Budget Process

KJZZ Employee Training Program Budget Process

KJZZ Employee Training Program Budget Process

This week Learning Team B will address KJZZ’s budget process for its employee-training program. The budget will involve the following: Develop an allocated budget, analyze the return on investment (ROI) with the allocated budget, examine the ROI challenges, discuss the forces driving the ROI and explain the elements of ROI methodology. These areas will help management understand the importance of the project and how it will benefit the organization on the quality of work and return on its investment.

Develop an Allocated Budget

Budget allocations are critical additives to an annual monetary plan, or price range, of all agencies. They indicate the level of sources a corporation is committing to a branch or application without allocation limits rates can exceed sales and bring about financial shortfalls. Each person overseeing budgets should apprehend its utilization and the restrictions it delivers.

Life pulls money in all directions. Allocation is a fancy word for “when you spend your money.” We are going to build KJZZ’s Yearly Cash Flow Plan here and get a little more in depth by breaking the company’s income down on a monthly basis. The four bullets below represent the main expenditures in a given month. For instance the station has a monthly budget of $30,000.

KJZZ Radio Station’s Utility Payment

The radio station will set aside $7500 each month to cover its utilities which include but not limited to electricity, water, television payments to appropriate parties.

KJZZ Employee Payments

The radio station will set aside $10,000 to cover employer’s salaries respectively. All employees on the payroll will receive pay on a bi-weekly basis.

KJZZ Community Events

The radio station will set aside $5.000 monthly for various community events for their listeners and fans.

KJZZ Miscellaneous

The radio station will set aside another $7,500 for miscellaneous spending. Emergencies and any other unplanned occurrence are paid directly from this expenditure.

It is important to understand that this is just an example of how an “Allocated Budget” for a company works. As with everything in life, there are times when adjustments or changes are necessary.

Analyze the ROI within the Allocated Budget

The ROI approach to budgeting looks at many components for the investments instead of the costs. Therefore, KJZZ expects good financial returns on all of the investments within a timely manner. For the business to make those investments within the world of advertising, KJZZ expects to see an abundance of profits from all of their investments. The ideas behind the ROI approach in regards to every dollar spent on advertising, allows the business to gain some valuable profits from all of the returns. Even though there are challenges with an ROI for interpreting and analyzing some of the contributions, the business maintains to have some profits within their ending results. Analyzing the return on investment within the allocated budget of KJZZ Radio Station is such a significant importance to all of the employees. Since the monthly budget consists of $30,000 KJZZ strives to have a positive return on investments instead of a negative return. Therefore, the business works to keep all of the utilities, payroll of employees, events, and miscellaneous within an efficient budget. By doing this, it assists with there being more positive returns than negative returns. KJZZ maintains a high level of importance within the business to stay within their budget. This team works and completes this task as a team effort, and all of the employees strive for the company to maintain some positive returns as frequently as possible.

Examine the ROI Challenges

A primary threat to business owners is discerning the return on investment of radionics and TV communications promo operations. In the selling business, discerning the magnitude to which a considerable development in assessing the return on investment is critical. Radio electronic designs are essential to paying for itself in production and going above protecting corporations at the highest boundary (Williamson, 2008). The businesses obligations are to compensate themselves in premises of production. The radio telecommunication activities are regularly high-priced in stipulations of the total investment expenses of consulting, software and infrastructure, unable to acknowledge the unintended expenses associated with the corporation's human resources and the exertion it requires to regulate the adjustment management required to ensure these plans are profitable. The greatest ordinary equation for this evaluation is Accruals = Profits / Expenses (Williamson, 2008). Even though there are continually a few adversities in catching the actual expense of radio electronics utilization, the difficulty is emulating accurate and manifested profits. As a result, there are continuously obscured profits that are evident in extreme tangible ways. The blueprint and the draft has problems with calculating profits for possible interest making expenditures like creating an instruction design (Williamson, 2008). A diagram can ensure a more accurate prediction of financial worth when using mechanisms to determine the appropriate expectations concerning what the organization profits need to be for buying into radio electronics resolutions and purpose. Profit is restored back into the organization when primary organization's metrics increases (Williamson, 2008).

