The Effect of Budgetary Participation, Organizational Commitment, and Leadership Styles on the Employees’ Performance
Article Sidebar
Main Article Content
Abstract
Aim -This study aimed at gaining the empirical evidence vis-a-vis the effect of budgetary participation, organizational commitment, and leadership styles on the employees’ performance.
Design -This study made use of the primary data garnered from questionnaires distributed to the employees who were directly engaged in the preparation of budget within the work units in working area of the state treasury service office (in Indonesian language known by Kantor Pelayanan Perbendaharaan Negara and abbreviated as KPPN) of Surakarta. The work units covered several regions such as Surakarta, Sukoharjo, and Wonogiri. This study incorporated 80 work units under both ministry and institution. Of 165 questionnaires which were distributed, 116 pieces were returned and could further be analyzed. The independent variables in this study fell into budgetary participation, organizational commitment, and leadership styles, whereas the dependent variable was the employees’ performance.
Findings -The results indicated the following details: 1) budgetary participation had a positive effect on the employees ‘performance; 2) organizational commitment had a positive effect on the employees’ performance; 3a) the authoritarian leadership style had no effect on the employees’ performance; 3b) the democratic leadership style had a positive effect on the employees’ performance; and 3c) the laissez-faire leadership style had no effect on the employees’ performance.
Downloads
Article Details
Copyright (c) 2019 Mila Purani Sistiyan, Palikhatun Palikhatun, Payamta Payamta
This work is licensed under a Creative Commons Attribution 4.0 International License.
Adeyemi, TO. (2010). Principals’ Leadership Styles and Teachers’ Job Performance in Senior Secondary Schools in Ondo State, Nigeria. Journal of Education Administration and Policy Studies, 2(6), 83-91.
Belonio, Rochelle. (2012). The Effect of Leadership Style on Employee Satisfaction and Performance of Bank Employee on Bangkok. Assumption University Graduate School of Business Journal, 5(2), 111-116.
Brownell & McInnes. (1986). Budgetary Participation, Motivation, and Managerial Performance. The Accounting Review, 587-600.
Brownell P & Hirst M. (1986). Reliance on Accounting Information, Budgetary Participation, and Task Uncertainty. Journal of Accounting Research, 24, 241-249. DOI: https://doi.org/10.2307/2491132
Brownell, P. (1981). Participation in Budgeting, Locus of Control, and Organization Effectiveness. The Accounting Review, 844-860.
Brownell, P. (1982). Participation in Budgeting Process: When it Works and When it doesn’t. Journal of Accounting Literatur) 124-153.
Bruns W, Bruns Jr. & Waterhouse JH. (1975). Budgetary Control and Organization Structure. Journal of Accounting Research, vol. 13(2), 177-203. DOI: https://doi.org/10.2307/2490360
Bryan JF & Locke EA. (1967). Goal setting as a means of increasing motivation. Journal of Applied Psychology, June, 274-277. DOI: https://doi.org/10.1037/h0024566
Chen ZX & Francesco AM. (2003). The Relationship between the Three Components of Commitment and Employee Performance in China. Journal of Vocational Behavior, 62, 490-510. DOI: https://doi.org/10.1016/S0001-8791(02)00064-7
Chenhall, R.H. dan Brownell, P. (1988). The Effect of Participative Budgeting on Job Satisfaction and Performance: Role Ambiguity as an Intervening Variable. Accounting, Organization, and Society, 225-233. DOI: https://doi.org/10.1016/0361-3682(88)90001-3
Cherrington DJ dan Cherrington JO. (1973). Appropriate Reinforcement Contingencies in the Budgeting Process. Journal of Accounting Research, 225-253. DOI: https://doi.org/10.2307/2490043
Chong, VK & Wing SLT. (2003). Testing a model of the motivational role of budgetary participation on job performance: a goal setting theory analysis, Asia Review of Accounting, 11(1), 1-17. DOI: https://doi.org/10.1108/eb060760
Chong VK & Chong KM. (2002). Budget Goal commitment and Informational Effects of Budget Participation on Performance: A Structural Equation Modeling Approach. Behavioral Research in Accounting, 14, 67-68. DOI: https://doi.org/10.2308/bria.2002.14.1.65
Dolatabadi, HR & Safa, M. (2010). The Effect of Directive and Participatory Leadership Style on Employees’ Commitment to Service Quality. International Bulletin of Business Administration, Issue 9, 31-42.
