Term Papers on Barangay Public Administration
MANAGEMENT PLANNING CONTROL
Professor Renato Jorge Tan
Nena N. Martinez
Student
Report on : THE ROLE OF BUDGETING IN MANAGEMENT PLANNING AND CONTROL
Review of Management Functions In the study of administrative management or principles of management, as a theory of administration, Henry Fayol stated that there are five tasks of administration which were planning, organizing, commanding, coordinating and controlling; and Gulick built upon Fayol’s the famous POSDCORB which stands for the seven administration’s functions. These functions are planning, organizing, staffing, directing, coordinating , reporting , and budgeting. (Nigro, 1989). So planning and budgeting are the first and the last functions of management in the order of Gulick’s idea, POSDCORB, but it does not necessarily mean that budgeting is the end of management function, because after the budgeting process is the using or materializing the budget, whereby management concerns itself is monitoring and control.
Definition of Terms Budget is defined as management’s quantitative expression of plans for a forthcoming period. The master budget is the overall financial plan for the period which reflects the organization goals and objectives and it includes the operating and financial budgets. Budgeting is concerned primarily with the planning and controlling functions of management. Operating budget shows the company’s planned sales and operating expenses. Financial budget reflects the monetary (financial) plan such as borrowings, leasing and cash management. Planning involves in making forecasts and assumptions about the organization’s external environment which is uncontrollable. Controlling involves in monitoring the implementation of the plan and taking corrective action as needed.
Relationship of Budgeting, Planning and Control Based on Fayol’s and Gulick’s identified tasks of
Professor Renato Jorge Tan
Nena N. Martinez
Student
Report on : THE ROLE OF BUDGETING IN MANAGEMENT PLANNING AND CONTROL
Review of Management Functions In the study of administrative management or principles of management, as a theory of administration, Henry Fayol stated that there are five tasks of administration which were planning, organizing, commanding, coordinating and controlling; and Gulick built upon Fayol’s the famous POSDCORB which stands for the seven administration’s functions. These functions are planning, organizing, staffing, directing, coordinating , reporting , and budgeting. (Nigro, 1989). So planning and budgeting are the first and the last functions of management in the order of Gulick’s idea, POSDCORB, but it does not necessarily mean that budgeting is the end of management function, because after the budgeting process is the using or materializing the budget, whereby management concerns itself is monitoring and control.
Definition of Terms Budget is defined as management’s quantitative expression of plans for a forthcoming period. The master budget is the overall financial plan for the period which reflects the organization goals and objectives and it includes the operating and financial budgets. Budgeting is concerned primarily with the planning and controlling functions of management. Operating budget shows the company’s planned sales and operating expenses. Financial budget reflects the monetary (financial) plan such as borrowings, leasing and cash management. Planning involves in making forecasts and assumptions about the organization’s external environment which is uncontrollable. Controlling involves in monitoring the implementation of the plan and taking corrective action as needed.
Relationship of Budgeting, Planning and Control Based on Fayol’s and Gulick’s identified tasks of
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