Budgetary Planning Essay Example | Topics and Well Written Essays - 500 words

Budgetary Planning - Essay Example In the meantime, if the employees find it difficult to attain the targets then it might instead be de-motivating for them (University of Gothenburg. â€Å"Budget-A Perfect Management Tool†). Organizations can allocate certain percentage of budget in order to motivate the employees when they are performing well in an organization. For instance, the company can arrange for travel program for the sales support team that attains the target on a stipulated period of time. In such cases, the company will bear the complete expenses of the employees sent for travelling along with the family (University of Gothenburg. â€Å"Budget-A Perfect Management Tool†). Such kind of budgets can assist in motivating the employee to a great extent and thus can assist the organization to attain its objectives within a short period of time. It is to be remembered that such budgets help to augment the performance of the employees and thus increase their productivity as well. Budget is one of the significant sources of motivation for the employees. Hence, it is crucial for an organization to plan budgets in a way so that it can be utilized for the purpose of motivating the employees. It is to be remembered by the employers that the budgets will have no motivational effects unless they are accepted by the managers involved as their own personal target. In such circumstances, the employer needs to make the managers involvement compulsory in such activities. It is a well known fact that the demanding budgets are seen as more applicable in comparison to less difficult targets. However, negative attitudes can result in if they are viewed as too complex. Therefore, in such circumstances, allocation of budget needs to be done properly so that it serves as a motivational tool. Acceptance of budgets is facilitated when good upward communication exists. The use of departmental meetings can be quite helpful in encouraging the managers to accept