[Get Solution] Managers and Employees

Strategy, plans, and budgets have a significant impact on each other and I disagree that they are unrelated. Datar and Rajan (2014) define budget as “the quantitative expression of a proposed plan of action by management for a specified period and an aid to coordinating what needs to be done to implement that plan” [Slide 5]. Budgets can change how plans and strategies are created and implemented and vice versa. When a manager and business budget, it will help them in evaluating how well their strategies and plans are doing. When budgeting occurs, general and broad plans for a business become more specific and action-oriented. “The strategic plan lays out the direction and goals of the business and guidelines for actions to achieve those goals, while the budget looks at the money needed to support achieving those goals” (Wiley, n.d., para 1). For some, budgeting may be a “section” of the strategic planning and plays a role in the bigger picture. Budgeting has advantages including [Slide 13]:· Promoting coordination and communication among subunits within company· Provides framework for judging performance· Motivates managers and employeesA manager’s decisions and choices on the type of responsibility center greatly affects the behavior of employees. First off, responsibility centers are “a part, segment, or subunit of an organization whose manager is accountable for a specified set of activities” (Datar and Rajan, 2014, p. 505). When a manager is in charge of one of the four centers such as cost, it will impact how employees perform and behave. As a manager is required to budget, less time, resources, and pay may go to their employees. A manager may take out the frustration on employees through possibly laying off employees, yelling at them, or degrading their pay. Also, when company performance is not at an expected level, a manager may have to work their employees harder or longer. It is important that managers are able to budget at an efficient level so that employees are impacted positively and the company is benefiting from the budget and strategic planning.Jensen (n.d.) provides an explanation on the influence of budget on employees which can possibly include producing teamwork, competition, fear, and resentment.***half page two references


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