Multilevel Budgeting

Multilevel Budgeting

Multilevel budgeting is often referred to as decentralized budgeting. The method grants authority to the various departments of a criminal justice organization to allocate resources for operations in activities that appear to have the most impact. The procedure is beneficial in the following ways.

Empowerment through Decentralized Budgeting

Decentralized budgeting empowers people. Because most departments are located in the areas where their activities take place, they have a thorough understanding of their surroundings. They can assess what works and what does not in their neighborhood. Although the parent organization may recognize a problem, the locals are usually the ones who know the exact solutions (Myerson, 2015). Giving them the ability to plan and allocate resources on their own therefore helps in empowering their attitude as well as their morale to accomplish their duties.

Diversification through Multilevel Budgeting

Diversification is another example that multilevel budgeting offers to an organization. A criminal justice organization can be able to accomplish different activities due to its ability to offer different levels of the department autonomy of budgeting. This helps in dealing with pertinent issues in a community that may be hard for a centralized approach.

Specialization through Multilevel Budgeting

Multilevel budgeting also leads to specialization. Different levels are given the freedom of specializing in what they are best in achieving. Due to increased focus ability to concentrates on a specific issue, they are able to achieve maximum effects to the organization operations.

Expansion through Multilevel Budgeting

Multilevel budgeting helps in the creation of an avenue for expansion. Since different levels can be able to determine the extent and effectiveness of their resources’ allocation, it facilitates their ability to determine growth (Von Daniels, 2016). Different level portrays different potential for growth. This can be effectively achieved in multilevel budgeting

Efficiency through Multilevel Budgeting

Multi-level budgeting reduces the bureaucracy in a decision-making process that exists in a firm that undertakes centralized budgeting. The ability of the different level to easily and quickly make their decision increase efficiency in a criminal justice organization that is not enjoyed in a centralized organization.

Centralized Budgeting

Centralized budgeting is the best approach in a criminal justice organization as it seeks to employ resources efficiently across different activities. This approach helps to achieve the following the day to day operations of the organization.

Achieving Efficiency through Centralized Budgeting

Centralized budgeting achieves efficiency as it seeks the most to apply its minimal resources effectively. The organization is able to rank all its needs and activities and allocate the resources efficiently, this improves the ability of the firm to carry out its duties. Only activities and operations that have the maximum impact receive the biggest portion of the resources.

Reduction of Multiplication of Activities and Operations

Centralized budgeting reduces multiplication of activities and operations. Since the budgeting officials are aware of the operations of a criminal justice organization they are careful and diligent in reducing wastage by duplication of activities (Von Daniels, 2016). If budgeting is done in a multilevel firm, the organization falls the risk of duplication of its duties and services among the different operation service. This is mainly due to the independence of each level in an organization. The effectiveness of their operation is then further lowered.

Maximum Utility of Operations through Centralized Budgeting

Splitting of resources in an organization greatly lowers the effectiveness of its operations. This is the case if budgeting is split into several levels of an organization. Centralized budgeting, therefore, helps to create the maximum utility of its operations due to the amplified effects of collective and centralized planning. This is necessary for a criminal justice organization that seeks to have maximum impact on its operations. The resources must not be thinly split into multi levels.

Accountability and Control through Centralized Budgeting

Centralized budgeting provides as an easy process of accountability. The centralization of the budgeting process reduces the number of people answerable during the process. This minimized personnel is effective in accounting the resources allocated to them. It is, therefore, easier for the leadership of the criminal justice organization to account for the different resources allocated to them.

Control and auditing are essential in ensuring efficiency in an organization. In centralized budgeting, the leadership is efficiently able to monitor the efficiency of the utilization of its resources as well as avoid points of wastage. This increase the overall efficiency of the utilization and allocation of its resources, which is different from multilevel budgeting where wastage occur on the different levels of budgeting.

References

Myerson, R. (2015). Local agency costs of political centralization. Chicago, Il: University of Chicago. Retrieved from

http://home.uchicago.edu/~rmyerson/research/localagency.pdf. Accessed 7 July, 2017

Von Daniels, L. (2016). Fiscal decentralization and budget control. Northampton, MA: Edward Elgar Publishing. Retrieved from http://www.e-elgar.com/shop/eep/preview/book/isbn/9781783475957/. Accessed 7 July, 2017.