The Influence of Budget Preparation Participation Toward Managerial Performance

Abstract

This study aimed to analyse the effect of budget participation to managerial performance with an intervening variable of organisational commitment, motivation, and job relevant information. The influence of budget participation on managerial performance has attracted the attention of researchers in recent years. The samples in this study used purposive sampling method sampling techniques with special consideration. The sample used in this study was a structural official who served as head of department / level of head of department, secretary / level secretary, the head of the field / level of the head of the field, or head section / level section chief in the regional work units (SKPD) Bondowoso, structural officials who work more than one year in the regional work units Bondowoso and ranking officials involved in the preparation of the budget in the regional work units Bondowoso. The sample in this study were 132 respondents. The collected data were then analysed using the Structural Equation Modelling (SEM). The results showed the positive and significant effect of participation budgeting on managerial performance. Budgeting participation is also positive and has a significant effect on organisational commitment, motivation and job relevant information. The results also demonstrate that organisational commitment, motivation, and job relevant information have a significant positive effect on managerial performance. The study also proved that the budgetary participation influences managerial performance through organisational commitment, motivation, and job relevant information.