Budgetary Participation Research Articles

Usefulness of the budget: the mediating effect of participative budgeting and budget-based evaluation and rewarding

PurposeThis paper contributes to budgeting-related literature by investigating whether the participation of operational managers in budgeting, and budget-based evaluations and the rewarding of operational managers, significantly mediate the relationship between budget use for operational management and the perceived usefulness of the budget.Design/methodology/approachThe paper is based on data gathered from a survey of Czech medium- and large-sized companies from the manufacturing sector. The hypothesised relationships are tested using partial least squares structural equation modelling (PLS-SEM).FindingsOverall usefulness of the budget, as perceived by principals (top managers), is positively influenced by the scope of budget use, but, more importantly, the positive mediating effects of participative budgeting and budget-based evaluation and rewarding on this relationship are significant and strong.Research limitations/implicationsThe subjective perceptions of respondents were investigated with the understanding that they may not represent actual situations in their organisations. Companies with well-functioning budgeting systems were more likely to take part in the research. Regarding satisfaction, the authors studied the perceived usefulness of the budget. Only medium- and large-sized manufacturing companies located in a post-communist country were analysed and generalisations should, therefore, be taken with caution.Practical implicationsThe results in the studied sample indicate that satisfaction with budgeting is positively correlated with the rewarding and evaluation of operational managers, and with enabling the participation of operational managers in preparing and updating their budgets.Originality/valueThis research contributes to prior literature on budgeting by investigating the mediating effects of the participation of operational managers in budgeting, and the budget-based evaluation and rewarding of operational managers on the perceived usefulness of the budget by principals in an integrated model using the PLS-SEM approach.

Budget Participation Capacity Configuration (BPCC), Budgeting Participation Requirement and Product Innovation Performance

As the relationship between the execution of budget participation and innovation performance is still full of controversy, and the innovation capability formed by the important control elements of the organization is the key to bring about product innovation performance, this study aims to explore the impact of the formation of product innovation capabilities on product innovation performance under the demand for budget participation. This study proposes the concept of budget participation capacity configuration (BPCC), which is the integration of procedural justice, self-efficacy, and trust in superiors. This study adopted a questionnaire survey to collect sample data from production managers of the electronics-related companies listed on the Taiwan Stock Exchange and employed structural equation modeling to verify measurement model fit and research hypotheses. The study results present that budgeting participation requirement does not directly affect product innovation performance and confirms that the three organizational control elements together constitute BPCC, which plays a fully intermediary role between budget participation requirement and product innovation performance. The contribution of this research for academic theory is to put forward an explanation of the budget participation-innovation performance dispute, and propose an integrated viewpoint for organizational control elements instead of fragmental studies in the past. For practice, this research provides new evidence for budget participation requirements and sources of innovation capabilities.

Obedience Pressure vs. Peer Pressure: An Explanation of Muslims’ Religious Role in Budgetary Slack

Introduction/Main Objectives: The performance of individuals in organizations is generally evaluated based on their success at achieving targets. Furthermore, the role of the budget has a major effect on individual behavior in the preparation of the budget, by allowing unethical actions (budgetary slack). Background Problems: There are a few studies that measure the difference in the influence of social pressure between superiors and peers on individual’s behavior in the organizational budgeting process. On the other hand, there are inconsistencies in the results of the research into the role of religiosity in the creation of budgetary slack. Novelty: To explain why people are not influenced by social pressures to create budgetary slack, we use the Psychological Reactance Theory. We argue that religiosity is one factor that influences people in making decisions about participative budgeting. Religiosity is believed to be able to influence one's personal values, so it impacts on one's judgment and determination of whether a thing is good or bad. Research Methods: This study uses an experimental research method on 65 undergraduate accounting students and a 2x2 factorial design consisting of two factors, social pressure (obedience pressure and peer pressure) and religiosity (high and low). Finding/Results: The results show that religiosity is proven to play an important role in the budget decision-making process, futhermore it minimizes the occurrence of budgetary slack. Conclusion: Individuals who have high religiosity are proven to be better able to avoid creating budgetary slack compared to individuals who have low religiosity, when receiving pressure from superiors and peers. This result has implications for organizational stakeholders dealing with employee recruitment or in the organization's management control system, as religiosity is an important factor that must be prioritized.

