Question

What are the “human factors” in a budget creation? support your answer with referances

Answer 1

Human factors in budgeting

1.For a budget program to be successful it must have the complete acceptance and support of the persons who occupy key management positions; top management should be enthusiastic and committed to the budget.

2. It is pivotal that top management not use the budget to pressure or blame employees. For example, under pressure, employees tend to feel heat and not perform as per expectations.

3. In creating budget it important that all employees should feel motivated. For example:- If employees are against the budget then it is bound to fail.

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