Implementation Of The Budget Management Thinking

With the maturity and enlargment of modern enterprise scale, budget management, which acts as a management system to promote the development of enterprise, has already got extensive attention of the theory and industry department because of its capability in the standardization of enterprise behaviors and the strengthening of enterprise interior control. It becomes a new task of how to promote the management level and economic benefit of enterprise.At present, as an important part in enterprise management, budget management has already been accepted by most of the enterprises in our country. But budget management appears so late in our country as a new management concept, whether in the theory department or the industry department, there still exist some difference in the understanding about the meaning, the effectiveness and the foundation of budget management that its function in the field of enterprise management has been limited greatly. Hence, with many years' research of budget management theory and personnel practice in budget management, the author will probe into the enterprise budget management and the correlative problem. This article expects to develop the role of budget management in enterprise management through the clarification of the difference in the understanding of budget management and the classification of the problem in the practice of budget management.The full text is divided into four parts.The theory foundation and the realistic significance of enterprise budget management are expatiated in the first part. Firstly, the definition between budget and budget management are clarified. The author thinks that budget is a kind of target as well as a kind of control measure, but budget management is a kind of management model to make the enterprise resource get the best productivity and profit ratio, it is also aconformity management system which integrate the business flow, the fund flow, the information flow and the human resource flow of enterprise. Secondly, the inherence motive base of budget management is revealed through the analyzing of commissioning deputy theory, control theory and encouragement theory, as a result, it will provide theory foundation for enterprise budget management. Finally, it will explain the inevitability of enterprise budget management by the discussion of the function of budget management in structure management, strategy target, interior control, risk resistance and performance evaluation. The construction of enterprise budget management system is analyzed in the second part. Based on the framework of budget management system, individual model and its merit and demerit in enterprise budget management are set forth mostly, and the author developed his own opinion with the selection of budget management model. In the end of this part, the author probed the view of beyond budget that is popular at present, the author also thinks that the beyond budget model is short of universality and applicability.The third part is the main part of the full text. The organization and implement of enterprise budget management are discussed mostly. Based on the expatiation of budget management theory in the preceding two parts, the current status of enterprise budget management is discussed firstly in this part, it revealed a lot of misunderstanding about the practice of enterprise budget management. Then, it aimed at the problem in budget management, the condition of successive implement of budget management. At last, the author analyzed how to realize the budget management from the aspect of the control of budget, the evaluation of budget, the using of information resource and the optimizing of flow, it extrudes the emphases and difficulties in the practice of enterprise budget management.A real case is analyzed in the fourth part. It gives an example ofbudget management in Dongfang Electric Corporation, the sticking point of budget failure is diagnosed, with the problem and shortage of the budget management in Dongfang Electric Corporation, t...