Budget Deviations Research Articles

Hubungan Kausal Gaya Evaluasi Kinerja Anggaran, Kepuasan Kerja dan Kinerja pada Perguruan Tinggi di Yogyakarta dengan Pendekatan Structural Equation Modeling

Performance measurement is essential for any organization. Performance is a measure of success in achieving organizational objectives. The results of performance measurement as a reference for management to do the planning organization. The budget is the target organization's performance to be achieved in one period to come. Evaluation of budget execution is performed to determine the occurrence of budget deviations, by comparing the budget with the realization. Budgetary performance evaluation style have an important role in assessing the implementation of the budget. Budgetary performance evaluation style is considered appropriate to evaluate the performance of subordinates, because the subordinate approval of budgetary performance evaluation style is seen as an important element of the relationship between budgetary performance evaluation style with the performance of subordinates as reflected in the attitudes and behavior of subordinates that shows job satisfaction. This study aims to examine the relationship style of performance evaluation of the budget based on budget constrained style (BCS) on performance by measuring the job satisfaction of employees within the College of Yogyakarta.Analysis tools used for testing the hypothesis is Structural Equation Modelling (SEM). The analysis showed that: The style of performance evaluation of the budget (GEKA) were statistically significant positive effect on job satisfaction (KK). Job Satisfaction (KK) were statistically significant positive effect on performance (K). While the budgetary performance evaluation style (GEKA) statistically have no effect on performance (K)

The Financial Transparency Dynamics and Some Proposals on the Matter of Transparency Problem aimed at Developing Countries

In the study, we aimed to present some public budgetary dynamics that would have an impact on structural options in order to address some key structural issues such like transparency in particular developing countries with significant public deficits in the OECD. Transparency, as a financial phenomenon including to place in the objective of the budgeting, is to express the negative financial practices process that cause financial deviations for especially developing countries. Along with being monitored that some financial deflections related to financial transparency are inevitably appeared even after the developed financial formation process appearing from previous years to the current days. Namely, some measures and recommendations to transparency for especially developing countries in OECD countries to prevent central government budget deviations in practices are rather need to some more today's recommendations toward to both budget harmonization and optimal budget balances to present a comprehensive, accurate and reliable account of the public finances. It appears that this recommendations process mean also to identify, assess and manage prudently longer-term sustainability and other fiscal risks. It is understood that this recommendations process in the public budget process are rather meaningful also to identify, assess and manage prudently longer-term sustainability and other fiscal risks due to the fiscal plans and budgetary implementation through rigorous in the Central Budget Authority (CBE).

Addressing the Impact of Industrialized Components on the Cost of Temporary Heating in Cold-climate Regions

In countries with cold climates such as Canada, the cost of providing space heating during the construction phase, also known as temporary heating, results in a significant additional construction cost, which causes budget deviations thus affecting the projectäó»s financial performance. In fact, the estimation of temporary heating is commonly overlooked due to the uncertainties such as weather forecast and the projectäó»s actual onsite schedule. The cost of temporary heating comprises two parts: (1) the cost of equipment rental, and (2) the fuel consumption required to heat a given area when the temperature falls below a certain threshold. The fuel consumption of the equipment is related to the temperature and exposure of the buildingäó»s envelope to the current weather conditions. Thus, the construction of the building envelope is critical to the reduction of fuel consumption and the consequent temporary heating cost of the project. In this context, the research presented in this paper aims to estimate the impacts of temporary heating for various constructive methods, such as the traditional stick-built practice and a few variations of panelized construction (in regard to the insulation used), by developing a simulation model to observe the variation of weather data, construction schedule, and fuel consumption for each scenario. To perform this analysis, a 4-story residential building located in the city of Edmonton, Alberta, Canada, is used as a case study in which the proposed scenarios are compared in order to address the advantages of industrialized components in reducing the cost of temporary heating.

