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Essay / Research Paper Abstract
This 10 page paper considers the statement that benefits of budgetary control are outweighed by the de-motivating effects of the budget on the staff of the organization. The paper considers the role and manifestation of budgetary controls and how they interact with motivation theory. The paper utilizes the models of economic man and social man. The bibliography cites 5 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEbudmot.rtf
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Unformatted sample text from the term paper:
t be balanced, these may be the need to balance stakeholder and shareholder interests, just as there may be the need to balance the use of budgets against the motivation
of staff. This is an interesting area to consider, as most businesses will have some form of budgeting. It has been postulated that that the benefits of budgetary control are
outweighed by the de-motivating effects of the budget on the staff of the organization. To examine this the starting point needs to be a definition of what it meant
by budgeting, only then can its effects be considered upon motivation by looking at general motivation theory. However, whilst looking at it there may be noted the potential for a
clash with employee motivation, but not on that is inherent in the relationship of budgeting and motivation. The role of the budget
is to control the costs and therefore the profits. It is also important in the short term for cash flow as there needs to be an ability for a company
to be able to pay their suppliers and creditors in the short term. Therefore, budgets can be seen as an important mechanism for controlling a company. This is true is
all companies, those where there are high levels of staff motivation as well as those where there is low levels of motivation resulting in weak organizational commitment,
The importance of budgets and budgetary control cannot be understated, as without the control many companies would fail. There are many different interpretations of the
term budget and budgetary control, but to find an all encompassing term it may be best to use a definition from a management accounting organisation. The Institute of Cost
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