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THE WORLD OF CONSTANT CONNECTION \\ 2(90)2021
ijĺŅ őĶń ĺŃĶņĶŇń ĺIJ ľĿij ĺŃŊĶņ IJŃ Ķij IJ EVALUATING BUDGET EFFECTIVENESS
ڛڊڍڊ ڔڑڊ ږ ښڒژڍڊ ږڎڍ ڕڊښڑڗښ ڐ ڊڒڏڊڌڊڔ ڨڊ Now let’s see if our budget is running a tight ship:
ڛڋڎږڊڤڗڕڊڔڝ ڋڎښ ڛڒ ړڊڍڎڐ ڛڊڕڒ ڜڎک ڝڒڋڛڋڎڔڝښ
x The budget lists static goals, and success or
x ڒڋڎږ ڐڒڕڒښڝ ړڒڜڊڜڛڊڒ ڔڒ ښڎ ڦڊڌڒڢ ڜڎک ڝڒڋ failure in achieving these goals does not stand
ڊ ڛڎڢڊڋڗ ڔ ڏڎڦڠ ڝڒڕږڊڊ ڏڎڦ ڠڒڕڊڑڔڎڕڗښ IRUHᎱHFWLYHRUSRRUSHUIRUPDQFHUHVSHFWLYHO\
ڛڏڊ ږ ڢڒږښڊڛڊڋ ڗڊڢڝڕڍڝڤږڊڌ ښڊړڍڊڛڒ ڕڊڋ The budget gives us quantitative indicators as
ڗ ڍ ښڊڞڊڍڒښڝړڒڕڊ ږڒڍڑڒڋڎ ڔڒ ڤڊڌڒڋڎږڐڒڕ formal goals, while neglecting the qualitative
ڎږڐڒڕښڝڔڊ ڕ ښڗڞڒ ڜڎک ڝڒڋڛڗڡڒڊڍږڝڒ ڑڒڋ aspect. Thus, management is pushed to work on
ڛڏڊڨڊ ڛڒڏڌڛڋڎ ڔڋڎ ږڎڏ ڣڊڕڏڒ ښڋڗ ږڎڍ ڗڊښڍڊڋ achieving quantitative indicators at the expense
کڎ ږڎڕڛڞڗڡ ڔڎڋڎڔڝڌڝڛڏڒ ښڋڗڨ ڛڒ ښڊڨڊڍ of “forsaken” qualitative measurements, which
ڛڒ ڋڎ ڌڎ ڍڎڢڒ ڏڒ ښڋڗ ږڎڍ ڗڊښڛڋڎڌڥڒڋڝڛڜږڎڕ are growing especially important in light of
ڑڎڒ ڔڋڎږڝڤڊڕڗ ڜڒڕڊڊڍڛ ڗڊڢڝڕڒڎ ڐڊ ڏڎڦڠڒڕ increasing competition. For example, one may
ڊڨڒڔڒږڎ ڣ ښڊڍ૿ڍڗ ڋڎ ڠ ڍڊښڝڡڝଁڊ ڋڎڍ ږڊڒڐ push clients into buying something they do not
ڊڛڍڊڑڒ ڔڊ ڌڊڕڒڋڎ ڔڋڎ ږڎڏ ڣڊڕڒ ڏڒ ښڋڗڨ ڛڒښ really need, just to reach sales targets; as a
ڍڊ ڏڎڦڠڊ ڛڒڕڛڒڋڗ ږڎڍ ڗڊښڛڒ ڋڎ ڏ ڍڒ ڡڊڌڎږڐڒڕ result, we may lose unhappy customers and pay
ښڊڛڊڕڤڊښڛڒڤڊڍږڝڑڛڜ ږڎڒڔړڗ ږڒ ڍڒ ڡڊڏ dearly later to win them back.
