commit to user 10
Figure 1 Local Government Budgeting Arrangement Cycle
source: Kawedar, Rohman Handayani 2008
2. Budgetary participation
Budgetary participation refers to the extent to which manager participate in preparing the budget and influence the budget goals of their responsibility center
Kennis 1979. According to Brownell 1986, budgetary participation is defined as a process whereby subordinates are given an opportunity to get involved in and
have influence on the budget setting process. Budgetary participation also can be
TAPD
MoU between the Legislative Chairman and Major of the city
Discussed with
DPRD
RPJMD
RKA-SKPD
KUA
Renja SKPD
Guidance Of RKA SKPD
Arrangement
PPAS
Renstra SKPD
RKPD RPJM
RAPERDA APBD
5 years 5 years
5 years 1 year
1 year
1 year 1 year
1 year
RKP
commit to user 11
refers to the budget process planning in which managers who are involved to decision making from the information exchange in their organization Shields and
Shields, 1998. Participative budgeting gives an opportunity for managers to involve in
budget arrangement. Generally, the whole of budget goals should be communicated to managers who will help to expand the budget to fulfill the goal.
In budget arrangement, programs were translated by manager responsibility in conducting the program or part of the program. Basically, budget arrangement is a
decision process of the role of each manager in conducting the programs. Budgetary participation in public sector occurred when among legislative,
executive, and society cooperate in budget formulation process. Budget made by Chief of local government which the proposal come from institution units that
made by manager unit. Those, each institution unit of local government should be involved in budgeting process. It means more employees have allowed
participating in budgetary activities. Many authors have suggested that participation in setting budgetary goals
encourages managers to identify with the goals, accept them more fully and work toward their achievement. It is argued that budgetary participation provides an
avenue for subordinates to communicate their private information to organizational decision-makers and the opportunity to obtain job-relevant
information to assist their decision-making Chong and Chong 2002.
commit to user 12
The degree of budget participation developed by Milani 1975 can be measured from the 6 six perception of:
a. The portion of the budget the employee involved in setting; b. The kind of reasoning provided to the employee by a superior when the
budget is revised; c. The frequency of budget-related discussions initiated by the employee;
d. The amount of the influence the employee felt he has on the final budget; e. The important of the employee’s contribution to the budget; and
f. The frequency of budget-related discussions initiated by the employee’s superior when budget are being set.
Sord and Welsch in Sardjito and Muthaher 2007 suggests that the higher participation would result higher good morality and initiative. Participation in
budgeting activities showed a positive significant influence to employees’ attitude, improve the production quantity and quality, and also improve the
coordination among managers. While the issue of whether higher levels of budgetary participation
enhance managers’ performance has been widely studied in the accounting literature, empirical findings to date have proved to be mixed Wentzel 2002.
Some studies found that budgetary participation is related to job performance and the relationship is positive Nouri and Parker 1998; Yuen 2007. Some studies
link the intervening variables such as motivation Brownell and McInnes, 1986, budget adequacy and organizational commitment Nouri and Parker, 1998 and
some studies link the moderator variables such as organization culture Sardjito
commit to user 13
and Muthaher 2007, managerial attitude and motivation Mia 1988. The results showed both a positive and negative relationship between budgetary participation
and job performance. Such inconsistent findings have prompted several researchers to examine the antecedent variables that affect job performance
indirectly during budgetary participation Yuen 2007. In this research will examine the need for achievement and work attitude as antecedent factors of
budgetary participation.
3. Need for achievement
Kategori