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Explain the ways in which budgets can in long run efficiency

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‘The necessity for constantly increasing efficiency is a basic fact of business life. Budgets are utilised as pressure devices for that purpose. But because of the effect of budgets on people, they tend to generate forces which in the long run decrease efficency' (Argyris, 1953). Explain the ways in which budgets can in the long run decrease efficiency and examine how management can prevent this occurring.

Reference no: EM13878729

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