The Role of Budgeting in Management Planning and Control Essay
The Role of Budgeting in Management Planning and Control
One aspect where managing resources will need to be used is for employees and staff as they will need to be able to do the job correctly and to customer satisfaction. For example they will need skills and qualities, which will be needed within the job that they are currently doing. This is because they will need to perform the job to the best of their ability. For example these shills would need to include; good communication skills, they would need to have good knowledge of the business so that they are able to help customers and they would also need to have good teamwork sills. If the employee did not have the correct skills for the job then the business could spend lots of money on this, which would be bad for controlling a budget as the business should have hired someone that is able to do the job correctly, who needs a minimum of training. For example this training could include necessary training for when things change within the business.
The employee will also need to fit the criteria to fit the job required, as these are the tasks that the employee will need to be preformed within the job correctly on a daily bases. From this the employee should be able to; show initiative towards customers, when they are looking at properties. The employee should also be organised, be able to give instructions and communicate to other members of staff and customers. The employee should also have knowledge and IT skills to help customers.
Employees should also be able to answer general questions and do paper work effectively. From employees being able to do all of these requirements the business will be very successful and they will help to manage resources within controlling a budget. Whereas if the business controls its staff well then this could save the business money as they would not need to spend as much money on training of their staff and this will help to increase the business probability. Also as the business will save money they will be able use the money that they have saved for other aspects of the business that could need to be improved or needed more money.
Technology resources are another aspect needed within a business when managing resources within controlling a budget. This is because the business
will need to have the right equipment. This will need to be controlled within the business budget as equipment can be expensive as the business will chose to buy the best equipment, as the business needed these in order to keep the business working in order and effectively. As the business has and uses CCTV cameras this lets workers be able to work in a safe environment. This business also uses physical resources that are available to this business organisation in the form of buildings and other machineries needed for the day to day running of the business. In order to do this, the business would use its physical resources for any refurbishment that could need to be sorted out within the business.
This could include refurbishment around and within the building of the business, for example if the building needed to be refurbished or needs to be a safer working environment for staff. Whereas if the business has the equipment that it needed in order to be successful and the equipment was long lasting then this means that the business would have more opportunity to save money as they would have the equipment that they need and providing this equipment didn’t breakdown all of the time and was in good working order then this could benefit the business. Also the business could need to have a controlled cost for the employees that might need to come into the business when electronics need fixing, for example; it technicians, plumbers and electricians. So some money would need to come out of the business to pay for these.
Having control of how much the business spends is another resource that will need to be managed. The cost that a business spends need to be controlled this is so that the business has enough money to pay for things. For example; bills, wages /salaries, equipment, consumables, other costs, parts and components. These are all things that a business needs in order to make a business successful and work effectively. Therefore without paying for these things then the business would be nonexistent or would not be able to work as well as it should. Whereas if the business controlled how much money it spent then this would be beneficial to the business as they would be able to spend money as well as save money which would increases business profitability.
Also to prevent overspending in the business budget the business should make a budget so that they are aware of the amount of money that they spend and so that they are able to stay within that budget. For example the table below is an example of Tony’s budget in January. It shows the overall the prices that Tony has predicted to the actual costs and from this the prices that he has predicted should be around the prices that he actually spends in order to have a controlled budget and to help to keep his company on track with his budgets so that he does not overspend which will also help with the success of the company in the future. So when business are trying to control and monitor their budgets they should have a table like this so that they are able to keep within the budget that they have made and know what they are spending their money on.
Overall the Business can improve controlling a budget through managing its resources as this will help to improve profitability of the business and the business will be successful. However If the managing resources and costs were not controlled then the business would be more likely to fail and loose its profit as the business will not know how much profit they have made and how much of their costs that they have overspent by.
The budgets then need to be adjusted after they carry out a variance analysis to make sure that all of the costs have been correctly worked out so there is the correct amount of money spent. As there are many Problems for this business as they did not have money, such as their business would be non-existent. Also many employees would lose their jobs within the company, which could have a bad effect on the employee, for example; if the employee was unable to find a new job or was unable to afford their living, so in order to prevent this there needs to be a controlled budget.
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 21 October 2016
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