A Study On Comprehensive Budget Management System Of The PICC Group

Comprehensive budget management is one of the core content of modern management methods, which is vital to a company's success in terms of that it helps to reduce risk and trading cost, to enhance resources allocation efficiency, and to improve business decision. Many insurance enterprises have carried out the budget control system and have obtained certain result, but quite a few of them can't reach the expected effect. The main reason was that the enterprises carrying out the comprehensive budget management have many problems. How to bring the budget management function into play better becomes an urgent topic to be dealt with in both theory and practice.Based on some first-hand materials about the PICC Group's budgeting, using both normative and empirical research methods, this paper studies the procedure and methods of comprehensive budget management being adopted by Chinese insurance industry. Firstly, the author demonstrates the background, research method, and the structure of the paper. Secondly, the paper introduces the principle of comprehensive budget management, mainly reviewing and summarizing the connotations and theory bases of overall budget. It introduces the promotion theory, agent theory and the strategic management theory to prove the necessity of budget management in enterprises. Taking problems existing in the PICC Group's budget management system as the starting-point, this paper constructs the comprehensive budget management system that is fit for the PICC Group. Finally, the paper emphasizes that the PICC Group should pay much attention to some questions that categorizing the insurance industry, such as the protection for the enterprise's interest, and the human factors that will affect the result of the budget management. This paper aims to improve theory and method of the comprehensive budget management, and guides the comprehensive budget management practice better.