Question
Kurt Helfter graduated with a B.S. degree in Mechanical Engineering and joined Andrew Consulting, a firm specializing in HVAC (heating, ventilation, and air conditioning) for
Kurt Helfter graduated with a B.S. degree in Mechanical Engineering and joined Andrew Consulting, a
firm specializing in HVAC (heating, ventilation, and air conditioning) for small to medium-size business
structures. Kurt is knowledgeable in the use of CAD (computer-assisted design) and was pleased during
his initial employment to find Andrew Consulting a leader in the use of CAD software.
During Kurt's third year at Andrew, he felt a sense of unease with the firm's slow pace in updating
computer hardware and software. Although not directly involved in budgeting for the firm, Kurt has been
satisfied with the resources that Andrew provided for his use. Kurt felt the need to detail his concerns in
a memo to his superior, in which he requested significant investment in computer resources to "allow us
to respond to clients' needs, both in quantity and quality." Kurt was surprised and hurt when he received
his superior's response, which suggested that resource allocation in the firm is decided at a higher
administrative level. "But all I wanted to do was help keep our firm competitive," Kurt responded to his
boss when visiting him about the rejection memo. "Sorry, Kurt," his boss said, "That's how things get
done in this firm." Kurt now feels lost, wondering if it's time to look for another job.
Does this situation suggest what type of budgeting process the company is using? Is there a problem with
individual and company goal congruence in Andrew Consulting? If so, how might Kurt's supervisor have
prevented the problem?
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