Management & Budgetary Control and the Beyond Budgeting debate Essay

Management & Budgetary Control and the Beyond Budgeting debate - Essay Example During the recent years new ideas have emerged in the business world that challenge the traditional approach to budgeting and claim it not be fit for the current business environment as it is unable to fulfill the demands and requirements. It is both private and public sector that have adopted traditional approach to budgeting since very beginning and they find comfort in tradition even if it doesn’t suit the current business environment. The new ideas are revolutionary they compensate both future financial planning keeping in view non-financial factors that influence the performance and working of the organization (Moolchand, Narendra, & Koshina, 2012). Therefore this changing business world gives rise to the idea of â€Å"Beyond Budgeting† that provides a model beyond command and control towards a more adaptive, flexible and empowering model. Beyond Budgeting is being used to transform the performance potential of the organization it removes the shackles of annual bud get and at the same time allowing the employees to use their full power in the front line. Business environment especially in the past one decade has become much dynamic, complex, turbulent and uncertain. Adaptability is the greatest attribute that the organizations should possess in order to sustain in the market. Life cycles of the products have reduced with the continuous advancement in the technology innovation becomes a critical factor of success for the corporates. These details regarding the business and market environment signify that diversity along with flexibility is important for sustainable growth of the organization. It is not the organizations with huge capital and resources who can survive it is corporates that are adaptable would progress in future. Recent events in the business world raised the comments and the criticism over budgeting system that is in practice currently. It brings rigidity in the system, restricts movement and doesn’t limits