On the Integration of IT System with the Budgetary Control System: Insights from the Case of Wanhua Chemical

2018 ◽  
Vol 102 (4) ◽  
pp. 3687-3697
Author(s):  
Xiaomei Guo ◽  
Qi Yang
Keyword(s):  
Control System ◽  
Budgetary Control ◽  
Budgetary Control System

scholarly journals An Analysis of an Organization’s Budgetary Control System and its Link with Performance Management and Decision Making

2016 ◽  
Vol 1 (3) ◽  
pp. 1
Author(s):  
Grace Choge
Keyword(s):  
Decision Making ◽  
Control System ◽  
Performance Management ◽  
Significant Relationship ◽  
Secondary Data ◽  
Middle Level ◽  
Depth Information ◽  
Top Management ◽  
Budgetary Control ◽  
Budgetary Control System

Purpose: the purpose of this study was to analyze the impact of an organization’s budgetary control system on performance management and decision making.Methodology: The study population consisted of top management and middle level management of SDV Transami in Kenya.  The choice of the top management and middle level management was because budgetary control is mostly influenced by these two management levels.  The study sample was 46 departmental heads. A census methodology was taken since the population was small enough. Primary and secondary data were collected.  Secondary data sources were used to supplement primary data to enable the researcher get in-depth information concerning the topic of research. The information was mined from scholarly works on budgetary control found in text books, magazines, management reports, operations guidelines and previous researches. Statistical Package for Social Sciences (SPSS) was used to generate the descriptive statistics and also to generate inferential results. Regression and correlation analysis was used to demonstrate the relationship between the variables. The results were presented in form of charts, graphs and tables.Results: Results show that the managers rely on budgets to make decisions and further went to indicate that budgetary control was highly important in making managerial decisions. Budgetary control also influenced decision making in the organization in regards to decision on performance indicators. Trend analysis reveals that budgetary control affects decision making positively. Correlation and regression results revealed that there is a positive and significant relationship between budgetary control and decision making.Unique contribution to theory, practice and policy: Since a positive and significant relationship was found to exist between budgetary control and performance management and decision making, it is recommended that budgetary control should be upheld. In addition, there should be involvement of staff in coming up with budgets. Furthermore, the organization should ensure that it continues with the practice of involving top management in coming up with budgets. 

scholarly journals Effective replanning and budgetary control systems: Normative characteristics and practical structure

1984 ◽  
Vol 15 (1) ◽  
pp. 8-20
Author(s):  
J. G. Kotzé
Keyword(s):  
Control System ◽  
Control Systems ◽  
Management Control ◽  
Best Interests ◽  
Management Control System ◽  
Normative Model ◽  
Practical Management ◽  
Budgetary Control ◽  
Careful Thought

The formal management control system exerts a powerful influence over the actions of middle and top level managers in an organization. To ensure that these actions are in the best interests of the organization as a whole, careful thought should be given to the design of such a control system. The design should incorporate certain desirable characteristics. These characteristics are identified, described and listed in the format of a normative model. A practical management control system which has been implemented in several organizations is subsequently discussed and evaluated against the requirements of the normative model.

scholarly journals CONCEPTUAL APPROACHES TO CREATING A RISK-BASED BUDGET CONTROL SYSTEM

2018 ◽  
pp. 57-66
Author(s):  
Iryna NEDBALIUK
Keyword(s):  
Risk Assessment ◽  
Control System ◽  
Quantitative Methods ◽  
Negative Consequences ◽  
Qualitative And Quantitative ◽  
Response Planning ◽  
Risk Management Process ◽  
Budget Control ◽  
Budgetary Control ◽  
Oriented System

Introduction. The current state of the development of the budgetary system is characterized by a number of controversial and uncoordinated moments that increase the possibility of the emergence of budgetary risks and require minimization of possible budget losses associated with the existence of budgetary risks through the formation of a risk-based budget control system. Purpose. Formulation of conceptual approaches to the creation of a risk-oriented system of budgetary control. Results. The article defines the notion of “budget risk” and analyzes the risk factors of the budget system depending on the stage of the budget process. The components of the risk management process are determined, including identification, qualitative and quantitative risk assessment, risk response planning, risk monitoring and control. A risk-based budget control system has been established, it should focus on minimizing the negative consequences of risk in accordance with the above risk classification; identification of budgetary risks at the planning stage, formation and approval, execution and analysis of the latter's results; risk assessment by qualitative and quantitative methods. Conclusions. On the basis of the definition of the concept of “fiduciary risk” and its main characteristics, it is possible to distinguish conceptual approaches to the creation of a riskoriented system of budget control, which include: – firstly, the analysis of the risk factors of the budgetary system depending on the stage of the budget process; – secondly, compliance with the risk management process, including identification, qualitative and quantitative risk assessment, risk response planning, risk monitoring and control; – thirdly, the formation of a risk-oriented system of budgetary control, which should be guided by the minimization of the negative consequences of the risk in accordance with the above classification of risk; identification of budget risks at the planning, formation and approval stage, implementation and analysis of the results of the latter; Assessing the level of risk by qualitative and quantitative methods, including monitoring and risk assessment at national and local level. Thus, the introduction of a risk-oriented system of budgetary control is not aimed at eliminating the consequences of negative external and internal influences, but to prevent their occurrence will reduce the negative consequences of violations in the system of budgetary control.

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