Human Resources Management (HRM)

Consider the 10 steps to creating, implementing, and managing an annual organization-wide operating budget outlined by Dropkin, Halpin and LaTouche (2007) in Chapter 12. Identify the two steps that you think will be most difficult for you and provide support for your choices? Which of these steps do you think will be the easiest for you? Select one and explain your decision making rationale? Your initial post should be at least 300 words. Respond to at least two of your classmates’ posts by Day 7.

ANSWER

Developing Organization-Wide Operating Budgets

A ten-step process is used to design, execute, and maintain a yearly, organization-wide functioning budget made up of a particular program or unit working financial plan. The first five measures will formulate the organization for the yearly financial arrangements process, while the last five will walk you through it. This chapter is often characterized as taking a more in-depth look at the specific aspect of budgeting covered in the previous step (Dropkin et al., 2011). Participants in the budget preparation may use any or parts of these steps, tailoring the in-phase activities and tasks to their institution’s unique needs.

1. Five Steps to Prepare for the Annual Budgeting Process
2. Decide on a budgeting plan (board, CEO, CFO). The CEO, CFO, and board of directors should select a budget development model that best suits their company’s framework, budget development timeline, development plan, and management style.
3. Establish budget targets and recommendations for the next year (board, CEO, CFO).

• Make a budgeting schedule for the year (CFO).

1. Generate budgeting forms, supplies, and procedures (CFO).
2. Inform managers about the budget preparation and priorities (CFO, finance staff).
3. Five Steps to Create Annual Budgets
4. Create draft budgets for programs and units (managers)
5. Examine and review any draft program or unit budgets (CFO).

• Develop and implement a budget proposal to the committee (CFO, CEO).

1. Go over the final budget, revise it, and authorize it (board)
2. Put the strategy into action, track it, and make changes as needed (CFO, finance staff, managers).

The two steps that will be most difficult for providing support for my choices are establishing budget targets and recommendations for the next year (board, CEO, CFO) and selecting a budgeting strategy (board, CEO, CFO) (Dropkin et al., 2011). Inform managers about the budget preparation and priorities is the most straightforward step for supporting my business choices. I choose to maximize my skills and knowledge of whatever research I have done during the selection process. Also, this choice minimizes costs and provides full and perfect information during orienting.

References

Dropkin, M., Halpin, J., & La Touche, B. (2011). The budget-building book for nonprofits: A step-by-step guide for managers and boards (Vol. 5). John Wiley & Sons, (pp. 55-57).