Budgeting Is Useless on Managers Essay

I disagree that budgeting is an unnecessary burden on m each managers to a large outcome. This isbecause budgeting put ups an opportunity to re valuate existing activities and evaluate pertly ones. Compel managers to think ahead and estimates of unit and sales during direct period as well as selling expenses, so as to estimate the internet target. Once the budget is set, region, product groups and/or bankers bill types can break it down. Also, budgeting talks about the optimum profitability in a given period since firms typic solelyy look for profit maximisation in the long term while it seeks sales maximization in the current period.By providing and opportunity to reevaluate existing activities and evaluate new ones, managers are able to get a further understanding of the sales, production, dispersal and finance on their current activities. Hence with the above that they have comprise out they are able to enhance and create new ones. In additional, budgeting compel managers to think ahead as they have to consider factors when anticipation sales. This factors include past patterns of sales, market research studies, advertising and sales promotional material plans, competitors actions and general economics conditions.While considering these factors, managers forget have to do a research studies on the past and present and make a proportion on these and estimate sales in the future. In order for a company to have a good budgeting or performance, manager will need to foresee what will happen in the future and engages its staffs on the budget processing, creating and environment where there is a true two-part flow of information. Example from the top down, the top management gives sales and profit targets to various organization units and unit heads make plans to achieve the objectives.From the bottom up, whole heads and their subordinates team up in the setting of the sales and profit objectives and as well plan to meet them. As from the example abov e, top management is by from the realities in the field but at the same time, juniors may list to understate what they can achieve in the period. However, budgeting takes up too lots time of all managers. As they have to stay focus on their current project and to make sure that is an active participation of all the employees.Reason why the failed to budget can be due to an phantasm in the message conveyed by the budgeting system that maybe misaligned with incentives provided by the stipend system as budgeting is a detailed and comprehensive analysis upon any miscommunications it may result in more time spend by the managers. In conclusion, I do disagree to a large extent that budgeting is an unnecessary burden on many managers as they can provide good analysis while ensuring of all participation of the management be it the employees all the managers despite the risk.