Discuss the forces driving the ROI

There are many driving forces pressuring KJZZ executives and other company executives to pursue the use of ROI. Consulting failures are one of the main driving forces for executives today. Per Phillips, Trotter, and Phillips (2015), “many consulting projects have not lived up to their promises or expectations” (p. 182). As companies spend billions of dollars on consulting projects each year, executives need to make sure their investments are going to have a return. The budget growth is a driving force due to the overwhelming size of spending and has made it a target for increased accountability (Phillips et al., 2015, p. 184). Executive interest is another driving force. As the budgets grow for consulting projects, executives want accountability measures in place to make sure they are receiving what they are supposed to be on projects. The driving force of fad surfing is another top force driving ROI. Consulting projects on fads or supporting potential fads cost the organization money, time, and unnecessary efforts. The ROI methodology helps prevent the implementation of unnecessary fads. “The implementation of the ROI methodology requires a thorough assessment of business needs and significant planning before the ROI is attempted. If these two elements are in place, unnecessary fads doomed for failure will be avoided” (Phillips et al., 2015, p. 175).

Elements of ROI Methodology

The costs and benefits of the employee training program must be quantified to demonstrate to KJZZ senior management and employees alike that training is necessary (Engel & Kapp, 2006). Employee training is designed to make KJZZ employees better at what they do and helps them absorb new skill sets, technology and knowledge. These desired results are expected to improve customer satisfaction, increase listenership, and create more revenue. KJZZ will determine the training program has value by measuring employee performance after training and comparing it to employee performance prior to training. Conducting a cost/benefit analysis and using a formal methodology to determine the ROI for training also help to identify the value of the employee training program.

The ROI methodology and its elements provide the foundation for a credible approach to calculating the ROI for KJZZ’s employee training program and proving to KJZZ that this project is of value. According to Phillips et al. (2015), the ROI methodology is made up of five elements including an evaluation framework, a process model, a set of operating guidelines or standards, case application, and implementation (p. 186, para. 3). The evaluation framework shows the different levels used by the consulting team and their relationship. The levels are reaction, learning, application and implementation, impact and ROI. They are helpful for understanding the calculation of the ROI. The framework also shows KJZZ’s goals, objectives, and needs.

The process model breaks down the steps needed to create and collect data before and after employee training including but not limited to KJZZ employee performance, customer satisfaction feedback, listener counts, and supporter donations. This data is used to develop the ROI calculation. The operating guidelines establish and maintain order and integrity of the program. The consulting team will ensure the use of only the most credible sources when collecting and analyzing data. The costs for the training program will also be fully detailed to ensure proper analysis. Case application demonstrates how the methodology works for KJZZ and makes success for the project plan as well as its overall strategic plan reality. The consulting team will ensure that the training program is well-planned and communicate all aspects to management and employees. The element of implementation consists of the team ensuring appropriate resources are directed to address problems, roles and responsibilities are clarified, and the alignment of the training program with KJZZ policies and government rules and regulations.

Phillips et al. (2015) assert “these five elements are necessary to develop an evaluation system that contains a balanced set of measures, has credibility with the various stakeholders involved, and can be replicated from one group to another” (p. 186, para. 3). The ROI shows the value of the project itself as well as the value in having the consultant team manage the project for KJZZ. Knowing the ROI is important for the consultant and their team, KJZZ leadership, and KJZZ stakeholders.

Conclusion

Presenting a budget process, consultants need credible information to show KJZZ’s Employee Training Program will benefit the organization and its employees. To do this budget allocations are critical additives to an annual monetary plan that indicates the level of sources KJZZ management will commit. After allocating a budget, it needs to be analysis to make sure all resources, manpower, time, and tasks are presented to assure every area is viewed to ensure the project will go as scheduled and planned. Understanding KJZZ’s driving forces can help management figure out the ROI. Measuring employee performance before and after training will show if the project improves customer satisfaction along with using a process model, case application and implementation. Radio electronic designs are essential to paying for itself in production protecting company at the highest boundary (Williamson, 2008). Using diagram can also ensure a more accurate prediction of financial worth when using mechanisms to determine the appropriate expectations concerning what the organization profits need to be for buying into radio electronics resolutions and purpose. With the Accruals – Profits/Expenses, KJZZ management can make adjust to increase its profits back into the company.

References

Engel, S., & Kapp, K. M. (2006). Finding ROI to ENSURE training dollars. The RMA

Journal, 88(11), 27-32. Retrieved from

http://search.proquest.com/docview/209776847?accountid=458

Phillips, John, J., Trotter, William and Phillips, Patti (2015). Maximizing the Value of Consulting: A Guide for Internal and External Consultants. John Wiley and Sons, Inc

Williamson, D. (2008). The Challenge of Return on Investment. Retrieved on July 23, 2016 from

http://www.di.net/articles/the_challenge_return_on_investment/