Beruflich Dokumente
Kultur Dokumente
enterprise for some period in the future. Khan & Jain (2007)
provide an action plan to problems that may possibly arise. The main
objective of budgeting is to fix and attain goals for different levels of business
organizations.
optimism and enthusiasm. But without a well thought out budget, it may be
difficult for them to create a successful action plan. When running a business,
managers are easily affected with day to day problems and miss the bigger
time to create and manage budgets, prepare and review business plans and
contrast to expenditure and ensure that resources are available and are used
budget may leave an individual just running around in circles and not meeting
their long-term goals. Making time in setting up a budget will provide the best
Colignon & Covaleski, 1988). Extant research shows that budgeting can play
Colignon & Covaleski, 1988, 576). Samuelson (1986), looking at the Swedish
economic crisis, reports that budgeting became more important. Also drawing
company that had previously only loosely coordinated its different business
units but because of the economic crisis switched to using central guidelines,
confirms studies that find theoretical and empirical evidence suggesting that
tightening control”.
companies survive crises better without budgeting (Lindsay & Libby, 2007).
the higher unpredictability that exists in economic crises (Plaschke, Roghé, &
1993). Also Collins et al. (1997), in their survey of the relationship between
Latin America, find a reduced importance of budget use, noting that in general
a “high crisis reduces the usefulness of the budgetary system” ( Kattan, Pike,
& Tayles, 2007, Shih & Yong, 2001). Taken to the extreme, the views
2003).
plan of action”, integrating all actors in the organization, and may serve to give
stakeholders (Parker, 2002, 309; see also Epstein & Manzoni, 2002).
upon criteria such as suitability and feasibility (for similar arguments, see
GignonMarconnet, 2003).
upon cash flow estimation and early screening criteria. Suggested areas of
study within this stage include the extent of screening of project ideas, how
ideas get turned into proposals, the level of review, the screening criteria, and
importantly, this stage also focuses on firm data-gathering efforts, viz., the
extent to which companies use accounting vs. cash flow data, the details of
how the data is estimated, the responsible personnel, and the decision
support system. The selection stage includes the detailed project analysis that
adjustments for projects risks are assessed and reflected, and how, if
relevant, capital rationing affects project choice. The selection stage has also
areas of study within this stage include research into: how project
discrepancies, and if so, how? The control stage received some significant
The case of Berol Kemi AB. Accounting, Organizations and Society 13 (4):
415-430.
Hope, J., and R. Fraser. 2003. Beyond Budgeting: How managers can
break free from the annual performance trap. Boston, MA: Harvard Business
School Press.
Plaschke, F., F. Roghé, and F. Günther. 2011. The art of planning. Boston,
MA: Boston Consulting Group (BCG) – Perspectives
Shih, M. S. H., and L.-C. Yong. 2001. Relationship of planning and control
systems with strategic choices: A closer look. Asia Pacific Journal of
Management 18 (4): 481- 501.