Budgeting is a popular control mechanism in many organisations. Understanding the nature of a business and its environment and aligning it to performance measurement are keys to an effective budgetary control system. An effective system encourages group achievement and refrains individuals from alienation. 

Required:

Critically evaluate various issues related to the behavioural implications of budgetary control. As part of your evaluation, you should also consider the limitations of traditional budgetary control systems. Additionally, you should emphasize the need for more sophisticated budgetary control systems in order to ensure members of the organization are encouraged to participate more actively and perform better.

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Budgetary control systems have been widely used by organizations as a tool to monitor and manage their financial performance However the effectiveness ... View the full answer