Which of the following factors is important for budgetary targets to effectively motivate staff?

Creating challenging targets is essential for effectively motivating staff because it encourages individuals to stretch their abilities and enhances their engagement with their work. When targets are challenging yet achievable, they provide a clear goal that can inspire employees to put in extra effort and think creatively about how to reach those goals. This can lead to increased satisfaction and a sense of accomplishment when targets are met, ultimately contributing to improved morale and productivity within the organization.

In contrast, targets that are time-consuming tend to drain resources and can lead to frustration rather than motivation. Focusing on irrelevant items may divert attention away from critical business objectives, therefore undermining motivation. Setting extremely high expectations without considering the capabilities and resources available can lead to demotivation, as employees may feel overwhelmed or believe that success is unattainable. Thus, it is the creation of challenging but realistic targets that plays a key role in motivating staff toward achieving budgetary goals.