Thought On Some Issues Of Beyond Budgeting

Budgeting, which was used as a management tool in companies at the beginning of 20^th century, has developed into an integrated management control system that carried on the enterprise strategy. However, the business environment has changed a lot in the new knowledge economy age that old budget management system is severely criticized. There is even a viewpoint that requires abandoning budgeting and establishing a new system named Beyond Budgeting. Under such circumstances, a thorough research and discussion of beyond budgeting is helpful to enterprises that they can select the proper management control system between the budget management and beyond budgeting.This dissertation reviews the history of traditional budget management and beyond budgeting firstly and then analyzes the factor driving the vicissitude of management control system. Based on the analysis, the dissertation shows the differences between traditional budget management and beyond budgeting, and illuminates some issues related to beyond budgeting. At last, the dissertation sums up the status quo of budget management of domestic enterprises and holds an opinion that although domestic enterprises cannot carry on beyond budgeting now because of their low level of management, but enterprises should look forward and select proper management control system according to the business environment. The dissertation also proposes the principles on selecting management control system and how to transform from budget management to beyond budgeting.This dissertation contributes in the following fields:(1)Reviewing the development of traditional budget management and beyond budgeting in the scope of new institutional economics, analyzing the factor driving the vicissitude of management control system and illuminateing some issues related to beyond budgeting;(2)Summarizing factors which influence enterprises' selecting of management control system, and proposing on how to change from budgeting management to beyond budgeting.