Question.1869 - Chapter 14: When is performance budgeting appropriate? In order to be able to create a performance budget that will be as useful as possible,there must be specific ways to measure accomplishments in each performance area. What are some potentialmeasures for evaluating the results of a nursing unit? Chapter 15: What is the principalway in which budgets create motivation and provide for evaluation? How do individual goa ls differ from organizational goals? What are severalincentive approaches? Are there weaknesses to any of the approaches? Chapter 16: 1. What problems are related to the aggregation of variance data?
Answer Below:
1.When is performance budgeting appropriate? Answer: There are certain areas in which performance budgeting is appropriate. Performance budgeting plays an important role in those organizations which want to implement cost reduction techniques so that they put more emphasis on those activities which provide a higher positive return (Excellence). So, they try to curb down the unproductive activities of the organization. Secondly, since performance budgeting puts focus on the efficiency on the on the operations and programs of the organization, it helps in promoting the practice of continuous improvement in the organization. Therefore, the resources of the company will be allocated in such a manner that it provides the highest productivity to the organization. 2. How do individual goals differ from organizational goals? Answer: The purpose of individual goals is different from organizational goals. The individual goals focus more on the personal growth of an individual as an employee of the organization. On the other hand, the organizational goals and objectives are set up in such a way that they help in the betterment of the organization on an overall basis (Lutkevich et al., 2022). In the case of individual goals, the employee is given a specific target to be achieved by the organization within a particular time period. In contrary, organizational goals are framed in a much more detailed manner with a broader perspective for the success of the organization. 3. What problems are related to aggregation of variance data? Answer: There are several problems related to aggregation of variance data. There are high chances of loss of information and original details in case of aggregation of variance data. When the data is aggregated, we cannot make any inference from the aggregated data. Another major drawback associated with aggregation of data is that it cannot be held accountable because when the data is aggregated, the management of accountability of data of individual units become difficult as the detection of variance at individual department becomes unmanageable. Therefore aggregation of variance data should be done in a regulated manner so that the data does not lose its authenticity. References Excellence, C. for G. (n.d.). What is performance-based budgeting?. What Is Performance-Based Budgeting? · Performance-Based Budgeting. https://centerforgov.gitbooks.io/performance-based-budgeting/content/whatispbb.html Lutkevich, B., Roy, M., & Sales, F. (2022, November 15). Organizational goals - definition and guide: TechTarget. CIO. https://www.techtarget.com/searchcio/definition/organizational-goalsMore Articles From Finance
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