Can budgetary slack be avoided if lower and mid level managers are requested to support all of their spending requirements with specific operational plans?

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1177104

2026-03-05 03:55

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Budgetary slack can be minimized if lower and mid-level managers are required to substantiate their spending requests with detailed operational plans. This approach encourages accountability and transparency, making it more challenging for managers to inflate budgets artificially. However, it may not completely eliminate slack, as managers might still overestimate needs to create a safety net. To further reduce slack, organizations should foster a culture of trust and open communication, where managers feel secure in sharing realistic budget requirements.

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