The Effect Of Organizational Commitment, Leadership Style, And Organizational Culture On The Relationship Between Budget Participation And Managerial Performance (Empirical Study Of SKPD Gayo Lues Regency)

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The Effect of Organizational Commitment, Leadership Style, and Organizational Culture on the Relationship Between Budget Participation and Managerial Performance (Empirical Study of SKPD Gayo Lues Regency)

Introduction

In the realm of public administration, effective budget management is crucial for the success of any organization. The Gayo Lues Regency Government Office, like many other government institutions, faces the challenge of managing its budget efficiently. One of the key factors that can influence budget management is the level of participation of managers in the budgeting process, also known as budget participation. This study aims to empirically investigate the effect of budget participation on managerial performance in the Gayo Lues Regency Government Office. Furthermore, this research also seeks to examine the moderating effect of organizational commitment, leadership style, and organizational culture on the relationship between budget participation and managerial performance.

Methodology

The population studied in this research consisted of all elements of leadership involved in the budgeting process in the Regional Work Unit (SKPD), which included the Head of Agency, Head of Service, Secretary, and Head of Sub-Field or Sub-Section. The sampling technique used was the census method, where all relevant population elements were examined. Data analysis tools used included testing validity, reliability testing, and testing classic models assumptions. The analysis method applied to test the hypothesis was multiple linear regression.

Results

The results of this study showed that budget participation had a positive and significant influence on managerial performance. This means that the higher the level of budget participation carried out, the better the managerial performance achieved. However, there were interesting findings that organizational commitment and organizational culture functioned to weaken the effect of budget participation on managerial performance. On the other hand, the leadership style was proven to be able to strengthen the effect of budget participation on managerial performance.

Discussion

The positive influence of budget participation on managerial performance can be understood from the perspective of motivation and involvement. When managers are involved in the budgeting process, they feel they have control and responsibility for the decisions taken. This encourages them to be more committed in carrying out their duties and achieving organizational goals. Conversely, low organizational commitment can reduce individual motivation in taking part in budgeting, thus impacting lower managerial performance. Organizational culture that does not support collaboration and participation can also create a less productive work environment.

In this context, effective leaders need to create an organizational culture that supports participation and commitment, in order to improve overall managerial performance. A positive leadership style is a key factor in increasing budget participation. Communicative leaders and prioritizing the involvement of subordinates tends to create a pleasant working atmosphere, thus encouraging active participation in the budgeting process. Thus, it is important for leaders in the SKPD to continue to develop an inclusive and open leadership style of input from team members.

Conclusion

Overall, this research shows that there is a complex relationship between budget participation and managerial performance, which is influenced by external factors such as organizational commitment, organizational culture, and leadership style. This finding can be a reference for policy makers in developing a more effective budget management strategy in the government environment. By understanding the moderating effect of these factors, government institutions can design and implement policies that promote budget participation and improve managerial performance.

Recommendations

Based on the findings of this study, the following recommendations are made:

  1. Develop an inclusive and open leadership style: Leaders in the SKPD should continue to develop an inclusive and open leadership style that encourages participation and commitment from team members.
  2. Create an organizational culture that supports collaboration and participation: The SKPD should create an organizational culture that supports collaboration and participation, in order to improve overall managerial performance.
  3. Promote budget participation: The SKPD should promote budget participation among managers, in order to improve managerial performance.
  4. Develop a more effective budget management strategy: The SKPD should develop a more effective budget management strategy that takes into account the moderating effect of organizational commitment, leadership style, and organizational culture.

Limitations

This study has several limitations that should be noted. Firstly, the study was conducted in a single government institution, which may limit the generalizability of the findings. Secondly, the study used a cross-sectional design, which may not capture the dynamic nature of budget participation and managerial performance. Finally, the study relied on self-reported data, which may be subject to biases and errors.

Future Research Directions

Future research should aim to replicate this study in other government institutions, in order to increase the generalizability of the findings. Additionally, future research should use a longitudinal design to capture the dynamic nature of budget participation and managerial performance. Finally, future research should use objective measures of budget participation and managerial performance, in order to reduce biases and errors.

References

  • [List of references cited in the study]

Appendix

  • [Appendix materials, such as additional tables and figures, that support the findings of the study]
    Frequently Asked Questions (FAQs) About the Effect of Organizational Commitment, Leadership Style, and Organizational Culture on the Relationship Between Budget Participation and Managerial Performance

Q: What is the main objective of this study?

A: The main objective of this study is to empirically investigate the effect of budget participation on managerial performance in the Gayo Lues Regency Government Office, and to examine the moderating effect of organizational commitment, leadership style, and organizational culture on the relationship between budget participation and managerial performance.

Q: What is budget participation, and how does it affect managerial performance?

A: Budget participation refers to the level of involvement of managers in the budgeting process. The study found that budget participation has a positive and significant influence on managerial performance, meaning that the higher the level of budget participation, the better the managerial performance achieved.

Q: What is the role of organizational commitment in the relationship between budget participation and managerial performance?

A: Organizational commitment refers to the degree to which employees are committed to their organization. The study found that organizational commitment functions to weaken the effect of budget participation on managerial performance, meaning that low organizational commitment can reduce individual motivation in taking part in budgeting, thus impacting lower managerial performance.

Q: What is the role of leadership style in the relationship between budget participation and managerial performance?

A: Leadership style refers to the way in which leaders lead their teams. The study found that a positive leadership style is a key factor in increasing budget participation, and that it can strengthen the effect of budget participation on managerial performance.

Q: What is the role of organizational culture in the relationship between budget participation and managerial performance?

A: Organizational culture refers to the values, norms, and practices that are shared by members of an organization. The study found that organizational culture that does not support collaboration and participation can create a less productive work environment, and that it can weaken the effect of budget participation on managerial performance.

Q: What are the implications of this study for policy makers?

A: The study has several implications for policy makers. Firstly, it suggests that budget participation is a key factor in improving managerial performance, and that policy makers should promote budget participation among managers. Secondly, it suggests that organizational commitment, leadership style, and organizational culture are important factors that can influence the relationship between budget participation and managerial performance, and that policy makers should take these factors into account when designing and implementing policies.

Q: What are the limitations of this study?

A: The study has several limitations. Firstly, it was conducted in a single government institution, which may limit the generalizability of the findings. Secondly, it used a cross-sectional design, which may not capture the dynamic nature of budget participation and managerial performance. Finally, it relied on self-reported data, which may be subject to biases and errors.

Q: What are the future research directions?

A: Future research should aim to replicate this study in other government institutions, in order to increase the generalizability of the findings. Additionally, future research should use a longitudinal design to capture the dynamic nature of budget participation and managerial performance. Finally, future research should use objective measures of budget participation and managerial performance, in order to reduce biases and errors.

Q: What are the practical implications of this study for managers and leaders?

A: The study has several practical implications for managers and leaders. Firstly, it suggests that budget participation is a key factor in improving managerial performance, and that managers and leaders should promote budget participation among their team members. Secondly, it suggests that organizational commitment, leadership style, and organizational culture are important factors that can influence the relationship between budget participation and managerial performance, and that managers and leaders should take these factors into account when leading their teams.

Q: What are the implications of this study for education and training?

A: The study has several implications for education and training. Firstly, it suggests that education and training programs should focus on developing the skills and competencies of managers and leaders, in order to improve their ability to promote budget participation and improve managerial performance. Secondly, it suggests that education and training programs should take into account the moderating effect of organizational commitment, leadership style, and organizational culture on the relationship between budget participation and managerial performance.