The Effect of Abusive Supervision on Budget Slack: The Mediating Role of Emotional Exhaustion

Abstract

Past research demonstrates that abuse supervision significantly impacts subordinates' psychological distress, attitudes, workplace deviant behaviors and performance and thus has strong implications for organization. Most scholars believe that budget slack will lead to waste of resources and inefficient enterprises. How to restrain budget slack has always been one of the focus problems in budget practice and research. However, abuse supervision has not been explored in a budgeting context. Accordingly, we introduce the abusive supervision into the budget context and complement other negative behavior induced by abusive supervision to explore the influence path of abusive supervision on budget slack. Our results imply that the abusive supervision has a positive impact on budget slack of subordinate. In addition, emotional exhaustion played a fully mediating effect between abusive supervision and budget slack.

Does Religiosity Matter? Experimental Research on Abusive Supervision in Budgetary Slack Creation

“…Negative leadership traits, such as abusive supervision, are widely recognized (Tong & Prompanyo, 2021). One of the most significant causes of poor performance from subordinates is the stress they experience from being under pressure at work (Mitchell et al, 2018).…”

“…As a result, the budget can be adjusted to meet changing circumstances more easily. There is a slack budgetary issue because of agency issues, deviant behavior, and breaking social norms (Tong & Prompanyo, 2021). That's why one of the central questions in budget studies has always been how to forestall the emergence of budgetary slack in the first place.…”

The Impact of Abusive Supervision and Locus of Control on Budgetary Slack

“…Abusive supervision is a subordinate's perception of the extent to which superiors engage in ongoing threatening verbal and nonverbal displays (Tepper, 2000). Rude supervision is considered a detrimental leadership style (Tong & Prompanyo, 2021).…”

“…Thus, the budget will be more flexible, making the budget easier to achieve. The problem of budgetary slack is an agency problem and a violation of social norms and deviant behavior (Tong & Prompanyo, 2021). Therefore, how to prevent budgetary slack has always been one of the focus problems in budget research.…”