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Management Control System - Essay Example

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Management Control System

superiors and subordinates) works together towards a goal. To work together requires every member of the organization to have a direct participation in every plans and actions that will be taken by the organization. Giving each member the right to speak out and express their views towards existing situations will eliminate the gap between superiors and subordinates, and will unite the two separate levels. It gives subordinates a feeling of satisfaction on their job by giving them a chance to play vital roles in administrative planning, thereby motivating them to be more productive on their work. Participative budgeting promotes respect to every member of an organization, thereby tightening working relations in the organization that is a key factor of an organization effort to attain their goals and objectives.
Budget Allocation is not an easy task. A reliable budget proposal comes out from proper analysis of the strategic and operational plans, which are submitted by key people of an organization. These plans are based on the current situation and need of every level of the organization. If each member is given the chance to decide on the expense and income of the organization, it is much easier to formulate more reliable budget plans. The procedure may take time conducting open forums or debates, but it will surely lead to a well-synthesized budget plan. Operational plans will become effective by emphasizing priorities.
Transparency
Corruption is the biggest problem among organization. Through participative budgeting, there will be a clear statement of the allocation of resources, expenses, and transparent administrative procedures of how the plans are formed. Those who are in-charge of budget monitoring will be more accountable of their action to avoid mishandling of funds.
Goal Congruence and Responsible Management
Managers and members of an organization become more responsible for their departments as watchers of action plans, and budget analysts. Subordinate managers who are in direct control of everyday operation and who have direct knowledge of the every situation could enhance the planning process. By giving the subordinate managers to create their own budget, it opens the chance to subordinate managers to create a budget that would meet their department's goal resulting to higher degree of goal congruence.
Complexity in the budget could be minimized when every member of the organization work together to provide alternative solutions to problems.

2. Identify deficiencies in Scott Weidner's participative budgetary policy for planning and performance evaluation purposes. For each deficiency identified, recommend how the deficiency can be corrected.
Deficiencies
1. Appropriation of target figure is done by superiors. Managers are not allowed to participate in setting the appropriation target figure.
Recommendation:
Managers should be given the chance to participate in setting up the appropriation target. Managers are the one who knows the actual needs of their department, so they should be given the right to propose or give input for the setting up of the appropriation ...Show more

Summary

Participative Budgeting is a situation in which the population is given the right to participate in the formulation of plans, determining priorities, and other administrative procedures. The population, through an open forum or meeting, will define and decide on amounts of income and expense, where and when to invest, which are the priorities and which are the plans and actions to be developed or be performed.
Author : bbarrows
Management Control System essay example
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