An imposed budget forecast approach does not allow input

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An imposed budget forecast approach does not allow input from those who are directly affected by the process. This can tend to make the employees feel that they are unimportant and that management is concerned only with meeting budgetary goals and not necessarily with the well-being of employees. The employees will probably feel less of a bond with the organization and will feel that they are meeting standards set by others.

  • Discuss additional behavioral implications of planning and control when a company’s management employs an imposed budgetary approach and a participative budgetary approach.
  • Communications plays an important role in the budgetary process whether a participative or an imposed budgetary approach is used.
    • Discuss the differences between communication flows in these 2 budgetary approaches.
    • Discuss the behavioral implications that are associated with the communication process for each of the budgetary approaches.

 

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