An action research proposal on improving the cash management of shining stars transport service

• Main Author: Barro,, Eleazar S.
• Format: text
• Published: Animo Repository 2018
• Subjects: Cash management; Transportation; Family-owned business enterprises; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/7076
• Institution: De La Salle University

The action research aimed to address the lack of cash management practices in our family business, Shining Stars Transport Service. Establishment of good cash management procedures in handling the income of the family business from its passenger transport operation is the goal in the first cycle of the action research. The agreed cash management practices are in response to the observed deficiencies in our family business with regard to handling of finances. Through joint or collaborative constructing of the issue, planning of action and using various cash flow management principles, the composing family members agreed on the creation of cash journal in excel format that will serve as record of the income from the passenger transport operation of the family business. The report was designed to generate summary of the cash-on-hand at the end of the daily operation, which are then analyzed by the family members in making decision for the family business. The agreed intervention in the first cycle of this action research plays important role in helping the family manage the family business income to support in defraying or paying- off the fixed monthly expense of the family. After summarizing and analyzing the overall monthly income of the family business, the information was used by the composing family members to introduce a rewards or incentives program to encourage the relative family drivers to meet the weekly remittance target determined by the composing family members. The rewards program was designed on a win-win manner by granting incentives to the relative family drivers in meeting the target while at the same time helping the family business support the family members through increased remittance that will be used to pay the fixed monthly expense. This action research opened opportunity to the composing family members to be responsible in managing the finances of the family business and be committed in making the planned and implemented interventions sustainable. Finally, considering that the planned interventions in this action research entail change, fostering commitment to the planned changes was managed by using the Bottom-up change management introduced by Beer et. al.