The Research And Improvement On Incentive Mechanism Of Budget Management

Traditional budget management has functions of incentive and control, but the existence of two functional endogenous conflict, the traditional budget model was not a very good incentive to promote the consistency of enterprise strategy and budget targets; to realize the Optimal distribution of resources; to reduce budget slack; to inhibit enthusiasm from managers and staff; to limit the company's ability to change and innovate; to encourage managers to manipulate short-term budget and financial performance; to be not conducive to the realization of communication between departments and coordination; to become an obstacle to continuous improvement. Therefore, it is necessary to build an effective incentive mechanism in order to help budget management work properly.Along with increasingly complex of the market environment, economic business and the economic organizations, now the relative standard-based incentive mechanism of beyond budgeting is challenging the traditional incentive mechanism. The aim of this paper is to analysis the problems of traditional incentive mechanism of budget management, to study the motivation theory of management and economics, and to establish effective incentive mechanism of budget management based on the theory of the system to determine the basis.The academic dissertation's main contents are as fallow:(1) Achievements of incentive mechanism of budget management at home and abroad were researched, ideas and direction were found to design effective budget management incentives mode; (2) From Management and economics viewpoint, incentives theories were researched, and the theoretical basis was used to build effective budget management incentives;(3) Beyond Budgeting incentive model and traditional budget incentives model were compared and theoretical basis was used to build a budget management incentives;(4) Based on the theory of the system to determine the basis, effective incentive mechanism of budget management was established.