A rigid adherence to annual budget plans can stifle innovation and discourage frontline staff from taking responsibility for performance.

Question

Quizplus · Accepted Answer

Rigidity in annual budget plans can lead to a lack of flexibility and creativity, which can discourage frontline staff from taking ownership of their work and finding innovative solutions. Therefore, a more flexible approach to budget planning may be necessary to encourage innovation and promote a culture of ownership and accountability.

A Rigid Adherence to Annual Budget Plans Can Stifle Innovation