Abstract
Prior experimental budgeting research has focused primarily on individuals’ budget setting and little experimental research has examined budgeting in a group setting. Using a controlled experiment, this study extends prior participative budgeting research by examining the effects of aggregation levels of performance feedback and task interdependence on budgetary slack and the effects of different levels of feedback on group performance in a group participative budget setting. The results suggest that aggregation levels of performance feedback differentially impact budgetary slack and group performance. Providing both group and individual performance feedback increases group performance and reduces budgetary slack compared to providing group performance feedback only. Providing information about other subordinates’ performance further increases group performance and reduces budgetary slack beyond the effects of providing individual workers information only about their own performance. The results indicate that task interdependence also affects the level of budgetary slack. Specifically, high task interdependence groups created more budgetary slack than did low task interdependence groups.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
