• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Explain how budgets contribute to planning, control and motivation in an organisation

Extracts from this document...

Introduction

Explain how budgets contribute to planning, control and motivation in an organisation Budgeting is a way in which businesses plan for the future. They show how policies are to be carried out during that time period in order to meet the business objectives. Budgets not only help the business plan for the future they also motivate their employees and help manage the business. Jae K Shim and Joel G Sigel define budgeting as a 'financial plan to control future operations and results. It is expressed in numbers, such as pounds, hours and so on. Budgeting when used effectively is a technique resulting in systematic production management. ...read more.

Middle

Budgeting enables a company to give separate targets for each individual department. Department Mangers delegate the responsibility to their subordinates which means each employee will have their own separate goals to work towards. Managers have to be careful not to set unreasonable goals that employees feel they cannot reach. This will result in employees feeling overworked and will not be motivated by the goals. Managers also have to be cautious not to set targets, which are too easy, as this may cause employees to feel they have nothing to work towards and may not be motivated. Alison Kennedy and David Dugdale (1999, p22-24) argue that studies have shown that 'tight but achievable' budgets normally lead to the best results. ...read more.

Conclusion

The budgets are beneficial to the director/owners of the company as they can monitor the managers in all departments easily as they have discussed the budget with each individual manager and have identified exactly what needs to be done. Therefore it's easy to regulate the work being done to the work that should be being done. In conclusion I feel budgeting is very important to businesses it's not only a way to achieve objectives, it also helps control the company helping to motivate its employees and planning ahead to decrease the problems that the company may face in the future. I also believe companies have to be careful and spend time over the budgets, as an effective budget needs to cover every aspect of the business. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Human Resource Planning.

    An important part of induction will involve an introduction to company regulations and health and safety requirements, etc. The new recruit will usually be given an induction pack that introduces him or her to the organisation. Mentoring Mentoring involves a trainee paired with a more experienced employee.

  2. People' Attitude Towards Work - Investigating motivation and performance.

    In the case where these are not dealt with in a constructive manner, it may give rise to a high level of dissatisfaction at work which may in turn lead to persistent lateness or absenteeism, below average performance and real or imagined illness on the part of workers i.e.

  1. Managing budgets.

    However, the annual budgeting process leads to the refinement of those plans, since managers must produce detailed plans for implementation of the long-range plans. Without the annual budgeting process, the pressures of day-day operating problems may tempt managers to not plan for future operations.

  2. H.R. Planning

    Status Married or re-married 45.1 53.3 50.9 Separated 3.5 2.5 2.4 Divorced 10 8.5 8.2 Widowed 3.8 5.8 8.4 Ethnic Group Crown Wood Bracknell Forest England White 95 95 90.9 of which White Irish 0.9 1 1.3 Mixed 1.3 1.2 1.3 Asian or Asian British 1.8 2 4.6 Indian 1.3

  1. Human Resource Planning.

    Performance monitoring provides information, which is of value for identifying future training or promotion opportunities, and areas where insufficient skills or knowledge could be deemed a threat to an employee's efficiency. Managers exercise control at an individual and organisational level through: * Planning by setting objectives and targets * Establishing

  2. Manpower planning.

    Mining & Quarrying, Supply of Electricity, Gas & Water 187 0.7 Manufacturing industries 3,869 15.2 Construction 1,168 4.6 Wholesales & Retail trade & Repairs 4,508 17.7 Hotels & Restaurants 1,664 6.5 Transport & Storage 1,042 4.1 Post and Telecommunication 539 2.1 Financial Intermediation 1,068 4.2 Real estate 354 1.4 Renting,

  1. Analysis of a Contract Specific Organisation

    above + that scope is covered. B Curriculum vitae of site specific staff (generic are acceptable) including age, qualifications, company status, period of service, relevant experience, and current duties. Action A J Find the Cv of Steve Woolley, Peter little etc etc. Mike Young, Mike Shone etc.

  2. Operational Motivation Plan: The Soft Firm.

    Work-Related Motivating Factors In general, professional personnel respond best to the following motivational factors: * Intrinsic interest of the work itself * Opportunity for professional development * Work that is meaningful and worthwhile * Opportunity to meet challenges and solve problems * Recognition by peers * Equitable, skills-based compensation *

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work