Why budget performance is a better criterion than past performance for judging managers?

Budget performance is a better criterion for judging managers because it reflects their ability to effectively plan and allocate resources in alignment with organizational goals. Unlike past performance, which may be influenced by external factors beyond a manager's control, budget performance directly assesses a manager's decision-making and operational efficiency. Additionally, focusing on budget performance encourages accountability and proactive management, driving continuous improvement and strategic alignment within the organization.