Question

The guidelines for setting goals for a budget that will motivate employees and managers include:

a) developing goals without employee input.
b) setting reasonable and attainable goals.
c) setting minimal goals so that people do not feel bad if they are not reached.
d) setting goals as high as possible.

Answer 1

The answer is B.

Step-by-step explanation:

A budget is a financial plan for a defined period usually for a period of one year. Budget is prepared yearly. Budget may include planned sales, planned cost etc. for the following year.

The type of budget that will motivate employees and managers is bottom-up budget. A type of budget in which consideration are down from the lowest cadre in the company to the highest.

Employees' inputs are considered, they set realistic target for themselves based on the current situation. Because they are involved in the preparation, they are motivated due to the sense of being valued. So option B. is the answer.