Re:The curious case of the abominable shower
by anonymous_sorry on Thursday November 23, 2023 @11:13AM
(#38394329)
Well, to meet an in-year shortfall it makes sense to move the money around.
But the implication seems to be that underspending departments are "punished" with a smaller budget in subsequent years. I would naively hope a good manager would ask for a justification of the spending of both departments, and allocate the forward budget according to reasonably-evidenced projections of value for money based on the organisation's priorities or goals. Perhaps the answer is that that is just too hard, or even more prone to being gamed.
It isn't more complicated than that, it is very hard to motivate not reducing A's budget in that case. It does create perverse incentives, but at the same time what are you supposed to do as a manager in that situation?