Research And Countermeasures Of Le A Hotel Group Budget Slack

At the end of2012, Changsha has opened5Stars Hotel to11, brand of ForeignCapital Hotel days, city, Hilton rushed to Changsha and Hunan market, marketcompetition is unusually intense. Therefore, how to strengthen the internal control,formulate a reasonable business development goals, improve market competitiveness,is particularly important. Comprehensive budget management as a new managementmechanism, it has many aspects. However, with the passage of time and changes inthe environment, it has produced some incompatible with modern enterprisemanagement objectives of the problems in the implementation process, the budgetaryslack is one of them. Modest budgetary slack is a normal phenomenon existing in thecompany’s daily operations, but also has certain positive effect on the development ofthe company, but excessive budgetary slack will result in budget management failure,serious impact on the survival and development of the company.This paper firstly expounds the basic connotation of comprehensive budgetmanagement, put forward the comprehensive budget management by scientificmanagement, budget, decision-making, with money and kind and other forms ofenterprises in a certain period in the future all the conditions of production andmanagement and financial results, said. On this basis, analysis of the budgetary slackmeaning, and points out that the budget slack can influence the coordinated operationof the various departments and enterprises, the lower management efficiency, tooloose budget cannot minimize cost and maximize profit. Then, the article analysesreasons on budgetary slack information economics theory, contingency managementtheory, game theory and behavior science based on the theory, a comprehensiveexplanation of the theory of the causes of budgetary slack.The basic business, the Le A Hotel group of financial institutions and thecomprehensive budget management were analyzed, and combined with the annualdata of Le A Hotel group to analyze the group budget slack phenomenon: one isdeliberately compressed annual business income level; two is the expected resourceconsumption and task difficulty deliberately exaggerated business activities; three isthe budget did not achieve full participation; four is the budget evaluation mechanismis not wide coverage. Le A Hotel group these budget incentive effects lead to a certain extent discount, the budget has not achieved the expected goals and even failure. Inthis paper, the budgetary slack moderate will strengthen budget implementation workinitiative, contribute to the budget, the person mood to relax, but the budget slackexcessive will lead to irrational allocation of resources, work covered to some extentin the possibility of budget implementation, budget executive potential excited isprobably because the existence and reduce budgetary slack.This paper analyzes the main reasons of the hotel group budget slack generatedfrom three aspects between the internal budget management, Le A Hotel groupsubordinate information asymmetry and personal and organizational goals, the Le AHotel group of existing organizations are not set up special budget managementcommittee and the internal budget supervision office, budget management is not inplace; asymmetric information causes the budget responsibility for their own benefitand produce good for its own budget, and the chairman, general manager and theupper leadership can only see the budget implementation results; individuals in orderto avoid for the maintenance department or individual interests, alleviate the ratcheteffect of stress and the risk of motivation which led to budget relaxation. Finally, thebudgetary slack control, from the organization goal budget culture three aspects of theestablishment of a reasonable incentive mechanism to the budgetary slack for thehotel group management from based on contract, to ensure that the budget slack inthe hotel group control at a reasonable range, and ultimately promote the sustainabledevelopment of the hotel group.