5 Joshua Ronen and J L Livingstone An Expectancy Theory Approach to the

5 joshua ronen and j l livingstone an expectancy

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5 Joshua Ronen and J. L. Livingstone, “An Expectancy Theory Approach to the Motivational Impacts of Budgets,” The Accounting Review , October 1975, pp. 671-685. 6 Eliyahu M. Goldratt, It’s Not Luck (Great Barrington, MA: North River Press, 1994). 7 Allen Schick, “The Road from ZBB,” Public Administration Review , March/April 1978, pp. 177-180. 8 Norton S. Beckerman, “The Missing Link: The Planning Portion of the Zero Base Approach,” The Government Accountants Journal , Winter, 1978- 1979, vol. 27, no. 4, pp. 24-31. 9 Joseph G. Fisher, James R. Frederickson, and Sean A. Peffer, “Budgeting: An Experimental Investigation of the Effects of Negotiation,” The Accounting Review , January 2000, pp. 93-114. 10 Merchant and Manzoni, 1989. 11 David T. Otley, “Budget Use and Managerial Performance,” Journal of Accounting Research , Spring 1978, pp. 122-149. 12 Onsi, 1973. 13 Alan S. Dunk, “Budgetary Participation, Agreement on Evaluation Criteria and Managerial Performance: A Research Note,” Accounting, Organizations and Society , vol. 15, no. 3, 1990, pp. 171-178. 14 Ronen and Livingstone, 1975. FURTHER READING Christopher K. Bart, “Budgeting Gamesmanship,” The Academy of Management Executive , November 1988, vol. 2, no. 4, pp. 285-294. S. R. Covey, The Seven Habits of Highly Effective People: Restoring the Character Ethic (New York, N.Y: Simon and Schuster, 1989). Joseph G. Fisher, L.A. Maines, S.A. Peffer, G.B. Sprinkle, “Using Budgets for Performance Evaluation: Effects of Resource Allocation and Horizontal Information Asymmetry on Budget Proposals, Budget Slack, and Performance,” The Accounting Review , October 2002, pp. 847-865. Eliyahu M. Goldratt, Critical Chain (Great Barrington, MA: North River Press, 1997). Floyd G. Lawrence, “ Zero Base Budgeting: Cure or Curse?” Industry Week , March 20, 1978, pp. 94- 98. William C. Letzkus, “Zero-Base Budgeting: Some Implications of Measuring Accomplishments,” The Government Accountants Journal , Summer 1978, vol. 27, no. 2, pp. 34-42. 10-54
Table 1a: Budget Year 1 without Slack Department Total Division Total Slack as + $200,000 for + $200,000 for a Percent Administration of Administration of of Original Department Lowest Tier Second Tier Department Division Budget RESEARCH AND DEVELOPMENT $5,600,000 0% Design $1,700,000 Feature Engineering $500,000 Overall Manufacturing Engineering $500,000 Prototype Build $500,000 Testing $3,700,000 Prototype Testing $500,000 Advanced Prototype Testing $500,000 Individual Labs $500,000 Lab 1 $200,000 Lab 2 $200,000 Lab 3 $200,000 Lab 4 $200,000 Lab 5 $200,000 Lab 6 $200,000 Lab 7 $200,000 Lab 8 $200,000 Lab 9 $200,000 Lab 10 $200,000 Table 1b: Budget Year 1 with 10% Slack Department Total Division Total Slack as + $200,000 for + $200,000 for a Percent Administration of Administration of of Original Department Lowest Tier Second Tier Department Division Budget RESEARCH AND DEVELOPMENT $7,359,000 31% Design $2,035,000 Feature Engineering $550,000 Overall Manufacturing Engineering $550,000 Prototype Build $550,000 Testing $4,455,000 Prototype Testing $550,000 Advanced Prototype Testing $550,000 Individual Labs $550,000 Lab 1 $220,000 Lab 2 $220,000 Lab 3 $220,000 Lab 4 $220,000 Lab 5 $220,000 Lab 6 $220,000 Lab 7 $220,000 Lab 8 $220,000 Lab 9 $220,000 Lab 10 $220,000 10-55
Table 1c: Budget Year 4 with 10% Slack Department Total Division Total Slack as + $200,000 for + $200,000 for a Percent Administration of Administration of of Original Department Lowest Tier Second Tier Department Division Budget

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