The strategic role of budgeting and performance measurement

Moran, Mary (2009) The strategic role of budgeting and performance measurement. Masters thesis, Dundalk Institute of Technology.

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Abstract

The objective of this literature review was to reach a conclusion on whether performance measurement, in either the private or public sector, can aid the achievement of strategic goals when combined with budgeting. The methodology used was reviewing available literature. This consisted of both publicly available literature and literature to which Dundalk Institute of Technology Library has access. It was carried out between January 2009 and June 2009, mainly in Dundalk Institute of Technology using available databases. Strategy consists of the organisation's long term plan for the future. Day-to-day budgeting is a tool with which an organisation implements its long term plan. There is often a "gap" between what the organisation is doing on a day-to-basis and what the organisation wants to achieve on a long term basis. Performance measurement is the means by which an organisation links budgeting to its strategic plan and attempts to close the gap. The review examines the available literature and real world examples to reach a conclusion on this, particularly in the case of the public sector. After reviewing the literature, the author reached the conclusion that performance measurement can indeed close the gap between budgeting and strategy in the private sector and public sector, but its application in the public sector is less appropriate due to the complex nature of the sector and the inability to link inputs, outputs and outcomes i.e. organisational goals. The review concludes by offering recommendations, namely that the author believes the most appropriate way of implementing strategy in the public sector is a mixture of the traditional method of budgeting and the use of specially adapted private sector performance measurement tools.

Item Type:	Thesis (Masters)
Uncontrolled Keywords:	Budgeting; Performance measurement; Planning; Public sector.
Subjects:	Business
Research Centres:	UNSPECIFIED
Depositing User:	Sean McGreal
Date Deposited:	28 Jul 2015 12:35
Last Modified:	29 Jul 2015 09:27
URI:	https://eprints.dkit.ie/id/eprint/419

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