Outline and discuss the impact of organisational factors on budgetary slack… 1 answer below »

Outline and discuss the impact of organisational factors on budgetary slack

Budgetary Slack is known as an intentional underestimation of productive capabilities and revenues and/or overestimation of resources and costs in order to complete a budgetary task (Su and Ni, 2013). Budgetary slack is known to be generally associated with a dysfunctional behaviour; unethical behaviour, without putting much effort achieving the target related to budget, unreliable information and resource allocation (Gallani et al., 2016). It has also been seen that budgetary slack has been involved in motivating employees that have eventually led to organizational goals. The idea of budgetary slack has also been seen to influence employees in creativity and innovation (Zahra, 2017).

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