Research On The Model Of Beyond Budgeting Management

Corporate budgeting promotes corporate to establish a healthy internal controlling system. The budgeting process is a kind of technique to affirm corporate internal economic responsibility and increase the standard of financial control management. Using budgeting as corporate management instrument give rise to many advantages to the growth of the corporate and this is the reason why in the last decade both domestic and foreign country companies adopted budgeting as their corporate management instrument in their daily operating process. However, the effect from operating the budgeting of many companies does not reach up to the satisfaction of the company's expectations. What is the reason for this? Does traditional budgeting management model already out dated?In recent years, some foreign country companies have already dispensed traditional budgeting as an instrument for corporate management. Instead, a new set of budgeting model (Beyond Budgeting) has been established, which has gained good results. This method came of the middle of 90 years of 20th century, and it was brought by two British scholar, it now has spread to many other countries besides Britain, like Belgium,Holland,France,Germany,Norway,Sweden,Switzerland,S. Africa,America and so on. The development of beyond budgeting has two phases, they think the traditional budgeting method enhanced the behavior of dysfunctional inside of companies, and can't adapt the competitive environment which the company faced, so they need a new control model to replace the traditional budgeting.This thesis is try to probe into this area, analyzing the suitability of traditional budgeting in nowadays business environment, as well as exploring the method of Beyond Budgeting,a newly budgeting management insight. The chief object is to point out the deficiencies of traditional budgeting model and to bring up a new model of budgeting management which can adapt the recent development of companies, and to offer some advice to the budgeting management of companies in our country. First by the analysis of the deficiencies of traditional budgeting model, point out that the traditional budgeting can't adapt the development of modern companies; then educe beyond budgeting theory on the basis of this analysis, and give advice to companieswhich should transfer to the method of Beyond Budgeting from traditional budgeting by the contrast analysis of traditional budgeting and beyond budgeting. The exploration is based on a case study of a company (named QianCheng Company) which has been using traditional budgeting to manage the company for many years, and is now transferred to adapt to the method of Beyond Budgeting as its corporate management instrument, and analyzed the background,before budgeting management model,the reason,course and result of the reform. Content of the case study will concentrate on the problems that might arise during the transitional period, and how these problems are resolved finally, base on the outcomes from the case study to analyze whether Beyond Budgeting is a suitable management instrument in recent business environment, and put forward some suitable advice.