Applied Research, The Research Institution (s) Of The Overall Budget Management

Comprehensive Budget Management (CBM) is the management instrument, bywhich a corporation can efficiently organize and coordinate its business, can control,allocate and audit its financial and non-financial resources, then achieve a stipulatebusiness target; CBM is an internal control mechanism of a corporation which has theattributes of digital management. Generally, CBM is composed of Fiscal Budget,Operation Budget, Capital Budget and Financial Budget, is a management mechanismthrough which a corporation can completely manage its operation. The budgetmanagement of the corporation in China is evolving from the Fiscal BudgetManagement to the CBM now.More and more Chinese manager has known that the budget management plays asignificant role in the business management with introducing the theories and theknowledge on the budget management of the corporation to China from the western.Most of the Chinese corporation has applied the CBM to its business management; TheFirst Group of Chinese Aviation has begun to implement the CBM within group since2005. However, the research institutes of the Group have not got any successfulpractices about implementing the CBM. The rationale of the theory of the CBM is thesystem viewpoint and the diversion viewpoint, which is the specific model and the wayof the budget management has a different version based on a different managementorganization. Hence, it is necessary to study on the model of the budget management onthe research institutes.The paper thinks that the core thought of the budget management is thetransformation of organization style from the ranking relations tothe bond relationsthrough examining the development of the CBM all over the world since 1920's. Therelations determine that the ranking relations of the organization have to appear in thebudget management system, and the rights and obligations of the department of theorganization, based on the structure of the organization, have to be clear. Hence, thepaper builds the procedure of the CBM and the management way and system of the CBM through analyzing the structure of the research institutes of China, and hopes toimprove the application of the CBM in the research institutes of China.