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Budgeting Practice and Organisational Structure
Inglês
148 b
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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 organizational 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. The concerns include: the attitudes of managers towards budgeting models; how budgetary practices have changed; what problems budgeting can cause; and, 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 organizational structure. The original research is funded by the Chartered Institute of Management Accounting. It reveals the realities of budgeting models in practice. It includes interviews and surveys of actual businesses.
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