Reference no: EM133776206

Question 

Budgeting is a fundamental tool in an organization because it defines the allocation of resources and provides the organizational and financial parameters for attaining strategic targets. Each approach has strengths and weaknesses depending on the type of organization. The manager should select the approach that will provide the best results for managing financial resources. In my management, I would opt for bottom-up budgeting for the following reasons. Empowerment and Engagement The bottom-up approach involves seeking input from other organizational units and junior managers, contributing to the top-down approach's effectiveness in ownership. It fosters teamwork and ensures that those in direct charge of operations have a say in budgeting. By valuing employees' ideas and experiences, companies increase motivation rates. The process further enhances higher production rates and a better organizational climate (Mah'd, 2020). The implication is that engaged team member is usually loyal to the goals and objectives of the organization and will try their best to achieve them.