Presentation of an Operational Budgeting Model in Crisis Management

Subject Areas : Agriculture Marketing and Commercialization

Shohrehosadat KarimiJahromi ¹ , Mohammad Sharif Malekzadeh ² , Abbas Saleh Ardestani ³

1 - Department Administration Education, Central Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Department, Public Administration Education, Central Tehran Branch, Islamic Azad University, Tehran, Iran,
3 - Department Public Administration Education, Central Tehran Branch, Islamic Azad University, Tehran, Iran,

Received: 2019-11-25 Accepted : 2020-05-25 Published : 2020-07-01

Keywords: Operational Budgeting, budget, Crisis, crisis management,

Abstract :

Important decisions are always the imperatives of the crisis in the first moments. The speed of crisis control is higher, whatever the speed of decision-making be more by crisis management. Since each country is exposed to different crises, and Iran is also one of these countries, the objective of this investigation is to design a budgeting model for crisis management. In the present study, a questionnaire with 37 items was designed based on the research background to identify crisis management and operational budgeting criteria. The statistical population of this study has been developed from 100 industry experts and professors in crisis management and 100 experts in operational budgeting. The final population of the research is used to determine the credibility of the combined model, including all ministries and government agencies in the context of budgeting and crisis management; this population consists of approximately 250 specialists selected from 85 specialists for exploratory factor analysis by principal components analysis and factor ranking. Also, 150 people are selected for the final fitting of the model. Smart Partial Least Squares (PLS) structural equation software was used in this research. The results revealed that the severity of the effect of pre-crisis and post-crisis criteria was respectively calculated to be 0.496 and 0.416 on operational budgeting, and 0.328, and the test probability statistic was higher than the critical value t at the error level of 5% namely 1.96. Consequently, all three criteria possess a positive and significant effect on operational budgeting with 95% confidence. By studying the fitting of the model, it was determined that the subscription indicators and the redundancy indicator are positive and acceptable, and the GOF indicator was obtained to be 0.486, which is an important indicator and presents the overall validity of the model.