Frucot, V & Shearon, WT. (1991). Budgetary Participation, Locus of Control, and Mexican Managerial Performance and Job Satisfaction. The Accounting Review, 66(1), 80-99.
Ghozali, Imam. (2006). Aplikasi Analisis Multivariate dengan Program SPSS. Semarang: Badan Penerbit Universitas Diponegoro.
Gul FA, Tsui JSL, Steve C, Fong C & Kwok HYL. (1995). Decentralization as a Moderating Factor in the Budgetary Participation Performance Relationship: Some Hongkong Evidence. Accounting and Business Research, 25(98), 107-113. DOI: https://doi.org/10.1080/00014788.1995.9729933
Hasibuan, Malayu S.P. (2010). Manajemen Sumber Daya Manusia. Jakarta: BumiAksara.
Kenis, I. (1979). Effects of Budgetary Goal Characteristics on Managerial Attitudes and Performance. The Accounting Review, 707-721.
Khan MR, Ziauddin, Jam FA & Ramay MI. (2010). The Impact of Organizational Commitment on Employee Job Performance. European Journal of Social Sciences, 15(3), 292-298.
Latham GP & Yuki GA. (1976). Effects of Assigned and Participative Goal Setting on Performance and Job Satisfaction. Journal of Applied Psychology, 61(2), 166-171. DOI: https://doi.org/10.1037/0021-9010.61.2.166
Lewin K, Lippit R & White RK. (1939). Patterns of Aggressive Behavior in Artificially Created Social Change. Journal of Social Psychology, 10, 271-299. DOI: https://doi.org/10.1080/00224545.1939.9713366
Lopez Maria A. Leach, William W. Stammerjohan, Frances M. McNair. (2007). Differences in the role of job-relevant information in the budget participation performance relationship among U.S. and Mexican Managers: A Question of culture or communication. Journal of Management accounting research, 19, 105-136 DOI: https://doi.org/10.2308/jmar.2007.19.1.105
Malcalm, E. & Tamatey, S. (2017). Examining Leadership Style on Employee Performance in The Public Sector Of Ghana: A Case of Ghana Atomic Energy Commission. International Journal of Scientific and Research Publications, 7(11), 343-361.
Managerial Performance and Job Satisfaction. The Accounting Review, 66(1), 80-99
Mathieu JE & Zajac DM. (1990). A Review and Meta-Analysis of the Antecedents, Correlates, and Consequences of Organizational Commitment. Psychology Bulletin, 108, 171-194. DOI: https://doi.org/10.1037/0033-2909.108.2.171
Mawoli, Mohammed Abubakar & Mohammed, Tanimu Haruna. (2013). Effect of Leadership Styles on Employees’ Job Performance: Evidence from Federal Medical Centre in Niger State. Journal of Management Science, 4(1), 28-38.
Memari N, Mahdieh O & Marnani AB. (2013). The Impact of Organizational Commitment on Employees’ Job Performance A Study of Meli Bank. Interdisciplinary Journal of Contemporary Research in Business, 5(5), 164-171.
Memon, Khalid Rasheed. (2014). Effects of Leadership Styles on Employee Performance: Integrating the Mediating Role of Culture, Gender, and Moderating Role of Communication. International Journal of Management Sciences and Business Research, 3(7), 63-80.
Milani, Ken. (1975). The Relationship of Participation in Budget Setting to Industrial Supervisor Performance and Attitudes: A Field Study. The Accounting Review, 50(2), 274-284.
Miller KI & Monge PR. (1986). Participation, Satisfaction and Productivity: A Meta-Analytical Review. Academy of Management Journal, 29(4), 727-753.
