The Department’s Management is Sound

Obviously, this kind of situation shows lack of strategies in the financial management area of the department. It may be possible that the department is able to provide themselves all the resources they need, thus allowing them to provide satisfactory service that their department is expected to provide. However, beyond the department”s activities of supplying themselves with sufficient resources, there may exist an inability to monitor and effectively handle their financial resources. Therefore, causing the department to go over its budget.
Another problem that may exist in the department causing the over budget problem is its inability to evaluate and consider the advantages and disadvantages of every action that they take. For instance, activities such as hiring of new employees may be seen by the department to be constructive for the different projects that it handles. However, considering the cost of hiring new employees may be overlooked by the department”s management. Inability to decide on what is the best solution to take or inability to find alternative solutions for a problem may be another characteristic of the department that causes over budget problem.
The success in managing a department does not only depend and cannot be measured only on how a department is able to perform its duties to a company. Instead, the measurement of a real successful management are the efficiency and accuracy of the strategies used to become successful. For instance, allocating sufficient employees to a project may be helpful to a project. It may also be effective because of enough manpower to complete a project. However, is it accurate and efficient for the company”s expense? A drawback of too much employees” idle time may exist. This results to the department spending money for employees” unproductive hours.