Final answer:
A self-imposed budget empowers managers to create their own budgets, leading to higher motivation and potentially more accurate budgets. It requires trust in management and can sometimes result in budgetary slack.
Step-by-step explanation:
Empowering managers to create their own budget is effective. It's called a self-imposed budget. This approach to budgeting is part of participative budgeting where managers at all levels of an organization are involved in the process of setting budgetary goals. A self-imposed budget, also known as a participative budget, empowers managers to have control and responsibility for the budgets of their respective departments which can lead to higher motivation and better performance.
Moreover, when managers are involved in the budgeting process, it tends to result in more accurate and feasible budgets because the managers have a better understanding of what is achievable in their areas. However, this method also requires a high level of trust in management capabilities and can occasionally lead to budgetary slack if not monitored appropriately.