Question 10.2 Greenfield Consulting is a management consulting firm with offices in several major cities. The managers of the various offices have been complaining continually about the difficulty they have in meeting the targets set for them by the senior management of the firm. These targets are set in the budgeting process and include targets for both cost containment and for income generation.

The office managers argue that it is difficult to motivate their staff to achieve the targets set, that this causes problems when bonus payments are not received, and is a cause of general demotivation among staff.

The senior management has listened to these complaints and has asked you to prepare a report outlining the cause of the problems and possible solutions.