The president of a fast-growing, high-technology firm remarked, Developing budgets and comparing performance with the budgets may

Question:

The president of a fast-growing, high-technology firm remarked, “Developing budgets and comparing performance with the budgets may be fine for some firms. But we want to encourage innovation and entrepreneurship. Budgets go with bureaucracy, not innovation.” Do you agree? How can a management control system encourage innovation and entrepreneurship?