HR Budget Development

Gen Co’s HR Department Budget, 2005

Irene Foster, GenCo’s HR Director, must prepare a department budget for the year ending December 31, 2005.  From her participation in executive strategy meetings, she knows that the company wants to improve their workforce performance and speed up key operations over the coming years.  With those overall corporate goals in mind, Foster develops the following budget for 2005:

Short Term Strategies and Plans

· HR research team will conduct employee-performance and morale survey during first quarter; will tabulate and interpret results during the second quarter.

· HR group will step up workforce training by year end.

· HR director will work with information technology team to select and install new payroll database by end of third quarter.

Head Count Plan

· Add one new trainer, increasing training staff from one to two.

· Reduce the number of payroll administrative positions by one, decreasing staff from three to two.

Departmental Spending