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Article: Budgets hit back.(Brief Article)
- Article from:
- Management Accounting (British)
- Article date:
- January 1, 2000
- Author:
CopyrightCOPYRIGHT 2000 Chartered Institute of Management Accountants (CIMA). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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PAUL PRENDERGAST LOOKS AT TE ROLE OF BUDGETS IN THIS POST-REVOLUTION AGE OF BALANCED SCORECARDS AND ACTIVITY-BASED MANAGEMENT.
This article looks at the value of budgeting in a world of new management techniques. It also reports the author's research on the connection between an organisation's budget emphasis and managers' short-term orientation. Finally new control techniques are examined to see if they can help overcome the behavioural weaknesses of traditional control systems, or whether human nature will triumph again and corrupt the latest planning and control systems.
The problems
Luc Wilken once advised that, `Accountants tend to see ...