Authors: D.B. Shatko, N.D. Vagina

Title of the article: The role of intrafirm budgeting in the formation of an effective quality management system

Year: 2019, Issue: 1, Pages: 78-83

Branch of knowledge: ECONOMICS AND MANAGEMENT OF NATIONAL ECONOMY

Index UDK: 658 : 65.01

DOI: 10.26730/2587-5574-2019-1-78-83

Abstract: Currently, the leaders of the majority of domestic and foreign organizations attach great importance to management science. An important role in management pro-cesses is played by the competently implemented and effectively functioning quality management system in the organization. Many years of world experience in using quality systems based on international standards of the ISO 9000 series shows a positive trend in increasing the competitiveness of organizations that have imple-mented such systems. According to the requirements of ISO 9001: 2015, organiza-tions should pay great attention to planning, actions to handle risks and opportuni-ties (paragraph 6), as well as the provision of resources (paragraph 7). In this per-spective, intrafirm budgeting plays the role of an effective tool that allows you to comprehensively assess the available capabilities and resources of the organiza-tion and, based on this, predict possible options for action. Budgeting can give man-agement a unique opportunity to make informed management decisions based on an analysis of the state of affairs of the organization and effective planning of future activities based on data from previous periods. Budgeting as a financial manage-ment system ensures the improvement of the organization’s activities in many areas and also contributes to the formation of an effective quality management system.

Key words: budgeting quality management sys-tem planning management deci-sion resources finances costs

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