Business – 2.2 Motivation – Methods in practice | e-Consult

2.2 Motivation – Methods in practice (1 questions)

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Advantages	Disadvantages
Improves commitment and motivation – employees feel ownership of targets. Provides realistic cost estimates because staff know day‑to‑day operations. Encourages better communication between departments.	Time‑consuming – extensive consultation can delay finalisation of the budget. Risk of “budgetary slack” – employees may inflate estimates to make targets easier. Potential conflict if employee goals clash with overall strategic objectives.

Advantages

Disadvantages

Risk of “budgetary slack” – employees may inflate estimates to make targets easier.