The Plight Of Enterprise Budget Management And Countermeasures Research

The application of budgeting system in western countries has a history over100years, and its formal application in China has been about20years. No matter in western or China, budgeting system has been in the core status of Management and Control System for a long time. But in recent years, budgeting system is in the face of intense criticism and doubt with the change of economic climate. This dissertation discusses the possible causes of the dilemma of budget management, the effect of business environment on the functional localization of budgeting, and the possible ways to ease the dilemma of budget management. The research adopted the logical positive approach as well as empirical approach. Through this research, valuable enlightenment is expected to be provided for budget management experiences.The basic viewpoints of the dissertation include the following:Budgeting has two basic functions—decision support function and control support function; If an enterprise pursues the former function (decision orientation) as well as the latter function (control orientation), then the pursuit implies irrational application and will cause the function disorder of budgeting system; At the same time, the budgeting system itself also has certain deficiencies. The reasons above bring about the budget management dilemma. The enterprises faced with highly competitive or highly complex external environment are more likely to apply budgeting system unreasonably, which results in a more serious dilemma phenomenon. In order to alleviate the dilemma, we should solve problems from such two angles as application method of budgeting system and budgeting system itself, and lean overmuch on the former angle. For those enterprises who have strong demand on both two basic functions, the proposal will be separate them, focus on the decision support function and weaken the control support function; For those who have already emphasis on an particular function, the proposal may be maintain the current selection, and take measures to reduce its side effects as far as possible; For all enterprises in whatever kind of environment, the proposal will be energetically develop and apply advanced budgeting technology means, so as to improve the adaptability of budgeting system to around environment.The dissertation is divided into seven chapters:Chapter1presents the motivation, main content and structure arrangement of the dissertation. Chapter2mainly clears the development process of budgeting system in the west and China along. The review is along two lines, namely, the management thought history and the budgeting functions evolution. Chapter3puts forward the theoretical foundations of the research, which include Enterprise Management, System Theory7, Cybernetics and Information Theory. And then reviews the related literature at home and abroad about the budgeting function, budget management dilemma. Chapter4theoretically analyses the causes and backgrounds of budget management dilemma, respectively from three aspects—the inherent factors in Enterprise Management, budgeting system itself, and the application method of budgeting system. Chapter5basically tries to find out the present application of budgeting system in China by the means of questionnaire survey. On the basis of data collection, makes in-depth research about what effect the internal and external environment acts on the unreasonable application of budgeting system. The study adopts empirical analysis method. Chapter6mainly analyzes the nature of budgeting based on three angles—budget management processes, functions of general management, and the latest progress of management thought. On that basis, puts forward the overall thinking and concrete ideas about how to alleviate budget management dilemma. Chapter7summarizes the overall demonstration frame and the conclusions of the research, in addition, points out the innovations and limitations of the research and future research prospects.