Some Lssues On Theory And Practice Of Enterprise Budget Management

Budget management is one of the most important modern corporation management models. It has been introduced by more and more Chinese enterprises than ever before. Functions of budget management have been proved by modern corporations. In micro aspect, budget management helps enterprises improve their management efficiencies and bring them economic profits. In macro aspect, it can also redound to optimize the allocation of resource with the market ways. From 70s in the 20th century, the economy worldwide changed from the industrial economy to the information economy, and the uncertainty and competition in business environment had been stronger. Reconstruction of organizations had shaken the base which traditional budget management depends on. Many problems such as the lack of flexibility, high cost of time and resource and conflicts among functions become more severe.From the character of budget management, the author finds budget management is not only one of management methods, but also one kind of institutions, and it has many advantage which other management methods have not taken on. Emphasis of this paper is the study on problems in budget management. These problems are the limitations of budget management itself, include: (l) people's behavior factor in budget management; (2) budget slacking and budget goal setting; (3) performance evaluating and motivating, the paper does study on the motivation in budget management with the theoretic models. This paper considers budget management could be more flexible and strategic by means of reconstruction of budget management.Meanwhile, budget management has been introduced by more and more Chinese enterprises than ever before because most of Chinese enterprises are in the setting-up phase of modern corporation systems. As one of important management methods, budget management is one parts of modern enterprises systems. In order to set up and improve modern corporation systems, the Chinese enterprises must introduce the proper budget management. After analyzing the factors that conduced the reality of budget management practice in China, this paper presents many constructive solutions. The help to Chinese enterprises apply budget management and to make management achievement is expected.Shen Jiaqing (Accounting) Directed by: Shao Ruiqing (Professor)...