Title: Mechanisms for Enterprise Budget Management: Research on Value-oriented View
Abstract: Changes in business environment bring a serious challenge to budget management,which calls for innovative theory and methods to reconstruct the budget management model to accommodate the requirements.On the basis of the integration between mechanism and enterprise budget,an organic mechanism consisting of operating mechanism,control mechanism,incentive mechanism and risk management mechanism is constructed.Through this mechanism,value stream is combined with the strategic objectives,with the emphasis of dynamic control including forecast,monitoring and feedback.Besides,a flexible evaluation and salary system is constructed to inspire the enthusiasm of the participating subjects,resulting in an integration of cost flow,business flow,work flow,information flow and brain flow.Empirical study of CNPC shows that value-based budget mechanism can provide a reasonable framework to support operating management,which also plays an extremely important role in controlling member enterprises,reducing transaction costs and risks,improving efficiency of resource allocation and operational decision-making etc.
Publication Year: 2011
Publication Date: 2011-01-01
Language: en
Type: article
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot