Behavioural Issues Of Budgeting

Question 1

What is the objective of budgets?

What does research show budgets generally?

Answer 1

Affecting the attitudes and behaviours of managers

Motivate managers

Question 2

Research shows
What does existence of budgets generally do?
What type are more motivating?
What have adverse?
Why does involvement of managers in setting targets improve motivation and performance?(2)

Answer 2

Motivate managers
Demanding yet achievable
Unrealistically demanding
Sense of commitment and obligation

Question 3

What might allowing managers to be involved in setting budgets lead to?(2)

So what must happen when involving managers?

Answer 3

Budgetary slacking
Too high to impress

Care taken