Public Budgeting Essay
Money and time are some of the scarce resources to organizations, thus the need to engage them in effective and efficient resource planning. Another resource management factor is control processes that help execute the budgeting plans. According to Lu and Willoughby (2021), budget refers to managers’ tool to control and plan how organizations utilize scarce resources. Hence, the budget enables the organizations to outline their objectives and ways the organizations can use and acquire resources to attain the objectives. Hence, the paper will explain the budgeting principles and compare and contrast public budgeting control, management, and planning orientations. Also, the paper will summarize the budgeting principles purpose.
Principles of Budgeting Introduction
The principles of budgeting include control, management, and planning. Lu and Willoughby (2018) state that the budgetary control system incorporates factors like engaging standards to control and coordinate the budget process. Also, the control principle involves measuring and recording current financial performance while comparing budgeted and actual results. Budget management refers to tracking and managing the process of expenses and income in an organization. The management may take place in various departments, including the overall company. Therefore, departmental managers always acknowledge their responsibility in managing their particular departmental budget, unlike the overall organizational manager, who has to liaise with the overall organizational managers to budget accurately to meet the organizational objectives and goals. However, budgetary planning involves budget construction and using such a budget to control the business operations. Mainly, budgetary planning’s main purpose concerns risk mitigation on factors that can lead the organization’s financial results to deteriorate
Compare Public Budgeting Control, Management, And Planning Orientations
Most organizational managers familiar with accounting strongly criticize budgets, claiming that they consume a lot of time and effort due to these budgets’ unreliable estimations. However, budgets are excellent communication tools that enable managers to point out the most effective financial and operational objectives within the periods (Valdiansyah & Augustine, 2021). Therefore, the control, management, and planning orientations are essential in communicating an organization’s budget middle and upper management expectations. That is because these orientations rely on each other to make successful and informed budget decisions. Hence, since most top management requires managers to engage in transparent transactions of money and resources, control, planning, and management will be essential to ensure that they meet their employer’s expectations. The other comparison concerning control, management, and planning orientations is that they help the healthcare managers outline the organizational priorities to the junior employees. For instance, depending on the allocated funds, the manager has to engage the employees to creatively define the most effective way to utilize these funds and successfully achieve the set objectives and goals (Valdiansyah & Augustine, 2021). In such a case, the manager is set to possess the authority to disseminate funds depending on the budget that helps the organization set internal prices for various commodities, thus aiding in performance evaluation. Hence, if a department does not perform according to the expectations, the managers can evaluate if the budget has anything to do with it through proper control, management, and planning.
Contrast Public Budgeting Control, Management, And Planning Orientations
Budget management mainly relies on budgetary planning that helps organization managers develop programs, make basic policies, and set objectives and goals for organizational success. Organization managers execute budgets to highlight the financial implications, define the required resources in achieving the plans and provide measuring means, including controlling the obtained results concerning the organizational plans (Valdiansyah & Augustine, 2021). Therefore, the main difference between budget control and planning functions is that budget control applies the actual results and performance feedback while measuring the budget deviation from the stated policies and plans. On the other hand, budgeting is a crucial factor in planning in every organization since it gives a framework that enables the management to develop an action plan that helps estimate future costs and revenues. Also, Plode et al. (2021) accentuate that budget planning helps organization managers to evaluate and predict the organization’s sustainability, thus reducing future uncertainties and making it easier for the organizations to achieve their objectives and goals successfully (Alsharari, 2019). For example, suppose the manager wants to implement a certain technology to increase the organization’s productivity. In that case, the managers have to assess the number of resources available and how they can leverage their use to attain the required technology including the effectiveness of the technology to the organization in terms of short and long-term goals (Podler et al., 2020).
Budgeting Principles Purpose Summary
The overall budgeting principle’s purpose is to plan, coordinate and control various business operations phases and departments to achieve an organization’s overall success. That is because budgeting in an organization aims at evaluating an organization’s interaction with production costs and various expenses that helps in earning desired income amount and minimizing loss occurrence (Alsharari, 2019). Also, through the budgeting principles, the organizations can easily evaluate different risks that may derail that may impact the organization’s future, including ways to attain more funds to satisfy the organization’s needs, thus making the organization remain solvent.
Budgeting is an important factor in every organization since it helps these organizations to leverage their time and resources. Hence, the main factors to consider are the budgeting principles which include control, management, and control orientations. Through these principles, healthcare organizations can easily make informed decisions on allocating funds according to departmental needs. Also, these principles are essential since they help the organizational managers evaluate the risks and benefits that different activities and projects pose to the organization and how to mitigate them. Hence, healthcare management should always use appropriate control, planning, and management criteria in budgeting.
Alsharari, N. M. (2019). Accounting changes and beyond budgeting principles (BBP) in the public sector: institutional isomorphism. International journal of public sector management. 33(2), 165-189. https://doi.org/10.1108/IJPSM-10-2018-0217
Lu, E. Y., & Willoughby, K. (2018). Public performance budgeting: Principles and practice. Routledge.
Ploder, C., Dilger, T., & Bernsteiner, R. (2020). A Framework to Combine Corporate Budgeting with Agile Project Management. In Software Engineering (Workshops). http://ceur-ws.org/Vol-2581/aesp2020paper4.pdf
Valdiansyah, R. H., & Augustine, Y. (2021). Modelling of beyond budgeting, competitor accounting, transparency, competitive advantage, and organizational performance: The case of Indonesia SMEs. Technium Soc. Sci. J., 22, 334. https://doi.org/10.47577/tssj.v22i1.4333
Write a short paper comparing and contrasting the control, management, and planning orientations of public budgeting.
Explain a brief introduction of the principles (control, management, planning) of budgeting
Compare control, management, and planning orientations of public budgeting
Contrast control, management, and planning orientations of public budgeting
Summarize the purpose of the budgeting principles
In addition to fulfilling the specifics of the assignment, a successful paper must also meet the following criteria:
Length should be 2-3 pages, excluding cover page and references, in 10-12 point font (Arial, Courier, and Times New Roman are acceptable).
Assignment should follow the conventions of Standard English (correct grammar, punctuation, etc.).
Writing should be well ordered, logical, and unified, as well as original and insightful.
Your work should display superior content, organization, style, and mechanics.
Appropriate citation style should be followed.