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Q. Show the behavioural aspects when implementing budgets?
The following behavioural aspects could arise when implementing budgets
- Budgets seen as a 'penny pinching' exercise rather than for cost control.
- Employees become united, finding excuses for not meeting targets.
- Lack of support from management may cause low motivation or morale.
- Budgetary slack or 'budget padding' e.g. wasteful spending introduced within cost estimates submitted by management or staff.
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Q. Show the Advantages of reward systems? ¸ Motivation can be heightened e.g. performance enhanced if paid by results. ¸ can inspire creativity e.g. bonuses paid for staff
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Whether, a strategy addresses the circumstances in which an company is operating
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