College of Finance, Management and Development

Tax Administration (Masters Program)

Assignment of PEMC (TXCA 5061)

Article Review Prepared by Group-1

Behar Mensur------------1800673

Maria Ziad------------1800857

Zebib Belayneh--------1800726

Etaferahu Eshetu--------1800705

Askale Ayfokiru---------1800657

Demelash Desta---------1800694

Submitted to: Dejene Mamo

 ECSU
August, 2019
Addis Ababa, Ethiopia

INTRODUCTION

“Development of a Budget Management Model for Managers in Public Hospitals in the Limpopo
Province, South Africa” is an article published in Asian Journal of Social Sciences and
Management Studies, Vol. 5, No. 3, 87-90, and 2018. This article was written by Nkhumeleni
Mathobo1, Mashupye Herbert Maserumule2, and Kabelo Boikutso Moeti3. This paper
investigates the Budget Management and its role in Public Hospitals. The focus of the study is on
budget management in public hospitals in the Limpopo Province. The paper recommended the
Budget Management Model that increase the competitiveness of the public hospitals. The article
also indicates the importance of Budget Management Model in helping the decision making of
organizations and managers. Our concern is to develop a systematic and analytical discussion
based around the degree to which this study exemplifies the characteristics of academic article.

SUMMARY

The purpose of the study is to investigate the budget management in Public Hospitals. This
study certainly reveal the importance of the issue in relation to decision making and indication of
the synthesis of the concept on budget management. However, it should be noted that underlying
definitions and assumptions are not differ widely and there is indications of common
understanding that leads possible to say budgetary issues as the its break or make up any
organizations.

Developing countries and organizations are confronted with social, political and economic
difficulties in establishing a sound budget management system. As a Consequence, public
organizations poor and ineffective mainly in developing and emerging countries due to low
adaptations of budget management model.
This article was written with the core aim of investigating budget management in public
hospitals and it tried to develop a budget management model for managers in public hospitals in
the Limpopo province.

The rational of the study was that budget management remains a management challenge for most
managers of public hospitals in the Province. According to Moeti et al. (2007) managing a
Budget covers budget preparations, budget implementations, and budget control. (N.
Mathobo1, .R.et.al, 2018, p. 1).

The study recommended a budget management model for managers in public hospitals as the
delivery of cost effective health services there depends on an effective budget management
model. The authors conclude that, the success of public hospitals depend on effective budget
planning, budget implementation and budget control.

ANALYSIS

The main concept that observed from this paper about budget management and its impacts on
managers decision making and public hospital performance is the existence of different blocks of
definitions and they have related views about it. All these definitions give a concise
understanding of budget management as a whole.

The paper critically analyzed and demonstrated the issue in hospital budget management model,
impacts on service delivery and management challenges in conducting the case study relating
with different literature and empirical studies. The paper also substantiate the points satisfactorily
with survey information, logic and findings. So that, the role of budget management cannot be
overemphasized; and effective service delivery of hospitals demands better and relevant budget
management model. As the numbers of employees, customers and transaction increases in an
organization the more it become multifaceted, and the information needed for effective
management, planning, decision-making and control invariably becomes more complex.
Decision-making is the task of every top management in an organization and they need relevant
and timely information to assist in taking decisions about budget preparation, implementation
and control.
There is difficult to see other arguments or not evident that would oppose the authors view on
public organizational budget management approaches. There are so many literatures which
support the essence of this study.
Research Methodology and Results
The research methodology used for this study is both quantitative and qualitative research design
to generate data required to achieve its aim and objectives. The results of both qualitative and
quantitative analysis were triangulated and aggregated into a coherent whole to authenticate the
validity of the findings of the study. A questionnaire was used as the primary data-gathering
instrument. The study was also piloted. The quantitative analysis used STATA V13 statistical
software. The qualitative analysis used analytical and interpretive techniques to generate
descriptive data required to answer the research question. 120 Managers from 20 public hospitals
in the Limpopo Province were the subjects who participated in the study.

The study revealed that there was little improvement in budget planning, implementation and
control, and much needed to be done. The findings of the study showed that budget planning,
budget implementation and budget control remain a management challenge most managers of
public hospitals.
Strengths and weaknesses of the Article
The article presented useful findings for those interested in change management. It put forward a
conclusion about the challenges of the public health sector and recommended a budget
management model for the stakeholders in a well-articulated text and a graphical illustration to
support the findings in a brief and smart way.
The study was claimed to have been conducted using various methods and a wide range of
samples but a great deal of analysis could have been conducted to present a more detailed
numerical figures which accompany the presented concepts, and this could be pointed as the
limitation of the article.

The author did not mention any is assumptions(s) that can be considered and underlying to
conduct this study like the effect and relationship of other budgetary variables, supporting
functions, government policy and strategy, employee capacity and etc.
The study is very interestingly a good input to broadening the view of subject to the private and
public administration structures by using clear language in the paper and a good approach of
expressions with value laden summary related to the contexts of the sections on the studies. We
have got a good concern on the issue objectively more than we have before.

CONCLUSION
The study purposes are indeed answered as a result of the study. It is shown that, at least from
the perspective of the authors involved in this particular study and at this particular time,
generally found that the effects of budget management model organizational activities were
generally positive in this instance. That being said, a larger trend seems to underlie this particular
context. The question was not based around negative or positive results but rather, on how
decision makings and organizational activities could or would be affected, if at all. The answer
then, is not binary (good-bad) but resultant. That is, the answer to the question of what the
challenge of budget management on public hospitals might be is quite simply, direct and
profound. Using this case study as an exemplar, one can, through transference, expect to see
similar results in every similar settings, making it clear that the budget management and public
hospitals activities can be the serious implications of how the budget management model is able
to function.
Generally speaking, we found that this particular study was a satisfactory example of
what we understand to be acceptable for a descriptive article study. Some elements of the study
were disappointing, such as the lack of enough description for background literature, but on the
whole, we enjoyed reading this article. That is not to say, however, that we enjoyed fully the
subject matter.
This study certainly raises some very red flags regarding the possible trends which may
find their way into many public hospitals budget management. To sum up, we are failed to
disagree on the study and the author’s methods of research as well as the above conclusion of the
authors.
References

Schiavo-Campo, S. & Tommasi, D. (1999) Managing Government Expenditure: Published By

the Asian Development Bank, Manila, Philippines

Schick, A., (2007) Contemporary innovations in budgetary theory and practice, Georgia State
University Shah and Von H (2007) Budgeting and Budgetary Institutions, Herndon, USA: -
World

Schick, A., (2007) Contemporary innovations in budgetary theory and practice, Georgia
State University

Van der Waldt, G (Ed.) 2007, Municipal Management: Serving the People. Cape Town, viewed
30 November 2011, <books.google.com/books?isbn=0702171220...>.

Vennekens, A, and Govender, S 2005, ‘Local Government Budget Guide’, IDASA Budge