ABSTRACT
This chapter includes a comprehensive analysis of budgeting, not all of which will be immediately relevant to team leaders. The budgeting process should be relevant and should include the participation of managers throughout the organisation. Budgeting also communicates plans to managers and motivates them to strive to achieve the organisational goals. It also puts a control on activities and evaluates the way in which managers perform. Without co-ordination, each manager makes their own plans unchecked, believing that they are working in the best interests of the customer and the organisation. The involvement of first-line managers and their teams raises the question of their negotiation and involvement at local level with elected members in assessing local needs and resources. The budgeting process normally begins when managers calculate the costs of maintaining and developing activities. The budget should originate at the lowest levels of management, and be refined and co-ordinated at higher levels.
