Designing budgeting business processes in a construction organization

Abstract

The article explores the design of budgeting business processes within a construction organization. The research aims to substantiate the positive impact of the introduction of a process-based management approach into the annual budgeting cycle of a construction organization. The main objective is to demonstrate the key advantages of implementing the process approach in the budgeting of a construction company. In the course of the study, methods of systematic, comparative, and logical analysis have been used within the framework of the general methodological system-information approach. The article briefly outlines the evolution of the process management concept. The main differences between the functional and the process approaches to management have been highlighted in the context of responsibility allocation and cross-functional interaction. The study describes the business process of budgeting in a construction company, identifying the main stakeholders, participants, and the characteristics of each stage. The article presents the basic requirements for process design and provides a brief description of budgeting in a construction company based on the process approach. The study outlines the main advantages of the process approach when applied to budgeting in a construction company. As a result, the high efficiency of implementing the process approach for budgeting amid increasing competition and high interest rates in the construction industry has been demonstrated.