How would you respond to the situation


Problem

Application exercise 8.5 Maurice Ravel is the purchasing officer for Ballan Ltd. At the beginning of each year Maurice is given a purchasing budget which is prepared by the company's chief financial officer and every year he makes the same comment to his supervisor: "Every year I get given these meaningless budgets based on out of date prices and product listings. I have been the purchasing officer at this company for more than seven years and I think I know more about this function than anyone else in the organization. But I never get asked for any advice or other input to setting the purchasing budget"

Maurice's supervisor raised this with the chief financial officer whose response was:

We can't have staff setting their own budgets! It would make staff performance appraisal meaningless!

How would you respond to this situation?

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Financial Management: How would you respond to the situation
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