3. CSO: 1A1b LOS: 1A1e
In developing the budget for the next year, which one of the following approaches would
most likely result in a successful budget with the greatest amount of positive motivation
and goal congruence?
a. Permit the divisional manager to develop the goal for the division that in the
manager’s view will generate the greatest amount of profits.
b. Have senior management develop the overall goals and permit the divisional
manager to determine how these goals will be met.
c. Have the divisional and senior management jointly develop goals and objectives
while constructing the corporation’s overall plan of operation.
d. Have the divisional and senior management jointly develop goals and the
divisional manager develop the implementation plan.
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