Managerial Performance Improvement Through Budget Participation With Moderation Variables In Public Companies

Abstract

Budget participation is one form of involvement of managers, both top-level managers, and lower-level managers in order to realize the objectives of business entities. This study aims to examine the effect of budgeting participation on managerial performance, both directly and indirectly through a culture of organizational achievement, leadership style, environmental uncertainty, and organizational commitment as a mediating variable. The object of this research is the managers of Regional Owned Enterprises (BUMD) in Central Java & DIY, Collecting data using questionnaires with 107 respondents. Data analysis techniques use path analysis. The results showed that there were 12 analyzes of direct, indirect or total influence. In the analysis the highest total coefficient of influence is on the direction of the leadership style causality path, on budget participation, and organizational culture. Whereas the lowest total influence coefficient is in the direction of the causality path of environmental uncertainty towards budget participation, and organizational culture. Budget participation is an effort to build togetherness of all members (leaders and employees), foster organizational culture, and organizational commitment to improve managerial performance by paying attention to leadership style and environmental uncertainty. The study of budget participation and managerial performance in various entities is still relevant in the future, because related to human behavior which is always different according to the dimensions of space and time

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

“…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]). The budget is an accounting tool that is generally used by business entities to plan, control and supervise business activities in realizing the business entity's goals [30]. Participation is considered a means of actualizing the best for workers in order to remind themselves of their respective responsibilities for the tasks they get [15].…”