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0 pointsParacompact3d ago0 comments

It makes zero sense to me either, yet it is an omnipresent influence in who gets tasked to what in my work. At my level, I do not know anyone who endorses it, they merely react to it.

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4 comments · 2 top-level

spwack3d ago· 2 in thread

Think of it the other way: If you have been given a $1 million budget, as a manager, your job is to purchase $1 million of Useful Stuff.

The rank above you has decided "we need $1 million of software, go buy that." They don't know exactly how much stuff costs, so they use a dollar value as a rough proxy.

If, as manager, you cut corners to save money, you're doing the wrong thing. They want the software! They don't to keep want the money, that's why it was allocated in the budget. Go buy us more Useful Stuff!

em-bee3d ago

i think anther scenario is more likely: you say you need a 1 million budget to run the IT department, but you only spend part of it, then next year if you ask for 1 million again, they will say, but last year you only spent 700k, so we are going to give you only that much.

but the problem here is how budgets are assigned. instead of a fixed number it should have a lower and an upper bound. at least X, but no more than Y. the closer to you get the better, but next year the budget will be the same range. only if you drop below X you run into the above problem, but then it's much less likely and if you really spend that little something else is wrong or the budget really was to high.

jimnotgym2d ago

Or certain project related items in the overall budget have their own budget. If (when) the project slips into a future accounting period then so does the budget.

somat2d ago

That's the paradox that causes the problem, perhaps paradox is not the correct term, conflicting view points?.

From above(the manager of the program) the job is to budget the funds thriftily and fairly, each project getting the amount it needs.

From below(the team working on the project) this feels like you are punished if you are able to save money and rewarded when you waste money.

I suspect this is probably the major problem with having a more command orientated economy. While it should be fairer(free market economies are notoriously unfair). The inversion in incentive hurts performance.

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