Premium Essay

“Budgetary Control Is Part of Overall Organisation Control and Is Concerned Primarily with the Control of Performance. the Use of Budgetary Control in Performance Management Has of Late Taken on Greater Importance

In: Business and Management

Submitted By WTYS
Words 3123
Pages 13
Introduction

In today world, many organisations have established their divisional offices in several countries and most organisations are going into decentralisation structure whereby each divisional manager can make his/her own decision. A control system is required to improve and consolidate control in their operating, revenue and cost activities.

Budgetary control is described as the process of planning, controlling, coordinating and motivation through money values and departments within an organization. (Ryan, 2007) Budgetary control is a major feature of management control system in most organisations. The use of budgetary control in performance management has become more significant especially as a more integrative control mechanism in most organisations (YÜCEL and GÜNLÜK, 2007).

Thus, this essay will assess the claim on the effectiveness of the budgetary control as a more integrative control mechanism for the organisations and how non-financial performance tool can be used to complement the budgetary control to provide accurate reporting on the performance of the organisation.

Organisational and Budgetary Control

In an organisation, the goals and objectives may differ in within each department, division and individual. It is important that every individual has to change their behaviour towards achieving organisation’s objective. (Flamholtz, Daz and Tsui, 1985).

The organisation’s primary objective is to earn profits. The management uses financial measurement tools such as Economic Value Added (EVA), financial ratios, residual income and Master Budgets etc to measure the performance of each division as well as motivation and control. (Otley, 1999 & 2002)

Hence there is a need to have a management control system for planning, goal setting and performance evaluation. The Budgeting Cycle as shown below is implemented to bring the...

Similar Documents

Premium Essay

Busyness

... |[pic] | | | | |INTERNATIONAL |INTERNATIONAL RECORDS | |COUNCIL ON ARCHIVES |MANAGEMENT TRUST | Managing Public Sector Records: A Study Programme Managing Financial Records MANAGING PUBLIC SECTOR RECORDS A STUDY PROGRAMME GENERAL EDITOR, MICHAEL ROPER; MANAGING EDITOR, LAURA MILLAR Managing Financial Records International Records International Management Trust Council on Archives Managing Public Sector Records: A Study Programme Managing Financial Records © International Records Management...

Words: 32224 - Pages: 129

Premium Essay

Business Admin

...i MANAGERIAL ACCOUNTING QCF Level 5 Unit Contents Chapter Title Introduction to the Study Manual Unit Specification (Syllabus) Coverage of the Syllabus by the Manual 1 Management Accounting and Information Introduction Management Accounting Information Collection and Measurement of Information Information for Strategic, Operational and Management Control Information for Decision Making Cost Categorisation and Classification Introduction Some Introductory Definitions Categorising Cost to Aid Decision Making and Control Management Responsibility Levels Cost Units Cost Codes Patterns of Cost Behaviour Influences on Activity Levels Numerical Example of Cost Behaviour Direct and Indirect Costs Introduction Material Costs Labour Costs Decision Making and Direct Costs Overhead and Overhead C Absorption Costing Introduction Definition and Mechanics of Absorption Costing Cost Allocation Cost Apportionment Overhead Absorption (OAR) Under and Over Absorption of Overheads Treatment of Administration and Selling and Distribution Overhead Uses of Absorption Costing Page v vii ix 1 2 2 4 6 11 14 17 18 19 21 26 27 28 29 30 30 33 34 34 38 43 43 45 46 46 47 48 52 57 59 60 2 3 4 © ABE ii Chapter Title 5 Marginal Costing Introduction Definitions of Marginal Costing and Contribution Marginal Versus Absorption Costing Effect of Absorption Costing and Marginal Costing on Profit Application of Marginal and Absorption Costing Activity-Based and Other Modern Costing Methods......

