If Budget Performance Is Overemphasized, Myopic Behaviour Can Occur Where

Essay

If budget performance is overemphasized, myopic behaviour can occur where a manager takes actions that improve budgetary performance in the short run but cause long-run harm to the firm.
Required:
a.
Give at least two examples of myopic behaviour that might be encouraged if there is an overemphasis on budgets as a performance measure.
b.
Discuss ways to discourage or prevent myopic behaviour in managers.