Question: Financial responsibility is a key factor in performance evaluation of all managers. Mr Adam believes that his policy of allowing the divisional managers to participate

Financial responsibility is a key factor in performance evaluation of all managers. Mr Adam believes that his policy of allowing the divisional managers to participate in the budget process and making them accountable for final budget is essential, especially in this period of limited financial resources. Required Mr Adam believes that the divisional managers will be motivated to increase the efficiency and effectiveness of their division they have provided input into the initial budgetary process and required to justify any unfavourable performance. Identify and discuss the shortcomings of QStem budgetary process. (b) Recommend how each shortcoming can be corrected by Qstem?

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