Budgeting and Management of Organization - Essay Example

The research covers a lot of advantages of budgeting and how it helps an organization to increase its effectiveness and efficiency using budgeting. This research provides knowledge and the importance of budgeting in practical life. The disadvantages of budgeting are also covered in detail providing the drawbacks and flaws in budgeting. This research provides information and scenarios when budgeting should be used and when it should be ignored under the given situation.

According to my view, the part that the research failed to address well as the other management tools and techniques that could be used by the company instead of budgeting. Too much emphasis is laid on budgets whereas, companies are shifting from budgeting to other tools to monitor performance and accomplishment of goals and objectives such as balanced scorecards and beyond budgeting. Other tools are not described in detail making budgets look superior to other tools. This research provides extensive knowledge of budgeting but this research somehow is overlooking the disadvantages of budgeting. The substitute management tools of budgets are limited making the research vague. Forecasting, balanced scorecards, and beyond budgeting are some of the most used techniques around the world but this research failed to cover the importance of these tools. This research covers only one organization and based on information from this organization, this research is determining the importance of budgeting. Other companies should also be examined to rectify the importance of budgeting and how effective are other management tools for other companies.

Overall it was an interesting and learning experience. For the literature review, I had to surf the internet for articles and previous researches to begin my work with. This was an easy task as all the relevant information that I needed was already available on the internet from different sources. I just had to pick information from authentic sources. Finding articles regarding the topic was also an easy task as there was much about it on the internet. The difficulty that I faced was in the literature review process, it was consuming too much time. The information on budgets was vast and I had to choose only information that was relevant to my research. Reading the articles was the best part. Articles regarding the method and importance of budgeting in companies provided me with a lot of exposure. After reading those articles I learned the importance of budgeting in real life. To understand more about the concept of budgeting, I had to borrow some books from the library and went through them to provide me with additional and up-to-date information. What I basically wanted to know through this research was that how could budgets help companies to improve their performance and the methods used by the companies to do so. The process of literature review took the most of my time as information regarding the topic had to be covered in detail to provide the importance of budgets in the company.

The experience related to data collection and data analysis was tiring and more difficult than I assumed. The data was collected from secondary sources that included articles and previous researches that were conducted on budgeting. The primary data was collected through interviews with managers of different departments of the organization. It was difficult to gather information from the managers of different departments of the organization. It consumed a lot of time as the respondents that were selected to gather information from were busy most of the time. Due to their busy schedule, appointments for interviews were constantly delayed. They did not even receive calls most of the time due to which I personally had to visit their offices for appointments. Another constraint that I had to face was that they were busy at the appointed time for an interview. Time constraint was another drawback for my research. I had limited time making it impossible for me to gain information regarding the topic. I had to limit my questions and had to focus on important objectives first. Limited by the time, only a few questions were answered and I had to make another appointment to get relevant information. As this research is focused only on one organization, so I had to gain the most information from these managers.  But what I learned from this research was that each department’s manager has distinct views about budgets. Some consider using such management tools as obsolete while others consider it an important tool that could be used to provide guidelines to the department.

To reflect on the work undertaken, I would like to say that this research provided me with extensive knowledge regarding budgets and their importance in the company’s performance. This research provided me with the knowledge that how budgets could be helpful in providing guidelines to different departments of organizations. This research could be helpful in the practical life for companies to accomplish goals and objectives. But this research failed to provide information regarding other management tools that are widely used for the changing environment. Other management tools may include performance indicators, forecasting, balanced scorecards, and beyond budgeting. These are the tools that are mostly used by companies but information regarding these management tools in the research is comparatively less than budgeting.