2.4 Participation in setting targets Managers may be involved in setting targets or these may be imposed by senior management without consultation.
Advantages of participation include:
§ increased motivation (ownership of target)
§ better understanding of an individual manager’s aspiration level so that the target can be set at a suitable level for an individual.
Disadvantages of participation:
§ time consuming外语学习网
§ may result in a wide range of targets which are seen as unfair
§ managers may understate targets to make them easier to achieve (i.e. incorporate budgetary slack)
§ negotiation may become a political process, which draws attention from running the business.
Test your understanding 5
A sales manager has achieved $550,000 of sales in the current year. Business is expected to grow by 10% and price inflation is expected to be 3%.
Suggest a suitable budget target for the forthcoming year.
发表于 2012-2-23 17:09:42
