12 Dec Unit 9_MT497_Team Discussion response
13857Respond or elaborate to discussion post below:
Three budgeting approaches, known as zero-based budgeting, top-down budgeting, and bottom-up budgeting, are used frequently in expense planning. Zero-based budgeting requires managers to explain each expense incurred in each new period and begins with a “zero” baseline rather than simply moving forward from past budgets. Top-down budgeting occurs when senior executives define budgets in terms of overall cost targets and allocate funds to the departments they operate in each department can modify its activities according to this policy. Bottom-up budgeting starts with departments estimating their needs internally and then filing budget proposals upward, and senior leadership consolidates and reconciles these inputs. These approaches demonstrate individual organizational philosophies related to the control, participation, and justification of resources (Daft, 2021).
Every approach to budgeting has some unique advantages and disadvantages. Zero-based budgeting promotes financial discipline by requiring managers to justify every expense, but it is inefficient and can require departments to provide detailed documentation. While top-down budgeting drives strategic alignment and increases efficiency, as managers can allocate resources quickly in line with organizational priorities, this approach often leads to decreased departmental buy-in or a loss of sight of operational realities. Bottom-up budgeting can enhance accuracy and morale by incorporating detailed departmental knowledge into cost planning; however, it could lead to inflated cost estimates or protracted negotiations among management levels (Daft, 2021).
We can examine these budgeting styles in the context of the U.S. Army’s structure. Zero-based budgeting aligns with Army practice, which mandates approval of a yearly justification of training, manpower, and equipment requirements submitted to the command level using specific criteria. Top-down budgeting is how the Department of the Army sets its own funding goals, based on federal appropriations and other strategic priorities, allowing units to operate within already set ceilings. Bottom-up budgeting is evident in unit-level planning, such as when company or battalion leaders predict needs for supplies, training events, and maintenance before submitting requests up the chain of command. In reality, the Army applies elements of both to maintain a balance among accountability, strategic consistency, and ground-level operational precision (U.S. Department of the Army, 2023).
If I were the department leader, I would call for bottom-up budgeting with organizational guidance. Bottom-up budgeting enables teams to make accurate estimates based on their direct knowledge about mission requirements, operational risks, and resource constraints. When combined with effective oversight and strategic direction, this approach promotes accountability, increases ownership of financial decisions, and improves the accuracy of broader planning. It also facilitates communication between leadership levels and generates a collective decision-making environment of trust.
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