The budgeting process is very crucial as it can be used to motivate employees or inadvertently it become detrimental to employee morale which is discussed in the upcoming paragraph.
The budget sets the path by setting priorities and targets and then assigns responsibility for the accomplishment of these targets. Employees know what their work and department expect of them. The plans for the budget motivate workers to cooperate and make their contributions.
Unfortunately, some workers have responded to thinking about their work when time is on the budget. The performance evaluations of staff typically take place year-round according to the annual hiring date. The budget finished concurrently in the year, typically in the autumn of next year. If employee cuts are required, it's done during the budgeting period.
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