Budgeting Beyond Budgeting

Josep Mª Rosanas ()
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Josep Mª Rosanas : IESE Business School, Postal: IESE Business School. Research Division, Av Pearson 21, 08034 Barcelona, SPAIN, http://www.iese.edu/es/index-default.html

No D/1139, IESE Research Papers from IESE Business School

Abstract: While for quite a long time the budget was considered a crucial management tool, it has always been subject to criticism. The criticism has become stronger in the past couple of decades, with an alternative system going by the trade name Beyond Budgeting. In this paper, we review the history and foundations of budgeting to show how, typically, criticism of budgeting has addressed a bad management style and not the technique itself. Then an example is given of how budgeting can be used to a firm's advantage in many fields but mainly so it can avoid unpleasant surprises, create trust between the firm's different hierarchical levels, and enhance learning in the positive sense. This allows the firm to avoid the vicious circles that are often found in budgeting practice because of bad management, not because of the budgets themselves.

Keywords: Budgeting; Management; Trust; Command and control; Management control process (search for similar items in EconPapers)
JEL-codes: M14 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2016-05-25
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ebg:iesewp:d-1139

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