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Motivating Honest Budgets and Hard Work Simultaneously

Motivating honest budgets and profit expectations is difficult because some rnsubordinate managers will provide overly optimistic budgets to "look good" to rntheir bosses, while others will lowball budgets so they will "look good" when they rnexceed expectations. This paper explains how to motivate accurate forecasts of rnbudgets and profits.


Ted Bainbridge, Ph.D.

Date Accepted: 2016-09-13 Grade Group: High School (9-12) Benchmarks: M1.4.7 M1.4.8 M2.4.9 M8.4.16 M8.4.17 M8.4.24 M9.4.4 M9.4.7 Keywords: budget equations income game theory agency theory motivation managers forecast Microsoft Word: 04_03_16_1.docx PDF Document: 04_03_16_1.pdf