Your Managing Director (MD) is concerned that some managers in the organisation have become demotivated with the use of budgets. The MD wants to reverse this demotivation and has asked you for guidance on how a budget and the budgeting process could be used as a motivational device in your organisation..

Required

In no more than 200 words, draft notes to your Managing Direcor on what factors influence the effectiveness of budgets as motivational devices.