Organization Budget: The Effects to the Development and Execution of Strategic Plans

Organization Budget
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Organization Budget
Budgeting remains a critical function for organizations, including those in the health sector. It has served a significant role in realizing overall company goals and objectives. For this reason, it is a familiar discussion topic whenever stakeholders draft strategic plants, which they plan to implement. It is against this association's backdrop that a strategic plan and budget directly affect one another in different ways.
The budget allocates resources necessary to develop and execute an organization's strategic plan. Often, the budgeting process allows all departments to submit their estimated monetary needs to run the current year's activities. For example, a medical facility's budgeting team may include expected financial requirements to develop and effectively execute the establishment of a new branch in a different location. In this case, it would be impractical to spend on this project by diverting funds allocated for other commitments like employee salaries if no communication was made beforehand regarding the new branch's anticipated development and rollout. This assertion is also true according to Pollanen et al. (2017), adding that budget is vital in deciding the most appropriate strategy based...