Please share your views on performance appraisal of managers that is based on attainment of budget.

Thank you gentlemen for your valuable contributions. In my opinion, budget-attainment should not be a consideration for performance evaluation of managers because it may lead to unscrupulous practice of setting budget so that it can easily be attained by setting lower revenue and/or higher expenses than is actually expected. By doing so, variance analysis will always show positive results. There will be no goal congruence as managers will put their interest first over the strategic objectives of the company.

Considerable experience and being able to reduce the waste places and increase productivity because any financial manager seeks to achieve the equation is to offer expertise and his efforts and his staff to achieve maximum revenue less costs to obtain a higher profit stability on the appropriate price and the quality

Performance appraisal of Managers before the budget touches all the aspects of where he is assigned the task.  It includes all Financial Aspects, Human Resources requirement, Proposed allocation requirements of capital expenditures and touches every nuke and corner where budgetary allocation required out of the main budget.  It also contains the target proposals from the unit before the actual targets for achievements are Fixed from the Head of the Establishment.

Experienced Managers are not only enabled us to reduce costs, but has also improved the overall experience of our employees and increased the effectiveness of our business.

We cannot succeed in attaining the targeted budgets without the dedicated managers and at every success we have to appraise their performance.

In my opinion if developing budget based on participative budgeting  it should be the managers appraisal tool . On other hand if it is developed based on authoritative budgeting it should not be the appraisal of managers .

Preparing the meeting Setting the right tone Focusing on performance Helping the employee develop Working to a clear structure Mentoring and staff development Building rapport and listening effectively Ensuring there are no surprises Giving positive and constructive feedback Inviting questions and promoting discussion Encouraging reflection and self-appraisal Avoiding criticism Setting measurable objectives Follow-up and monitoring. ‎

AGREE WITH YOUR ANSWER MISS LESLEY 

THANK YOU FOR INVITATION