences their
position in the specific business sector. According to Mauro, Cinquini and Grossi (2017), the
business organizations or the sectors need to be able to plan their financial resources suitably so
that it can be used for overall organizational growth and performance. Performance based
budgeting is one gaining attention in recent times because the government sectors develop this
for funding and appropriate planning of financial resources. Performance based budgeting aim
towards developing budgets by focusing of the relationship between program funding levels and
the results expected out of the programs (Gutierrez and Lozano 2014).
Problem statement
Issues with performance based budgeting in the government sectors in Abu Dhabi is
evident, as the budgets are created by the governments for finances, funds and political agendas
those keep on changing. As mentioned by Van Dooren, Bouckaert and Halligan (2015),
difference in ideas among the existing employees in the government sector give rise to different
ideas regarding what is important and where the funding needs to go. As the budgeting is highly
goal-oriented, lack of qualitative evaluation is noticed. Additionally, issues arises to determine
how well and efficiently a particular department or team is performing post performance based
budgeting. Another problem that is evident in performance based management is that one
department in the government sector can manipulate data for reaching specific targets and
receive funding giving rise to ethical concerns (De Boer et al. 2015).

4PROPOSAL
Research aim
The aim of the study is to study the impact of performance-based budgeting on the
organizational performance by conducting an analytical review of the government sectors in Abu
Dhabi in UAE.
Research objectives
The objectives of the research are:
 To understand the concept of performance-based budgeting and organizational
performance
 To critically analyze the factors affecting performance-based budgeting on the
government sectors in Abu Dhabi in UAE
 To review the performance based budgeting of different companies in the government
sector of Abu Dhabi
 To provide suitable recommendations for overcoming performance-based budgeting
issues in government sector of Abu Dhabi and enhancing organization performance
successfully
Research questions
The questions of the research are:
 What do you mean by performance-based budgeting and organizational performance?
 What are the factors affecting performance-based budgeting on the government sectors in
Abu Dhabi in UAE?
 What is performance based budgeting of different companies in the government sector of
Abu Dhabi?

5PROPOSAL
 What are the suitable recommendations for overcoming performance-based budgeting
issues in government sector of Abu Dhabi and enhancing organization performance
successfully?
Research rationale
Undertaking the research is significant because this will help in developing a clear and in-
depth idea about performance based budgeting and organizational performance and how
performance based budgeting affects the performance of the organization. On the other hand, this
research is significant because this will help in identifying the gap of performance based
budgeting that companies in the government sectors in Abu Dhabi in UAE is encountering that is
affecting the performance significantly. Therefore, the reasons of inadequate performance based
budgeting will also provide an opportunity to compare and contrast organizational performance
with or without the presence of appropriate performance based budgeting (Arnaboldi, Lapsley
and Steccolini 2015).
Structure of the dissertation
The overall structure of the dissertation is divided into six major chapters. The different
chapters are introduction, literature review, research methodology, data analysis, findings and
interpretations and conclusion and recommendations. Each chapter is developed chronologically
so that the flow of the overall dissertation is maintained thereby, completing the overall work
successfully.
Summary
Therefore, in this chapter, it can be summarized that suitable and adequate information
about performance based budgeting and organizational performance has been provided that

6PROPOSAL
helped in identifying the issues faced by the companies in the government sector in Abu Dhabi in
UAE in terms of performance based budgeting. Identifying the problem lead to the development
of research aim and objectives successfully thereby, rationalizing purpose of the research topic.

7PROPOSAL
Chapter 2: Literature review
Performance based budgeting
Money or financial management is more important for both private and public
organizations, appropriate budgeting plays a crucial role in controlling the overall operations of
the business organizations. According to Nisar (2015), the concept of performance based
budgeting highlights the practice of developing budgets by considering the relationship between
expected outcome from a specific program and the levels of program funding. However, as
argued by Ter Bogt, Van Helden and Van Der Kolk (2015), performance based budgeting is
defined as the process or the tool that program administrators use for managing the finances and
cost more effectively and efficiently. For this research, the role of performance based budgeting
in organizational performance for the governmental sectors in Abu Dhabi in UAE are studied.
Benefits of performance based budgeting
Performance based budgeting is gaining huge popularity among the business
organizations due to the various benefits it offers. As mentioned by Miller, Hildreth and Rabin
(2018), appropriate performance based budgeting is beneficial because this allows better cost
estimates for each department the business organizations. As a result, the business organizations
are able to allocate funds to different projects analyzing their importance. However, as argued by
Trenovski and Nikolov (2015), other than effective cost estimation, performance based
budgeting also provides an opportunity for the business organizations to identify and find the
areas of improvement. Both public and private sector business organizations use information
related to performance for determining whether everything is working or not and if not working
then what can be improved thereby, strategizing accordingly.

