Budgetary Slack: Does it Hurt Organisations?

Budgetary slack is a common practice where managers deliberately underestimate revenue and overestimate expenses in their budgets to create cushion. slack, the intentional padding of by managers, has long been recognized as controversial organizations. This article addresses complex issue budgetary budgeting process, whether it could result positive or negative impact on organization employees’ performances. The identifies various factors contributing including high budget participation, information asymmetry, job insecurity, detrimental effects they can have an allocation resources, performance evaluation, accountability innovation among employees. Additionally, explores potential moderating factors, measurement system, corporate governance, mechanism, leadership, that influence relationship between its effects. These conclusions are based thorough review recent research articles, which offer valuable insights into attributes organizations well impacts slack.