Question

FOLLOW REQUIRED INSTRUCTIONS PLEASE

In your internet browser, search for the term "Budgetary Slack." Review a few of the results so you understand what it is and when it is used by managers. Then, read the "Ethics Challenge" near the end of the Master Budgeting chapter problems in your textbook.  

Required:

Share your responses to the following questions with your classmates. Based on your reading:

1. Do you think Granger Stokes is using budgets appropriately?
2. What sort of behavioral consequences may occur as a result of the way budgets are used at Prime Drive?
3. What would you do if you were in Keri Kalani's position?  

Answer 1

Answer:

(i)

Using budget as a planning and control instrument doesn't mean constraining representatives and placing them into a fear that they might be terminated if not worked likewise. He ordered workers to expand sales by 40%. It is found in typical practice that if representatives don't find a good workplace, they will in general look for some kind of employment somewhere else and attempt to hide their errors because of the unethical conduct of the employer.

(ii)

Budget is being utilized in a way that makes pressure and an absence of respect for the employer. As expressed in the above part answer, if representatives are not provided with a good workplace they will leave/resign. Same is the situation here that financial plan or budget is forced without any reasons alongside the strategy to fire too. Forcing/pressuring workers implies that we are intending them to do wrong.

(iii)

Keri Kalani needs to tell top management of the circumstance. Thusly, top management would pick up data that may lead them to make changes and ideally stopping the delivery of each one of those broken or faulty drives. This should prompt higher quality items for their customers and improve the fame and reputation and long haul profitability of PrimeDrive and better ROI for Halston and Stokes. Her chief and different representatives associated with the transportation/shipping of these bad units might be terminated and additionally condemned prompting Ms. Kalani having a troublesome workplace, yet this is the best thing she can accomplish for her organization and at last for herself