Resource Allocation and Budget Management

This assignment delves into the crucial aspects of resource allocation and budget management within an organization. It emphasizes the categorization of expenses based on frequency and unpredictability. The process of building a budget framework that guides spending limits and potential flexibility is discussed. The significance of meticulous record-keeping and adherence to budget guidelines for organizational effectiveness is also highlighted.

Running head: PREPARE AND MONITOR BUDGET
Prepare and Monitor Budget
Name of the Student
Name of the University
Author Note

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Table of Contents
Table of Contents...........................................................................................................1
Operational plan I for a Restaurant Business.................................................................3
Budget Information Plan - 1...........................................................................................4
Operational plan II for a Restaurant Business................................................................6
Budget Information Plan – 2..........................................................................................7
Short Summary...............................................................................................................8
Ramifications of their budget modifications..................................................................8
Allocation of funds as outlined in the budget............................................................8
Promote awareness of the importance of budget control and how to keep the
colleagues and stakeholders informed of the budget.................................................9
Maintain all records of resource allocation..............................................................10
References....................................................................................................................11

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Operational plan I for a Restaurant Business
The staff of the restaurant is to be divided into two shifts and the workforce should be
divided equally according to their skills.
Shift 1 - Comprising of 12 members that include 6 waiters, 4 cooks, 1 Receptionist
and 1 Manager, 1 cleaning staff (Shift timing Morning 10 am – 4 pm)
Shift 2 - Comprising of 12 members that include 6 waiters, 4 cooks, 1 Receptionist
and 1 Manager. 1 cleaning staff (4 pm – 10 pm)
The table, sheets, and the room should be cleaned each and every day so that they
look clean and tidy.
The cleaning staff should clean the toilet twice every day (Altinay, Paraskevas, and
Jang, 2015).
The receptionist should see that there is change in the billing counter.
The kitchen staff should see that the kitchen stays clean and all the materials are
available or not. If there is a shortage of a particular material then it is to be made
known to the manager.
The manager is responsible for the smooth functioning of the restaurant. It is the duty
of the manager to solve any problem that may arise and also to see that each and
every member carries out their respective duties properly (Ward, 2016).

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Waiter should see that the customer are provided with best service possible as they
play a great role as getting into direct contact with the customer. They need to provide
swift services in the best possible way.
All the members should come one hour early to get the briefing of the day.
The restaurant wants to increase their sale by 10% so the waiter should try to up sell
the products (Berthelsen et al, 2014).
Budget Information Plan - 1
Long term cost
Staff Salary: $ 20000
Food: $ 45000
Drinks: $ 50000
Supplies: $60000
Short Term Cost
Marketing/Advertising:
Communications: $ 30000
Professional Fees: $ 20000
Office Operations: $ 40000
Management Salaries/Wages and the Associated Benefits

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Overhead Cost
Electricity Bill: $ 60000
Telephone Bill: $50000
Cost of equipments
Mixer Grinder: $10000
Juicer: $15000
Oven: $20000
Coffee Machine: $ 25000

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Operational plan II for a Restaurant Business
There should be only one shift that is to be maintained the staff members should work
from 10 am in the morning and till 10 pm in the right.
The briefings for all the members are to be done by the manager each and every day.
The cleaning staff will see that everything including kitchen is clean. Proper cleaning
is to be done (Blay-Palmer and Knezevic, 2015).
It is the duty of the manager to see that all the duties are to be performed by the
members.
Any problem that may arise by their respective person, who is responsible for that
particular situation.
The kitchen staff should do the procurement for any kind of kitchen stock or raw
materials.
The waiter should see that the ambience should be maintained properly.
Manager will not be responsible arising and any such problem is to be solved by the
respectable person in relation to that particular work (Cokins, 2017).
The restaurant wants to establish itself as the best Chinese restaurant in the town as
they have good chief for Chinese food. So more focus should be given on it

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Budget Information Plan – 2
Fixed Cost
Rent: $100000
Salary of employees: $70000
Purchase of materials: $ 30000
Variable Cost
Purchase of equipment: $40000
Advertisement: $ 10000
Renovation: $ 15000
Miscellaneous Cost
Loss of items: $5000
Wastages: $5000
Time cost
Waste of time: $ 5000

