Question:
The budget is a very common instrument used by many businesses. While it usually is thought to be an important and necessary tool for management, it has been subject to some criticism from managers and researchers studying organizations and human behavior.
(a) Describe and discuss the benefits of budgeting from the behavioral point of view.
(b) Describe and discuss the criticisms leveled at the budgeting processes from the behavioral point of view.
(c) What solutions are recommended to overcome the criticisms described in (b)?