Budgets and Employee Morale
Name
Institution
Budgets and employee morale are related in many ways. For instance, by including employees in the process of forming budgets, the organization effectively allows them to have a stake in the goals and targets of the budget. Also acquiring an agreement from all the employees for the budget before it is completed is important. Simply put, seeking an agreement with various employees such as the supervisors, general staff, and management allows the company to hold them accountable for any successes and failures.
The budget can also be incorporated to achieve the goals of the company through various methods. For instance, the budget allows the business to develop and utilize the financial plans to keep track of various factors such as expenses and incomes. The budgets can also play an important role in projecting revenues, identifying potential challenges and opportunities as the operations of the business increase. The business can then come up with the appropriate operational adjustments which can help in maintaining the ideal financial stability. Furthermore, the budget also allows the business to demonstrate to potential investors or lenders about the capabilities of the given business
Indeed the budgets of the company were implemented correctly and in relation to the needs of the organization. While some aspects of the budget were not consistent, the overall implementation of the budget was considered effective. The lack of consistency in the budget was largely attributed to increased volatility in the consumer market. In fact, various aspects such as the variable and fixed expenses of the company were addressed on time. Besides that, the company also did well to incorporate the employees in the budget formation process. By including the employees in the budget formation process, the organization was able to improve employee productivity and motivation.