The Pros And Cons Of Personnel Budgeting

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Budgeting can be defined as a solid process to decide the estimate of revenue and expenditure for the specific time period. This definition of budget serves for all, country, city, state, business or personal matter. It is observed that, each successful company never moves forwards without deploying budget process (Al-Shawabikah, 2000). So, talking about Personnel Budgeting, it is one of the crucial aspects of any business to keep labor or personnel budgeting in the mind at the start and end of the year to maintain or increase productivity and profitability of the business. In fact, it is similar to an operational plan, represented in the financial terms considering income and expenditure’s estimation (Dees & Paul, 2004). Actually, the personnel…show more content…
It is the sensible process by which financial and HR managers decide the direction of the company in terms of profitability and progress purposes (Wildavsky, 1986). In fact, in employees’ budgeting, personnel cost is the biggest cost, a company or business sector incurs to carry out trade functions. Hence, efficient budgeting can be foundation stones for the beginning of any new project or advancing organization by way of smartly plummeting expenditures. In addition, prevailing economic situations globally and domestically, allocation of resources and financial plan, and staffing’s need play a crucial role in determining personnel budgeting. Moreover, while planning and executing personnel budgeting, wages, bonuses, commissions and incentives apart from the employer-paid costs are deliberated by financial committee and managers to devise sound and comprehensive budgeting…show more content…
Spending pressure, patterns and budget areas and so on serve as a starting point on the subject of execution of budget spending. On the other hand, modification takes care of reprogramming, which shifts the financial areas within priority based tasks. Also, increase or decrease in salary, promotional activities, commission, grants, welfare tasks and so on do have a role to play in this category when it comes to the execution of budget spending in the business domains or at an organizational level (Dees & Paul, 2004). In the same way, reporting consists of presentation of the written financial records, published at the different periods. Hence, talking about the personnel budgeting with regard to execution of budget spending, the miscellaneous junctures of the budget execution process, responsible person’s finding, budget’s appositeness, expenditure, and governance and so on are some of the crucial factors, which are considered
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