An effective budget converts the goals and objectives of an organization into data. The budget serves as a blueprint for management’s plans. The budget is also the basis for control. Management performance can be evaluated by comparing actual results with the budget.
Thus, creating the budget is essential for the successful operation of an organization. Finding the resources to implement the budget—that is, moving from a starting point to the ultimate goal—requires the extensive use of human resources. How managers perceive their roles in the process of budgeting is important to the successful use of the budget as an effective tool for planning, communicating, and controlling. Communications plays an important role in the budgetary process whether a participative or an imposed budgetary approach is used.
Discuss the behavioral implications from a Judeo Christian perspective of planning and control when a company’s management employs:
an imposed budgetary approach, and a participative budgetary approach.
Discuss the differences in behavioral implications between communication flows in these two budgetary approaches.
Complete initial post (400 words or more) and at least one response (200 words or more) in the discussion forum (see attached rubric). Your initial post is due by the end of Day 5, and your response to a peer is due by the end of Day 7.