Mohammed, UD, Yusuf, MO, Sanni IM, Ifeyinwa TN, Bature NU, dan Kazeem, AO. (2014). The Relationship between Leadership Styles and Employees’ Performance in Organizations (A Study of Selected Business Organizations in Federal Capital Territory, Abuja Nigeria. European Journal of Business and Management, 6(22), 1-11.
Mondy, W., Noe, M. and Premeaux, R. (1999). Human Resource Management. 7th Edition, London: Prentice-Hall International.
Mowday, RT, Steers RM, & Porter LW. (1979). The Measurement of Organizational Commitment. Journal of Vocational Behavior, 14, 224-247. DOI: https://doi.org/10.1016/0001-8791(79)90072-1
Nor, W. (2007). Desentralisasi dan Gaya Kepemimpinan sebagai Variabel Moderating dalam Hubungan Antara Partisipasi Penyusunan Anggaran dan Kinerja Manajerial. Simposium Nasional Akuntansi X, 1-27.
Nouri H & Parker RJ. (1998). The Relationship between Budget Participation and Job Performance: The Roles of Budget Adequacy and Organizational Commitment. Accounting, Organizations and Society, 23(5-6), 467-483. DOI: https://doi.org/10.1016/S0361-3682(97)00036-6
Obiwuru, TC, Okwu AT, Akpa VO & Nwankwere IO. (2011). Effects of Leadership on Organizational Performance: A Survey of Selected Small Scale Enterprises in Ikosi-Ketu Council Area of Lagos State, Nigeria. Australian Journal of Business and Management Research, 1(7), 100-111.
Putti, JM, Aryee, S, & Phua, J. (1990). Communication relationship satisfaction and organizational commitment. Group & Organization Studies, 15(1), 44-52. DOI: https://doi.org/10.1177/105960119001500104
Sedarmayanti, (2009). Sumber Daya Manusia dan Produktivitas Kerja. Bandung: Mandar Maju
Sekaran, Uma. (2006). Research Methods for Business. New York: John Wiley & Sons Inc.
Somers MJ & Birnbaum D. (1998). Work-Related Commitment and Job Performance: It's also the Nature of the Performance That Counts. Journal of Organizational Behavior, 19(6), 621-634. DOI: https://doi.org/10.1002/(SICI)1099-1379(1998110)19:6<621::AID-JOB853>3.0.CO;2-B
Stedry, A.C. (1960). Budget Control and Cost Behavior. Englewood Cliffs, Nj: Prentice Hall.
Sulistyowati & Kiryanto. (2006). Pengaruh Motivasi dan Pelimpahan Wewenang Serta Sistem Penghargaan Terhadap Hubungan Antara Partisipasi Penyusunan Anggaran Dengan Kinerja Manajerial. Jurnal Akuntansi Indonesia, 2(3).
Triatna, Cepi. (2015). Perilaku Organisasi. Bandung: PT.Remaja Rosdakarya.
Tsui, AS, Pearce J., Porter LW & Tripoli AM. (1997). Alternative Approaches to the Employee-Organization Relationship: Does Investment in Employees Pay Off? The Academy of Management Journal, 40(5), 1089-1121 DOI: https://doi.org/10.5465/256928
Umer, P, Adnan Q, Anam M & Inam-ul-Hassan W. (2012). Impact of Leadership Styles (Transformational & Transactional Leadership) on Employee Performance and Mediating Role of Job Satisfaction: Study of Private School (Educator) In Pakistan, Global Journal of Management and Business Research, 12(4), version 1.0
Wagner III. John A. (1994), Participation’s Effects on Performance and Satisfaction a Reconsideration of Research Evidence, Academy of Management Review, 19(2), 312-330. DOI: https://doi.org/10.5465/amr.1994.9410210753
Wright, TA. (1997). Job performance and organizational commitment. Perceptual and Motor Skills, vol. 85(2), 447-450. DOI: https://doi.org/10.2466/pms.1997.85.2.447
Yanida M, Sudarma M, & Rahman AF. (2013). Pengaruh Partisipasi Anggaran terhadap Kinerja Aparatur Pemerintah. Jurnal Akuntansi Multiparadigma, 4(3), 330-357. DOI: https://doi.org/10.18202/jamal.2013.12.7205