Impact of Budgetary Control on Organizational Performance : Case of Fertilizer sector of Pakistan

Abstract

The main purpose of this study is to examine the relationship between budgetary control and financial performance of fertilizer companies’ performance of Pakistan while presenting the real scenario of the organization. Therefore, to test the practice of budgetary control and financial performance the five year data of a six fertilizers companies used and the houseman test was applied to have significant answers. The findings of this study emphasize that a practice of budgetary control leads to increased profitability but for that management commitment is indispensable. The study concludes that budgetary control process shows a significant positive bearing on the financial performance of FERTILIZER companies. The study recommends a sensitization of management and employees of fertilizer companies’ performance along the lines of the importance of budgetary controls in enhancing financial performance, avoidance of unnecessary interference in the budgetary process and use of budgets as tools for management efficiency.