Research On The Operational System Of The Overall Budget Management Of Jilin Province Telecom Company

In order to meet the requirement of the fierce competition in thetelecommunications market home and abroad, the telecommunicationsenterprises must keep the sustainable competition advantage to ensure thelong-term development. It is an effective way to form the core competitiveforce by popularising the overall budget management, that is, to cultivate theenterprise advantage in non-product level, such as enterprise managementmode. But we found through parallel and vertical comparison that the effect ofthis kind of management mode has not been embodied yet. There is still a greatgap between the actual business conditions of the companies and the strategicplanning target, which proves that there is still much work for Jilin Telecom todo in deepening budget management and perfecting the operational system.Firstly, the smooth implementation of the overall budget managementneeds a good security system. Thus the following actions are very necessary inthe security system: to establish total staff anticipation system, to optimisecompany management system and to perfect the financial and accountingsystem.1. The system of total staff anticipation will strengthen the staff's sense ofresponsibility and belonging, activate their enthusiasm in the work, promote thecommunication and exchange of budget information, improve their recognitionin budget management, thus guaranteeing the smooth implementation of thebudget management work. This system will also solve the problem of the"Pressure transmission"of the budget, and during the course of interactingamong the senior and junior staff, ideas from all the levels will become thesame and the problems will be solved. However, when we emphasize theanticipation of total staff, we shall also pay attention to the working efficiency.We cannot go to extremes. 2. To optimise the company's management system is the key link forguarantee the actual implementation of the overall budget management work.The requirement of overall budget management and the currently applicablemanagement measures of the company or the conventional business procedureare not in complete accordance. Departments will often implement the arrangedbudget work flexibly due to working habit or in consideration of partial benefitof the department. In this way, the procedure of budget management is notsimplified on one hand, but on the other hand, the management efficiency isdecreased, thus making the staff unsatisfied and making the implementation ofthe budget more difficult. So we should start with the budget to improve othermanagement procedures, make up applicable transitional plan and graduallyoptimise the procedures. The enterprise management system shall be constantlyperfected and shall constantly play an important role in guaranteeing andpromoting the development of the company under the double functions ofstandardized implementation and optimisation, thus guaranteeing the smoothpopularisation of the overall budget management. 3. Perfect financial and accounting system is the powerful guarantee ofdeepening the budget management work of the company. Firstly, we shall focuson the management of financial fund, starting with control of cash flow toactually increase the using benefit of the fund and avoid financial risk.Secondly, we shall actively probe on all kinds of effective forms for financialsupervision and control, popularising internal control system in the company.Thirdly, we shall make great effort to promote the management on theunification of enterprise finance and business, realizing company managementby information. The financial management is closely related to the overallbudget management, and it has the un-replaceable function of comprehensivesecurity and overall control on the later. Secondly, the deepening of overall budget management shall beguaranteed by a clear and effective organizational structure. The senior leaders'acknowledgement and attention on the reform on the management determinesthe organization's supporting force to the overall budget management. Thereare three steps to construct the organizational structure: organize a budgetmanagement committee based on the company administration, to make clearthe responsibilities of the management committee and perfect the responsibilitynetwork for the budget management. 1. The overall budget management organ shall include three levels: theoverall budget management committee, budget management office and budgetresponsible centre. The budget checking organ is also the importantconstitutional part of the overall budget management organ. The recruiting ofmembers of the budget management committee shall abide by the principles ofauthority, comprehension and efficiency. 2. The budget management committee shall have the double functions:budget policy-making and budget implementation. The effective linking andmerging of the two functions is the key responsibility of the budgetmanagement committee and it is also the prerequisite for sufficiently fulfil themanagement responsibilities of the management committee. 3. That the budget organs in each level fulfil their own responsibilities isthe prerequisite of the effectively running of the budget responsibility network.The budget management committee shall make clear the correspondingresponsibilities of the budget organs in each level, and make some managementmeasures such as making inquiring system, increase the management strength,help organs in each level increase management efficiency and effect andguarantee the budget management responsibility network to play importantroles.Finally, the correct choice of budget management mode and method is thedecisive factor for the quality of the overall budget management work.According to the different life cycles and business strategies of the enterprise,the company shall choose a budget management mode focusing on differentcontents, and design corresponding budget management methods, and at thesame time, establish budget checking and assessment system to secure thefeedback of the true budget information and increase the rigidity forimplementing the budget and the flexibility for adapting to environmentalchanges. 1. When the company is in the period of entering into market, the capitalbudget shall be emphasized in the overall planning. When the company entersinto the growing period, the starting point of the budgeting shall be transferredto the income budget. When the company enters into the market maturityperiod, the key point of the budget management shall be put on controlling thecost. When the company enters into the recessing period, the focus shall be puton the current flow control. At the same time, the different business strategiesdetermine the different modes of budget management. The strategy of low-costpreference adopts the budget mode of focusing on cost and benefit. 2. The making of the budget is one of the important basic links during theoverall budget management process. The three key links for making budget are:scientifically and reasonably determine and detail the budget target, design asystem of the budget content and a mode for making budget that is adaptable tothe actual status of the company and strictly organize the making of the budgetaccording to the requirement. 3. Implementation of the budget is the important link of budgetmanagement, and the key is to control. To establish an omni-bearing, multipleinspection and control system for implementation of the budget is the key forincreasing budget control ability.