Managing through Budgets for Increasing Firm's Performances in a Dynamic and Globalized Economy

• Author: Sumedrea, S. - Costin, V.
• Position: Transilvania University of Brasov
• Pages: 159-164

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 7 (56) No. 2 - 2014

MANAGING THROUGH BUDGETS FOR

INCREASING FIRMS’ PERFORMANCES

IN A DYNAMIC AND

GLOBALIZED ECONOMY

S. SUMEDREA1 V. COSTIN1

Abstract: In a more and more competitive world, with continuous changes

and need for adjustment, each firm is seeking for better positioning and

better results. In order to obtain them, various techniques are used. The

paper presents an integrated approach referring to increasing the firm’s

efficiency using strategic managerial tools and econo metric forecasting,

combined with the development of a management by budgets system for the

companies, in order to help them achieve their desired results.

Key words: dynamic economy, change, forecasting, budgets, efficiency,

flexibility.

1 Transilvania University of Braşov.

1. Introduction

The multiple challenges that companies

need to face more and more these years

change the face of both national and global

economy.

In an accelerate manner, companies must

deal with new information, new

technologies, new markets and new

competitors, because the organizational

environment is changing in all its

components (economic, political,

technological, cultural, demographical etc.)

due to globalization and IT development.

The companies have to adjust their

expectations, values and behaviours at a

faster rate than in the past, because the

changes of their environment are

exponential.

The uncertainty of the future

development is increasing and requires

new approaches in managing companies.

The literature is abundant in studies

referring to change in various organizations

[1], [2], [8], [9]. According t o Beer &

Nohria [1], main theories of changes

emphasise either the theory E (change is

performed in order to create more economic

added value to the shareholders), or the

theory O (change is done for developing a

culture based on transparency and trustiness

inside organizations).

While Crawford and Nahmias [3]

discussed about the competencies managers

needed for managing change, Cheng &

Petrovic-Lazarevic [2] and Ford et al [4]

presented the main issues related to the

resistance to change in various

organizations, while Huising [7] clarified

the role managers can play as agents of

change.