Concept Of Beyond Budgeting For Performance Management Control

Introduction

Beyond budgeting (BB) is presented as alternative method of more adaptive process than traditional budgeting system (TBS) (Hope and Fraser, 2003). This literature review will critically compare and contrast two in-depth articles regarding the concept of Beyond Budgeting for performance management control.

Overview

The two academic articles on Beyond Budgeting are below:

1. Beyond Budgeting and change: a case study
Sandalgaard and Nikolaj Bukh (2014) examines the reasons why new management control systems and processes have piqued interest of organisations. Furthermore, it discusses the practical problems that are faced by organisations during the process of implementing BB. The paper focuses on a specific global case company in the Agri-food industry called FoodCorp with four individual business groups.

2. Management Control without Budgets: Afield Study of ‘Beyond Budgeting’ in Practice
Ostergren and Stensaker (2011) explores how alternative management control systems operate and function in a practical sense and raises challenges associated with BB. The data was collected from a large Norwegian-based multinational company called Oilco who initiated and implemented the new system using pilot sites for testing. The research focuses on the implementation of the concept into two business units (GEX and GBS).

Analysis

Article 1 researched FoodCorp which is of four individual business groups in the agri-food industry (Sandalgaard and Nikolaj Bukh, 2014).