Annual Budgeting and compensation management.

Budgeting entails the methodical collection of information and data in order to project the money
required to support an organization's objectives. Most organizations have some form of budgeting
mechanism in place. An organization should have undertaken some type of strategic planning prior
to the budgeting process to set annual goals and objectives. This will allow departments to focus
their assigned budgets on achieving those goals. compensation management is a synchronized
practice that includes balancing the work-employee relationship by facilitating monetary and non-
monetary benefits for employees. Structured compensation management benefits a company in the
following ways: It sets a foundation for the happiness and contentment of the workforce, which
reduces employee turnover and promotes organizational stability. It improves the job appraisal
procedure, which in turn facilitates the establishment of more realistic and attainable criteria. It is
intended to comply with the numerous labor laws and so avoid problems between employee unions
and management. This establishes a harmonious rapport between the boss and the employees.

The company is increasing its annual budget by 80%.

Suggestions-

1. The greater money might be used to eliminate the disparities in employee compensation.

2. To introduce performance-based incentives inside the firm to ensure employee motivation.

3. Invest in development and training.