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them with such control. The previous research result conducted by Yuen 2007 found that there is a significant positive relationship between budgetary
participation and job performance. So, H3 is therefore postulated as follows: H3
: There is a direct and positive association between an employee’s budgetary participation and employee’s job performance.
C. Conceptual Schema
Two variables were selected for examination in the present study as possible antecedent variables of participative budgeting:
1 managers’ need for achievement; and 2 manager’s work attitudes.
These variables were chosen for examination because employees who have a need for achievement and those who have a positive work attitude are likely to
demonstrate enhanced budgetary participation. Such employees are likely to develop greater identification with, and involvement in, the organization. In turn,
their job performance is likely to be enhanced. These propositions, as shown in Figure below:
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H2
H3
H1
Figure 2 Conceptual schema
This research consider only the indirect relationship between the two antecedent variables need for achievement and work attitude and the dependent
variable job performance, which budgetary participation is taken as the intervening variable in this indirect relationships. No hypothesis is developed for
the direct relationship between those two antecedent variables and job performance.
Budgetary Participation
Job Performance
Need for A achievement
Work attitude
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CHAPTER III RESEARCH METHOD
A. Research Design
This research is quantitative study, and its type is a hypothesis testing. Sekaran 2003 states that studies engage in hypothesis testing usually explain the
nature of certain relationships, or establish the differences among groups or the independence of two or more factors in a situation.
B. Population, Sample, and Sampling Technique
Population refers to the entire group of people, events, or things of interest that the researcher wishes to investigate Sekaran 2003. The population in this
research is the employees who participate in the budget setting process of local government Surakarta. In the process of local government budget setting,
participation from each of institution units Satuan Kerja Perangkat Daerah SKPD are needed, because they should be arranged the budget program planning
Rencana Kegiatan AnggaranRKA for their units. Here, researcher chose the managers of institution units SKPD of local government of Surakarta that
participate in the budget setting process of local government Surakarta, who has role in the units to decide the budget as respondent.