The Effect of Participation in Budgeting, Utilization of Information Technology, and Budget Revision on the Effectiveness of Surabaya Government OPD Budget Management

This study aims to examine (1) the effect of budgetary participation on budget effectiveness, (2) the effect of the use of information technology on the effectiveness of budget management, (3) the effect of budget revisions on the effectiveness of budget management. The endogenous variable used is the effectiveness of budget management. This study used a sample of Surabaya City Regional Apparatus Organizations, namely 21 Surabaya City Offices. The method used to collect data was purposive sampling method, by distributing questionnaires. Data analysis techniques used Partial Least Square (PLS) with SmartPLS 3.0 software. The results of this study indicate that (1) budget participation has an effect on the effectiveness of budget management, (2) the use of information technology has no effect on the effectiveness of budget management, (3) budget revision has an effect on the effectiveness of budget management.

Strategic planning, strategy map and management control: a case study

Purpose This paper aims to explore the relationship between the components of the management control system (MCS) based on the reform process of the management system of China Resources Group and the influence of these components on the implementation effect of MCS. Design/methodology/approach This study uses an exploratory research method and an open-ended grounded theory approach to conduct six formal investigations and several in-depth interviews with employees and senior management in China Resources Group. This paper supplements these data by performing a documentary analysis of the internal documents of China Resources Group such as the statistical yearbook, business plan and meeting records. Findings This study puts forward four propositions. The formal strategic planning process creates an application environment for the strategy map and balanced scorecard (BSC), making it easier for an enterprise to adopt these tools. The combination of the strategy map and formal strategic planning helps to build the logical relationship between strategic goals and budget goals and strengthens the correlation between budget and strategy. In diversified organizations applying MCS, the strategy map and BSC facilitate the implementation of the strategy for specialized business units, while the financial measure system facilitates the implementation of the strategy for diversified business units. Strategic boundaries based on financial measures in the MCS help organizations determine the scope of strategic choices before implementing strategies. Research limitations/implications Because of the chosen research approach, the research results may lack generalizability and the influence of the strategic planning process on budget participation, budget slack and other budget behaviors has not been fully discussed. Therefore, future studies are expected to provide more evidence regarding strategic planning and budget behaviors. Practical implications Before establishing a strategy map and BSC, the enterprise should consider the application environment to ensure their feasibility and legitimacy and construct the BSC system under appropriate conditions. A formal strategic planning process should be formed within the enterprise; that is, a set of detailed management methods should be adopted and clear rules should be used to support the enterprise management control process. The enterprise should add strategic boundaries to the MCS to determine the scope of strategic choices and the budgeting bottom line. Originality/value This paper sheds light on the impact of the formal strategic planning process on the organization and contributes new evidence on the key success factors for implementing the strategy map and BSC, enriching the researchers’ understanding of the applicability of the BSC.

Role of Organizational Commitment in Mediating between Budget Participation and Managerial Performance

The purpose of this study was to examine the role of organizational commitment in mediating the relationship between budgetary participation and managerial performance in academic officials at private universities in Bandung. This type of research is explanatory research. The sample in this study was 132 private university officials in the city of Bandung. In this study, the data collection method was a questionnaire, and the data analysis used in this study was simple linear regression analysis. The results show that. Budget participation, organizational commitment, and managerial performance are in a suitable category and positively affect. While organizational commitment can mediate the relationship between budgetary participation and managerial performance, one of the commitment dimensions does not affect, namely, continuity commitment.

A Review: The Influence of Participation Budgeting Toward Organization Behavior Factors

One of the characteristics of a budget in order to function in the planning and control process is that it contains management commitment. The requirements that must be met in order to achieve managerial commitment are active participation of managers in the budget formulation process. Participation is in the form of opportunities to submit proposals as well as opportunities to negotiate in the ratification process. This study intends to examine the effect of budget participation on various factors in organizational behavior. Based on studies according to experts and previous researchers, budget participation affects various factors related to organizational behavior, including organizational commitment, work motivation and performance.