ڎڒڔړڒڔڝڋڎ ږڎ ڡڦڊ ږڊڌڍڊ ڌڎ ڍڎڢڊ ڋڎ ڍ ښڒڧڛ
ڒ ڛڒڕڊڍڑڗ ڌښڊ ړ ڏڊڍڔڊڏڨڊڗڔڥڊ ڛڎڢڒڜږ x To be on the safe side, employees involved
ڊڌڤڒڋڎڔ ڕڗښڛڎڍ کڒڏ ڌڊڍڒ ښڒڏڥڊڋڎږڝ ښ ڋڊڍ LQGHᎲQLQJWKHEXGJHWDUHWU\LQJWRGRZQVL]H
ڑڝړڊڛ ږڊڌڒ ڢ ڋڎڋڗ ښڒژڛ ڒڒڤ ږڎښڝړږڗړڒ ڔڒ ڍښڐ projected revenues and upsize expenses.
ڊڒ ږڊڏڗڔڎ ږ ڏ ڢڒږڕڑڒ ڋڎښ Consequently, the estimate is less realistic, and
WKDWXQGHUPLQHVRXUᎲQDQFLDOSUHGLFWDELOLW\
x ڕڗ ښڢڕڊ ږڊڑڒڔڝ ڑ ښڊڣڒڢڊ ږڎ ڌ ڍڎڢڛڒ ڜڎک ڝڒڋ
ږڎڋڗ ڔڒڍڤڑڒږ ڐڒڕڛڒ ڏڎڏڠ ڐڊڍڛڒ ڏڊڑڒڋڎڔ x If the budget is executed by the end of a
ڕ ڒڊڍଁڒ ک ښڊڨڒ ڜڎڕڊڍڒ ڔڊڏڊڛڗ ڕڎڢڒڋڎڔړڊږ JLYHQ\HDUWKHWHDPVODFNHQVRᎱDQGWHQGV
ڛڒ ڔ ڊڎښڍڊڋڎڔ ړڊږڒڐڗږڌڗښژڝږڊ૿ږڗ ڤڒړڜ to underwork. The same happens when
ڛڊڋڗڍڊ ڜڎ ښ ڏڧږڊڌښڝڛږڊ ږڒڞڛږڎڏڣڤڊښڊڒښڝڜ budget execution is botched — the team loses
ڛڋڎږڒ ږړڊ motivation, thinking that things are going from
bad to worse, and the budget is doomed. And
x ڊڒڔڝڋڎڔڝښ ڛڎڢڒ ڜڎک ڝڒڋږڎړڛڗ ڔڗڋڛڒڔڦڝڑ now they are trying to save their ideas and
ڑڒڏڎڕڨڛڒ ڔڊڥڒڋڎڔ ړڊږڊڍڊ ڋڎڍ ږڝڍڒڍږڝڌ HᎱRUWVQHZFRQWDFWVFOLHQWVIRUWKHQH[W\HDUૼV
ڒ ڜڎک ڝڒڋڝڑڊڊڋ ڗڎښڊڕڗ ڌڍڕڎ ڏڒڌڒڛڋ ڗڊڢڝڕ budget, a move detrimental for the organization.
ڛ ڊڒ ڤڊ ڏڒڜڗڕڛڏڊ ڌ ښڊړڒڍ ږڝڌڊ ڋڎڍڔڝښڛښڎڏ
ڝڒڋڊڏڗ ڕڊڌڒ ښڎ ڞڊښڊڤږ ڒڊڕڛڋڗ ښ ڟڒڞڊڍ x $VLPLODUᎳDZSUHVHQWVLWVHOILQWKHIRUPRI
ڊڥڊڍڒ ڋڎڎڍڒڛڋڗ ڔڒڍڤڊڒڔڝ ښڒڦ ږڊڌڒ ڜڎک the so-called calendar problem. In the early
ڒڋڎڜ ږ ڎڒڔړڒڋڎ ڜ ڟڊښڜږڗړڒ ڔڊڨڊڊڏڎڕڨڛڒڔ operational period, the team is relatively laid
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