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Hello Sir.
Sir i wanted to know, out of imposed and participatory approach to budgeting which approach to is likely to give rise to a dysfunctional behaviour.I personally believe that it would be imposed style of budgeting, as participatory budgeting would most likely take into consideration managers aspirations while setting up Budget.
However with Participatory budgeting being prone to Budgetary slack, will it also lead to a dysfunctional behaviour?
Neither approach is perfect and both have potential problems.
I do discuss this in my free lectures on budgeting.
Thankyou sir.
Indeed sir neither of the approach are perfect.I actually asked the question from CRQ point of view. So in case a question shows up in exam.
Can i right the above reason (Dysfunctional Behaviour) as a reason why Top-down might not be preferred as a budgeting approachYou can, provided you explain and don’t just use those words on their own.
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