Budgeting Practice and Organisational StructureBy
- David Dugdale
- Stephen Lyne
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 thereâs 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.
Primary: Finance academics; Secondary: Management accountants and company business managers
Paperback, 224 Pages
Published: January 2010
Imprint: Cima Publishing
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