A Study Of Budgeting Management Based On The Balanced Scorecard Of Group Companies In China

Under the circumstances of market economy, the group companies have planed an important role. Today, undoubtedly, the competition among the group companies embodies the economic potentiality among countries. Compared with the world advanced group companies, the group companies in China lack corresponding competitive power though China made great progress by implementing the reform and open policy. Therefore how to improve the group companies' administration and how to enhance their international competence and how to contend with the overseas large-scale group company has become an emergent problem.As one of important management methods, budgeting management is an modern management control system applied extensively among the international big group and the big company, it can make the group company to form a sort of strong, ordered adhesion and embody the competent advantage of the group company and foster the core competence of the group company. At present, many group companies in China have already realized the importance of the budgeting management and already started to use the budgeting management in the interior, but many companies are unsatisfied for the effect of the budgeting .It mainly because the basic mode of the budgeting , formed in the reflected the industrial economic era, reflected the specific business environment, organization mode of enterprise, and the requirements of technique conditions to management control in that time and the response of enterprises to these. The indetermination of corporate environment and the competition of corporation became more obvious. This change made several deficiencies appear of the traditional budgeting management. The deficiencies are the following: the budgeting target can t serve for the strategy, the budgeting management lacks the adaptability, the financial character of budgeting evaluation issue. But it can overcomes the above limitation of the traditional budgeting management by inducting the balanced scorecard into the traditional budgeting management, and converge various resources in the interior of the group companies efficiently, thus enhance the management efficiency of the group companies.In order to study better the budgeting management based on the balanced scorecard, the paper, first of all, is detailed on the budgeting management based on the theory of the corporation and the corporation management and the budgeting content, and made the analysis to this mode and the traditional budgeting mode. This model of the budgeting management implements the balanced scorecard into the circulation of the budgeting management from the beginning to the end, so the model can effectively connect the strategy to the budgeting, response and improve the managerial activity. Secondly, the paper elaborates the present situation of budgeting management of group companies in China through the questionnaire survey and the statistical data, such as the understanding to the budgeting management, organization of the budgeting management, contents of the budgeting management and so on, raises some problems which existed in the implementation of the budgeting management and the necessity to induct the budgeting management based on the balanced scorecard in our group companies. Then discusses with emphasis the key questions which should solve in the practice from the organization of the budgeting management, the budgeting goal system, the budgeting beginning,the budgeting inspection system and so on. Then through a case further explains that the mode has certain feasibility in the practice. At last, the paper analyzes the shortcomings of this study and point out the fields needing further study.