Traditional Culture Encyclopedia - Traditional stories - What are the disadvantages of the top-down salary cost budgeting method?
What are the disadvantages of the top-down salary cost budgeting method?
Lack of flexibility is greatly influenced by subjective factors, which reduces the budget. Top-down salary cost budget method means that the total salary budget and salary increase range of the company are decided by the decision makers, and then the total budget is distributed to all departments, and then the quotas obtained by all departments are distributed to each post or employee. Its disadvantage is that it lacks flexibility, is greatly influenced by subjective factors and reduces the budget. Its main advantage is that it is easy to control the overall salary cost.
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