ACCOUNTING, BUDGETING AND CONTROL SYSTEM IN THEIR ORGANIZATIONAL CONTEXT : THEORITICAL AND EMPIRICAL PERSPECTIVES

This research was made by Eric G.Flamholtz in 1983. The purpose of this research was to explores relationship between control, budgeting, and accounting system in organizational context from theoritucal as well as empirical perspectives. Step of this research was, examine role of budgeting in context of overall organization control system, from a theoretical perspective, and examine selected sample of accounting and budgetary control system in their actual organization setting. It is stated in this research that the basic problem with respect to budgeting is that branch manager paid little or no attention to the budget or variances. To answer this question we salldraw upon the control framework that has been outlined to examine the element of culture, organizational structure and core control system. Taken together, an analysis of these elements explains the retional behavior of branch managers in ignoring income statements and bugets. This research also examined some aspect of accounting, budgeting, and contro in context of samlll and medium sized organization. This section presents a study of a quasi experiment designed to implement notion of zero based budgeting (ZBB) as a mechanism of organizational control in the context of a verly large US.Corporation.Other purpose to provide another tezt of the question was to ceck, whether budgeting per se is a control system or budgeting is merely a component of an overall control system and therefore does not influence behavior unless it is linked to other critical system components. The aim of budgeting, whether zero based busgeting or the more conventional variety is typically to provide a mechanism for effective planning and control in organizations.