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Question 4.2 Budgets play an important role in the planning process in organisations. Most organisations build thei incentive systems to influence employees to achieve desired

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Question 4.2 Budgets play an important role in the planning process in organisations. Most organisations build thei incentive systems to influence employees to achieve desired targets. Compensating employees for achieving a budgeted target may actually undermine the organisation's plans and create incentives for manipulating performance. Required: If you were advising an organisation regarding the use of budget-based or other incentive schemes to compensate performance, what would be your recommendation? Explain your reasons. [Word limit: 300 words. Note the word count at the end of your answer] (8 marks) Your Answer (expand the space as required)

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