The Improvement Research On Operating Budget Management In LG Company

Operating budget management is an important component of the modern enterprise management,which can effectively improve the integration of resources and enhance the management level of enterprises.LG company is a steel manufacturing enterprise supported by Hunan provincial government,and also it is the mainstay of the local economy.Since the implementation of budget management,theoperating budget management system has played an important rolein the production management.With the continuous development of the market productivity and the gradual optimization of enterprise quality management,we need a more efficient budget management systemto play a role.However,with the depth of budget management practice,the problems in the LG company are gradually appearing,such as the imperfect organizational system,not comprehensive budget,ineffective execution process,defective evaluation system and so on.Thus it can be seen that these problems have greatly affected the healthy and sustainable development of LGcompany.Therefore,we deeply analyze the current situation and the existing problems of LG company's budget management based on the principal agent theory,the strategic management theory,incentive theory and control theory.And we also put forward four aspects of constructive improvement measures from the operating budget organization system,budget preparation,budget implementation and budget evaluation,which including establish an organizational system of responsibility and responsibility,standardized and procedural systemthe establishment of specialized the budget management system,the management budget management system,improve the cost budget,standardize annual budget procedures,using the static and dynamic combination of preparation method,multi angle analysis of budget differences,timely adjustment of marketing budget,the establishment of multi-level monitoring subject,included the non-financial indicators,construction of the complaint channels,strengthen the evaluation of incentive and restraint.We also put forward three suggestions in LG company,such as increasing staff education and training,improving the company production management system and introducing of advanced information management systems.Through the improvement of management level of the budget management of LG company,we try to bring into full play the functions of the budget management,and further improving the management level and efficiency of the LG company,also enhancing the LG company's market competitiveness.Finallywe hope for the same industry other enterprises to improve operational budget management reference.