PENGARUH PARTISIPASI DALAM ANGGARAN DAN KEJELASAN SASARAN ANGGARAN SERTA PERAN MANAJERIAL PENGELOLAAN KEUANGAN DAERAH TERHADAP KINERJA PEMERINTAH DAERAH (Studi Empiris pada Pemerintah Provinsi Bengkulu)

In order to achieve good governance, the government continues to make efforts to improve the administrative system as a whole and applying state budget goal clarity accordance with the purposes of the budget and to realize that a good managerial role. Thus, the influence of participation in budgeting and budget goal clarity and managerial leadership roles working unit is concerned in improving government performance. This research is quantitative research, which will examine the effect of budgetary participation and budget goal clarity and managerial roles of financial managers on the performance of the local government area of the province of Bengkulu. The population in this study were all SKPD in Bengkulu province consisting of 43 on education, in which questionnaire distributed in each of the 3 leaders representing every subdivision, in order to obtain 129 samples. Based on this research, it was found that, participation in the budget significantly affect the performance of the government with a significant value of less than 0.05, ie 0.000. Similarly, the budget goal clarity variables have a significant influence on the performance of the government with significant value of 0.007, while the role of managerial variables do not significantly affect the performance of the government, with a value significantly greater than 0.05, which is 0.624. Simultaneously, participation in the budget, the budget goal clarity and managerial roles have a significant influence on the performance of the government.

Fair design and use of the budgetary process and managerial performance

ABSTRACT This study analyzes the impacts of the fair design and use of the budgetary process, from the perspectives of formal and informal justice, on fairness judgments, on budgetary participation, and on managerial performance. Complementarily, it also analyzes the mediating effect. Research on the impacts of budgetary participation on managerial performance presents conflicting and inconclusive evidence. The studies on organizational justice, in turn, mainly focus on individual perceptions of justice, from a descriptive and perceptual perspective, not considering the normative approach, and treating justice rules and fairness judgments as synonymous. That segregation is relevant as it reinforces the importance of the fair design and use of the budgetary process, going beyond considering individual fairness judgments. The research revealed that the fair design and use of the budgetary process influence managerial performance; however, the individual perception of justice (fairness judgments) did not exert a direct influence. These findings are relevant because they highlight the impacts of justice in terms of the effects that a system generates, not only considering individual perceptions. A survey was conducted with a random sample of 110 managers chosen using the LinkedIn social network. For the data analysis, the structural equations modeling technique was applied. The study contributes to the literature that examines behavioral aspects of the relationship between budgetary participation and managerial performance, by seeking to understand in which conditions budgetary participation results in better performance. In this research, these relationships are analyzed in light of the foundations of justice, from the perspective of justice rules and fairness judgments. The evidence suggests that budgetary participation affects managerial performance when it results from the fair design and use of the budgetary process.

PENGARUH KONFLIK PARTISIPASI ANGGARAN TERHADAP KINERJA MANAJERIAL DENGAN KEPUASAN KERJA DAN KOMITMEN ORGANISASI SEBAGAI VARIABEL INTERVENING (STUDI EMPIRIS PADA PERUSAHAAN PERBANKAN DAN PEMBIAYAAN DI KOTA BENGKULU)

This study aims to analyze the effect of budgetary participation conflict on managerial performance using job satisfaction and organizational commitment as intervening variables. The samples in this study consisted of 126 top level managers, middle level managers and lower level managers who participated in preparing the budgets. The data use analyzed using SEM (structural Equation Model). The results showed that the budgetary participation conflict has not negative significant effect on managerial performance, budgetary participation conflict has negative significant effect on job satisfaction, job satisfaction has not negative significant effect on managerial performance, budgetary participation conflict has negative significant effect on organizational commitment, organizational commitment has not positive significant effect on managerial performance, budgetary participation conflict through job satisfaction has not negative significant effect on managerial performance, budgetary participation conflict through the organizational commitment has negative significant effect on managerial performance.

PARTISIPASI PENGANGGARAN, KEPUASAN KERJA, KOMITMEN ORGANISASI, DAN KINERJA APARAT PEMERINTAH BADAN PERTANAHAN NASIONAL PROVINSI BENGKULU

This research was aimed to analyze the participation in budgeting, job satisfaction, and organizational commitment to performance. Participation in budgeting is a common approach that can improve performance because in participation there is the delegation of procedures and involvement in decision making. Job satisfaction depends on what the individual feels towards his job and requires someone to interact with companions and commanders, follow the rules, and achieve performance standards. Organizational commitment is an emotional attachment, individual involvement in the organization, and the preference to stay on the organization. The results of this study showed that participation in budgeting variables does not significantly affect on managerial performance, job satisfaction variables significantly influence managerial performance and the organizational commitment variables have a significant effect on managerial performance.

