Question

Some key budgetary features that tend to promote positive managerial behavior are

a. frequent feedback on performance.
b. participative budgeting.
c. realistic standards.
d. well-designed monetary and nonmonetary incentives.
e. all of these.

Answer 1

Positive managerial behavior is fostered through frequent feedback, participative budgeting, realistic standards, and well-designed incentives, both monetary and nonmonetary. These key features collectively contribute to enhanced performance and goal alignment within an organization.

Step-by-step explanation:

Key budgetary features that promote positive managerial behavior include:

• Frequent feedback on performance.
• Participative budgeting, where managers are involved in setting budget goals.
• Setting realistic standards to ensure achievable targets.
• Creating well-designed monetary and nonmonetary incentives to motivate managers.
• The inclusion of all these features in a budgetary system.

These components encourage managers to perform at their best by ensuring a collaborative approach to budgeting, providing benchmarks for performance measurement, and aligning managerial efforts with overarching organizational goals through effective incentives.