Introduction

This report is about the motivational consideration that should be prepared in the setting up for a budgetary planning and control system, and also discusses the advantages and disadvantages of the participation in the budgeting process. Other than that, also discuss the reasons why managers may be unwilling to participate in budgeting process.

First of all, it had briefly defined the terms, like budget, budgeting planning and control system.
A simple way to define budget as it’s a plan for future or any plan for upcoming period. In the study of financial management, budget can be defined as an in depth plan showing how to acquired and utilize the resources during a particular time period. It signifies a plan for the future expressed in measureable, proper terms (Ward, 1994).
Generally, there are two broadly used of budgeting, which are top-down budgeting and bottom-up are budgeting.
A top-down method to budgeting reflects a controlling style of management. This is meaning of where the senior managers decide the budget with limited input from subordinate employees.
Other than that, participative budgeting, also known as bottom-up budgeting, it inspires organization-wide input into the budget process. This is the meaning of where the subordinate employees get involved the decision making of budgeting with the senior managers by providing different levels of opinion to the upper levels in the budget process.

Budgeting planning is about the planning process within an organization and it’s considering the role of budgeting within this process. The period of budgeting planning can be differentiating into short-term planning (budgeting) and long-range planning. Short-term planning must accept the environment, physical, human and financial resources at current obtainable to the firm. Long-range planning is systematic and formalized the