If Budget Performance Is Overemphasized, Myopic Behaviour Can Occur Where

question 3

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.

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Definitions:

Imitation Reflex

An innate reflex observed in infants where they mimic gestures or facial expressions, playing a role in learning and social interaction.

Deferred Imitation

The ability to reproduce a behavior that was observed at an earlier time, even when the model is no longer present.

Vygotsky's Theory

A developmental theory that emphasizes the role of social interaction in cognitive development.

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Individuals with specialized knowledge and competencies in providing care and support, particularly in healthcare or child development contexts.