HR Management essay on: Budgeting & planning for an organization

IntroductionThis essay offers the brief description about the budgeting and claims that the budgeting is the fundamental component in the management long term and short term planning. It can be said that the budgeting reveals good judgment of the business and the examination of the past trends and the data relevant to the business (Bogsnes, 2009). In general, budgeting is time consuming and costly for small business but on the other side, it provides a broad variety of benefits including the increased cost awareness, coordination of efforts towards the objectives of the Organization, increased communication and the structure for the performance evaluation. In budgeting, the company devises both short term and long term plans to assist implement its policies and strategies and conduct constant evaluation of the performance (Hope & Fraser, 2003). It is evaluated that the budget executed a very significant function in the procedure of the business planning. Creating all business planning includes the resources, capital, enhance the profit and minimize the liabilities with the help of accurate budget planning. In, fact creation of the accurate budget on the right time shall indicate the performance of business solution management and good teams.In simple words, budgeting is all about helping the Organization to make plans for the future time. The perspective behind the profitable commercial organization prevails in implementing resources for exploiting various opportunities of the business. If gains of the Company are reliable and consistent, then in that situation the Company may buy more assets and diversify its base of the wealth (Smith, 2007). To do this efficiently, the organization takes the process of the budgeting for analyzing the opportunities of the business available to it. The Company must plan its long term strategy which describes its whole effort in creation of market share, minimizing cost and increasing revenues. The Company must also plan short term strategy for enhancing the gains, controlling of costs and procedures of control for creating alterations in policies and strategies wherever it is essential. The Company decides its long term objectives and mentions its short period plans in terms that explain how it estimates to achieve its objectives. It is very clear that budgeting is primarily concerned with the planning and controlling functions of the management. Management has several variables which it can control. Some of these variables might be financial resources, human resources, products and production methods (Drucy, 2004). Planning involves making presumptions and estimations about the external surrounding of the Company which is uncontrollable. The planning stage of the budgeting involves work which must be done in last half year preceding the budget year to provide the structure for the preparation of the budget. The failure and success of the budget plan depends upon CEO level of the involvement. It is analyzed that long period plan investigates obstacles, turning points and opportunities as they relate to the capital expenditure, operations and long term financing (Hope & Fraser, 2003) . Normally, long period plan is recorded in financial plan and related reports. In, fact most of the management has investigated that it is not sufficient to experience obstacles on daily and yearly basis, they must think to estimate 5 years in advance. Numerous regions might be explored through long term planning like developing of the organization objectives and mission, form sound planning throughout the organization, form procedures for evaluating performance of the planning and examine path for accepting new information technology.Conclusion

At last, it is concluded that the budgeting process has various functions in the projects of the Company. This could be from the perception of planning, resource allocation and controlling. The function which the effective budgeting executes in the business management is better recognized when effective budgeting is related to the fundamentals of the management. It can be said that when budgeting is done adequately, it may serve as the planning and controlling system. At last, it could be stated that budgeting assists the long term planning to investigate the obstacles and opportunities as they relate to the capital expenditure, operations and long term financing. In last, I agree with the statement that budgeting is a basic component in management long term and short term planning because it helps in formation of strategies and policies within the organization.

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