A Lean Approach for Real-Time Planning and Monitoring in Engineer-to-Order Construction Projects

Engineer-to-order (ETO) construction companies are characterized by an off-site and on-site production. Often, budget deviations for installation works on-site are identified in a late stage when improvement actions cannot be applied anymore. Consequently, installation tasks are often affected by significant delays and/or reworks. This work proposes a “real-time” capable approach for planning and monitoring in construction and a corresponding information technology (IT) framework. The core is represented by the so-called “pitching” concept known from lean management, which breaks down large job orders into smaller controllable parts. It can be considered as the main enabler for gathering management information in real-time and to identify problems and their causes on time. The most noticeable consequence lies in smaller jobs and a software-aided punctual control that allows a better rescheduling capability and, thus reduced, delays. A case study is provided, showing how the model was applied and validated in an ETO façade supplier company.

The appropriateness of tight budget control in public sector organizations facing budget turbulence

In the public sector, budget deviations are an important performance dimension. Because of political and institutional pressures, it is crucial that public sector organizations neither overspend, nor underspend. Budget deviations actualize the issue of tight budget control. In this article we hypothesize that when public sector organizations face budget turbulence, the implementation of tight budget control is a functional response that increases the likelihood of meeting budget targets. Our study, combining survey and archival data from 196 Swedish municipalities, confirms our hypothesis. If budget turbulence is substantial, public sector organizations benefit from tight budget control as they seek to control budget deviations, but if turbulence is only marginal, they can conduct activities in the same manner as last year and additional direction from tight controls has no effect on budget deviations. A more general contribution of the paper is the evaluation of the effect of environment and tight budgetary control fit on budgetary performance.

Share Your Knowledge on the BMET Wiki

We’re getting old. All of us are a day older than yesterday. During the next 10 years, a lot of people in the biomedical profession will retire. With retirement comes the loss of a great deal of hard-earned knowledge in our profession. It’s a shame that we can work 20 to 40 years in a field, only to retire and have our followers fight the same battles we fought, learning the same lessons we learned. Don’t we want the next generation of biomeds to benefit from our progress? I fear that this is not happening in any organized and deliberate manner. I just heard that some hospitals don’t allow any overlap of work when an employee retires. They are afraid of budget deviations when there are two people working the same job, even for a month or two. This is ridiculous! Imagine the tips, tricks, and shortcuts that could be transferred from the outgoing employee to the new hire. There should be a way to collect the accumulated knowledge of senior people in the industry, so that it can be passed down to the newcomers. Well, I am happy to announce that there is such a mechanism. And we need the help of every old-timer out there in “Biomedland” to help us collect the information. The BMET Wiki (http://BMET.wikia.com) is a wonderful site which was started more than a year ago to collect valuable information from every biomed in the world and make it available to everyone. First, let me define what a Wiki is. It’s a website with a very basic structure. Anyone who wishes may look at a Wiki, read it, download from it, and use it in any way they care. It is public information in every way. Everyone knows the Wikipedia—a user-created encyclopedia (hence, the name). Every scrap of information in the Wikipedia has been added by regular people like you and me. It is especially useful because some parts of it are updated daily. The information is often very current. If, for example, a scientist discovers a new process or product, and chooses to put an article on the Wikipedia, it would be there for everyone to read.

MULTILEVEL FRAMING: AN ALTERNATIVE UNDERSTANDING OF BUDGET CONTROL IN PUBLIC ENTERPRISES

This paper addresses the question as to why there tends to be recurring budget deviations in public sector service organizations. In the public sector, budgets and actuals are loosely coupled, and budgets may serve other institutional functions than control purposes. However, little research has addressed how the framing of budget information may explain the different functions of the budgets as control devices. The paper argues that the valence of budget deviations varies between organizations, and that organizations that have a positively oriented valence towards budget surpluses have a propensity to underspend the budgets. Consequently, organizations that have a positively oriented valence towards budget deficits tend to overspend the budgets. The empirical part analyses the budget situations in the Central Bank of Norway and in a large university hospital in Norway. In the case of the Bank, it was found that underspending of budgets was framed as performance measures indicating high organizational efficiency. The Hospital, on the other hand, showed a different picture as budget deficits were the situation during all years studied. One main finding was the key actors’ roles as translators of the society's expectations as to the fulfilling of the organizations’ missions. These translators function as mediators between the institutional context and pressures, the organizations’ goals and the internal budget processes. The conventional wisdom that the budget also acts as a means of communication and as symbols and ritual acts that reflect the institutional contingencies of the organizations, is further developed by describing how organizations’ goals valence the role of budgets.

