Master the 2026 Budget Plan Game – Rock Your Program Process Practice!

Resource misallocation is a direct consequence of poor budget management because ineffective budgeting leads to funds being allocated to areas that do not require them or, conversely, to critical areas that are underfunded. This misallocation undermines an organization's ability to achieve its goals, as projects or departments that need resources the most may not receive them, while unnecessary expenditures can continue unchecked.

In contrast, options like increased funding opportunities, enhanced strategic planning, and higher employee satisfaction are typically not outcomes of poor budget management. Instead, such budget mismanagement often leads to decreased funding opportunities due to a lack of credibility and trust, hampers strategic planning as objectives become unclear with misallocated resources, and can contribute to lower employee satisfaction as a result of organizational instability and resource constraints.