The Budget was considered by many authors (Schiff and Lewin, 1970) the main model of management control for companies over the years and so became known as the traditional budgeting model. However, over time, the criticisms to this tool have been increasing due to some limitations that the model presents (Jensen, 2001; Hansen et. al., 2003; Hope and Fraser, 2003a). From here, many companies started adopting alternative models and, in 1998, the Beyond Budgeting model emerges aiming to replace budgets by the use of support tools based on principles of decentralization and leadership and management processes and performance. Among the support tools of this model are Rolling Forecasts that aim to provide a continuous view of the most likely future in development, unrelated to the current fiscal period (S. 2013, Controlo de Gestão Orçamental, Faculdade de Economia e Gestão da Universidade do Porto). Other authors add that the Rolling Forecasts are short-term budgets for medium-term horizons and compel organizations to focus on the future. (Sivabalan, 2011 e Golyagina & Valuckas, 2012). The purpose of this paper is to study how Rolling Forecasts were developed in the context of the Beyond Budgeting management control system at Grupo NORS. Thus, it is intended hereby to answer the question "Will Rolling Forecasts be substitutes or complements of the Budget, in the case of the Beyond Budgeting model implemented in NORS?". For this, we used a case study about NORS with information from various sources, among them interviews conducted with company managers. From the analysis of the case we can conclude that the Rolling Forecasts are indeed substitutes of the Budget.
Date of Award | 12 Jul 2017 |
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Original language | Portuguese |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | Luís Marques (Supervisor) & Miguel Alberto Reis Soares (Supervisor) |
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- Rolling forecasts
- Beyond budgeting
- Budget
Rolling Forecasts, substitutos ou complementos do budget: o caso da NORS
Caldeira, C. L. G. (Student). 12 Jul 2017
Student thesis: Master's Thesis