Budget allocation for permanent and contingent capacity under stochastic demand

We develop a model of budget allocation for permanent and contingent workforce under stochastic demand. The level of permanent capacity is determined at the beginning of the horizon and is kept constant throughout, whereas the number of temporary workers to be hired must be decided in each period. Compared to existing budgeting models, this paper explicitly considers a budget constraint. Under the assumption of a restricted budget, the objective is to minimize capacity shortages. When over-expenditures are allowed, both budget deviations and shortage costs are to be minimized. The capacity shortage cost function is assumed to be either linear or quadratic with the amount of shortage, which corresponds to different market structures or different types of services. We thus examine four variants of the problem that we model and solve either approximately or to optimality when possible. A comprehensive experimental design is designed to analyze the behavior of our models when several levels of demand variability and parameter values are considered. The parameters consist of the initial budget level, the unit cost of temporary workers and the budget deviation penalty/reward rates. Varying these parameters produce several trade-offs between permanent and temporary workforce levels, and between capacity shortages and budget deviations. Numerical results also show that the quadratic cost function leads to smooth and moderate capacity shortages over the time periods, whereas all shortages are either avoided or accepted when the cost function is linear.

Measuring ‘tight budgetary control’

This paper presents an effort to construct a measurement instrument to capture tight budgetary control. While there is not a strong tradition of publishing articles of this nature in the accounting literature, there is a role for this for constructs for which there are no ready-made instruments available from other disciplinary areas. The notion of tight (budgetary) control seems to fall into this category: it has troubled theorists for many years (Simons, R., 1995.Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal , Boston, Harvard Business School Press.), and identifying and calibrating its components has been called a fruitful area for academic inquiry (Chow, C. W., Kato, Y. and Merchant, K. A., 1996. The use of organizational controls and their effects on data manipulation and management myopia: A Japan v. U.S. comparison, Accounting, Organizations and Society, 21, 175–192.). In this paper, the tight budgetary control macro-construct is defined, de-composed into its micro-attributes, operationalized into scale-items, and re-composed empirically through factor analysis on data obtained from 153 business units. The data suggest that tight budgetary control involves, in order of importance, low tolerance for interim budget deviations, detailed budget line-item follow-ups, intense discussions of budget results, and strong emphasis on meeting short-run budget targets. Broadly speaking, tight budgetary controls seem more stringent than simply monitoring bottom-line budget deviations in a hands-off management-by-exception basis.

Studies of key issues in IS management around the world

Information systems (IS) departments face many challenges in today's rapidly changing environment. One approach to understanding these challenges is to survey IS managers to elicit what they consider are key issues. Studies of key IS management issues have been conducted for some years in many nations and regions. Based on such studies and a theoretical framework, this paper predicts the following key issues into the 21st century: (1) improving links between information systems strategy and business strategy, (2) developing and implementing an information architecture, (3) implementing knowledge management systems, and (4) reducing IT projects’ completion time and budget deviations. For future studies of key issues in IS management around the world, this paper provides an overview of research approaches to initial key issues selection and key issues surveys.

Cost uncertainty and budget overspending: A safety-first perspective

In this study we model a cost center manager's decision about how to achieve a required level of output. The spending plan that the manager adopts is expected to result in successful performance, but at an uncertain cost. The uncertainty associated with the spending plan is inversely related to the expected cost. The analysis presented in this article suggests that a manager who exhibits Safety-First behavior and wishes to avoid large budget deviations is more likely to exceed what he or she perceives to be the overspending limit rather than the underspending limit. That manager will tend to incur costs in excess of the budget. This mathematical result has an intuitive appeal; a manager is willing to pay a certain “risk premium” to avoid the risk of large budget deviations and accompanying adverse consequences. This result has implications for both performance evaluation and budget setting, particularly in the public sector. Under the circumstances that we describe, using budgets in evaluating managerial performance may be misleading. Another application of our study relates to the “budget creep” phenomenon and how, under particular circumstances, its size can be reduced.