From a managerial perspective,which budget is most likely to motivate people to succeed in executing it?
A)A budget that is tight,but attainable because it creates the appropriate level of challenge.
B)A budget that is easy to achieve,because it inspires confidence.
C)A budget that is difficult to achieve,because it encourages people to aim high.
D)A budget that is tight,and nearly impossible to achieve,because it creates camaraderie and an "us versus them" mentality.

Question

Quizplus · Accepted Answer

A budget that is tight, but attainable creates an appropriate level of challenge that can motivate people to succeed in executing it. It provides a sense of accomplishment and encourages employees to work harder to meet the targets. On the other hand, budgets that are too easy to achieve may not challenge employees, and budgets that are nearly impossible to achieve can be demotivating as they seem unattainable. A balance between attainability and challenge is necessary to motivate people to succeed.

From a Managerial Perspective,which Budget Is Most Likely to Motivate