From Quality to Quantity and Vice Versa: How to Evaluate Performance in the Budgetary Control Process
Maya Lambovska, Rastislav Rajnoha, Jan Dobrovic
Keywords:
budgetary control, performance evaluation, fuzz y logic, competitiveness, responsibility accounting
Abstract:
According to modern management theory, the performance evaluation based entirely on objective
indicators within an organization is not considered to be an effective tool. The research objective
of this paper is to suggest a contemporary model for evaluation in the budgetary control
process of the organization. The model is based on a modern evaluation approach and a complex
toolkit of management science and mathematical theories of fuzzy sets and fuzzy logic. In
this model, subjective evaluations of the responsibility centres’ achievement and performance in
budgetary control are generated by fuzzy techniques based on a combination of quantitative and
qualitative indicators. The model also allows for an immediate transformation of quantitative
into qualitative evaluations and vice versa both in fuzzy and crisp types. The proposed model is
an appropriate tool for the subjective performance evaluation of objective results from the organization’s
budgetary control process under uncertainty. This model was tested in a Bulgarian
enterprise for unique wood furniture manufacturing in July 2018 and was applied to five cost
centres, with the results demonstrating its applicability. According to our study, the model provides
a modern solution to a management problem that is unresolved in the scientific literature
and is important to the budgetary management practice of organizations. We believe that the
further improvement and implementation of the model will contribute to more effective management
and thus to the enhancing competitiveness of the organization.
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 From Quality to Quantity and Vice Versa: How to Evaluate Performance in the Budgetary Control Process [PDF file] [Filesize: 712.77 KB]
 10.7441/joc.2019.01.04
Lambovska, M., Rajnoha, R., Dobrovic, J. (2019). From Quality to Quantity and Vice Versa: How to
Evaluate Performance in the Budgetary Control Process. Journal of Competitiveness, 11(1), 53–69. https://doi.org/10.7441/joc.2019.01.04
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