Question: Human behavior problems can occur in the budgeting process, such as if the goals being set are too high or too loose. Managers may even
Human behavior problems can occur in the budgeting process, such as if the goals being set are too high or too loose. Managers may even use budgetary slack to offset unexpected events, such as weather delays, power outages, or potential natural disasters. It is often difficult to find reasonable, attainable goals that benefit both employees and management. In addition, meeting budget numbers is often part of
a managers performance evaluation and can affect the possibility of bonuses or promotions. If you were a manager, would your self-interests prevail in goal setting for budgets? What could you do to find a balance between self-interests and assigning reasonable goals for your employees?
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