Budgeting and behaviour - part 1
Understand how budgeting influences managerial behaviour and the psychological factors that drive both positive engagement and dysfunctional responses. This lesson examines the conflict between organisational goals and personal incentives, exploring common pitfalls such as slack budgeting, inter-manager resentment, and poor attitudes toward the budgeting process, alongside practical strategies to foster healthy budgeting cultures that support long-term organisational success.
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In this lesson
- 0:00 Introduction to Budgeting and Behaviour
- 0:30 Conflict of Interest in Budget Targets
- 1:28 Organisational Goals vs. Manager Aspirations
- 2:27 Inter-Manager Resentment and Budget Hierarchies
- 3:11 Addressing Negative Managerial Attitudes
- 4:11 Poor Attitudes in Budget Setting
- 6:07 Inadequate Future Planning and Laziness
- 7:12 Budget Implementation and Poor Attitudes
- 8:03 The Problem of Short-termism
- 8:55 Cooperation and Communication Issues
- 10:04 Spend-it-or-Lose-it Mentality
About this lesson
Unlock the secrets of how budgeting shapes managerial behaviour in this insightful exploration. Discover the dual-edged nature of budgeting—how it can motivate positive actions but also lead to negative reactions, such as setting overly easy targets for financial gain or the conflict between organisational goals and personal aspirations. Learn about the pitfalls of poor budgeting attitudes, from the reluctance to engage with the budgeting process to the dangers of a "spend it or lose it" mentality. This video offers valuable strategies to address these challenges, ensuring your budgeting process fosters the right behaviours and aligns with your company's long-term success.
Duration: 11m
- Budgeting and behavioural motivation
- Budget slack and target setting bias
- Organisational vs. personal goal conflicts
- Inter-manager resentment and hierarchical tension
- Poor attitudes in budget implementation
- Spend-it-or-lose-it mentality
Transcript
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