Government Budget, and Health Insurance for Public Health in East Java Province

One of the conditions needed for development to be carried out properly is the condition of a healthy community. Without a healthy community, development in one area cannot be done well. Health itself is more a public good than a private good, so in this case government intervention is absolutely necessary. This research tries to look at several factors which are predicted to be able to influence the condition of public health. Some of these factors are the availability of infrastructure in the health sector, the government budget and public participation in health insurance issued by the government. Using data between 2017 and 2019 in 38 districts in East Java Province, it was found that only the public participation variable in health insurance issued by the government had a positive and significant impact, while the other variables did not affect the health condition of the community. The behavior of people in Indonesia who tend to register for health insurance if they have experienced health problems is one indication of a positive relationship between public health conditions and the number of participants in government health insurance .

Engagement or Sustainability: Managerial Performance

This study is motivated by the importance of enhancing management performance by using budget participation and total quality management as influencing factors. This research was conducted by three building companies in the city of Makassar. 68 respondents understand quite broadly the use of primary and perceptual data. The findings showed that, when the dominant variable was budgetary participation, the two independent variables had a positive relationship and a significant impact on management performance. Although several earlier studies have supported the results of the study, one of the next questions to be answered is the principle of significance of each element in the company, as management performance does not mean that firm value is directly responded to in a positive way.

Budget Participation and Managerial Performance with Organizational Commitment and Leadership Style as A Moderation

The purpose of this research to know the effect of budgetary participation on managerial performance, whether organizational commitment moderates the effect of budgetary participation on managerial performance and leadership style moderates the effect of budgetary participation on managerial performance. This research uses primary data. The population in this study are managers who work in manufacturing companies in the city of Cilegon, Banten Province. Samples were taken using the purposive sampling method. Data analysis uses linear regression and moderated regression analysis. The result of this study stated that budgetary participation had a positive effect on managerial performance, organizational commitment, and leadership style moderating with the effect of strengthening the effect of budgetary participation on managerial performance.

Total Quality Management, Partisipasi Anggaran, Sistem Penghargaan, Budaya Organisasi dan Kinerja Manajerial

The purpose of this study is to analyze the research of Total Quality Management (TQM), Budget Participation, Reward System and Organizational Culture of Managerial Performance. The population in this study is the General Manager and Department Managers in 5 hotels sheltered by Grandmas Hotels Group, with a sample of 60 people. Data collection method used is a survey method with a questionnaire technique. The regression model in this study uses multiple linear regression analysis. The results in this study indicate that TQM has a positive effect on managerial performance at Grandmas Hotels Group. Budget participation is positive for managerial performance at the Grandmas Hotels Group. The Rewards System has a positive effect on managerial performance at Grandmas Hotels Group. Grandmas Hotels Group provides positive support for managerial performance towards managerial performance.
 Keywords: Total Quality Management; Budget Participation; Reward System; Organizational Culture; Managerial Performance.

Partisipasi Penyusunan Anggaran, Kompetensi, Self-Efficacy Sistem Pengukuran Kinerja dan Kinerja Manajerial

The purpose of this study was to examine the effect of budgeting participation, competence, self-efficacy and performance measurement systems on managerial performance. This research was conducted at the Regional Apparatus Organization (OPD) of Tabanan Regency. This research was conducted at the Regional Apparatus Organization (OPD) of Tabanan Regency. A total of 102 people were selected as respondents. The sampling method used in this study was purposive sampling and the data analysis technique used in this study was multiple linear regression analysis. The results of this study indicate that budgetary participation, competence, self-efficacy and performance measurement systems have a positive effect on managerial performance.
 Keywords: Participation in Budget Formulation; Competence, Self-Efficacy; Performance Measurement System; Managerial Performance.

