Participatorybudgeting has gained lots of fame over the past years as a result ofits continuous growth. This is due to its great advantages outweighsits demerits as discussed in this retrospect paper.
Thereis efficient use of resources, given the main objective of budgets.Since resources are limited, their allocation needs to be efficient.The employees play a significant role allotment of such resources,since they have sufficient information regarding the organization’sactivities, as opposed to their superiors. Employees have informationon the amount of resources required for the achievement of a certainobjective.
Participatorybudgeting streamlines the flow of information – from the managementor superiors to other employees. This leads to the formation of abudget that holds a high level of accuracy. This communicationenables the management to acquire relevant information from theemployees.
Theconsolidation of employees in the budget process and their inclusionin influencing final budget creates a positive attitude towards themanagers and the budget. This is because their views and knowledgeare taken into account which builds trust and view of fairness astransparency is portrayed. This attunes the employees towardsachieving the company’s objectives.
Tentatively,participatory budgeting focuses on transparency, which contributes tothe success of Ritz-Carlton hotel. The decisions made concerningbudgets and responsibilities of accountability create a bond of trustbetween employees and their superiors. As such, it enhancescollaboration and communications hence the organizational goals arebeneficial to all of them. This approach significantly empowers theemployees. Hence, if the employees perceive the budget to be fairand attainable, they will be highly motivated in dedicating theirachievement. These are realized when the employees become moreaccountable for their actions and outcome, as a result of thedelegation of authority. When an employee develops a good attitudetowards work, there is a feeling of accomplishment, control, andparticipation, therefore improving the subordinate’s performances.
Ritz-CarltonHotel like any other business is likely to face changes in the annualsales projection. These changes arise due to unforeseen factors thatmight affect its sales.
Changein income levels may affect its annual sales. When the income of anindividual changes his/her spending habits subsequent changes. Fromthe theory of demand, when income increases, the demand alsoincreases and vice versa. Therefore, such change in the level ofincome will affect the annual sales of Ritz-Carlton.
Asubsequent shift in price levels can tantamount to the changes inannual sales projection for Ritz-Carlton. In the case, whenRitz-Carlton increases its product’s price, it is likely that theaggregate level of sales will change. This is because, in one case,they might reap more benefits from the sales if they maintained thesame number of customers. With respect to the law of supply anddemand, the number of clients might reduce due to a subsequentincrease in prices.
Competitionmay affect the annual sales projections for Ritz-Carlton. Newcompetitors pose a challenge in the case when they enter the market,especially if they offer products and services as Ritz-Carlton. Itis likely that the sales will depreciate notably, when thecompetitor’s product are fairly priced or offers better services.
Technologicalchanges pose significant since efficiency in operations willincrease. The inclusion of such technologies may improve the firm’soperation from food management, to online booking. Evidently, it mayinfrareds customer outreach, as well as, serve a large number ofcustomers concurrently.
Itis evident therefore that these factors can potentially affect thesales projected for the fiscal year either positively or negatively,depending on Ritz-Carlton’s capability to address such changes.