Abstract
This research endeavours to investigate the involvement of the Human Resources (HR) department throughout the budgeting process and the utilization of budgets to further perform HR activities. Study seeks empirical evidence based on the responses elicited from HR department managers in 100 Pakistani companies with a distinct HR department. Results suggest that the HR department has limited involvement in the budgeting procedures, which in turn could explain the limited use of budgets as a means of performance evaluation and communication. Evidence from survey showed that HR departments in Pakistan do fully capitalize on the budgets as a mean of achieving organizational goals. This study contributes to the literature by analysing the responses of HR department managers and their views towards the budgeting function from HR management perspective in Pakistani companies.
Highlights
Budgets quantify organizational plans over a given time period and are used to check and control the progress of an organization so that it keeps its movement within the established boundaries (Searfoss and Monczka, 1973)
Cohen and Karatzimas (2011) consider two factors to be the most important in order to study the impact of budgeting procedures on motivation: First, the interaction between meeting budgetary goals and the reward system of the organization and the second, the level of difficulty posed through budgetary goals
On the basis of the data collected from the Human Resources (HR) managers in service based organizations of Pakistan, we presented some interesting statistics and we tested our model under the study
Summary
Budgets quantify organizational plans over a given time period and are used to check and control the progress of an organization so that it keeps its movement within the established boundaries (Searfoss and Monczka, 1973). Besides these functions which are to be performed by this study, it investigates the impact of the involvement of HR in budgeting on different variables.
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