8PROPOSAL
Challenges of performance based budgeting
In spite of the existing benefits, performance based budgeting gives rise to evident
challenges. As mentioned by Grossi, Reichard and Ruggiero (2016), one of the most common
concern of performance based budgeting is varied and difference in ideas about where the funds
should actually go. As the employees and the executives of the business organizations have
different ideas about what is important thereby, conflicts arises while deciding where the funds
should be allocated. Difference in ideas and views among the employees and executive delays
the process and restricts in achieving suitably. However, as criticized by Lu, Mohr and Ho
(2015), the confidence and assurance that the information regarding the performance is accurate
or valid is difficult and challenging to ensure.
Additionally, lack of flexibility is another major disadvantage of performance based
budgeting. Performance based budgeting gives more power in the hands of the public leaders in
the government sector with limited scope and habit of adapting to changes suitably. Moreover,
appropriate cost analysis is also an issue with performance based budgeting.
Organizational performance
The performance of the organizations is the key for surviving in the competitive market.
According to Petrenko et al. (2016), the concept of organizational performance highlights
analyzing the performance of the company against the goals and objectives. However, as argued
by Gomez-Mejia, Berrone and Franco-Santos (2014), organizational performance is defined as
the real results or outputs compared with the intended outputs. As a result, measuring the
organizational performance provides an opportunity to make sure that the existing and available
resources of the company are being used effectively and properly for achieving and pursuing the

9PROPOSAL
company goals and objectives those have been set. The performance of the organizations is
mainly evaluated by considering the performance of the employees.
Factors affecting organizational performance
Various factors affect the performance of the business organizations. As mentioned by
Wu, Straub and Liang (2015), effective use of the available financial resources plays an
important role in determining the organizational performance. This is because the adequate funds
and financial resources provide an opportunity for the business organizations to achieve the
organizational goals and objectives suitably. Due to the presence of adequate funds, the business
organizations do not have to compromise in terms of the strategies and can take help of advanced
technologies and support for improving their performance is the concerned business sector.
However, as argued by O’Reilly III et al. (2014), organizational performance is also affected by
the employees working for them. The roles and responsibilities of the individual employees also
determine the performance of the particular organization and the government sector in Abu
Dhabi in UAE is no different.
Benefits of improved organizational performance
Considering the competition among the business sectors, improved and effective
organizational performance is of utmost significance. As mentioned by Lonial and Carter (2015),
one of the benefits of improved organizational performance is competitive advantage. If the
business organizations perform well, they are able to gain competitive advantage that help them
in surviving the tough and highly competitive business environment. However, as argued by
Kelly and Rivenbark (2014), other than competitive advantage, improved and effective
organizational performance provides an upper hand from the competitors and creates a unique
image in the eye of the target audiences.

10PROPOSAL
Impact of performance based budgeting on organizational performance of government
sectors in Abu Dhabi in UAE
Performance based budgeting provides both positive and negative impacts on business
organizations and the government sectors in Abu Dhabi in UAE is no different. As mentioned by
Rabovsky (2014), effective performance based management provides an opportunity to identify
areas of improvement and set goals and objectives accordingly thereby, working towards it
strategically. However, as argued by Schick (2014), difference in ideas among the employees
and the executives about where the funds should actually go results in delay in planning and
allocating the funds. Similar is the case of the government sectors in Abu Dhabi in UAE where
performance based budgeting has both positive and negative impact that needs to be worked on.

