Citibank Budgeting

1. Analysis of Budget Process at Citibank Direction and chink of Citibanks international branches ar conducted via two formal attention processes. Each year, top management sets sovereign risk limits for its strong-minded branches based on proposals by country managers. Country managers may choose to operate with self-imposed limits below this upper guideline. Following, there is the budget setting process, where head take ups only provides administrative guidelines and not specific targets, with operating managers being responsible for budgets for the interest year. Indonesia often set their targets above these long-term goals. Performance is mensurable and compared against the budget each month, and a new forecast, which will be reviewed by the division manager, is drawn up each quarter for the remainder of the year. This structure of bottom-up budgeting is appropriate for a decentralised firm like Citibank. This is evident from the freedom Mr Mistri has over Indonesias operations and the different business segments and divisions, as shown in usher 2 & 3. Such a participative process is seeming to increase management commitment to achieve the targets since country managers are responsible for influencing their own targets.

More importantly, country managers know the topical anaesthetic business environment and culture better than group managers, thus their targets are likely to be more accurate and realistic. Furthermore, bottom-up budgeting is a form of action control while the ordinary reviews of the budgets serves as preaction review. Both facilitate information sharing inwardly the organisation, with long-term strategic goals of the firm being communicated downwards and local business potentials and risks conveyed upwards via the budgets and forecasts. They also encourage managers to think progress ahead about what they want to achieve in the effective future. However, Citibanks budgeting process appears to have an imbalanced focus with just about of the... If you want to get a full essay, order it on our website: Orderessay

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