Words: 98805 - Pages: 396

Premium Essay

Thesis

...IT can be a powerful tool for improving the delivery of government services with better collaboration among various governments. Therefore, the Malaysian Government, similar to many other governments, has planned and implemented a number of programmes to embrace the digital world by transforming itself to deliver information and services electronically. In public sector audit and accounting practices, the Malaysian Government has experienced local reform aimed at escalating transparency, streamlining accountability and improving overall financial management in line with international standards and practices. The purpose of this study is to evaluate the impact of computer-based accounting systems (CBASs) on the effectiveness of performing accounting tasks by Malaysian public sector agencies (PSAs). This study focuses on the impact of performancebased outcomes at three levels: individual task, accounting-related task, and organisational level performance. With regard to accounting-related task performance outcomes, this study aims to analyse the impact of CBASs on the typical processes, which are related to budgeting, financial reporting, auditing and financial controlling. This study also seeks to investigate the influence of driving factors comprising management support and organisational resources and capabilities on the...

Words: 66979 - Pages: 268

Premium Essay

Challenges of Hrm in Nigeria

...RESOURCE MANAGEMENT IN PUBLIC ORGANISATIONS IN NIGERIA By Prof. Fab Obeta Onah Professor of Public Administration and Local Government University of Nigeria Introduction The increasing importance of people as the primary sustainable source of competitive advantage makes it even more important that dedicated resources and thinking time are applied to the strategies through which people are developed and managed. - CIPD, 2001 I remain honoured, and humbled by this opportunity given to me to share my experiences with distinguished personalities here present. I thank God for making this lecture possible and even thank Him more for making it possible for all of us to be present here today. Issues in human resource management concern all of us if we remember that at one time or the other we are challenged to take a second look at the responses, attitudes, interests, competencies, etc of people associated with us. Sometimes, we are also required to be in control of other people whose behaviour is always intangible, unpredictable and subjective. The world in which human resource managers exist and in which they interact, is continually changing, generating new issues and conundrums to consider. While in most cases, managers have a fair degree of choice about how to deal with new ideas and new sets of circumstances, the choices themselves are often difficult. Attempt is made in this lecture to clearly define and contextualize Human Resource (HR) Management in complex organisations.......

Words: 14364 - Pages: 58

Premium Essay

Pcm Guideline

...Project Management in the OSCE A Manual for Programme and Project Managers Organization for Security and Co-operation in Europe Development, Coordination and Design This manual is designed and developed by the OSCE Secretariat’s Conflict Prevention Centre, Programming and Evaluation Support Unit (CPC/PESU). Main Author: Sebnem Lust, Programme and Project Evaluation Officer Co-Authors: Laura Vai, Head of Programming and Evaluation Support Unit Sean McGreevy, Project Co-ordination Officer Editor: Keith Jinks Designer: Nona Reuter Published by the Organization for Security and Co-operation in Europe OSCE Secretariat CPC/PESU Wallnerstrasse 6 1010 Vienna Austria Telephone: +43 1 514 36 6122 Fax: +43 1 514 36 6996 www.osce.org Email: pcc-at@osce.org © 2010 OSCE ISBN: 978-92-9234-301-9 Rights and Permissions: All rights reserved. The contents of this publication may be freely used and copied for educational and other non-commercial purposes, provided that any such reproduction is accompanied by an acknowledgement of the OSCE as the source. ii Acknowledgements This manual contains comprehensive guidance on how the Organization for Security and Co-operation in Europe applies the Project Cycle Management method and the Logical Framework Approach to its project work, as well as essential information on the political, programmatic, regulatory and information technology aspects of project management. The manual’s purpose is to ensure coherence, consistency and......

