Abstract
The success or failure of any budgetary system depends to a large extent on the management assumptions of human nature (views), employees’ behavior and level of commitment towards productivity. The budgetary system may be non-humanistic (autocratic) or humanistic (participatory). Autocratic budgetary system is synonymous with employees’ negative reactions including counter productive work behaviours while participatory budgetary system is identified with employees’ positive reactions embedded in productive work behaviours. While admitting the proposition that certain settings may require the operation of autocratic budgetary system, this paper holds that available accounting literature on management theories and empirical researches support the assertion: Participatory budgetary system is a panacea; that is, a cure for all the many ills which have been associated with autocratic budgetary system. The unconcerned attitude of enterprise management towards modern theories and researches in budgetary systems and practices, the level of counterproductive work behaviours and some illicit acts in businesses and the environment, the corruption trend in a tropical Nation like Nigeria, productivity downturn and economic depression have posed serious concern. Participatory budgetary system relative to modern management views and motivated work behaviours will boost productivity upturn in Nigerian firms.
Highlights
No conscious organization exists without a mission and consequent goals and objectives
This paper describes autocratic budgetary system as a downward-flow budgetary system (Dopuch et al, 2004; Horngren and Foster, 2003)
The more pressure a budget brings, the less the level of productivity (Umo, 1999; Louderback and Hirsch, 1987). This arises as a result of the repressive nature of autocratic budgetary system: a system that makes the employee believe that the decision maker is thinking very low of him
Summary
No conscious organization exists without a mission and consequent goals and objectives. A well organized and thought out budgetary system can bring positive and significant results; including improved employees‟ morale and maximum productivity, (Horngren and Foster, 2003; Cascio, 1996; Umo, 1999). These benefits do not automatically arise from the budgetary system; they have to be worked for (Lucey, 2008). In firms operating autocratic budgetary system, the budgeting process is closed and secret Such organizations are characterized by departmental strifes, lack of goal-congruence, employees‟ dissatisfaction on the job, fraud of different dimensions and other dysfunctional attitudes which are inimical to productivity and general goal achievement (Garrison, 2007; Umo. 2015). The relationship between management views, employees‟ behavior and productivity trend in firms should be established
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