What budget preparation approach involves extensive input from staff and stakeholders?

The approach known for extensive input from staff and stakeholders is participative management. This method emphasizes the involvement of various employees and stakeholders in the budget preparation process, allowing for a broader range of perspectives, insights, and expertise to be considered. By engaging those who are directly affected by budgetary decisions, organizations can ensure that budgeting aligns more closely with operational realities and stakeholder needs.

Participative management fosters a sense of ownership and responsibility among staff, which can lead to increased morale and commitment to achieving the budget's objectives. This collaborative approach not only improves the accuracy of budget estimates but also enhances communication within the organization, as stakeholders feel their voices are valued.

In contrast, top-down management relies on directives from senior leadership without significant input from lower-level employees, which can lead to a disconnect between budget allocations and actual operational needs. Zero-based budgeting requires building a budget from the ground up without reference to previous budgets, focusing instead on justifying each expense, but does not inherently prioritize the inclusion of stakeholder input. Activity-based budgeting focuses on costs associated with specific activities but is more analytical and may not involve staff and stakeholder engagement to the same level as participative management does.