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The final project - Research Paper Example

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It gives a clear insight of the amount of money that will be used to achieve certain objectives and goals. A budget also goes deep to define to…
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The final project

Download file to see previous pages... Precisely, behavioral aspect of budgeting is summarized as participation, budget slack, politics, group effects, motivation and feedback. Financial accountants, economists as well as financial analyst are all involved in the process of developing a budget (Deegan & Unerman, 2006).
A budgeting design where by the people involved are active members of the business or organization is known as participative budgeting. This kind of budgetary design ends up creating budget that is more realistic and adoptable. It pulls up employees’ morale and it cats a gauge for their effort in the growth and development of the business and or organization (Shah, 2007). As opposed to top-down budget that is generally imposed on employees by the executive directors and managers, participative budgeting takes into account the opinions and contributions of others. However, if the budget design is purely participative then the resulting budget may not put into consideration some of the high level strategic plans. If an organization has to use participative budgeting design them the top management must serve other people involved in the process with write-ups indicative expected outcome of the budgeting process.
In literature, the models of budgetary participation between superiors and subordinates have been identified, with emphasis on who has the greater influence on the budget outcome. (Brown et al., 2013; Brink et al., 2012; Chong, K., & Chong, M., 2002; Chenhall, 1986; Wentzel, 2002; Lindquist, 1995). While Brown et al. (2013). developed a subordinate and superior-set theory, Brink et al. (2012) made their division based on the roles superiors play in the budgetary process namely active or passive players. This subdivision alludes to the principle that budget outcomes are being determined by the interaction between superiors and subordinate. In Brown et al. (2013) subordinate set theory and Brink et al. (2012) committed ...Download file to see next pagesRead More
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