Research shows that challenging budgets improve employee performance because employees view falling short of budgeted numbers as a failure.

Question

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Challenging budgets can motivate employees to work harder and strive for better performance in order to meet or exceed the budgeted numbers. Falling short of the budgeted numbers can be seen as a failure and can push employees to improve their performance to avoid similar outcomes in the future. This can ultimately lead to improved overall employee performance.

Research Shows That Challenging Budgets Improve Employee Performance Because Employees