The Effect of Budgeting Towards Managerial Performance
I.B Made Putra Manuaba (a*), L.G.P Sri Ekajayanti (b), I Kt Puja Wirya Sanjaya (c)

Fakultas Ekonomi dan Bisnis, Universitas Warmadewa, Denpasar
info[at]warmadewa.ac.id

Abstract

The involvement of personnel in the budget preparation process provide the accuracy that can be used as a standard in performance assessments. The participation of managers in motivating subordinates to improve company performance is vital. High level of organizational commitment supports performance measurement system, which is a management tool used to improve the quality of decision making and accountability. With the performance measurement, the company is expected to survive, develop, and cope with competition. This study aims to determine the effect of budgetary participation, organizational commitment, and motivation and performance measurement systems on managerial performance in four star hotels within Badung Regency. A total of 90 four star hotels forms the population of this study. Also, the study used random samplingand multiple linear regression analysis to analyze data. The results showed that (1) Participation in budgeting has a positive and significant effect on managerial performance, with a sig t value of 0,000 <0.05. (2) Organizational commitment has a positive and significant effect on managerial performance, with a sig t value of 0,000 <0.05. (3) Motivation has a positive and significant effect on managerial performance, with a sig t value of 0.022 <0.05. (4) The performance measurement system has a positive and significant effect on managerial performance, with a sig t value of 0.006 <0.05.

Keywords: Participation in Budgeting- Organizational Commitment- Motivation- Performance Measurement Systems- Managerial Performance

Topic: Humanities