Archive for : Budgeting

Effectiveness Measurement of Work

Effectiveness Measurement of Work:
According to Richard and M. Steers (1980:192) includes the element of adaptability / work performance and job satisfaction:

1) Ability to adjust
Human ability is limited in the sense of seeing things, so the limitations it causes a man can not attain the fulfillment of their needs without going through cooperation with others. This is according to the opinion of Ricard M. Steers which states that the key to organizational success is the cooperation in achieving goals. Any organization that goes in the organization is required to be able to adjust to the people who work in it as well as with the work in the organization. If the ability to adjust to it can run the organization’s goals can be achieved.
2) Performance of work
Work performance is a result of someone and achieved in executing the tasks assigned to him based on skill, experience, sincerity and time (Hasibuan, 2001:94). From the opinion it could be concluded
that with the skill, experience, sincerity time owned by the employee given the task can be carried out in accordance with the responsibilities assigned to him.
3. Job satisfaction.
Level of pleasure that one feels on the role or job within the organization. The level of individual satisfaction that they are rewarded in kind, from various aspects of the work situation and the organization to which they belong.

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Factors Influencing Effectiveness of Work in Budgetting

Factors Influencing Effectiveness of Work
There are four factors that influence the effectiveness of the work, as proposed by Richard M. Steers (1980:9), namely:
1. Characteristics of Organizations
Characteristics of the organization consists of organizational structures and technology that can affect certain aspects of the effectiveness of a variety of ways. The definition of the structure is a relatively precise nature, such as encountered in the organization, both in terms of human resources organizational structure includes how to prepare the people in completing the work, while the technology in question is the mechanism of an organization  transform raw inputs into outputs.
2. Environmental Characteristics
Outside environment and the environment have also been declared in effect on the effectiveness, success of the relationship of environmental organizations seem very dependent on the level of predictability is a key variable environmental conditions, accuracy of perception of environmental conditions, levels of organization rationalism. All three of these factors affect the accuracy of the response organization to environmental changes.
3. Characteristics of Workers
In fact the members of the organization is the most important influence factor for behavior that in the long term they will facilitate or hinder the achievement of organizational goals. Worker is a resource that is directly related to the management of all available resources within the organization, therefore the behavior of workers is very influential to the achievement of organizational goals.
Workers is the main capital in the organization that will greatly affect the effectiveness, because although the technology used is a sophisticated technology and supported by the presence of good structure, but without the workers then it is useless.
4. Characteristics of Policy and Management Practice
With the increasing complexity of technology and its development environment, the role of management in coordinating people and processes for organizational success increasingly difficult.

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Type of Budget

Type of Budget:
1. Budget Ceiling
This type of budget used for surveillance purposes is called the Budget Ceiling. Articles of this type directly supervise an agency with a way of determining the spending limits through the use regulations / administration, or indirectly by way of limiting earnings agencies on known sources and quantities are limited.
2. A Line-Item Budget
This type classifies expenditures by type, are used to monitor the types of expenditure and also the total
3. Performance and Program Budgets
This type is useful for specifying the activities or programs under which funds are used, and thereby assist in its evaluation. By way of separating expenditures by function (such as health or public safety) or by type of expenditure (such as personnel and equipment) or based on sources of income such as property taxes or user fees (user fees), the administrators and lawmakers can get proper reports on financial transactions, to maintain good efficiency to the inside or outside supervision.

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Benefits Budget

The budget is a systematic plan of work prepared and expressed in monetary units. Normally budgeting based on past experience and appraiser-estimated in the future, then this can be a work guidelines for each section within the company to run its activities.
The main purpose of the budget is for external monitoring, which is to limit the overall resources available to an agency and to prevent expenditures for things or activities that are not justified by law.

Benefits Budget:

Low budget

According to Marconi and Siegel (1983) in Hehanusa (2003, p.406-407) the benefits of the budget are:
1. The budget is the result of the planning process, it means that the budget represents an agreement negotiated between the dominant participants in an organization on the purpose of activities in the future.
2. The budget is an illustration of the priority allocation of resources because it can act as a blueprint for corporate activity.
3. The budget is an internal communication tool that connects the department (division) is one with a department (division) others in the organization as well as with top management.
4. The budget provides information about the actual activities compared to the standards set.
5. Budget as a tool of control that leads management to determine the organization’s strong and weak, this will be directing the management to determine corrective actions to be taken.
6. Budget to influence and motivate managers and employees to work with a consistent, effective and efficient in conditions of fitness for purpose of corporate goals with employee goals.

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Coordination Function in Budgetting

The budget is one way to conduct surveillance within the company. Supervision is the efforts taken to sebelurnnya plan that has been achieved. Thus, surveillance is to evaluate the work performance and corrective actions if necessary. Aspects of supervision is to compare the performance with budgeted, whether efficiencies can be found or whether the executive managers have worked well in managing the company. Monitoring purposes it is not to find fault but prevention and  errors. It often happens that the oversight function that is mischaracterized find fault with others or as a means of punishment for a mistake made ??in terms of objective oversight to ensure the achievement of the objectives and plans of the company.
Coordination function requires the alignment of the action work of any individual or section within the company to achieve the goal. Thus it can be said that
coordination necessary to create good planning, which can indicate alignment between one part of the plan with other parts. The budget serves as the planning should be able to adjust the plan are made to various sections within the company, so plan activities that will be in harmony with one another. For that budget can be used as a tool for the coordination of all parts that exist within the company, because all the activities that are interrelated between one part with another part is set up properly.

