This website uses cookies to ensure you have the best experience. Learn more

The Role Of Participation In Budgeting

2190 words - 9 pages

The Role of Participation in Budgeting

Introduction

Although participation in budgeting may enforce the managerial performance, it has constrains and can cause some problems as well. This article analyses the possible advantages and limitations of the role of participation in budget setting. In the next section, the possible merits of budgetary participation are demonstrated. This is followed by a section that explains the equivocation existing in the relationship between budgetary participation and performance. Then, in the following section, some negative effects on the application of participation in budgeting progress are illustrated. The final section is the conclusion of the study.

The Possible Advantages of Budgetary Participation

According to the definition of budgeting, it is the ¡®estimation of all income and expenses for an accounting period or financial forecasting, planning, and controlling¡¯. (http://www.yourwebassistant.net/glossary/b11.htm#budgeting)
Comparing the budget with the real achievement of the company, it is possible to improve the decision-making process for the future development of the enterprise. So budgeting takes a crucial role in management accounting. Therefore, studying how to make budget setting more effective is important for the benefit of the enterprise.
Participation in budgeting is one of the useful approaches. It bears some possible advantages, which may enhance manager¡¯s commitment to budget objectives.
The following discussion (adapted from Lecture notes by Professor S. G. Ogden, 2004) bears the assumption that there is positive relationship between participation and performance. The contradictions will be discussed later in the following sections.
First of all, participation in budget setting can inspire the enthusiasm of the managers. Then they will intend to input more energy and time into the work to meet the budget targets. Because if they are involved in the process of budget setting, they will link it with their own knowledge, experience, and so on to make the judgment. This linkage renders the target of the company to be the participator¡¯s personal target.
Secondly, participation may encourage the creation of the participators. Creation is the characteristic of human beings. However, not everybody at any time has the motivation to create. When the budget is settled, and what the managers and employees have to do is just to meet the budget, they will not care about how to improve the budget, but just focus on how to achieve the seemly pleasing result.
Thirdly, participation in budgeting could improve the communication between the budgetary setters and the participators. In fact, no matter to what extent employees involved into participation, there should be somebody to make the last decision. Then what is the meaning of participation? The answer is better communication. Application of budgetary participation could make the thoughts of the employees and junior managers upward to the...

Find Another Essay On The Role of Participation in Budgeting

Causes of Low Electoral Participation in the United States

805 words - 3 pages Causes of Low Electoral Participation in the United States In any Democracy, voter turnout is important as a measure of how truly democratic the election was, the more people that do vote, the more democratic the election. Yet America one of the largest democratic nations in the world still has a poor turnout. A survey conducted in 1983 concluded that America was twenty third out of twenty four nations in

The Importance of Encouraging Participation in Music Courses

935 words - 4 pages All music credits should count towards graduation to prevent discouraging students from participating. Schools should heavily encourage their students to be involved in fine arts because they have proven mental benefits, improve attendance and graduation rates, and encourage life skills that continue to be an advantage throughout people’s adult lives. Schools should encourage their students to participate in music programs because of the mental

The Importance Of Capital Budgeting

2681 words - 11 pages that any business manager no matter how experienced and learned actively employ these techniques and methods to save his business from potentially going bankrupt or ending up getting mired in any other disaster of the like. http://www.duncanwil.co.uk/invapp.html: “The idea of capital budgeting is to assist managers of organizations make profitable and therefore informed decisions on acquiring and disposing of assets. It is only common sense that

Participation in Urban Planning of China

967 words - 4 pages Participation in urban planning of China Introduction With the development of society and economic, public participation has been a popular topic which attracted people from different fields. On the basic of various theories of urban planning, a great amount of market economy countries have successively established public participation system in the field of urban planning. These successful experiences provide a good guide for China urban

Lacking participation in process of designing open spaces in the center of Molenbeek

992 words - 4 pages , there are a number of problems related to inefficient open spaces and voids although municipal has already tried to enhance open spaces. According to …, sustainable spacing development not only concerns about protecting it but also needs participation of community in order to shape the landscape (9). Therefore, designing open spaces involves the cooperation of various stakeholders, especially locals. Public open space is an important factor and

