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Unformatted text preview: departments and the company as a whole, and across companies ii. Communication: 1. Making sure those goals are understood by all employees b. Framework for Judging Performance and Facilitating Learning i. Budgets enable a companys managers to measure actual performance against predicted performance 1. Budgets can overcome two limitations of using past performance as a basis for judging actual results: a. Past results often incorporate past miscues and substandard performance b. Future conditions can be expected to differ from the past ii. A companys budget should not be the only benchmark used to evaluate performance 1. Creates an incentive for subordinates to set a target that is relatively easy to achieve...
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This note was uploaded on 04/24/2011 for the course MGMT 505 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.
- Spring '08