The HR manager of your organisation is worried about the amount of resources and time consumed by the budget committee annually. He believes the whole process is a waste of time and that departments should be allowed to set their budgets. But you also reckon that a budget is based on the policies needed to fulfil the objectives of the entity i.e. it is a plan consisting of objectives and what to do to achieve these objectives.

As an account officer in the finance department, the head of finance has asked you to address the fears of the HR manager in a memo. Identify and explain at least four budgetary design issues and discuss the questions that these issues raise. Give solutions that may be adopted in practice. Also, analyse the pros and cons of for his proposal i.e to allow departments set their own budgets.