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The behavioural aspects may conveniently be summarised as relating to motivation, partition, feedback, group effects, budget slack and the politics of the organisation.
It is suggested that budgets should help in performance evaluation because they provide formal targets against which to measure performance. If the targets are set with care, there should be motivation for the individual to achieve those targets. The question then arises as to what type of targets should be set. Relatively easy targets will be achieved by all, but they will know the targets were easy and will not feel fully motivated by that level of evaluation of performance...
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