Effects of Budgetary Participation on Managerial Attitudes, Satisfaction, and Managerial Performance

Abstract

Objective: the purpose of this paper is to investigate the effects of budget participation on management attitudes, job satisfaction, and managerial performance of controllers of Brazilian companies. Methodology: a descriptive, survey, and quantitative research was conducted from a sample of 316 individuals with budgetary responsibility. Results: the results indicated that budgetary participation directly and positively influences managerial attitudes toward budgeting, job satisfaction, and controllers’ performance in budget activities. Indirect relationships revealed that managerial attitudes toward budget and job satisfaction mediate the relationship between budgetary participation and managerial performance. It was found that budgetary participation positively influences the level of use of the budget for the purposes of performance evaluation and contributes to the development of budgetary knowledge of managers. Conclusion: the budgetary participation is responsible for important consequences on the attitudes and performance of these professionals. From a managerial point of view, it is essential to understand how the budgeting process can influence the attitudes, satisfaction, and performance of controllers in the budgeting context, since after this understanding, the managerial functions can be improved.

Agency Relationship in Budgeting at Inclusion Schools in Gunungkidul District

“…This variable was measured using 6 question items adopted from the study (Dunk, 1993); 2) Budget participation is a concept used to describe the extent to which subordinates are allowed to choose their programs in action (Milani, 1975). Indicators regarding budget participation are participation in budget preparation, the influence of budget targeting, and the influence of opinions given (Kenis, 1979). This variable was measured using five questions, which were adopted from Kenis's (1979) study; 3) Organizational culture is a culture formed as a result of a collective agreement that will make members of the organization have a sense of responsibility in implementing essential aspects of the organizational culture (Agusti, 2012).…”

“…Indicators regarding budget participation are participation in budget preparation, the influence of budget targeting, and the influence of opinions given (Kenis, 1979). This variable was measured using five questions, which were adopted from Kenis's (1979) study; 3) Organizational culture is a culture formed as a result of a collective agreement that will make members of the organization have a sense of responsibility in implementing essential aspects of the organizational culture (Agusti, 2012). Indicators regarding this corporate culture are involvement, adaptation, consistency, and mission (Robbins, 1996).…”

Antecedents of Commitment to Budgetary Goals

“…A budget system that allows managers to participate and be responsible for the process of preparing the budget and setting goals can be positive for the organization. The literature highlights among the positive effects: increase in positive attitudes and increased performance at work (Argyris, 1952;Jacomossi et al, 2018;Lunardi et al, 2020;Mia, 1988;Nouri & Parker, 1998), information sharing (Kyj & Parker, 2008;Lunardi et al, 2020;Shields & Shields, 1998), employee satisfaction (Chong et al, 2005;Kyj & Parker, 2008;Zonatto, Nascimento, Lunardi, & Degenhart, 2020), perception of organizational justice (Derfuss, 2009;Kyj & Parker, 2008;Sholihin, Pike, Mangena, & Li, 2011;Wentzel, 2002), open communication and interaction with the employee (Lavarda & Almeida, 2013), motivation (Kyj & Parker, 2008), and definition of budget goals (Hassel & Cunningham, 1996;Maiga, 2005;Milani, 1975).…”

Examining the mediating effect of job satisfaction on the relationship between budgetary participation and organizational citizenship behavior in Indonesian higher education institutions

“…The latest studies on the relationship between budget and job satisfaction, among others, were conducted by Farahmita (2016), Sim and Utami (2018), Zonatto et al (2020), andFarahmita (2016) revealed that budgetary participation and job satisfaction have an interaction effect on performance. Sim and Utami (2018) found evidence that budgetary participation affects job satisfaction with job relevant information as the mediating variable.…”

“…Sim and Utami (2018) found evidence that budgetary participation affects job satisfaction with job relevant information as the mediating variable. Meanwhile, Zonatto et al (2020) found that budgetary participation affects the job satisfaction.…”