The Effect of Organizational Politics on Budgetary Participation with Procedural Fairness as a Mediation

Abstract

Organizational politics and budgeting are the phenomena that exist in every organization. This study aims to examine the effect of organizational politics on budgetary participation through procedural fairness. Organizational politics refers to three dimensions, namely general political behavior, politics of going along to get ahead, and politics of pay and promotion policies. Data were collected through a questionnaire survey to 128 managers in the retail sector of the modern supermarket in Bandung, West Java, Indonesia. The data was processed using the structural equation model and Sobel test. This study shows that, firstly, general political behavior, politics of going along to get ahead, pay and promotion policies have a negative effect on procedural fairness. Second, procedural fairness has a positive effect on budgetary participation. Third, procedural fairness mediates the relationship between each organizational political dimension and budgetary participation. This study supports the theory of organizational politics and procedural fairness and has the implications for budgeting practices, namely that it is important to consider employee's perceptions of organizational politics because it has an impact on reducing the sense of fairness and eventually on budgetary participation.

Mapping Research Trends With Factorial Analysis in Organizational Politics

“…However, organizations cannot exist without politics, and it has both positive and negative impacts. Uncontrolled organizational politics can decrease performance and create negative perceptions of politics as a source of conflict (Agung & SeTin, 2021; Cheong & Kim, 2018; Kumari & Saradadevi, 2016). Conversely, when properly and objectively controlled, it can increase work effectiveness within an organization (Akuffo & Kivipõld, 2021).…”

“…Organizational politics has been extensively researched and has significant implications for the study of management and organizational behavior. Researchers have examined the concept from various perspectives, including the political behavior of individuals and groups within organizations, sources of power (Patel et al, 2019), and influence (Akuffo & Kivipo˜ld, 2021;Kapur, 2018), and the consequences of political behavior (Agung & SeTin, 2021;Cheong & Kim, 2018;Kumari & Saradadevi, 2016). Despite the extensive research conducted on this topic, there are still gaps in our understanding of the key themes, trends, and knowledge gaps in this area.…”

Analisis perilaku individu dalam meningkatkan kinerja pegawai pada Bagian Umum Sekretariat Daerah Kabupaten Nias

“…Ketidaksesuaian anggaran menjadi salah satu tantangan utama dalam pelaksanaan tugas. Temuan ini sejalan dengan penelitian Shields & Shields (dalam Agung & SeTin, 2021) yang menunjukkan bahwa anggaran yang realistis dan pencapaian target yang sebanding dengan reward menjadi salah satu kunci kesuksesan pelaksanaan tugas. Dari sisi positif, terdapat kualitas komunikasi dan kerjasama yang baik di antara pegawai.…”

Perceptions of politics and organizational justice on bank employees

“…For employees, organizational politics is behavior that manipulates someone, commits embezzlement, bribes transactions and of course individuals who carry out these activities are contrary to the organization (Harris et al, 2005;Valle & Perrewe, 2000). Organizational politics is considered a source of conflict by discomfort of employees in the workplace (Cheong & Kim, 2018;Kormych & Zavalniuk, 2020) and creating a sense of injustice for those who are excluded (Agung & SeTin, 2021). However, this is inversely proportional to the work results which of course have a positive side for those who can control the political situation of a high organization.…”