What is a potential advantage of participatory budgeting?

Participatory budgeting involves engaging various stakeholders, including employees, in the budget formulation process. One of the significant advantages of this approach is the improvement in employee engagement. When employees are allowed to contribute their insights and perspectives on budget priorities and allocations, they feel valued and more connected to the organization's goals and financial decisions. This engagement can lead to higher morale, increased ownership over outcomes, and a sense of accountability among staff. Consequently, organizations may experience enhanced collaboration and communication, fostering a more committed workforce that is inspired to align their efforts with the organization’s strategic objectives.

In contrast, the other options either present drawbacks or limited perspectives associated with participatory budgeting. A greater expense in budget formulation reflects a potential downside rather than an advantage. Less time needed for budget development doesn't align with the participatory budgeting model, as involving more stakeholders typically requires more time to facilitate discussions and consensus. Relying solely on managers for knowledge neglects the diverse viewpoints and insights that employees can bring, which are vital for a comprehensive understanding of budget implications across different levels of the organization.