Words: 66299 - Pages: 266

Premium Essay

Management Accounting

...MANAGEMENT ACCOUNTING Study Material Prepared By INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA for Junior Accounts Officer(Civil) Examination Conducted By CONTROLLER GENERAL OF ACCOUNTS 1 BASICS OF COST ACCOUNTING 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 ♦ ♦ Evolution of Cost Accounting, Cost Concepts and Cost Classification Introduction Evolution of Cost Accounting Financial Accounting and Cost Accounting Management Accounting Financial, Cost and Management Accounting Cost Concept and Cost Object Cost Management Cost Classification Methods of Costing Techniques of Costing Specific Cost Systems Cost Department and its relationship with other Departments Installation of Costing System Specimen Questions with Answers Test Yourself Page . No 1 1 2 3 4 .5 6 7 10 12 13 14 16 17 18 20 1.0 EVOLUTION OF COST ACCOUNTING, COST CONCEPTS AND COST CLASSIFICATION 1.1 INTRODUCTION Traditionally, cost accounting is considered as the technique and process of ascertaining costs of a given thing. In sixties, the definition of cost accounting was modified as ‘the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability of goods, or services’. It includes the presentation of information derived therefrom for the purpose of managerial decision making. It clearly emphasises the importance of cost accountancy achieved during the period by using cost concepts in...

Words: 102642 - Pages: 411

Premium Essay

Principal & Practice of Management

...BUSINESS MANAGEMENT DISTANCE LEARNING PROGRAM PRINCIPLES AND PRACTICES OF MANAGEMENT ( IIBM - B101 ) www.iibmindia.in www.iibmonline.com Distance Learning Education, IIBM Institute of Business Management The ultimate vision of this Institute is to ensure that all working executives and each young manager must possess the requisite research-oriented-business-acumen and the competitive managerial excellence in successfully tackling the new emerging management-related-problems of the country in the changing global scenario. Individuals who look upon education as a continuing activity and wish to enhance their knowledge in an existing discipline or acquire proficiency in a new area are sure to benefit from the offered Programs. Distance Education is an attempt to make education accessible beyond the close confines of a classroom and to make it available to those who aspire and endeavor. The pedagogy used is interactive with cutting-edge techniques and innovation. This has gone long way to strengthen skills and expertise students to meet much-needed requirement of management students; in industry or society. The Institute pioneered and offers more than 40 programs in the field of Management, Computer, Six Sigma and SAP Training certification courses. We emphasis on imparting education to various genres of the society, right from Students to Professionals and Housewives to Businessmen. At IIBM we deal in keeping this flow up and building the management......

Words: 125380 - Pages: 502

Premium Essay

Balance Scorecard

...MANAGEMENT ACCOUNTING Study Material Prepared By INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA for Junior Accounts Officer(Civil) Examination Conducted By CONTROLLER GENERAL OF ACCOUNTS 1 BASICS OF COST ACCOUNTING 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Evolution of Cost Accounting, Cost Concepts and Cost Classification Introduction Evolution of Cost Accounting Financial Accounting and Cost Accounting Management Accounting Financial, Cost and Management Accounting Cost Concept and Cost Object Cost Management Cost Classification Methods of Costing Techniques of Costing Specific Cost Systems Cost Department and its relationship with other Departments Installation of Costing System Specimen Questions with Answers Test Yourself Page . No 1 1 2 3 4 .5 6 7 10 12 13 14 16 17 18 20 ♦ ♦ 1.0 1.1 EVOLUTION OF COST ACCOUNTING, COST CONCEPTS AND COST CLASSIFICATION INTRODUCTION Traditionally, cost accounting is considered as the technique and process of ascertaining costs of a given thing. In sixties, the definition of cost accounting was modified as ‘the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability of goods, or services’. It includes the presentation of information derived therefrom for the purpose of managerial decision making. It clearly emphasises the importance of cost accountancy achieved during the period by......

Words: 102642 - Pages: 411

Premium Essay

Risk Management

...Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP, UK 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA First edition 2009 Copyright © 2009 Elsevier Ltd. All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone (144) (0) 1865 843830; fax (144) (0) 1865 853333; email: permissions@elsevier.com. Alternatively you can submit your request online by visiting the Elsevier web site at http://elsevier.com/locate/permissions, and selecting Obtaining permission to use Elsevier material Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalog record for this book is available from the Library of Congress ISBN–13:...