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Short Summary
Ramifications of their budget modifications
To create a budget is very important as it gives us an idea about what are the
total expenses that can be incurred. The budget may not exactly match with the reality
but they give us a fair idea what amount of expenses will be faced by us. The budget
is created by taking the previous year expenses keeping in mind. The expense that is
incurred previous financial year gives us a fair idea about how much budget is to be
calculated this year.
In order to modify a budget there are many factors that are needed to be considered.
We need to consult the budget of the previous year and accordingly formulate the
budget. It is hard to understand what are the factors that will play a role in the budget
and what changes are to be made from the budget of the previous year (Dai et al,
2014).
Allocation of funds as outlined in the budget
Budgeting is a very sensitive thing, it is a calculated assumption, so we can’t
be one hundred percent sure about the budget but we need to go as close as possible.
Every year the amount of expenses changes and accordingly the changes are to be
made in the budget. What are the factors that will change is hard to understand and
predict. Through budgeting we try to go as near as possible to the exact expenses.

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The Funds that is being allocated for a particular set of things are to be allotted
accordingly keeping it as same as possible. If there is an extreme need to change the
amount that is allotted in the budget is to be changed as minimal as possible. It is to
be kept in mind that budget is a whole plan or framework upon which the business
function of the whole financial year will be based and it is made keeping many factors
in mind. So if we make massive change in the budget, in that case it may have
negative effect on the business (Dewe, 2016).
Promote awareness of the importance of budget control and how to keep the
colleagues and stakeholders informed of the budget
The stake holders are to be informed about the budget of the organization, so
that they have a fair idea about the company’s act and so that they can act
accordingly. This will help them aligning with the budget and they will also have an
idea about how much the company is willing to invest on what and act accordingly
(Trishkina, 2014).
The resources are to be divided under some categories according to their
expenses. There are some resources upon which the expenses are regular in nature and
there are some expenses which are not that frequent. There are also some expenses
that happen in an organization which occurs at by-chance. These expenses are
categorized and each category is then allotted with a budget and then this budget is
divided amongst the expenses (Van der Wagen and Goonetilleke,2015).

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Maintain all records of resource allocation
The budget built a frame work of how the company and its stake holders will
function and this also gives a guideline of how far the company is willing to bend in
terms of expenses and what are its limitation. Budgeting is a very important factor in
terms of functioning of the company. Without the help of the budget it will be
extremely difficult for the company and its stake holders to function. So the budget is
to be given outmost respect and maintained strict as much as possible and if the rules
are to be bend in that case it is to be seen whether it is good for the organization or no,
so that there is no negative effect to the organization (Vincent et al , 2014).

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References
Altinay, L., Paraskevas, A. and Jang, S.S., 2015. Planning research in hospitality and
tourism. Routledge.
Berthelsen, R.M., Barkley, W.C., Oliver, P.M., McLymont, V. and Puckett, R., 2014.
Academy of Nutrition and Dietetics: Revised 2014 standards of professional
performance for registered dietitian nutritionists in management of food and nutrition
systems. Journal of the Academy of Nutrition and Dietetics, 114(7), pp.1104-1112.
Blay-Palmer, A. and Knezevic, I., 2015. 22. Building sustainable communities
through alternative food systems. Handbook on the Globalisation of Agriculture,
p.446.
Cokins, G., 2017. Strategic business management: From planning to performance.
John Wiley & Sons.
Dai, J., Jiang, W., Liu, G., Xu, J., Zhao, L. and Liu, A., 2014, June. Rating Aware
Route Planning in Road Networks. In International Conference on Web-Age
Information Management (pp. 223-235). Springer, Cham.
Dewe, M., 2016. Planning public library buildings: Concepts and issues for the
librarian. Routledge.
Trishkina, O., 2014. Marketing plan for company X.
Van der Wagen, L. and Goonetilleke, A., 2015. Hospitality Management, Strategy
and Operations. Pearson Higher Education AU.
Vincent, K., Dougill, A.J., Dixon, J., Stringer, L.C., Cull, T., Mkwambisi, D.D. and
Chanika, D., 2014. Actual and potential weather and climate information needs for

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development planning in Malawi: Results of a Future Climate for Africa pilot case
study. Future climate for Africa pilot case studies. Retrieved from http://cdkn.
org/resource/climate-information-decision-making-malawi.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing
growth, profitability, and family leadership. Springer.