Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost

Question:

Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers’) original estimates. Furthermore, all cost overruns must come out of the functional managers’ budgets, whether they be overhead or otherwise, not the project budget. What are the advantages and disadvantages of this approach?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: