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EXECUTIVE SUMMARY This paper begins with an exploratory view of what budget is all about. In principal, the budget has been useful in providing a list of financial explanatory information for the top management in organisations to plan and control the organisation’s actual performance against the prediction. In general, budgeting process appears to be a favourite in blueprinting the business operations.

In the course of converting objectives and goals into useful data for the top management, justifications on both advantages and disadvantages are made, in evaluating how effective a budget can play its role in achieving greater financial accuracy in practice. Just like other business operations, the involvement of adequate human resource is vital particularly in a budgeting process which often needs to consolidate useful ideas and information from the relevant employees. Understanding the barriers in the human resource involvement, communication is seen as a great tool to shape the correct perception of the individual roles which attempts to align the personal interests to the organisation’s visions and objectives. The formulation and implementation of budgets, namely the imposed and participatory approach, adopts totally different communication flow. The prior approach is traditionally authoritative while the latter is contemporarily democratic.

The paper concludes that an excellent budget aligns with the popular acceptance, that it is a very important process that serves as the blueprint of the business operations. The key to success in budgeting requires the management leader to go beyond his norms in financial expertise, and master his skills in the areas of human resource, communication and management.

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Table of Contents
Page 1.0 2.0 INTRODUCTION BUDGETS FOR BUSINESS OPERATIONS 2.1

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