The Role of Modern Management Accounting Methods in Decision-Making: A Field Study in Public and Private Universities in Hadhramaut Governorate

Abstract

This study aimed to identify the extent to which the Balanced Scorecard (BSC) is used in public and private universities and its role in decision-making. It also sought to determine the extent to which budgeting is used in public and private universities and its role in decision-making. The research problem lies in universities incurring costs and expending efforts based on incorrect decisions, as well as neglecting reliance on modern management accounting methods that contribute to and improve the decision-making process.

The study adopted the descriptive–analytical approach as an appropriate method for addressing the research problem. The study population consisted of most public and private universities in Hadhramout Governorate. A questionnaire was used as the data collection instrument, and a purposive sample was selected comprising employees of administrative and financial departments (financial managers, accountants, administrators, and faculty members). The sample size was (120) respondents.

After conducting the appropriate statistical analysis, the study reached a set of results, the most important of which are as follows: the field study showed that the level of availability and application of the Balanced Scorecard in the surveyed universities was high, with an overall mean of (3.94), indicating that universities apply this modern approach. The field study also showed that the level of availability of preparing planning budgets in the surveyed universities was high, with an overall mean of (3.74), indicating that universities apply this approach as well.

Based on these results, a number of recommendations were proposed, most notably: continuing to use and apply the Balanced Scorecard more effectively than at present in administrative decision-making of various types, especially strategic and financial decisions; continuing to use and apply planning budgets more effectively than at present in administrative decision-making of various types, especially strategic and financial decisions; and working to identify deviations, address them, and determine those responsible for them.