8,472 research outputs found

    Empirical Study of the Effect of Participation of Budget in Managerial Performance

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    This literature study aims to build and construct conception more strongly based on empirical studies that have been conducted so that it can describe how the effects of budgeting participation in improving managerial performance. In this study the author uses a literature study approach based on empirical studies or studies in several International journals relating to budgetary participation with performance. The review of this article can be concluded that budgetary participation can provide a positive role in managerial performance. But budget participation is not the only factor that can improve managerial performance but budget participation can be moderated or mediated with other variables such as psychological capital, Job relevant Information, knowledge and competencies, leadership style, motivation, and others

    The Role of Organizational Commitment and Procedural Justice in Moderating the Relationship between Budgetary Participation and Managerial Performance

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    The objective of this research is to identify the role of organizational commitment and procedural justice in moderating the relationship between budgetary participation and managerial performance. This research utilizes the mail survey method to collect primary data from September 2007 to mid-November 2007 by sending questionnaire forms to corporate managers involved in the budgeting process.The empirical result of this research indicates that budget participation has a positive and significant influence on managerial performance. The subsequent test finds that organizational commitment can strengthen the relation between budget participation and managerial performance. The last test shows that procedures have no influence on the relationship between budget participation and managerial performance

    EFFECT OF BUDGET PARTICIPATION ON MANAGERIAL PERFORMANCE MEDIATED BY JOB SATISFACTION AND ORGANIZATIONAL COMMITMENT

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    Budget usage within University of Sultan Ageng Tirtayasa is considered as not proportionally used. It can be seen from the budget usage that has not been maximized.Overcoming the budget usage and also improving managerial performance is requiring the involvement of a manager in the preparation of the budget. As some theories and studies shows that managerial performance can be affected by the budget participation, this case in University of Sultan Ageng Tirtayasa can be assessed based on the theories, this also check the relationship when mediated by organizational commitment and job satisfaction. The aim of this study was to determine the effect of budget participation on managerial performance with the mediation of organizational commitment and job satisfaction. The study was conducted by collecting quantitative data, with questionnaires distributed to 45 respondents, as the total received 36 back in the form of data that can be processed.This data is then analyzed by Structural Equation Model with Partial Least Square (PLS-SEM). The results indicate that the hypothesis is accepted, the participation of high budget can affect organizational commitment, high participation can influence job satisfaction, job satisfaction and organizational commitment of high influence managerial performance. In addition, based on the results of path analysis showed that job satisfaction is higher influence because rather than organizational commitment.

    A contribution to our understanding of the psychological effects underlying the budgeting process and its outcomes

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    Budgeting plays an important role in organizations as it is the cornerstone of the majority of management control systems. It refers to both the budget as a set of numbers and the budgeting process, which refers to an interactive process in which future activities and deliverables are translated into quantitative, financial terms. Given its central role in organizations, much research effort has been devoted to budgeting in general and its functioning as a motivation and performance evaluation tool in particular. Despite the vast amount of research, some loose ends remain. How budgeting can exactly motivate employees is still a black box. This dissertation aims to open this black box by clarifying the psychological mechanisms underlying the budgeting process and its outcomes. In particular, we focus on budget participation and budgetary slack. After all, organizations spend large amounts of money in attempts to ‘make their budgeting process work’ and manage the amount of slack created within this process. A better understanding of budget participation’s motivational effects and budgetary slack’s antecedents will be useful for efficient resource allocation. The first study explores how and when budget participation motivates managers to work toward budget attainment. The findings of prior research regarding the relationship between budget participation and budget motivation are inconsistent. We untangle these mixed effects by providing evidence of diverse forms of budget participation and multiple types of budget motivation. We also shed light on the role of basic psychological need satisfaction as the underlying mechanism in the participation-motivation relationship. Moreover, we identify three boundary conditions that add to the complexity of budget participation for motivational purposes: true participation, participation congruence, and strategic alignment. As such, we enrich prior budgeting studies that implicitly ignored the existence of multiple forms of budget participation and types of budget motivation. Given our focus on budgeting as a motivation-tool, it is also important to examine budgetary slack. Inspired by the results from the first study that illustrated the importance of strategy in a budgeting context, we examine in our second study the relationship between participation in strategic planning and budgetary slack. Building on self-determination and organizational commitment theory, we develop a model and gather data through a survey. This study reveals that a higher degree of participation in strategic planning decreases budgetary slack through the full mediation effect of affective organizational commitment. Moreover, budget participation also decreases budgetary slack through the mediating effect of autonomous budget motivation. Taken together, this study illustrates the importance of studying the broader internal organizational planning process when examining budgetary slack. The third study goes another step further and looks at the impact of the external organizational context. In particular, we examine the relationship between perceived environmental uncertainty and budgetary slack. We combine insights from psychology-based (i.e., role theory) and economics-based (i.e., agency theory and information-processing framework) theories to develop our model and gather data through a survey. Our results indicate that managers create budgetary slack as a response to role ambiguity and job-related tension, caused by environmental uncertainty. The psychological variables role ambiguity and job-related tension explain a significantly larger proportion of the variance in budgetary slack than the economics-based explanation which builds on the number of exceptions a manager is confronted with. This study illustrates the importance of individual psychological variables for understanding the budgetary slack process. The three studies in this dissertation show that budgeting, its characteristics, and outcomes are no uniform processes but are deeply embedded in human complexities
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