Corporate Policy Issues - 5
- In organizations constrained by fiscal budgeting
It is not unusual for the call on funding to become over committed during the year
- Typically governments and large corporations
At the same time, it is not unusual for the managers of individual projects to be over optimistic in the amounts to be spent within the financial year
- Especially where a large portfolio of projects is involved
Policies on "Resource Planning" and "Resource Allocation" may be needed to avoid this kind of inefficient allocation and use of capital resources
- To ensure that "funding will be available"