DIRECTING AND COORDINATING


Directing and Coordinating :
  • Once the budget plans are in place, they can be used to direct and coordinate operations in order to achieve the stated targets. 
  •  A business, however, is much more complex and requires more formal direction and coordination.
  •  The budget is one way to direct and coordinate business activities and units to achieve stated targets of performance. 
  • The budgetary units of an organisation are called responsibility centers. Each responsibility center is led by a manager who has the authority over and responsibility for the unit’s performance. 
  •  Objectives and degree of performance expected from a responsibility centres are communicated rapidly.

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