ABSTRACT
This chapter shows in detail how a budget manager’s performance may be measured. It covers how a budget manager can use these measures to improve performance. There are a number of ways in which a budget manager’s performance can be measured. These mainly relate to the rate at which resources are consumed and the impact that this has upon the budget manager’s objectives. The budget manager must act within the spending direction set by the authority. Internal management of resources at their disposal must therefore be subjected by budget managers to the overall regulations established by the authority. Budget managers’ preference towards low-cost options can be implemented by separation of tasks into basic elements and supplemented by low-level training programmes. The maintenance of morale is valued as an important contributory factor in performance. Budget managers must therefore strive to ensure that morale levels are maintained at high levels.
