An extensive literature on the behavioural aspects of budgeting discusses the propensity of managers to create budgetary slack.Based on the above statement, explain three ways in which managers may attempt to create budgetary slack and how senior mana
manager may also study the budgetary system that he expected managers to achieve. Sometimes the budget might be too high and hardly to attain in the competitive market. The low actual results might be the best performance from managers. For instance, the senior manager set the budget for RM15 million for the year 2002. This high budget may be successful when economy rises but not during the economy crisis. Then the senior manager should improve in planning the system.
In conclusion, the budgetary system is vital for every organisation for strategic planning. Hence, the senior manager should have co-ordinate the managers correctly towards the organisation¡¯s goals.