Voter Participation in the United States

728 words - 3 pages , especially the President. Nevertheless, the amount of citizens that actually vote in nationwide elections has decreased noticeably over the years. Voter participation and turnout has been declining in the United States throughout history. Voter turnout, the percentage of eligible individuals who actually vote (Ginsberg), to this day is lower than it was in the 1900’s. Since 1912, presidential elections have only had about 50 to 65 percent of Americans

Nonprofit Participation in the Public Policy Process

650 words - 3 pages In time of restricted state budgets and cuts in government services to those most in need, nonprofit participation in the public policy process has never been more essential. (cf. Shure 2009: 20) In this sense, NPOs provide public leaders with insights about com-munity interests. Consequently, NPOs hold government accountable to a broad public, present the diverse values reflected in society, and advance issues that are not otherwise addressed

Group Participation in the BEST Robotics Competition

1076 words - 4 pages The BEST Robotics Competition is a fairly new program to be implemented in full at High School. It started last year and has been a source of both exasperation and mirth to the competitors. There are many different aspects of the competition, and the most important of these are the robot and the program. The robot is the main focus of our program for reasons of manpower and time constraints. The robot is subdivided out into many groups and

My Life and Participation in the Church

1237 words - 5 pages “For I know the plans I have for you declares the lord, plans to prosper you and not to harm you, plans to give you a hope and a future.” (Jeremiah 29:11 from the bible) Since day one of my life, my faith is what gets me through each day. I centered my graduation project on something I care most about because I was involved with my church since I was born. Through activities like a spaghetti dinner in February, Easter fellowship the Saturday of

The Pros and Cons of Participative Budgeting

1277 words - 5 pages & Thorne 1998). Participative budgeting may result in slack budgets, but a lack of participation may result in budgets that provide subordinates with inadequate resources to perform well. However padding of the budget can be minimised through negotiation with the subordinate, by treating a budget as a negative evaluative tool, and perhaps even allowing some discretion to exceed budget costs when necessary (Hilton 1994). Participative budgeting

The Practice and Participation of Alternative Medicine

1290 words - 6 pages The practice and participation of alternative medicine or complementary medicine is becoming more and more accepted, accessible, and utilized on a worldwide scale. Some possibilities to explain this are the perception of alternative medications and therapies as being more effective when reversing or treating chronic conditions and having fewer and less harmful or painful side effects as the pharmaceuticals which the majority of doctors

Similar Essays

What Benefits Would Ritz Carlton Have From The Introduction Of Employee Participation In Budgeting?

857 words - 3 pages It has been argued that employee participation in the budgeting process will improve firstly staff motivation and following on from this the quality of budget decisions and the efforts of individuals to achieve their budget targets. This does however largely depend on the culture of the organisation, the personality of the individuals involved and the nature of the task or budget process. Participation budgeting is not right for everyone and all

The Benefits Of Youth Participation In Sports

1603 words - 6 pages Since the creation of man, sports have had a tremendous role in the way people live their lives. From the time we are born, until our elderly age, most of us are involved in some way with sports. Whether it is a scrimmage game of soccer at recess in elementary school, playing on the varsity athletic team or simply watching the Olympics or sporting events on television, sports have an influential role in our everyday lives. The outstanding

Participation Of Women In The Workforce

2280 words - 9 pages Since the late 1970s, the participation of women in the workforce has dramatically changed from women traditionally following their mother’s footsteps to obtaining an independent career of their own. According to Resident Scholar, Christina Hoff Sommers of the Huffington Post, "there are far more women than men in college, and they earn more than fifty-eight percent of [the] college degrees [in the year of 2013]." However, some women in the

The Impact Of Widening Participation Upon Education In This Country

820 words - 3 pages education institutes witha particularly strong commitment to widening participation to build and strengthen theiractivities, by ensuring that they receive sufficient funding to cover the additional costs ofthese and of supporting student success. In 2003-04 the Higher Education FundingCouncil increased the total allocation to institutions for widening participation andprovision for disabled students to $265 million. In 2005-06 they committed $282 million