Explain why it might be preferable for Managers not to be involved in setting their own budgets when meeting the budget is used as a basis for performance measurement.
【参考答案及解析】
There is always a very strong temptation for operational managers to set as 'soft7 a budget as possible; so they cannot fail to meet it and so will be assessed positively by senior managers. Soft budgets means that there is a degree of slack in there, so managers are not motivated to achieve their best possible performance, but rather one that is simply adequate.
There is always a very strong temptation for operational managers to set as 'soft7 a budget as possible; so they cannot fail to meet it and so will be assessed positively by senior managers. Soft budgets means that there is a degree of slack in there, so managers are not motivated to achieve their best possible performance, but rather one that is simply adequate.