The practice of developing reasonably challenging budgets tend to help:
A) discourage out-of-the-box and creative thinking as there is very little room for error
B) set unrealistic expectations and are perceived as overly ambitious and unachievable
C) increase anxiety without motivation not meeting them is viewed as a failure
D) motivate improved performance as employees work more intensely to avoid failure

Question

Quizplus · Accepted Answer

Developing challenging budgets can motivate employees to work harder and improve their performance. The fear of failing to meet the budget can drive individuals to work more intensely and achieve better results. However, it is important to ensure that the budget is still achievable and not so unrealistic that it leads to stress and burnout.

The Practice of Developing Reasonably Challenging Budgets Tend to Help