11PROPOSAL
Chapter 3: Proposed research methodology
Research philosophy
Interpretivism philosophy will be used for studying the impact of performance-based
budgeting on the organizational performance of the government sectors in Abu Dhabi in the
UAE. Using interpretivism philosophy will be best suited because this will provide an
opportunity for the researcher to consider the data and information of different organizations in
the government sectors in Abu Dhabi in UAE. Additionally, interpretivism philosophy will be
most suited because the research will be conducted using small and in-depth samples thereby,
ensuring analytical review of the government sectors in Abu Dhabi in UAE (Kumar 2019).
Research approach
Deductive approach will be used for studying the impact of performance-based budgeting
on the organizational performance of the government sectors in Abu Dhabi. Using deductive
approach will be suitable because this will provide an opportunity to refer to already existing
theories and concepts about performance-based budgeting and organizational performance.
Additionally, deductive approach will be most suitable because this will help in conducting an
analytical review of the government sectors in Abu Dhabi in UAE. As a result, suitable
observations can be made by transforming general information into specific information suitably
(Mackey and Gass 2015).
Research design
Exploratory research design will be used for studying the impact of performance-based
budgeting on the organizational performance of the government sectors in Abu Dhabi. Using
exploratory research design will be most suited because this will help in finding out what is

12PROPOSAL
happening thereby, seeking new insights by asking questions and accessing in new light in
respect to performance-based budgeting and organizational performance. Additionally, as the
study aims to explore the impact of performance-based budgeting on organizational
performance, exploratory design will be most suitable (Taylor, Bogdan and DeVault 2015).
Research strategy
Case study research strategy will be used for studying the impact of performance-based
budgeting on the organizational performance of the government sectors in Abu Dhabi. Using
case study research strategy will be most suited because this will help in reviewing the
government sectors in Abu Dhabi, UAE and analyzing how performance-based budgeting has an
impact on the organizational performance. Case study research strategy will be most appropriate
because this will help in reviewing the case studies of the government sectors and determine
their performance (Flick 2015).
Data collection process
Secondary data collection process will be used for studying the impact of performance-
based budgeting on the organizational performance of the government sectors in Abu Dhabi.
This will be most suited because this will help in collecting already existing information and data
about the government sectors in Abu Dhabi, UAE thereby, studying the impact of performance-
based budgeting on the performance of the government sector. Additionally, secondary data
collection process will be appropriate because this process of collecting data is both time and
cost efficient. The researcher does not have to put in effort for collecting data from scratch and
arrange it for undertaking the research, as the data are easily available (Neuman and Robson
2014).

13PROPOSAL
Data analysis technique
Qualitative data analysis technique will be used for studying the impact of performance-
based budgeting on the organizational performance of the government sectors in Abu Dhabi.
This analysis technique will be most appropriate because this will help in analyzing the
secondary data in detail by developing relevant themes. The themes developed will emphasize on
performance-based budgeting on government sectors in Abu Dhabi in UAE. This will help in
keeping the secondary data intact yet studying the impact successfully (Alvesson and Skoldberg
2017).
Ethical considerations
Abiding by the ethics of the research is crucial is completing a research successfully. As
the research will be conducted based on secondary data and qualitative analysis, one of the
significant research ethics is collecting data from authentic sources. The researcher will have to
collect data from original and authentic sources that include information about performance-
based budgeting on government sectors in Abu Dhabi in UAE. This will help in developing a
reliable and valid research that can be referred to in the future. Another essential research ethics
crucial for completing the study successfully will be strict manipulation of the collected data.
Manipulating the data collected from the various secondary resources will be against the ethics
of the research. It will be mandatory to present the data in their original form so that the current
research can be used as a valid secondary resource for future researchers undertaking research in
similar field. Additionally, the researcher will be bound to use the collected information for
academic purposes and not commercial purposes (Ledford and Gast 2018).

14PROPOSAL
Assumed outcomes
The anticipated findings of the research will be that the government sector in Abu Dhabi
in UAE has been successful in using performance-based budgeting company. The companies in
the government sectors of Abu Dhabi have been successful in establishing a successful
relationship between the funding levels and the results expected from the program.
Implications
However, in the future, it can be suggested that the managers of the companies in the
government sector in Abu Dhabi in UAE can be interviewed as well. Therefore, other than
conducting the research based on secondary data collection, primary data can also be used for
this research. Using primary approach will help in developing understanding about the latest
developments in the government sector companies in Abu Dhabi in UAE.
Expected Timescale
Main activities1-3
months
4-12
months
13-16
months
17-25
months
26-31
months
32-36
months
Topic selection
Reviewing
literature
Developing
Research
methodology
Collection of
secondary data
Analysis and
interpretation of

15PROPOSAL
data
Findings
Conclusion and
Recommendation
Final submission

16PROPOSAL
References
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