The relationship between budget participation and job performance: The roles of budget adequacy and organizational commitment

Nouri, Hossein; Parker, Robert J.

doi:10.1016/s0361-3682(97)00036-6

Cited by 236 publications

(283 citation statements)

References 37 publications

Supporting

Mentioning

226

Contrasting

Unclassified

Order By: Relevance

“…The need for participative budgeting has been clarified in the literature. Great attention in the management accounting literature focuses on the impact of the participative budgetary process on outcome variables such as job performance (Stedry, 1960;Milani, 1975;Kren, 1992;Nouri & Parker, 1998; Fisher et al, 2006;and Parker & Kyj 2006), job satisfaction (Brownell & McInnes, 1986), motivation (Mia, 1989 and employee effort (Fisher et al, 2006). Others consider participation in the budget very important that it encourages managers to be motivated and involved with their department activities (See Hofstede, 1967;Kenis, 1979;Merchant, 1981;Brownell & Hirst, 1986;and Dunk, 1993).…”

Section: Abstract: Budget Characteristics Manager Related Factors Dmentioning

confidence: 99%

“…Shield & Shield (1998) and Parker & Kyj (2006) support Shields and Young's (1993) argument that budget participation is used to facilitate the communication of private information from subordinates to superiors. A common assumption in the accounting literature (especially agency theory) is that subordinate managers hold private information regarding their task and know about their operational areas more than do their superiors (Merchant, 1981;Nouri & Parker, 1998;Shields & Shields, 1998;and Covaleski et al, 2003). The flow of information up-down has also been addressed in the literature (Kren, 1992;Parker & Kyj, 2006) that superiors generally have private information regarding to achieve strategic budget goals which may facilitate the subordinates achievement of those goals (Gladney et al, 2009).…”

Section: Information Sharingmentioning

confidence: 99%

“…The flow of information up-down has also been addressed in the literature (Kren, 1992;Parker & Kyj, 2006) that superiors generally have private information regarding to achieve strategic budget goals which may facilitate the subordinates achievement of those goals (Gladney et al, 2009). Budget participation may enable subordinates and superiors to communicate their private information leading to better decision-making and budget (Nouri & Parker, 1998;Shields & Shields, 1998;Covaleski et al, 2003;and Parker & Kyj, 2006).…”

Section: Information Sharingmentioning

confidence: 99%

“…Previous research suggest association between role ambiguity, budget participation and job performance (Chenhall & Brownell, 1988;Kren, 1992;and Parker & Kyj, 2006). Parker and Nouri (1998) define budget adequacy as the degree to which manager perceives enough and adequate budgeted resources to fulfil their job requirements. Several accounting studies research the impact of budget participation on budget adequacy (see Merchant, 1981;Parker & Nouri, 1998), as they assume that managers will attempt to participate in the budget process to have adequate resources for their departments.…”

Section: Goal Claritymentioning

confidence: 99%

“…Parker and Nouri (1998) define budget adequacy as the degree to which manager perceives enough and adequate budgeted resources to fulfil their job requirements. Several accounting studies research the impact of budget participation on budget adequacy (see Merchant, 1981;Parker & Nouri, 1998), as they assume that managers will attempt to participate in the budget process to have adequate resources for their departments. This study proposes that manager related factors such as position, qualification or may be the experience may enable managers to get adequate budgeted resources to their department.…”

Section: Goal Claritymentioning

confidence: 99%

See 4 more Smart Citations

The Impact of Managers’ Related Variables and Department Features on Budget Characteristics: The Case of Private Jordanian Universities

Nasser¹,

Mah'd²,

Nimer³

et al. 2011

IBR

View full text Add to dashboard Cite

This study investigates the influence of manager and department variables on budget characteristics in private Jordanian universities. This paper aims to study the relationship between the departments' heads characteristics and department features with the budget participation, information sharing, budget adequacy, goal clarity, and budget feedback in private universities in Jordan. It draws on relevant prior studies in the management accounting particularly budget issues to formulate the research questions and implementing survey method with seventy seven functional managers in five private Jordanian universities to shed light upon the perceptions of proposed budget participants. The results indicate that there is no such a relation between the department type and size with the budget characteristics, and no significant association between most of the manager related variables and budget characteristics. In contrast, the results indicate that the experience earned in the university has a significant strong relation with budget characteristics and weak relation has been found between manager budget experience and budget characteristics. The data suggest that the department factors and the manager factors except the experience earned in the university and the budget experience have no impact on budget characteristics. Hence, the budget characteristics may influence other factors such as the management style, departmental autonomy. Keywords: Budget characteristics, Manager related factors, Department features, Private Jordanian universities 1. IntroductionPrior studies demonstrate that the budget is an important tool of management accounting in terms of control, coordination, and decision-making (Drury, 2008;Covaleski et al., 2003;and Mah'd, 2010). Furthermore, great attention has been given to the influence of budgetary systems in the control of organisations in terms of the size, structure, managerial autonomy, and external environment (Merchant, 1981;Ezzamel, 1990;and Bruns & Waterhouse, 1975). By contrast, little attention appears to be directed to the question of how the budgetary process in university departments varies regarding to manager characteristics and department characteristics. Furthermore, few studies have researched budget participation, information sharing, goal clarity, budget adequacy and budget feedback in private universities in developing countries. This study tends to shed light on the relationship between the demographic variables and the budget characteristics in private Jordanian universities. Budget characteristics in the current research are identified as budget participation, information sharing, goal clarity, budget adequacy and budget feedback. The need for participative budgeting has been clarified in the literature. Great attention in the management accounting literature focuses on the impact of the participative budgetary process on outcome variables such as job performance (Stedry, 1960;Milani, 1975;Kren, 1992;Nouri & Parker, 1998; Fisher et al., 2006;and Parker & Kyj ...

show abstract

Section: Abstract: Budget Characteristics Manager Related Factors Dmentioning

confidence: 99%