Example Of Participatory Budgeting Essay

I agree that participatory budgeting has three primary benefits. First, it allows the employees own the budget, boost their morale by motivating them (Tanase, 2013, p. 1) and, therefore, increase productivity. Budgeting forms a critical role in any organization as it is the single most factors that allocate resources to different sectors in the firm. The role of employee in coming up with the budget is fundamental. First, the employees know the problems and the constraints that they are facing in their department. In this case, it is logical that they get involved in the process of budgeting so as to meet their needs and consequently optimize their productivity. If the employees participate, they also feel appreciated and part of the big management of the firm. Such positive feelings are replicated in the performance of the employees as they would work to achieve what they have agreed with their bosses. The attempt to impose ideas on the employees including budgeting usually reduces the self-esteem of the employees. Such leads to rebellion among the employees that would be detrimental to the functioning of the firm.
Madoyan (n.d) noted that involving employees in the management of the firm would increase job satisfaction, performance, productivity, and motivation. Job satisfaction is among the significant critical aspects in mainlining employees in any firm. Dissatisfied employees would not only be less productive but would also seek to leave the company at any opportune time. Since budgeting has to cater for such changes, i.e. recruiting, training, and in-servicing of the employees, it would be prudent if the management seeks to enhance to job satisfaction. Such would save money by ensuring high retention rates of its employees.

References

Madoyan H. (n.d). Why should Employee’s participate in management decisions? The advantages of  participative management. Retrieved from http://www.academia.edu/467403/Why_should_Employee_s_participate_in_management _decisions_The_advantages_of_participative_management
Tanase G. L. (2013 22, April). An Overall Analysis of Participatory Budgeting Advantages and Essential Factors for an Effective Implementation in Economic Entities. Journal of Eastern Europe Research in Business and Economics Retrieved from http://www.ibimapublishing.com/journals/JEERBE/2013/201920/201920.pdf