Reseach On Budgetary Slack In H Group’s Budget Management

Theory research and practice of budget management was introduced to China, as a comprehensive management tool it was praised widely, along with the development of socialist market economy in China, it is more and more enterprise applications. But we should realize that the enterprise budget management in our country whether in theory or in practice are still not perfect, therefore in the specific application caused many management problems.In the practice of enterprise budget management in our country, with the in-depth application of the comprehensive budget management, the budget slack phenomenon prevalent in major companies, it will lead to a series of adverse economic consequences, make the enterprise budget management deviating result with the expected target, so that affect the company’s long-term survival and future development. Consequently, budget slack has become an urgent problem to be solved. It will affect the evaluation of management performance, ultimately resulting in the enterprise resource allocation efficiency decline, damage to the overall interests of the enterprise. H group is huge in scale and budget management chain is relatively complex, at present there are many problems, one of which is the budget slack. Budgetary slack will not only for managers to conceal error creating flexible space, but also cause adverse budget differences to H group, and even affect the objectivity of performance evaluation, finally make the realization of the group budget management target is affected by.Based on the related research results of domestic and foreign scholars on carding, defined on budgetary slack, and points out the nature of budget slack generated is rent-seeking behavior agent, analysis the basic situation of H group, budget management framework and implementation of almost. Combined with the data to analyze the current situation of the group present budget slack problem, and its negative influence. Then, from the principal-agent theory, the theory of organizational slack, game theory and contingency theory as the breakthrough point, through a detailed analysis of the causes of group budget slack. Finally, from four aspects to the governance of the group’s budget slack, reasonable degree of control of budget slack, and ultimately promote the sustainable development of the group. This paper hope through the study budget slack problem of H group, to provide certain reference significance for other enterprises solve the problem of budget slack in the budget management.