Another dilemma is for a manager is sandbagging a forecast. For a manager to show that the company is forecasting to have a down-year through stretching the data or not using all of the data/knowledge, they could be setting themselves up to do better than they forecasted instead of being realistic, objective, and unbiased.
What does everyone think about this statement? Do you agree or disagree?
This statement is very relevant and is quite possible that managers intentionally or otherwise can lower company expectations or forecast and then deliver better than estimated. This also ensures that compensation and bonuses which are linked to comparative performance against budget are much better and higher.
So I fully agree that it is possible and is quite prevalent wherein managers can downplay the actual prospects and then perform better and thus act in their own interests while not keeping the shareholders interests ahead of them.
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