Words: 89973 - Pages: 360

Premium Essay

Social

...Fax: 44 (0) 171 917 0197 Email: sdd@dfid.gtnet.gov.uk DFID homepage: http://www.dfid.gov.uk Contents Executive Summary 1. 2. 3. Introduction Background - Sector Wide Approaches Issues in Sector Wide Approaches Defining the sector Who owns and who leads? Who is consulted and how? Centralisation vs. Decentralisation Projects vs. Programmes Changes in Development Practice Strengthening the Social Impact of Sector Wide Approaches Entry Points for Social Development Approaches Institutionalising Social Analysis in SWAps Strengthening Processes of Consultation & Participation in SWAps Strengthening Civil Society Capacity To Engage In Sector Policy And Programmes 4. 5. 6. Conclusions References Acknowledgements This paper has benefited greatly from comments on earlier drafts from Phil Evans, Rosalind Eyben, Charlotte Heath, Mick Foster, Peter Balacs, Julia Cleves, Clare Ferguson, Colin Kirk and Michael Schultz. We would also like to thank other colleagues who have contributed in discussions around this topic. The usual disclaimers, of course, apply - full responsibility for the final content rests with the authors.Executive Summary This paper aims to summarise some of the issues in sector-wide approaches from a social development perspective...

Words: 11577 - Pages: 47

Premium Essay

Hhjjjj

...STRATEGIC MANAGEMENT ACCOUNTING     UNIT – I MANAGEMENT ACCOUNTING – SCOPE- STRATEGIC IMPORTANCE – NATURE AND CHARACTERISTICS OF MANAGEMENT CONTROL SYSTEM   “The accounting people are expected to do things that are much more strategic and much more forward looking than they have been expected to do in the past”.   INTRODUCTION1   Mission of Disney – “To offer quality entertainment that people seek out”.   The Walt Disney Company has long been widely admired as visionary and well-managed company. But how does Disney continually make the right calls in terms of investment capital, providing new attractions that appeal to its audience while earning a superior return for its shareholders?   The company evaluated its existing business and new initiatives based on their ability to contribute to Disney’s long term cash flow and earnings growth, and to provide returns that exceed Disney’s cost of capital.   Through strategic planning, sound decision making, and creative and disciplined management, the Walt Disney Company promises to continue providing quality entertainment to its customers and attractive financial returns to its investors for decades to come.   Many different kinds of organisations affect our daily lives. Manufacturers, retailers, service industry firms, agribusiness companies, non-profit organisations and government agencies provide us with a vast array (range/collection) of goods and services. All these organisations have two things in common.......

Words: 22296 - Pages: 90

Premium Essay

Acca

...May 2011 Second edition November 2012 ISBN 9781 4453 9976 8 (Previous ISBN 9781 4453 7311 9) e-ISBN 9781 4453 9252 3 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Published by BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA www.bpp.com/learningmedia Printed in the United Kingdom by Ricoh Ricoh House Ullswater Crescent Coulsdon CR5 2HR A note about copyright Dear Customer What does the little © mean and why does it matter? Your market-leading BPP books, course materials and elearning materials do not write and update themselves. People write them: on their own behalf or as employees of an organisation that invests in this activity. Copyright law protects their livelihoods. It does so by creating rights over the use of the content. Breach of copyright is a form of theft – as well being a criminal offence in some jurisdictions, it is potentially a serious breach of professional ethics. With current technology, things might seem a bit hazy but,...

