Communicating to each individual employee his/her responsibilities.

The responsibilities of individuals are stated so that each employee

knows what is expected of him/her. In particular, the budgetary
process facilitates delegation of responsibilities to individuals in
charge of specified areas of responsibilities, called budget centres.
Actual results are recorded and compared with budgets, enabling
the identification of deviations, both favourable (positive) and
unfavourable (negative). Management is then able to concentrate
on areas that require corrective action to be taken. This is called
management by exception.

However, budgetary control also has its own disadvantages. The main
disadvantages of budgetary control system are (p. 361, Business
Accounting: An Introduction to Financial and Management
Accounting By Jill Collis, Andrew Holt, Roger Hussey):

Rigidity Managers may be constrained by the original budget and

are not willing to take effective and sensible decision when situation
warrant it e.g. after reaching the target they may not be willing to
exceed the target further even though it is possible.
Time consuming The time spent on setting and controlling budgets
may distract managers from their main responsibilities of running
the business.
Unrealistic expectation by upper management Managers may
become demotivated if budgets are imposed by top management
without consultation with them which lead to unrealistic target.