Business Communication

Business Communication

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Introduction

Budget cuttings have been witnessed as one of the most common unpleasant task that confronting the managers. However, considering the budget reductions seen as a normal organizational process to meet the demand and supply circle and taking organizational to a successful track following 'doing more with less' is what the management motivating the employees. Yet, the situation outcomes are unclear because the new wave of budget cuttings are likely to target different segments of the organization and still no one knows what would be the outcomes.

Discussion

Before communicating the budget cuttings, one should understand that there were numerous reason behind budget cuttings because universities and colleges all over the country facing severe cutbacks. Therefore, the management decided to reduce 25 percent of the budget. The main reasons behind the reductions are;

Cutbacks by the federal government funds and funders; as the government reduce its funds for the educational sector, therefore, it is difficult for the management to meet all the needs with the current revenue. Similarly, government budget deficit resulted in reducing the funds and sometimes shift in policy towards education reduced the budget. From the funders' perspective, the foundation and other funders faced a financial setback and the stock market condition not very healthy due to which funders also reduced the fund.

Emergence of new universities and lower demand of services; it is known to everyone that number of universities and colleges increasing with the every passing day making the environment more competitive. Therefore, any organization that is not sufficient in terms of budget will face the fluctuations and reductions in the demand and this is what happening with the management. Similarly, with the emergence of new competitors in the market, the market share has been divided. A general perception existing the education marketplace, the ...