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Planning Function

The role of the budget on a company is a management tool to assist in the implementation, the functions of planning, coordination, supervision and guidance as well as work in running the company for its intended purpose.
Planning function
Planning is one of the management function and this function is one of the management function and this function is the basis for the implementation of other management functions.
provide an understanding of planning as follows:
“Planning includes action to select and connect the facts and making and using assumptions about the future in terms of visualizing and formulating the proposed activities are deemed necessary to achieve the desired bacillus”.
From the above quotation is concluded that before the company conduct its operations, the leadership of the company must first define what activities will be implemented in the future and the results to be achieved from these activities, as well as how to implement it. With this plan, then the activity will be performing well.

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Understanding the Budget

Understanding the Budget:
Glenn A Welsch defines budget as follows “Profit planning and control may be broadly as de fined as sistematic and formalized approach for accomplishing the planning, coordinating and control responsibility of management”.
From the definition above, the budget associated with the basic functions of management which includes the planning, coordination and supervision. So if the basic functions associated budget management budget should include the planning, directing, organizing and overseeing every unit and organizational areas within a business entity.
According to Gomes (1995, p.87-88), the budget is a document that seeks to reconcile the priorities of the program

with revenue sources are projected. The budget incorporates an announcement from the organization’s activities or purposes for a period of time determined by the information about the funds needed for the event or to achieve that goal.
According to Mulyadi (2001, p.488), the budget is a plan of work that expressed quantitatively measured in monetary units and standard units of measure other menvakup period of one year.
According Supriyono (1990, p.15), budgeting is a financial planning firm that is used as the basis of control (supervision) finance company for the coming period.
The budget is a short-term plans based on long-term action plans that have been defined in the programming process. Where the budget prepared by management for a period of one year, which will bring the company to the specific conditions required by the specified resource.

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EASY GUIDE TO BUILDING A BUDGET

Budgeting

If you already have identified your financial goals and has established a plan to achieve them , you can set a budget to save money you need. You may think you do not need to do this, but we can all benefit from a budget. Have you ever started the day with $ 20 and at the end of the day, do not know where he spent? If that is the case, you might want to develop a budget.

A budget is a tool to help you understand how you spend your money.
If you own a business, budgeting knowledge will help you understand how to enter and exit the flow of money.
There are three steps to create a budget:
Identify your net monthly income
Identify the money that comes into your home after making all deductions, including taxes, Social Security, etc.
Identify Monthly Expenses
Their costs are all the things you spend money. Be sure to include expenses such as rent and telephone bills and expenses that occur periodically as the car insurance and medical bills.
Subtract your monthly expenses from your income
If you still have money you can decide how to spend or save. If your expenses exceed your income, you and your family have to decide what expenses can be reduced or decide how to get more revenue.

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FINANCIAL PLANNING TO ACHIEVE YOUR GOALS

Financials

Lydia’s goal is to open a child care business in one year. She needs $ 1,500 for startup costs. Received a loan of $ 500, but will have to save the other $ 1,000 for your account. Using the following steps, Lydia calculated how much money would have to save each pay period.

 

META
Deadline

Cost

Saved to / Requested to Date

Required Money

Amount of time (months) to Save

Amount to Save Each Month

Save $ 1,000 to start a childcare business
1 year

$ 1.500

$ 500

$ 1.000

12

$ 83.34

Determine your financial goal.
Decide the time frame to achieve your goal.
Determine how much money you need.
Identify the savings you have today and contribute to achieving its goal.
Subtract column C (savings / current loans) in column B (cost) to determine D (the amount of money needed). B – C = D ($ 1,500 – $ 500 = $ 1,000).
Identify the number of months (E) in the timeout period (A). 1 year = 12 months.
Divide the money you need (D) by the length of time in months (E) to determine the amount needed to save each month (F). D / E = F ($ 1,000 / 12 months = $ 83.34 / month).

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Why Consumers Still Need Special Glasses to Watch 3D TV

Consumers who buy a new 3d tv will still need special glasses to watch their new set, but fortunately they are not the ugly cardboard glass many of us remember from the movie theatres years ago. The reason we need to wear special glasses to watch 3d tv is that content shot in 3d is filmed using two separate cameras. Two images are projected from the television, a left eye image and a right eye image. Viewed without special glasses, these two images appear overlapping and blurry.

The glasses which come with a 3d tv decode the images which a person’s brain combines into a single 3D image. The cost of the special glasses required for viewing have been the cause of some concern among consumers. While most 3d tv sets come with one or two pairs of these glasses, a family of four would still need to purchase two additional pairs at considerable cost. Inviting friends over to watch a 3D movie is tricky without enough pairs of glasses as the image quality of d content is not good without the glasses.

You may have heard about 3d tv sets that do not require glasses. These are available, but the viewing area is very limited, and not practical yet for more than one or two people to watch at one time.

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