on could be consolidated into the budgeting process is the manpower forecast. Since HR department is providing services to employees, the number of employees forecasted in the next year should be one of the best cost-driver in determining the level of spending.Besides, the budget can only achieve its control property if periodic feedback & variance analysis is enforced. Actual results should be compared to the budget on a regular basis & it is this measurable property that makes the budget an important tool of management control. Although theoretically any variance from the budget should be closely analyzed & then be explained like change of market & technologies [16], whether the company accept such variance, especially when over-budget, is largely depending on the company culture & management philosophy. For example in my company, very often over-budget is being translated into poor planning or spending more than you should, only two but both are undesirable outcomes are resulted: the managers only perform activities that are budgeted, or purposely prepare the budget amount more than it requires. To be frank it makes our lives easier to budget in this way but to contribute to the overall success of the company, managers should prepare budget to the closet of the reality & take up the accountability to explain any variance from actual spending. Only carrying this attitude that can make budgeting a management tool of control instead of a set of constraints in numbers. Conclusion & RecommendationsThe main components of management control should integrate objectives setting, management accountability systems, & performance measurements. In this way, a performance framework ensures that an organization clearly communicates what it wants to accomplish, keeps it on track, & determines the extent to which it is reaching its goals.The control objectives are the foundation of a management control system by stating both the positive effec...
