Who of the following developed the PPBS (a budgeting method) ?
R.S. McNamara
Understanding PPBS Development
PPBS stands for the Planning, Programming, Budgeting System. It's a structured method used primarily in government and large organizations to allocate resources more effectively by aligning budgets with specific goals and analyzing the costs and benefits of different programs over the long term.
Identifying the PPBS Developer
The question asks to identify who developed the PPBS budgeting method. Based on significant contributions and implementation, R.S. McNamara is widely associated with the development and popularization of PPBS, particularly within the context of U.S. government administration.
Robert McNamara, during his time as the U.S. Secretary of Defense in the 1960s, played a crucial role in implementing and refining the Planning, Programming, Budgeting System. The system was introduced to bring a more analytical and systematic approach to defense budgeting and planning.
Key aspects of PPBS implementation under McNamara included:
- Defining clear national objectives.
- Analyzing various program alternatives to achieve these objectives.
- Evaluating the costs and expected benefits of each program over several years.
- Making budget decisions based on this comprehensive analysis.
Contextualizing Other Contributors
While R.S. McNamara is linked to the system's significant governmental implementation, it's useful to understand the roles of others mentioned:
- Peter Phyrr: Often credited with developing the term "PPBS" and its initial application in the private sector, particularly at General Electric, before its adoption by the government.
- Henry Fayol: A pioneer in management theory, known for his 14 principles of management and theories on the functions of management (planning, organizing, commanding, coordinating, controlling), but not specifically for developing PPBS.
- F. W. Taylor: Known as the father of scientific management, he focused on improving operational efficiency and productivity through time-and-motion studies, rather than budget system development.
Given the options and the common understanding of PPBS's impact on public sector budgeting, R.S. McNamara is recognized for his pivotal role in its development and large-scale application, making him the correct answer in this context.
Important Questions from Financial Management
Indicate the correct combination of the financial decisions from the following:
(i) Investment decisions
(ii) Financing decisions
(iii) Pricing decisions
(iv) Liquidity management decisions
(v) Dividend decisions
Choose the correct answer from the code given below:
Indicate the correct code for the following types of decisions to be incorporated within financial decisions.
(a) Investment decisions
(b) Financing decisions
(c) Pricing decisions
(d) Profit distribution decisions
Code:
Match the items of List-II with the items of List-I and select the correct matching.
List-I
List-II
(a) Liquidity Risk (i) Refers to the chance that the firm will be unable to recover its dues from its debtors. (b) Financial Risk (ii) Refers to the possibility of adverse effect on firm’s assets, liabilities and income due to movement of interest rates. (c) Exchange Risk (iii) Refers to the firm’s inability to pay its dues towards creditors. (d) Default Risk (iv) Refers to the inability of the firm to meet its financial obligations on time owing to non-availability of ready cash.
Codes:Which one of the following is related to control function of the financial manager?
Identify the correct sequence of steps involved in decision making for change of technology.
A. Conducting initial comparisons of alternative technologies.
B. Evaluating the state of present technology.
C. Listing down the probable post implementation issues.
D. Financial feasibility analysis of proposed technology.
E. Identifying the learning requirements.
Choose the correct answer from the options given below:
