How budgets shape management in real companies
In this field study, discover how managers rely on budgets to guide decisions, measure performance, and link effort to rewards across large organizations. It explores the connections between budget use, task uncertainty, and the costs of agency.
Two short paragraphs:
The study analyzes budget practices across 13 major companies and multiple functions, focusing on how physical versus monetary measures are used and how budget timing and adaptability affect performance evaluation. It also examines how risk and effort tolerance relate to budget reliance and to the handling of environmental uncertainty, shedding light on when budget-driven control works best.
- Learn how different budget measures (physical units vs. monetary units) are chosen and how volatility and unpredictability influence those choices.
- See how risk tolerance and effort tolerance relate to budget reliance across functions such as internal operations, purchasing, and sales.
- Understand how budget period length and adaptivity impact performance evaluation and the assignment of rewards.
- Gain insight into how managers respond to environmental uncertainty and what this means for control strategies.
Ideal for readers of managerial accounting, organizational finance, and field research seeking practical, evidence-based insights.