Pengaruh Partisipasi Anggaran, Sistem Keuangan Desa, Prinsip-Prinsip Good Governance dan Pemberdayaan masyarakat Terhadap Kualitas Anggaran Pendapatan dan Belanja Desa Kotawaringin Timur

This study aims to determine the effect of the variable Budget Participation, Village Financial System, Good Governance Principles, and Community Empowerment on the Quality of Village Income and Expenditure Budget (Empirical Study of Village Apparatus, Kotabesi Subdistrict, Kotawaringin Timur Regency). This type of research used in this research is quantitative research. This study used a survey method with a questionnaire as the instrument. The population in this study were village officials in Kotabesi Subdistrict, Kotawaringin Timur Regency. The sample in this study as many as 75 respondents obtained by proportional sampling technique. The analysis technique used is multiple regression analysis. The results of this study conclude that in the partial test (t) the independent variable (1) Budget participation affects the quality of the Village Income and Expenditure Budget (2) The Village Financial System has no effect on the Quality of the Village Budget (3) The Principles of Good Governance have an effect the Quality of the Village Revenue and Expenditure Budget (4) Community Empowerment has no influence on the Quality of the Village Revenue and Expenditure Budget. The simultaneous test results show that Budget Participation, Village Financial Systems, Good Governance Principles, and Community Empowerment have a simultaneous effect on the quality of the Village Income and Expenditure Budget

Policy on the move: the enabling settings of participation in participatory budgeting

ABSTRACT This article explores how participatory budgeting (PB), which is described as a travelling policy innovation, has been interpreted in different urban governance contexts, particularly how local settings that are created by contexts and practices enable participation in PB. Travelling policy innovations are sets of ideas or experiments that aim at renewing governance practices and are adopted globally. PB engages citizens to discuss, prioritize and decide about the use of public funds. With empirical data from the cities of Tampere, Łódź, and the Greater Manchester area the article demonstrates that settings of participation in PB are conditioned by (1) socio-political context, (2) objectives setting, (3) resourcing, (4) decision-making and (5) relationship-building. Based on an interpretive view on policy studies, it is argued that these settings enable participation in PB in three ways. Firstly, they influence the continuity of PB; secondly, they suggest particular roles for participants; and thirdly, they formulate the level of interaction. This is demonstrated with three operationalisations of PB, such as pop-up PB, traditional PB and do-it-yourself PB.

PENGARUH PARTISIPASI PENYUSUNAN ANGGARAN DAN JOB RELEVANT INFORMATION TERHADAP KINERJA MANAJERIAL

The purpose of this study was to determine and analyze the effect of budgetary participation and job relevant information on managerial performance at PT. Taspen (Persero) Medan City. In this study, using a saturated sample of 31 people. The approach used is quantitative by processing the data obtained from the questionnaire after first being transformed into numeric data using a Likert scale. The data were processed using SPSS 23.0 software. The analysis used is multiple linear analysis. The research instrument test consisted of validity and reliability tests. The classical assumption test consists of normality test, heteroscedasticity test, multicollinearity test, and autocorrelation test. Hypothesis testing consists of f test (simultaneous test), t test (partial test) and determinant coefficient test (R2). The results showed that there was no partially significant influence of the budgetary participation variable on managerial performance. There is no partially significant influence of the job relevant information variable on managerial performance.
 
 Keywords: Budgetary Participation, Job Relevant Information and Managerial Performance

PENGARUH KEJELASAN SASARAN ANGGARAN DAN PARTISIPASI ANGGARAN TEHADAP KINERJA ORGANISASI DENGAN GAYA KEPEMIMPINAN SEBAGAI VARIABEL PEMODERASI (STUDI PADA KELEMBAGAAN DAN UKM DI UST)

This study aims to test whether the clarity of budget targets and budget participation in institutions and Student Activity Units of the Sarjanawiyata Tamansiswa University Yogyakarta have an effect on organizational performance with leadership style as a moderating variable. The study took a sample of students who were active in the Student Activity Unit at the Sarjanawiyata Tamansiswa University, Yogyakarta. The technique used in sampling is carried out with a non-probability or non-random approach using convenience sampling. Data collection was carried out by spreading the google form link through the Instagram and Whatsapp applications to institutional members and the Student Activity Unit (UKM). The number of questionnaires processed is 100 questionnaires. Data were analyzed using path analysis. The results showed that the clarity of budget targets had no effect on organizational performance. Budget participation has an effect on organizational performance. Leadership style cannot strengthen the influence of clarity of budget objectives on organizational performance. Leadership style cannot strengthen the influence of budget participation on organizational performance.
 
 Keywords: Clarity of budget targets; Budget Participation; Organizational Performance; Leadership Style