Budgeting Practice and Organisational Structure


  • David Dugdale, Professor of Management Accounting, Department of Accounting and Finance, Univeristy of Bristol, UK; Director of Research for Bristol Business School; Director of BRICMAR
  • Stephen Lyne, Head of Bristol Business School; Joint Director- Bristol Centre of Management Accounting Research; Senior Lecture in Accounting and Management, Univeristy of Bristol

Budgeting is at the heart of the performance management process for most companies. However, some argue that many companies today are dissatisfied with budgeting. It is seen to be costly and time-consuming; it inhibits action and causes organisational problems. The influence of the "Beyond Budgeting" model has caused many major companies, including Toyota, to abandon traditional budgeting altogether. Should other companies follow suit?

This report explores the changes in budgeting through a survey of financial and non-financial managers. Concerns include:

  • The attitudes of managers towards budgeting models
  • How budgetary practices have changed
  • What problems budgeting can cause
  • The effects of budgets on overall company performance.

This report reveals that there’s little evidence to suggest widespread dissatisfaction with traditional budgeting. However, to enable a company to perform at its best, understanding budgeting in context is essential and it is imperative that budgeting works in tandem with other control systems and organisational structure.

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Primary: Finance academics; Secondary: Management accountants and company business managers


Book information

  • Published: January 2010
  • ISBN: 978-0-08-096590-1

Table of Contents

Executive Summary; 1.The Uses of Budgets; 2.Problems with Budgets; 3. The Survey; 4. Budgets and Structure; 5. Structure, Strategy and Control; 6. The Field Study; 7. Budgets and Structures; 8. Designing Structure and Control Systems