Decision Making And Organizational Justice

2507 Words11 Pages
Budget decision-making and organizational justice are not two subjects that are often associated with each other, but they have significant effects on the attitudes of managers and directors. Furthermore, organizational justice affects budget decision-making in regards to director organizational commitment. This paper discusses budget decision-making, organizational justice, and both of their effects on director commitment. The following research and analysis suggests that directors are more committed to the organization when they not only feel important, but that the information is relevant. The final factor which affects their judgment is restrictions and flexibility of the budget placed upon them. This study will hopefully be…show more content…
Since there are five different programs within this organization, there are five different budgets. That means there are five different department directors with different restrictions and goals. As one can imagine, this presents many issues and challenges to the organization. Like a human body, all parts of the organization must work together to achieve results.

Synopsis of the organizational challenges Budget formulation is not a complex task, but it must be thorough. Budgeting decisions are based on past records and future predictions. However, most of these budgeting decisions are based on prior years. One of the biggest challenges facing small organizations is budgeting based on past transactions and being able to allocate resources for the future. The organization cannot simply budget on a progressive plane for income and have too much wiggle room for expenses. Not-for-profit entities must effectively allocate resources that allow the organization to grow or perfect its operations. The department directors who make decisions based on these budgets face some challenges. Each department has its own goals and ways of achieving those goals. The CEO of the organization faces a unique problem of having these programs work together to achieve the same goal: outreach. This has a psychological effect on the department directors. How the resources should be used varies by each department directors. This is an
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