Behavioral aspects of budgeting
Budget is an essential controlling tool. It can help to plan, implement, execute and manage the strategic plan for the organization. There are behavioral issues relating to budgets such as dysfunctional behaviors of manager and budgetary slack. These behavioral issues become more obvious when their actual performance is to be compared with and evaluated against budget performance. The outcome of the comparison and evaluation can have a direct relation to the amount of incentives (monetary and non-monetary) they can receive.