Chin Co, an architectural services firm, uses a top-down budgeting approach. The budget is prepared by Michael
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Chin Co, an architectural services firm, uses a top-down budgeting approach. The budget is prepared by Michael Chin, the CEO, and once finalized it is distributed to departmental managers for implementation. Michael Chin sees the budget as an important means of improving company performance and he therefore sets extremely demanding sales targets. Employees receive wage bonuses based upon their performance against the budget.
Required:
Discuss the likely impact that Michael Chin’s budgeting style will have upon employee and business performance at Chin Co.
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Chin Co uses a topdown budgeting approach As operational managers are not involved in the budgetsett...View the full answer
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Authors: Matt Bamber, Simon Parry
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