Question

"Dave noticed a pattern at the annual budgeting session of his company. Mid-level managers were asking for unrealistically high budgets while top management was attempting to limit budgets under last year’s actual expenditures. The management’s strategies are referred to as"

Answer 1

Dave noticed a strategy in his company's budgeting process where mid-level managers ask for high budgets and top management tries to limit expenses. This negotiation mirrors budget management at various government levels, which can change due to policies or unexpected events.

Step-by-step explanation:

The management strategy Dave observed during his company's annual budgeting session is known as budgetary negotiation. This process involves mid-level managers asking for higher budgets than they might realistically need, anticipating pushback and reduction from top management who aim to keep budgets tight, often prioritizing to limit budgets under the previous year's actual expenditures. This approach by the mid-level managers is a strategic buffer to safeguard their departments' interests, while top management exercises fiscal control to prevent overspending.

All levels of government-federal, state, and local-have to manage these kinds of budget negotiations, as they draft budgets based on anticipated taxes and other income and plan how to allocate these funds. However, budgets can drastically change due to policy decisions or unforeseen circumstances, affecting the initial planning and spending strategies.

Answer 2

Tactical behaviors

Step-by-step explanation:

Tactical behavior focuses more on day to day activities and who will perform them and what they need to do it. It focuses more on efficiency than effectiveness, e.g. how much money we need to spend to achieve certain goals. The systems and processes are important than the whole vision or goal of the organization.

Both the mid-level managers and top management were more worried about costs than actual results. Mid-level managers were trying to increase their budgets, while top management was trying to make everyone work with the same budget as last year. Nothing new seem to be included, just the repetition of day to day activities.