Environmental turbulence and the functions of budgetary control
Berland, Nicolas (2001), Environmental turbulence and the functions of budgetary control, Accounting, Business and Financial History, 11, 1, p. 59-77. 10.1080/09585200010015031
TypeArticle accepté pour publication ou publié
Nom de la revueAccounting, Business and Financial History
Taylor & Francis
MétadonnéesAfficher la notice complète
Dauphine Recherches en Management [DRM]
Résumé (EN)While budgetary control is a potentially significant tool when the economic environment is unstable and unpredictable, the analysis of its development demonstrates that its use has dramatically expanded over the time since companies have been able to run forecasts. In order to help them develop budgetary control, companies have implemented strategies that have reduced risks and hence improved their ability to make accurate forecasts. Such strategies have taken many forms and varied from one firm to another. They materialized as various types of agreement, including cartels, through strategies to effect market leadership, or via policies of nationalization. In those companies where the environment was stable and risk limitation was not important, budgetary control could be used for various internal purposes. In this respect, the analysis of the management of companies helps us to identify the purposes for which budgetary control is utilized. It is found that budgetary control allows for greater expansion opportunities and provides the means to strengthen the control of management within major companies. Our observations highlight a contradictory aspect of budgetary control: while it is relevant within an unstable environment, it performs best in an environment which is highly managed.
Mots-clésFrance; Contingency; Turbulence; Economic environment; Budgetary control
Affichage des éléments liés par titre et auteur.
The availability of information and the accumulation of experience as motors for the diffusion of budgetary control: the French experience from the 1920s to the 1960s Berland, Nicolas (1998) Article accepté pour publication ou publié
Criticisms of capitalism, budgeting and the double enrolment: Budgetary control rhetoric and social reform in France in the 1930s and 1950s Chiapello, Eve; Berland, Nicolas (2009) Article accepté pour publication ou publié