Who needs Budget?
In today’s vast and expensive world in order to survive it has become very vital to have some savings especially to meet the needs on the rainy day. In order to do so it is important that every individual, family, small scale business or large scale business needs to budget their earnings or there inherits so as to meet the needs in future, or to expand and grow or to prosper. Every company or firm should have a budgeting system where the company plans to meet all the departments monetary needs, it is a great tool to provide incentives to get the employee work harder and exceeds to meet the deliverables.
Every department in the ...view middle of the document...
A budget provides a guideline to the actual performance and it can be judged very easily. It is always a good starting point for a performance appraisal
In the article it is mentioned that budgeting should be admonished, there are many reasons to It, first and foremost is that the budget is always fluctuating, the actual budget is always different from the forecasted budgets. It involves a lot of time and energy, managers would spend lot their time wasting to budget a project. There could be wrong practice adapted to order to meet the appraisals. Use of budget can force a performance to a break down in corporate ethics. Budget could also force a person to work under pressure and in lieu of making a product in the stipulated budget the end product may be tweaked and may not be made to the consumers requirement or satisfaction, and when this happens the whole process has to be revised which would cost more time, labor, material and again a new budget.
Doing this assignment I have realized what a budget can do in the business world, where it has its own advantages it also takes out some of most ethical values from the firm. If not budget there are many other goals what most of the corporate sectors are adapting to meet there goals. Instead of just meeting the internal financial targets companies are using other strategies where every department is valued on basis of performance which compares against their own co-workers. Companies using such a technique have gained more successes and have accelerated in performance keeping both the costumers and employees happy.