A critical evaluation of the effect of participation in budget target setting on motivation

This paper critically evaluates the effect of participation in budget target setting in an effort to increase the probability of an organisation’s goals being achieved and, in so doing, considers some of the numerous theories of motivation. Such theories include Maslow through to equity and expectancy theories. However, given that there are a multiplicity of variables at work here, the author concludes that the effect of participation is situation specific and dependent upon such variables: there is no “perfect” budgeting system.