Effect of consideration leadership style on budget participation relationship and managerial performance

Abstract

The research aims to empirically prove the influence of consideration leadership style on the relationship of budgeting participation to managerial performance. Contingency Theory is used as a theoretical foundation in this study. The study population was the middle-level manager (section head) at the Rural Credit Bank (BPR) in Badung Regency. The method of determining the sample is based on the slovin formula, the sample selection technique uses a probability sampling technique that is taken proportionally using simple random sampling so that 135 respondents are obtained. Data were analyzed with Moderated Regression Analysis (MRA). The results of the analysis show that budgetary participation has a positive effect on managerial performance and leadership style consideration reinforces the relationship between budgeting participation and managerial performance.

Analysis of Organizational Commitment and Leadership Style as Moderation Variables in Achieving Managerial Performance

“…The findings of this study corroborate those of Klaorina & Suprasto (2019), who discovered that leadership style influences the relationship between budgetary involvement and managerial performance. It means the presence of high budgetary participation accompanied by a leadership style that cares about employees will affect the company's managerial performance.…”

“…Leadership style is also said to be a way for the leader to influence other people or his subordinates so that the person wants to do the leader's will to achieve organizational goals even though personally it may not be liked. Sumarno (2005); Triseptya (2017) and Klaorina & Suprasto (2019) researched leadership style variables, finding that leadership style moderates the connection between budgetary involvement and management success. However, this research does not support research conducted by Andika (2019) which shows that leadership style does not moderate the relationship between budgetary participation and managerial performance.…”

The Influence of Budget Participation and Organizational Commitment to the Performance of Regional Government Apparatus

“…The manager does not hesitate to provide all the information he has that can be taken into consideration in budgeting. Budgeting participation has an impact on improving the performance of managers and indirectly will lead the company in a better direction [29]. Bruns and Waterhouse (1975) discovered in their studies that managers in highly structured organizations tend to perceive themselves as having more influence and therefore participate more in budget planning and appear more satisfied with budget-related activities (in [1]).…”