Project managers work with employees from various departments within organizations. Each employee brings a different area of expertise to the project. The project manager relies on each employee to contribute his knowledge as the project moves forward. The project manager also relies on each employee to budget his own time and expenses as necessary to complete the project. The project manager needs to track employees as they develop the budget. Several methods exist for project managers to track this process.
Several purposes exist for project budgeting. The project manager communicates the project’s current cost and the total expected cost to senior leadership. This allows senior leadership to decide whether or not to continue the project. Project budgeting also allows the project manager to evaluate the progress of each employee’s work. If the employee finishes her responsibility on the project, the project leader compares her total expense to the amount budgeted. Project budgeting also forces employees to consider what they need to complete the project.
Many companies use budget software or project management software for managing the costs of the project. The company allows each employee access to enter his budget numbers as he calculates them. The project manager can print reports using the software. Each report indicates the amounts entered by each employee. The project manager can print reports that only include completed budget sections or reports that include all entered data.
The project manager may also request email updates on a regular basis regarding each employee’s progress. The project manager may request specific information, such as the date completed and the total budget amount. The project manager may ask the employee to provide more information if she has not completed the budget yet, such as any problems she is facing with planning the budget amounts.
Many project managers meet with each employee assigned to the project on a regular basis. The project manager can track the employee’s budget progress by discussing the budget during these meetings. This also creates an opportunity for the project manager to identify potential problems and help the employee find solutions. The project manager might record each employee’s progress on a graph and share this with the project team.
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