Westport Electric corporation

Submitted To, Prof. Vivek Patil

Submitted By, Mangesh Dongare

What is the case all about ?

This case is of Westport Electric Corporation

where the Budget department facing problem regarding the

Evaluation of Budget on Perfomance

Problem
There are two major problem for which the

management ask to prepare proposal

Legal Staff Budget Management Training Budget

Little Insight of Problem

Legal Staff Budgeting problem

:- The Legal department is inefficient and getting budget approval easily

Why this was Happening?

:- Mr Hoover not getting enough time not have knowledge to evaluate performance & In this year again legal department is asking for 30% increase in there budget

Flaws
There is flaw or loop hole in Evaluation system

particularly with the legal staff budget

Little Insight of Problem

Management Training Budgeting

:- The problem is that which activity needs training? What training? How the effectivity of training will be calculated? How ROI will be calculated on training?
simply

Training Programs were ineffective

 Why this was Happening? Fear of employees to report inefficiency of

training to top management.

The score is added in the KRA (Key result area)

sheet of employee.
No system in place to understand which

department in organization need training

No proper selection of Vendor ?

Flaws
No presence of feedback platform to understand

the effectivity of training. No internal tool to evaluate the efficiency of training No coordination of department heads regarding Who needs training

Solution
For both problem we think there is need to adopt

the technique of the Zero based budgeting.

So the each departments will be alloted with the

budgets according to the activities plan & there ultimate effect on profit, objective or mission.
So the each department will understand there

responsibility & there will be activities which are oriented towards the Goal & Profit

Legal department
To root out the inefficiency

Second opinion on the internal activity(how much

time the certain process will take if it outsourced)

Multitasking will improve the speed & output

 Benchmarking:-Internal & External. So that

processes & system will be improved

Each monthly review or may be Quarterwise

review

Management training
Zero based budgeting so the each

activity/training will be justified then the budget is asked

Freedom for giving feedback on training.

Management training
Designing training program or in taking decision

of training the divisional head should be involved

Inside the organization the internal tool should be

developed or to training com it is asked to prepare to tool which will calculate accurate training impact
Proper training vendor evaluation with

help of divisional managers