Carlos was new to his organization but quickly noticed a pattern at the annual budgeting session. Mid-level managers were asking for unrealistically high budgets, while top management was attempting to request budgets under last year's actual expenditures. Both parties were using strategies that are referred to as
A) budget breakdowns.
B) bureaucratic budgeting.
C) budget resistance.
D) tactical behaviors.
E) rigid behaviors.
A) budget breakdowns.
A common form of tactical behavior is when people falsify predictions or requests for the future. When asked to give budgetary estimates, employees usually ask for more than what they need. This is what the mid-level managers are doing. Or if they believe a low estimate will help them get a budget or a project approved, they may submit unrealistically low estimates. Top management was engaging in the second form of tactical behavior.
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