Budgetary control enables the management to enhance the level of overall organizational control in a way that it forecasts the upcoming future of the organization and future is the main focus of organizational control. By looking ahead management can set aside some plans to achieve the goals and objectives of the company. Each manger becomes able to give a direction to the company and targets are acquired by having a desired level of control over each department’s activities. Organizational control is also ensured with the help of budgetary control techniques because these increase the level of coordination and communication different members and different departments of the business (Simons, 1987).
To control an organization it is necessary that responsibilities of each and every member of the organization are clearly defined and pre-determined. When the managers of budget centre become responsible to control the budget, they start realizing their responsibilities and the trendpassed away to the different departments of organization. These measures that are related to budgetary control help in increasing the level of motivation in employees because they become able to participate in the settings of business and hence they start owing each and every decision that is taken by management. Moreover, budgetary control is a tool to economies the management time and these economies are achieved by using the principle of management by exception.