Has the budget outlived its usefulness in the 21st century Essay

Has the budget outlived its usefulness in the 21st century - Essay Example Budgeting also allows for proper accounting, it make it easier for accounting practices to be applied and used in making financial reports of the different environment (Bogsnes 2003, p.97). Therefore, whether budgeting is or not a prerequisite, it is a subject of serious debate that should be considered in more than one-way. Following this proposal to do away with budgets, researches have been done to evaluate and report on the efficacy of budgets in organization. One of the researchers done by Dugdale and Stephen reported that budgeting is still conseidered a very important tool in business and most firms still look upto its contribution in running the affairs of the organization. In this research, both financial and non financial organization were considered and 40 of such organizations were used in determining whether budgets are still an important factor in management (Dugdale and Stephen 2006, p.19). The managers of the organizations were followed in this regard and eigth of the m eventually interviewed. The response in all the companies in which interviews were done confirmed that they rely on bugdeting as a tool in planning, communication, co-ordination and as away of measuting perfomance. Although in the research, a significant trend was obserrved throughout-budget consideration for motivation was not approved by all the organizatins. It is also importanat to note that all the organization is which the research was done actualy approved the need for budgeting in their organization with non financial institutions considered in this research even coming out more firm on the budget issus (Dugdale and Stephen 2006, p.21). In order to find out the problematic nature associated with the budgets, the research team organized about twenty propositions on what a budget may be seen as problematic and fronted them to the respondent to either agree or disagree with them. the outcome was that all the propositions were denied as reflecting the position of a budget in a n organization except in two situation where slightly above the number of the respondent accepted that budgets are problematic, these were; that preparing bidgets is a tedious taks that consumes much time and that managers may at times be constrained by the requirement of the budgets and delay making important descision for no clear reason (Dugdale and Stephen 2006, p.30). It is then clear that there might be problems associated with budgetting but they don’t reach a propotion in which doing without a budget would be considered worthwhile. Budgets plays important roles in management and on other related areas and for predictability on perfomance it is important to have abudget in setting benchmarks. Budget Criticism by Beyond Budgeting Round Table (BBRT) vis a vis Academics Budgeting processes have received a number of criticisms in the recent past, which has subsequently attracted the public concern as to whether it is necessary, or not. The criticism has is dubbed going bey ond budgeting, the critics says that the process of budgeting has been the greatest barrier in the management the economy (Hope and Fraser 2003, p.23). Budgeting system has been implicated in making the managers and the employees to device behavioural tendencies that are counterproductive considering what strategic