Components of a Human Resource Budget Human Resources departments are becoming an important part in corporations strategic initiatives by providing tools and budgets that Help executives see the company' goals and forecast the end result, also known as the bottom line. When Human Resource become involved with budgeting, it provides a linkage to the overall success of the organization. Not all HR budgets are the same, depending on the corporation, what falls under the HR budget is to the discretion of the company. According to David DeWetter, consultant with Watson Wyatt, "HR is once of the functions in the in the organization..that doesn't Have complete control over what gets spent". (Http://www.shrm.org/Publications/hrmagazine/EditorialContent/Pages/080agenda_management.aspx). Developing HR budgets can be complicated if the company is new to creating a HR budget. There are three categories tat most HR budgets consist of, internal, operational and organizational budgeting. Internal Budgeting - This type of budgeting determines How much HR will spend during the budget year for various things of payroll to paper clips. Keep in mind, these are items that are billed directly to HR, which is in detail of day - to -day management of each department including HR projects such as compensation survey or succession planning. Operational Budgeting - This type of budgeting includes all expenses that are expense out to business, in other words all their accounts payable. Hiring expenses could include such payable as advertising, testing or travel expenses. For example, if a department of a corporation wanted to Hold a job fair in another city, all expenses acquired will be billed to that particular department, even though it goes through the HR department, it is