A critical evaluation of the role of Budgetting Essay

A critical evaluation of the role of Budgetting - Essay Example results in nothing more than dysfunctional behaviour has initially been proposed by Hope and Fraser (2003) as part of the Beyond Budgeting Round Table (BBRT). This report is a review of relevance of budgeting in contemporary business contexts and an attempt to suggest which one among ‘better budgeting’ or ‘beyond budgeting’ will be effective to the CFO of Halfords Group plc. This report is prepared to submit to the CFO as he asked me to review literatures and prepare a report based on ‘budgeting- lost relevance’ after he participated in a conference that made him concerned about the matter. In finance and accounting, budgeting is a formal plan expressed in monetary terms and is prepared in a current financial year to provide managers and other stakeholders with an estimate of the anticipated costs and revenues for the next financial year (Chandra, Menon and Mishra, 2007, p. 264). Traditionally, budgets served a number of useful purposes such as 1) planning annual business operations, 2) coordinating various activities in the organisation, 3) communicating these plans to various responsibility managers or departments, 4) motivating managers to achieve desired organisational goal, 5) controlling all activities in the firm and 6) evaluating managers’ performance (Drury, 2006, p. 426). Because of that budgeting looks both forward and backward, it identifies resources that the company is likely to generate and the need in its near future to serve as a measure of current and past performance of department and individual managers (Fabozzi and Drake, 2009, p. 334). Why budgeting has been traditionally considered as an effective strategic tool for management accounting was that it was nothing but a plan relating to future and it helped management take various critical decisions pertaining to strategic planning, budgetary planning and operational planning (Walker, 2006, p. 305). Budgeting has also played a very significant role in strategic and operational

Reflective Paper Research Example | Topics and Well Written Essays - 750 words

Reflective - Research Paper Example On the other hand, controlling describes a means of ensuring that organizational performance does not diverge from standards. Controlling it establishes standards of performance, compares real performance against organizational standards and takes necessary corrective actions. Planning as a core management function in Starbucks commercial takes both command groups and self-managed teams in the concept of individual versus group decision making. In Starbucks Company, the human resource department has been planned as a self managed team to set its own goals, develop strategies and outline schedules of evaluating and hiring new employees to supervise delivery and storage of coffee by customers. Starbucks executives are organized as self-managed teams to work in their departments and directly report to the managing director in the main office (Galloway, 1998). The implication of using this concept is that it allows use of group decision-making methods like dialectical inquiry, brainstorming and nominal group technique that improve the process of decision-making in Starbucks Company. Coffee customers are involved in brainstorming groups to verbally suggest good ideas of improving the performance of the company. Organizing, a core management function in O*NET website takes a good organizational culture as a concept to give a detailed work descriptions to the world for workforce development by human resource professionals, researchers, job seekers and students. Managers of O*NET website have put shared principles, values, ways and traditions of job analysis and career exploration to influence the way organizational employees act. The strong organizational culture has influenced the structure of O*NET website in which the major values of the organization are widely shared and deeply held. The implications of organizing a strong organizational culture in O*NET website has attracted high-level employee talent. Talented