Planning And Control System Of Codman & Shurtleff

1045 WordsMay 4, 20165 Pages
1. Introduction Annual budgeting has been criticized for its time-consuming and limited value-added processes and it also prevents managers from making quick respondings to changes. Traditional budgeting focused on fixed targets and performance incentives often lead to dysfunction; Beyond budgeting enables companies to better manage performance in today’s volatile marketplace through specically designed processes. In this paper, we discuss how planning and control system applied in the context of Codman & Shurtleff so as to break free from the annual budget trap. The following section presents the review of literatures. Section 3 gives the context of Codman & Shurtleff. Then, section 4 discusses the reasons and consequences of underlying issues on the organization’s performances. The last section is the conclusion of study. 2. Literature review Planning and control is a crucial process in company management, by which targets are achieved and the use of resources are made effective and efficient (John C, 1986). Budgeting is considered to be a useful technique in this process, aiming to give financial values to those plans and objectives that derived from company’s long-term strategies. (Hanninen, 2013). Traditional budgeting is important in planning, control and performance management since it is easier to set target and useful in decision-making process (Hannine, 2013). However, Neely, Sutcliff and Heyns (2001) assert that traditional budgeting prevents reactions to

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