| "The Visible Hand --- The Managerial Revolution in American Business" wrote By Management historians Chandler, he says " Industrialization belongs to the 19th century, and management belong to the 20th century, in 1900, management has not yet known,now, it has become a center of activity of human civilization. " The enterprise budget management control can be effective in helping companies achieve strategic goals and performance evaluation. Budget management through the actual data with the horizontal, the lateral and budget target data to compare in order to find the differences to achieve strategic objectives, and then analyze the different reasons and put forward the improvement plan, to provide objective data to support the company’s strategy. The famous management professor David Otley holds the opinion that budget management are all key issues of the few organizations able to blend in a system of management control method among.13th century, the British government invented the budget, which is used in government and non-profit units.19th century, budget control system began in the American public budget implementation of small towns. Late 19th and early 20th century, American chemical company DuPont took the lead on the basis of standard costs, and introduced the budget to the enterprise, the budget in the 1950s began sweeping the business community. Since the beginning of the 1960s, a comprehensive budget management in some companies in developed Western countries began to implement, and become the core of enterprise management gradually. Practice has proved that it is a modern enterprise management mode is effective, and foreign companies in the development and growth process were implemented budget management. After the 1990s, the business environment has undergone huge transformation, markets, customers, manufacturing technology, information systems, social concepts affect people’s perception, people began to wonder:in the new business environment, the traditional budget management really work? Based on this, reformists proposed operating budget to improve budgeting, innovators proposed the "Beyond Budgeting". With the deepening of China’s enterprise reform and gradual integration into the international competitiveness of China’s economy, China’s enterprises and academics are increasingly concerned about budget management.With the deepening of China’s enterprise reform and gradual integration into the international competitiveness of China’s economy, China’s increasing emphasis on corporate and academic budget management. July 2012, State-owned Assets Supervision and Administration Commission held in a special meeting, The budget management as an important measure to deal with the complex economic situation. Since the 1990s, the number of articles about budget management published on accounting management journals increased significantly, in 2000, Nanjing University of Sciences in accounting for the status quo of China Budget Management conducted a survey showed that most companies are aware of science and necessity to the budget, generally having prepared a production, sales and expense budget, but the ratio of capital budgeting and reporting budgeting is relatively low. Nanjing University of Sciences in accounting analysts that most of the companies have agreed with the budget should be based on market-based concepts, but there are many companies is still focused on internal production; addition, companies generally focus on the preparation of the budget, but the implementation of the budget is not given enough attention, thus weakening the control and incentive function of the budget.DTWY is operating and managing properties in the subway, service-oriented, businesses involved in business management, network communications, landscaping, cleaning, sweeping, business services, security, engineering and maintenance, cooler and distribution, fire control, building automation, parking management, cabling, and other local transformation floor and outside. The company has successfully taken over the 49 subway stations, three metro vehicle base and different types of Subway shops, buildings and other property management property project. Service area is over 150 square meters. The company has more than 1,100 employees, including management of 54, under the jurisdiction of the General Office, Ministry of Finance, the Ministry of comprehensive management, property department building, operations and logistics service department and other departments.2013 based opportunities for reform, the company carried out to establish and perfect the internal control system, and the budget management is a very important aspect which is explored and perfected.In this paper, based on the budget management theory, the way through case studies, discusses the necessity of a comprehensive budget management. Taking DTWY case, by analyzing the status of the company’s budget management and pointed out possible problems to investigate the current success of the company and the lack of the budget management in practical applications. Given the company belongs to the third category of social services in the industry sector, as a property company, this paper proposes a line with the actual situation of the company targeted budget management program. One of the most focus is to combine budget and performance assessment, this approach improves incentives to employees, giving the conclusions:budget management is still a very important management tool in enterprise management and control system. It is a market-oriented strategic control methods, which help to improve the economic efficiency of enterprises, and can effectively put employee performance and corporate strategic objectives combined, help strengthen enterprise management and to achieve corporate strategic goals. |
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