An Anlvsis On The Problems Of Budget Management And Its Countermeasures For Telecom Operators

With the restructuring of Chinese economy and the development of our market which opens to the whole world, more and more state-owned businesses have shifted gradually from government management to enterprise management taking responsibility for their own profits or losses. And these state-owned businesses pay more and more attention on management. Budget management however as an effective method of improving the management level in state-owned businesses, has many inherent defects in the implementation process.This article tells about the budget management in China’s telecommunication operators and selects YD Communications Co., Ltd. as the representative subject to study. It shows the current situation and the problems of the comprehensive budget management in the practices of the telecom companies. Combined with current situation in China’s telecom operators, this article offers some corresponding solutions for those problems in the following aspects:First, organizational structure of budget management should be optimized.Although the investigated subject YD Communication Co., Ltd. has established a relatively sound budget management,lacking of a clear definition for budget responsibility units leads to unreasonable budget assignment and also results in the optimization of the allocation of resources can not be reached well. In this regard, this paper restates the significance of arranging the organizational structure. and clearing the definition of the budget responsibility unit under the framework.Second, the model of budget planning should be diversified and personalized. The preparation of the personalized budget requires a combination of the local economy, population, disposable income per person, industrial structure and other factors. Meanwhile, the scope of budget planning is extensive so that it is not beneficial for the refinement of the budget control. Hence, the diversified and personalized model of budget planning is also one of the ideas of enhancing budget management.Third, the communication of budget management process should be improved. A sound communication system can enhance co-ordination and effectiveness in each department in the budget management process, and fully mobilize the enthusiasm of the staff.Forth, the combination of budget and analysis should be enhanced. The rigorous business analysis can make a scientific evaluation of the operating results and budget management results, and will also provide a ground for budget management assessment.Fifth, the level of corporate information technology should be enhanced. Inefficient data integration can lead to inadequate data sharing and low utilization. For the effectiveness of budget management, it is necessary to integrate the information systems,so as to enhancing the management capabilities as a whole.Sixth, the evaluation system needs to be completed. The investigated subject needs to further clarify the responsibilities and rights in each responsible unit, and to establish a simple, clear and strong KPI evaluation system.In this paper, a comprehensive budget management of the representative telecom companies is researched deeply. This article finds the problems in its budget management and proposes the targeted solutions which are helpful to improve management capacity and compete with the telecom companies in foreign countries when the telecom market becomes more international. The article which has some innovation focuses:First,on the combination of theory and practice, analyses the root of the problem in-depth, and lays the foundation to solve the problem in the later stage.Second.as for strengthening of communication during the budget management process, the innovative programs are offered.