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HR Planning and Budget Approval
Budget is the basis of human resource planning. A budget is a plan for controlling the use of funds over a period of time. HRP should be done within the limits of the budget. There is no use in formulating an excellent plan which cannot be implemented because of financial constraints.

Managing a human resources department involves budget planning and execution like any other company department. Budget is the basis of human resource planning. HRP should be done within the limits of the budget. There is no use in formulating an excellent plan which cannot be implemented because of financial constraints. HR Budgeting is a powerful financial tool that can estimate the expenditures made by the HR vertical. This strengthens and allows the HR to control the cost rather than letting it control the HR initiative. The budget is drawn parallel to the goals of the organisation. If the organisation expands and requires to register a double digit growth in terms of its strength, it percolate to apportion funds in different areas including recruitment, retention, up-skilling, global mobility management, etc. The allocation of funds would be governed by the HR Strategies. The decision-makers in an organisation remain the main players to approve the budget. The recommendations and inputs are taken from different sources including operation, marketing, logistics and every other vertical within the organisation. Macro areas including employee retention, recruitment and training and micro areas including programmes designed for incremental benefits are all mapped into one complete budgeting programme. It can be zero-based budget with no reference to last year’s expense.

The organisation plan is drawn and the HR strategy gets aligned to it. Different expense points are defined followed by the identification