Pluriform Motivation as Antecedent and its Relationships to Budgeting Participation and Managerial Performance (Empirical Study on Manufacturing Companies Listed on Indonesian Stock Exchange)

The effect of organizational commitment and Cost management knowledge on the relationship between budget participation and managerial performance

“…Therefore, it can be concluded that the variable budget participation has a positive effect on managerial performance. The results of this study are in line with the results of research conducted by Murwaningsari (2008), Noor and Othman (2012), Saraswati and Aisyah (2015), Savitri et al (2015), Gunawan and Santioso, (2015), Hariyanti et al (2015), and Ernis et al (2017) which show the positive influence of budget participation on managerial performance directly. Budget participation can increase understanding, effort, and motivation of managers in achieving budget targets and can improve the quality of the budget which will lead to enhance managerial performance of managers.…”

“…The relationship between the success of the budget compiled in a participative way with the achievement of budgetary goals and managerial performance has been found in many previous studies. Murwaningsari (2008), Noor and Othman (2012), Saraswati and Aisyah (2015), Gunawan and Santioso (2015), Hariyanti et al (2015), Boujelbene and Affes (2015), Ernis et al (2017), and Oyewo and Adyeye (2018) have proved that budget participation can enhance managerial performance. Further studies by Lameira Silva et al (2020) show budgetary participation directly and positively influences managerial attitudes toward budgeting, job satisfaction, and controllers' performance in budget activities.…”

“…The budget is arranged as a management tool to perform management functions, that is planning, coordinating, and controlling (Chong & Strauss, 2017). Involving the participation from various level of managers in budgeting will increase the quality of budget influence the psychological effect of individuals such as increase morale and self-efficacy (Brink et al, 2018;Derfuss, 2016;Yuliansyah & Khan, 2017) and create motivation in achieving budget targets (Hariyanti et al, 2015;Wong-On-Wing et al, 2010;Zainuddin & Zainal, 2012).…”

“…On the other hand, managerial performance is a measure of the level of achievement that obtains by managers in perform management functions (Derfuss, 2016;Hariyanti et al, 2015;Mahoney et al, 1965). In the implementation of management functions, information is needed in making decisions, therefore management's ability in obtaining the accurate information is important to support decision-making that can enhance managerial performance (Rokhman, 2017).…”

“…Based on these statements, it can be said that the budget participation process that improves budget quality can affect managerial performance as measured by its achievement of management functions were the key factors of management functions implemented and its success is through the budget. In addition, with budget participation, individual motivation in work will also increase which then will increase the achievement of budget targets and lead to increased performance (Ernis et al, 2017;Hariyanti et al, 2015;Wong-On-Wing et al, 2010;Zainuddin & Zainal, 2012).…”