Ethics and Behavior in Organizational Culture a Essay

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Ethics and Behavior in Organizational Culture

A number of distinct advantages, as well as disadvantages, apply to Zero-Based Budgeting (ZZB). Essentially, this budgeting format requires an organization to completely re-analyze every single expenditure on its budget. It works by starting with a blank slate, and then evaluating all aspects of expenditures in order to see how they can be reduced to meet their objectives. The benefits for such an approach include the fact that organizations can increase their degree of competitiveness as well as restructure themselves according to the results of the budget -- which is useful in situations in which transformational leadership is employed or perhaps even required. Other benefits include the fact that a number of expenses can be reduced and lead to alternative means of accomplishing the same objective such as through consolidation, outsourcing, and other modern forms of downsizing. Conversely, determinants include the fact that there is considerable less stability in an organization that is restructuring itself as thus, and employees might lose their jobs or see their livelihoods reduced in the process.

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Additionally, ZZB is extremely time consuming (The Economist, 2009) as it requires analyzing every single expenditure and determining how to justify it and decrease it.

There are also boons and drawbacks associated with Planning-Programming Budgeting (PPB). The way this process works is it requires an organization to plan out its objectives, then design programs that can specifically meet those objectives (Donvito, 1969). Finally, that organization produces a budget around those programs. The benefit of this approach is that it enables an organization to create a specific means of facilitating its objectives. There is a degree of specificity in this approach that is beneficial. Additionally, it requires an organization to consider its objectives for the long-term. Drawbacks include the time consuming nature of this method, which requires lots of statistical and financial analyses and is not well suited for low-latency implementation.….....

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