Budgeting For Management Functions in the Pharmaceutical Enterprises

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 11

Year of Publication : 2019

Authors : Bui Thi Ngoc, Le Thi Tu Oanh

10.14445/23939125/IJEMS-V6I11P105

How to Cite?

Bui Thi Ngoc, Le Thi Tu Oanh, "Budgeting For Management Functions in the Pharmaceutical Enterprises," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 11, pp. 34-43, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I11P105

Abstract:

Budgeting refers to estimations, detail projections of how to organize and use resources of enterprises in each period to achieve strategic objectives. Budgeting is an important tool helpingmanagers in planning and controlling during the operation process. Enterprises of different sizes and sectors depend heavily on budgeting to achieve their goals because budgeting involve setting specified objectives, reporting actual results, and evaluating performance. This paper aimed at:evaluating the current situation ofbudgeting processes of enterprises; (ii) proposing solutions to help enterprises make more effective budgetingregarding contents, budgeting processes, budget reports. This research applied case study method and in-depth interview technique with more than 30 cases in 23 pharmaceutical enterprises. The results showed that theconsumption budgetand the profit budget are most concerned by enterprises (91.3% and 82.6% respectively). For the purpose of this study, the technical analysis method, the topdownbudgeting process, annual budget periodswere commonly applied.

Keywords:

Budget reports, budget, control, decision making, evaluation, flexible estimates, static estimates

References:

[1] Almasi, H. (2015). Budgetary participation and managerial performance: The impact of information and environmental volatility. Management Science Letters, 5(2015): 843-854
[2] Blumentritt, T. (2006). Integrating strategic management and budgeting. Journal of Business Strategy.
[3] Chemweno, C. (2009). Survey of operational budgetary process and challenges in the mortgage financing institutions in Kenya, Doctoral dissertation.
[4] Chong, V. K. & Johnson, D. M. (2007). Testing a model of the antecedents and consequences of budgetary participation on job performance. Accounting and Business Research.
[5] Elhamma, A. (2015). The relationship between budgetary evaluation, firm size and performance. Journal of Management Development, 34(8), 973-986.
[6] Fölscher, A., & Gay, E. (2012). Fiscal transparency and participation in Africa: A study report. Pretoria, South Africa: The Collaboration Africa Budget Reform Initiative (CABRI) .. Retrieved; from http://zunia.org/sites/default/files/media/nodefiles/ca/453750_cabri_fiscal_transpar ency_english_web.pdf;
[7] Gudelis, D., & Guogis, A. (2011). Integrating public and business management: A model of interaction between public and private sectors. International Review on Public and Non –Profit Marketing, 8(1), 1-9. doi:http://dx.doi.org/10.1007/s12208-010-0063-4.
[8] Hansen, D. R., & Mowen, M. M. (2000). Management Accounting. Fourth Edition, Prentice Hall, New Jersey.
[9] Hansen, S.C. & Van der Stede, W.A., (2014). Multiple facets of budgeting: an exploratory analysis. Management accounting research.
[10] Hofstede, G. H. (1968). The Game of Budget Control. London Lorsuwannarat.
[11] Hope, J. & Fraser, R. (2013). Beyond budgeting: how managers can break free from the annual performance trap. Harvard Business Press.
[12] Kaplan, R. S., David, P. N. (1996), “Balanced Scorecard: Translating strategy into Action”, Havard Business School Press;
[13] Kaplan, R. S., & Atkinson. Y. (2004). Management Accounting, Pretice Hall, New Jersey, 4th edition;
[14] Kearney, R. C. & Hays, S. W. (1994). Labor-management relations and participative decision-making: Toward a new paradigm. Public Administration Review.
[15] Kim, L. S. T,.,& Hilton, R. (2011). Management Accounting: Information for mangaging and creating value, McGraw Hill, 4th edition.
[16] Maria G.,& Rebecca, P. (2010). Budgeting, a perfect management tool? Gothernbury
[17] Murray, D. (1990). The Performance Effects of Participative Budgeting: An Integration of Intervening and Moderating Variables, Behavioral Research in Accounting , 2/2: 104- 123.
[18] Otley, T.D.,& Van .S. W.A., (2003). Practice Developments in Budgeting: An Overview and Research Perspective. Journal of Management Accounting Research, 15, pp. 95–116
[19] Pandey, I.M. (2008). Management Accounting, (3rd Edition). Delhi: Jitendra Printing Press.
[20] Parker, R. J. & Kyj, L. (2006). Vertical information sharing in the budgeting process. Accounting, Organizations and Society.
[21] Renzio, P., & Wehner, J. (2015). The impacts of fiscal openness: A review of the evidence. New York : SSRN. Retrieved from http://ssrn.com/abstract=2602439
[22] Seaman, A.E., & Williams, J. J. (2011). Budget related behavior: Resolving a portion of the performance puzzle in the management accounting system. The Review of Accounting Information Systems.
[23] Tippawan (2016): Public Participation in Budgeting: The New Path of Budget Reform in Thailand, International Journal of Public Administration, DOI: 10.1080/01900692.2015.1126730
[24] Weetman, P. (2006). Financial and management accounting, an introduction; Edinburgh; F. T. Prentice Hall.
[25] Weil, R. L. & Maher, M. W. (2005). Handbook of expense management (2nd. ed.). New Jersey: John Wiley & Sons, Inc.
[26] Welmilla, I. (2001). The Impact of Budget Related Behavior on the performance of companies in Sri Lanka.
[27] Wijewardena, H., & Zoysa, A. (2001). The Impact of Financial Planning and Control on Performance of SMEs in Australia. Journal of Enterprising Culture, Vol. 9.
[28] Yang Qi, (2010). The Impact of budget process on performance in the Small and Medium sized firms in China, University of Twente.