Words: 76295 - Pages: 306

Premium Essay

Acca F1 Text Book

...edition September 2013 ISBN 9781 4453 7026 2 Previous ISBN 9781 4453 9965 2 eISBN 9781 4453 7061 3 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Published by BPP Learning Media Ltd BPP House, Aldine Place 142-144 Uxbridge Road London W12 8AA www.bpp.com/learningmedia Printed in the United Kingdom by RICOH Ricoh House Ullswater Crescent Coulsdon CR5 2HR A note about copyright Dear Customer What does the little © mean and why does it matter? Your market-leading BPP books, course materials and elearning materials do not write and update themselves. People write them on their own behalf or as employees of an organisation that invests in this activity. Copyright law protects their livelihoods. It does so by creating rights over the use of the content. Breach of copyright is a form of...

Words: 210642 - Pages: 843

Premium Essay

Fundamentals of Accounting

...LESSON 1 INTRODUCTION TO ACCOUNTING Contents 1.0 Aims and Objectives 1.1 Introduction 1.2 Book- Keeping 1.2.1 Meaning 1.2.2 Definition 1.2.3 Objectives 1.3 Accounting 1.3.1 Meaning 1.3.2 Definition 1.3.3 Objectives 1.3.4 Importance 1.3.5 Functions 1.3.6 Advantages 1.3.7 Limitations 1.4 Methods of Accounting 1.4.1 Single Entry 1.4.2 Double Entry 1.4.3 Steps involved in double entry system 1.4.4 Advantages of double entry system 1.5 Meaning of Debit and Credit 1.6 Types of Accounts and its rules 1.6.1 Personal Accounts 1.6.2 Real Accounts 1.6.3 Nominal Accounts 1.7 Distinction between Book Keeping and Accounting 1.8 Branches of Accounting 1.8.1 Financial Accounting 1.8.2 Cost Accounting 1.8.3 Management Accounting 1.9 Let us Sum Up 1.10 Lesson-End Activities 1.11 Check your Progress 1.12 Points for Discussion 1.13 References 1.0 AIMS AND OBJECTIVES i) ii) To know the Meaning ,Definition and objective of Book- Keeping To study the objectives, functions, importance and limitations of Accounting iii) To understand the methods of Accounting, kinds of Accounts and Accounting rules. This watermark does not appear in the registered version - http://www.clicktoconvert.com 1 iv) To study the difference between Book- keeping and Accounting v) To study the various branches of Accounting 1.1 INTRODUCTION In all activities (whether business activities or non-business activities) and in all organizations (whether business organizations like a manufacturing entity or......

Words: 97819 - Pages: 392

Premium Essay

Here

...Their relevant organizational behaviour. UNIT 3 Group dynamics; Group norms; Group cohesiveness; Group Behance to organizational behaviour. UNIT 4 Leadership Styles; Qualities; Organisational communication; Meaning importance, process, barriers; Methods to reduce barriers; Principle of effective communication. UNIT 5 Stress; Meaning; Types; Sources; Consequences; Management of stress. Power and Politics; Definition; Types of Powers; Sources; Characteristics; Effective use of Power. UNIT 6 Organisational Dynamics; Organisational design; Organisational effectiveness; Meaning, approaches; Organisational culture; Meaning, significance; Organisational Climate; Implications on organizational behaviour. Organisational Change; Meaning; Nature; Causes of change; Resistance of change; Management of change; Organisational development; Meaning; OD Interventions. REFERENCE BOOKS 1. Fred Luthans, Organisational Behaviour, McGraw Hill Book Co., 1995. 2. Stephen P. Bobbins, Organisational Behaviour, Prentice Hall, 1997. 3. Keith Davis, Human Behaviour at Wor/c,.-M.cGraw Hill Book Co., 1991. 4. Gregory Moorehead and R.S. Griffin, Organisational Behaviours: Managing People and Organisations, Jaico, 1994. 5. Judith R. Gordon, A Diagnostic Approach to Organisational Behaviour, Allyn & Bacon, 1993. CONTENTS |No. | LESSON ...

Words: 54737 - Pages: 219