The Impact of Cost Cutting and Zero-Level Budgeting on the Organization Management in Crisis Situations

Abstract

Managing and optimizing the costs is the key aspect of affecting the competition and keeping a sustainable business of a company in modern business conditions. Managing the expenses in a quality way is a feature of successful organizations as well as of educated and motivated management. This is especially true when it has a function of managing the crisis situation or a preventive approach by avoiding it. In that context, two approaches (methods) of cost management policies will be analyzed.  One policy is the policy of “cost cutting” that has the function of improvement and sustainable business. The other policy is a zero-level budgeting with the purpose of preventing and optimizing the process of cost cutting which is offten primarly being used in a crisis management.