Finance and Financial Management Commons^™

The Tendency Of Hotel Rooms Division Managers To Create Budgetary Slack, Collin Ramdeen, Marcia Taylor, Scott Lee

Journal of Hospitality Financial Management

This study explores how the budgeting system impacts rooms department managers’ tendency to create budgetary slack. The results provide support for four hypotheses, specifically indicating that rooms department managers’ tendency to create budgetary slack does change with the setting and the way the budgeting system is implemented. The major practical implication of this study is that allowing rooms department managers to participate actively in the budgeting process seems to reduce their tendencies to create budgetary slack.