The Effect of Obedience Pressure and Perceived Responsibility on Management Accountants' Creation of Budgetary Slack

Abstract

This study evaluates management accountants' susceptibility to inappropriate obedience pressure to create budget slack in violation of corporate policy. We also evaluate links between pressure effects and perceived responsibility, decision justifications, and underlying ethical dimensions. The results of an experiment with 77 management accountants reveal that despite pervasive perceptions of ethical conflict, almost half of the participants violated explicit policy and created budgetary slack when faced with obedience pressure from an immediate superior. The results also indicate that participants who added slack to their initial budget recommendation found themselves less responsible for their budget decision than did participants who refused to add slack. In addition, a majority of the participants indicated that the creation of budgetary slack was unfair, unjust, and/or contrary to their duties.

An investigation of ethical position and budgeting systems: Egyptian managers in US and Egyptian firms

“…In general, budgeting systems that allow employees to participate in planning activities (i.e., self-imposed or participative budgeting) provide opportunities for slack-creation behavior, which is usually considered a problem for firms (e.g., Davis, DeZoort, & Kopp, 2006;Dunk, 1993;Dunk & Perera, 1997). However, slack-creation behavior can have positive consequences if managers focus on factors such as product quality or customer service, rather than strictly meeting budget targets (Davila & Wouters, 2005).…”

In Search of a Theory of Budgeting: A Literature Review

“…A total of 46 articles are identified as drawing upon psychology theory in budgeting research. Within this theoretical perspective, the major unit of analysis is the individual and the majority of papers are divided between experimental (39 percent) and survey Abul-Ezz and Dickhaut, 1993 Arnold, 2015Church et al, 2012Daroca, 1984Davis et al, 2006Guymon, Balakrishnan, and Tubbs, 2008Hirst and Yetton, 1999Kida, Moreno, and Smith, 2001Libby, 1999Libby, 2001Licata, Strawser, and Welker, 1986Lindquist, 1995Nouri and Kyj, 2008Sprinkle et al, 2008Stevens, D.E., 1983Tiller, 1983Upton, 2009 Survey (22 papers) Brownell, P., 1982aBrownell, P., 1983b (The (48 percent) methodologies. Relatively fewer psychology-based budgeting studies apply an alternative methodology (e.g., field/case, archival) or adopt a multi-method approach.…”

Whistleblowing dalam Tekanan Ketaatan dan Kepercayaan pada Pimpinan

“…3, Desember 2016 Jurnal Ekonomi dan Bisnis 1963). Selain itu adanya tekanan ketaatan membuat individu dapat membuang tanggung jawab atas penilaian dan keputusan mereka setelah mendapatkan otoritas yang mengarahkan individu tersebut untuk melakukan suatu tindakan (Davis, DeZoort & Kopp 2006). Pergeseran psikologis ini menyebabkan individu merasa tidak bertanggung jawab atas tindakan yang dilakukan, karena setiap konsekuensi yang tidak menguntungkan dapat ditransfer kembali ke superior yang memerintah individu tersebut untuk melakukan tindakan (Chong & Syarifuddin 2010).…”