Research On Enterprise Flexible Budget Management

As a major method for internal administration and control of an enterprise,Enterprise Budget Management is also a modern administration pattern centralizing systematization and strategy theories and human-resource-based concepts. With the function of plan and production harmonization initially,Enterprise Budget Management turns to have more function of control, encourage and evaluation later, which is developed to a comprehensive operating mechanism for execution of business policy and strategy,hence it is considered the core among internal enterprise control system. Therefore,enterprises with substantial business in developed countries adopt and persist in Enterprise Budget Management. Some of large and medium enterprises in our country began to carry out Enterprise Budget Management since 1990s' yet generally its application is not universal in China. Even some of our companies have adopt Enterprise Budget Management, there are still differences in application effect of this method because we are still lack of understanding and practice of it and we still need further scientific approach to improve it.The traditional enterprise budget management is founded in a relatively steady management environment. As market competition being fierce, at the same time internal and external environment of enterprise is getting more and more complicated and changeable, so it has found an outstanding defect, which is lack of flexibility. As to this,"Beyond Budgeting"that minifies the function of budget and"Better Budget"that rebuild budget index system is put forward. This thesis proposes"Enterprise Flexible Budget Management"on the basis of the two previous solutions: the budget management which is fused the advanced management tools and the flexible management idea.Based on the Principal-agent Theory, Behavior Science Theory and Contingency Theory, this thesis proposes the systemic construction of Flexible Enterprise Budget Management and studies the circulation of it. Finally, we studies the environment of its circulation and puts forward some better suggestions, such as establishing effective corporation administrative organization, building learning organization, the reasonable disposal of budget rights and rebuilding a better budget culture, etc., which would contribute to the circulation of the enterprise flexible budget management system.