Susie Sampson was recently promoted to be a manager of a department where she previously had not worked. When she met with her team, she learned that they liked to put a lot of slack in their budget numbers to ensure success, which would translate to bonus For example, to determine their costs, they would use the three least efficient months of the previous year to calculate their costs. She is not comfortable with their process and has never seen it used in previous departments.

1. Can Susie justify this built-in budgetary slack?
2. Do you believe this approach is ethical?
3. How will her department members feel if she changes their approach to budgeting?
4. If you were in Susies position, what would you do?