AFM102 Chapter Notes - Chapter 9: Middle Management, Degree Of Difficulty, Teaching Hospital
2 Mar 2018
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Used internally by management and may be used by parties external to the company. Everyone in the company is working towards overall goals: define goals and objectives that serve as benchmarks for evaluating subsequent actual performance organizational goals are met and to take action as necessary. Comparison of goals to actual results helps management decide if the. Participative budget approach: managers participate in preparing their own budget estimates, control and evaluate a manager"s activities, advantages of the participative budget. If a budget is imposed by top management, it can generate conflict and resentment. Some companies still assign budgets using a top-down approach: more efficient, does not require negotiations, assign highly challenging budgets that may otherwise not be set. If targets are too easy, there will be inefficiencies and less efforts. Identify operational inefficiencies and reducing costs or avoiding continuing cost increases.
