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Budgets and Employees Morale

This document discusses how budgets can impact employee morale. It notes that budgets reflect a company's financial plans for income and expenses, and that employees rely on budget allocations for their wages and salaries. A poorly developed budget that does not consider employee needs can negatively impact morale by suppressing worker rights and potentially causing people to resign. The document describes a situation where the author's former employer, AnalitIQ Company, reduced wages without consultation, sparking employee demonstrations. To resolve the issue, AnalitIQ involved workers in the budget development process so they felt more included in company activities. The best way to achieve goals while maintaining high morale, the document concludes, is through fully engaging employees in the budgeting process.

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migire kennedy
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34 views3 pages

Budgets and Employees Morale

This document discusses how budgets can impact employee morale. It notes that budgets reflect a company's financial plans for income and expenses, and that employees rely on budget allocations for their wages and salaries. A poorly developed budget that does not consider employee needs can negatively impact morale by suppressing worker rights and potentially causing people to resign. The document describes a situation where the author's former employer, AnalitIQ Company, reduced wages without consultation, sparking employee demonstrations. To resolve the issue, AnalitIQ involved workers in the budget development process so they felt more included in company activities. The best way to achieve goals while maintaining high morale, the document concludes, is through fully engaging employees in the budgeting process.

Uploaded by

migire kennedy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Running head: BUDGETS AND EMPLOYEES’ MORALE 1

Budgets and Employees’ Morale

Student’s Name

Institutional Affiliation

Date
BUDGETS AND EMPLOYEES’ MORALE 2

Budgets and Employees’ Morale

Budgeting in every other institution reflects the financial breakdown in terms of income

and expenditure over a specific period. A budget can serve to improve a firm’s output or greatly

diminish the services within an organization. Employees in every other institution depend on the

budget allocation for their wages and salaries. None on this earth can be glad to provide free labor,

and therefore, the ultimate goal of every worker coils about good income.

On the contrary, poorly developed budgets can serve to suppress the rights of workers,

thereby creating a hostile environment. Think of a budget that is only considerate of the

organization’s management and its operations at the expense of its workers. Most workers, in this

case, would resign and relocate to other better places of work hence affecting production at the

original company. Such a scenario presents how a budget is very critical in running a company.

One time, my former employer AnalitIQ Company decided to reduce employees’ wages in

the name of improving services within the company. The reduction was made without due

consultations, and therefore employees got it as a surprise end month. AnalitIQ experienced one

of its darkest moments marred with a myriad of demonstrations all over the nation. The even

tainted name of AnalitIQ required immediate management action to save the situation. The most

urgent solution was to involve workers in the budget development process so that they feel part

and parcel of AnalitIQ activities. Budgeting decisions invoke a lot of emotions, especially from

the employees’ side since their wages entirely depend on the monetary allocations (Amirul, Mail

& Ripain, 2017). The best way to achieve company goals and objectives remains fully involving

workers in the process of budgeting.


BUDGETS AND EMPLOYEES’ MORALE 3

References

Amirul, S. M., Mail, R., & Ripain, N. (2017). Employees’ Budget Participation and Its Effect on

Departmental Performance in Sabah Local Authority. Indian Journal of Science and

Technology, 10, 13. Retrieved from:

http://journal.unpad.ac.id/jaab/article/viewFile/22494/11091

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