A Study in to the Behavioural Aspects of Budgetary Control Process in a Manufacturing Organisation - Dissertation Example

The paper tells when the individuals and their behaviour have started increasingly affecting the budgetary control process, there are circumstances in which the changing budgetary control and performance expectations affect the employee behaviours. However it so happens that many organisations adopt somewhat a mechanistic approach to the budgetary control process without the requisite consideration of the behavioural aspects of the human beings involved in the whole process. Hopewood argues, “Ultimately all forms of control must be expressed through the actions of individuals”.

It is often forgotten that the goals and objectives of the organisation have to be accomplished with the help and support of the human beings associated with the organisation concerned. Therefore it becomes vitally important that the effect of individual behaviour on budget and the effect of budgets on the individuals’ course of action have to be carefully perceived to attain the objectives of the organisation without much pressure on employees and executives at any level of the organisation.

The pressure on individuals that is being exerted by the budgetary process for meeting the performance standards has to be limited in its extent. Otherwise such pressure itself will become detrimental in maximizing the contribution by the individual employees. Similarly the norms and standards of performance should be so fixed that the employees should be able to attain them with more efforts. Any unattainable standards fixed by the budgetary process will lead only to frustration among the employees.